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THE RUBBER INDUSTRY IN BRAZIL
AND THE ORIENT

>!•• Ilcvca Brasilfensis, .MIRAKV, KIVKK

3 KKKT KKO.M THK GROUND 266 INCHES-

THE RUBBER INDUSTRY

IN BRAZIL AND THE ORIENT

C. E. AKERS

WITH TWENTY-SIX ILLUSTRATIONS AND TWO MAPS

METHUEN & CO. LTD.

36 ESSEX STREET W.C

LONDON

,/Vx
V"

J^Vrsi Published in 1914

CONTENTS

PART I
THE RUBBER INDUSTRY IN THE AMAZON VALLEY

CHAPTER PAGE

I. HISTORY AND GENERAL CONDITIONS - I '

II. LOCAL CHARACTERISTICS - - 15

VIII. THE PRINCIPAL RUBBER DISTRICTS - 26
IV. DISEASES AND PESTS COMMON TO RUBBER-TREES

IN BRAZIL - 40

V. THE LABOUR-SUPPLY - 5!

VI. TAPPING - - 64

VII. YIELD AND DENSITY OF LATEX - - 77

VIII. CURING AND PREPARATION OF RUBBER - - . QI

IX. COST OF PRODUCTION - - 105

X. A COMPARISON OF THE BRAZILIAN AND ORIENTAL

RUBBER INDUSTRIES - - Il8

PART II
THE RUBBER INDUSTRY IN THE ORIENT

XI. CEYLON - - I2Q

xii. CEYLON — continued - 145

""XIII. THE MALAY PENINSULA - - l66

xiv. THE MALAY PENINSULA — continued - 1 86

vi THE RUBBER INDUSTRY

CHAPTER PAGE

1 — XV. THE MALAY PENINSULA — Continued - 211

XVI. THE NETHERLANDS EAST INDIES I SUMATRA - 228
XVII. THE NETHERLANDS EAST INDIES: SUMATRA —

continued ... 244

XVIII. THE NETHERLANDS EAST INDIES : JAVA - 260

XIX. THE NETHERLANDS EAST INDIES: JAVA — COn-

tinued - - 276

XX. A BRIEF REVIEW OF THE ORIENTAL SITUATION 2QI

INDEX - - 305

LIST OF ILLUSTRATIONS

MAP OF BRAZIL - Front end-paper

A GIANT SPECIMEN OF " HEVEA BRASILIENSIS," MIRARY,

RIVER MADEIRA - Frontispiece

FACING PAGE

PORTO VELHO, RIVER MADEIRA, BRAZIL - IO

HAULING A BOAT OVER CATARACT AT LOW RIVER,

ABOVE SAN ANTONIO, RIVER MADEIRA - - 22

KARIPUN INDIANS, RIVER MADEIRA, BRAZIL - - 22

A RUBBER PROPERTY, RIVER MADEIRA - - 28

THE MADEIRA FALLS, BRAZIL - - 28
From " The Upper Reaches of the Amazon," by J. F. Woodroffe

MUTUM PARANA, MATTO GROSSO, BRAZIL - 34

RIO BENI, CACHUELA ESPERANZA, BOLIVIA - 34

KARIPUN INDIANS, RIVER MADEIRA, BRAZIL - 38

MATTO GROSSO, BRAZIL - 38

BOM FUTURO, RIVER MADEIRA, BRAZIL - 54

COLLECTING LATEX, RIVER MADEIRA - - 66
TAPPING RUBBER-TREE WITH THE MACHADINHA, RIVER

MADEIRA - - 66

INDIAN COOLIES TAPPING TREES IN THE PUBLIC

GARDENS AT PARA- - 72

vii

viii THE RUBBER INDUSTRY

FACING PAGB

FINISHING WATER-PROOF COVERINGS, RIVER GUAPORE,

MATTO GROSSO - - Q2

BALLS OF RUBBER (PELLES) - - Q2

A RUBBER PROPERTY, MATTO GROSSO - - - 96

SMOKING LATEX, RIVER MADEIRA 96

PLATFORM FOR DRYING CACAO, CACAUAL IMPERIAL - 124
CACAUAL GRANDE, RIVER AMAZON - 124

INTERIOR OF A RUBBER FACTORY IN CEYLON - 136

A RUBBER FACTORY IN CEYLON, SHOWING A PASSBERG

VACUUM DRYER - - l62

A RUBBER FACTORY IN CEYLON, SHOWING RUBBER

HANGING IN DRYING-SHED - - l62

AVENUE OF SEVEN-YEAR-OLD HEVEA TREES (CALEDONIA

ESTATE, PROVINCE WELLESLEY) - 170

From " Rubber," by Philip Schidrowitz, Ph.D., F.C.S.

A VIEW OVER PART OF BUKIT RAJAH - - 194

From " Rubber," by Philip Schidrowitz, Ph.D., F.C.S.

MAP OF MALAY, JAVA, AND SUMATRA - - Ettd end-paper

INTRODUCTION

A GREAT deal has been written concerning the
rubber plantations of the Orient and the phenom-
enal expansion that has taken place during the past
five years ; of the Amazon Valley industry, however,
very little information has been published, in spite of
the fact that it was the dominant feature in the rubber
situation of the world until the end of 1912. While it
is clear that Oriental developments have altered com-
pletely the conditions of production, the annual output
of the Amazon Valley is still a very important factor in
the market, and it will continue to be so for some time
to come, on account of the high quality of the latex
extracted from the thoroughly matured trees of Brazilian
forests. During my investigations as chief of the Com-
mission working in the Orient in 1911-12 in connection
with the conditions of the rubber industry, I was con-
fronted frequently by the erroneous impressions pre-
vailing amongst Eastern planters in regard to Brazilian
methods and resources ; I propose now to describe the
essential conditions so as to enable accurate deductions
to be drawn, and a correct comparison made between
the plantation industry of the East and the production
of wild rubber in the Amazon Valley. That the Orient
has still something to learn from Brazil is evidenced by

x THE RUBBER INDUSTRY

the efforts now afoot in both Ceylon and the Malay
Peninsula to manufacture fine hard smoke-cured rubber
to compete with the Para product. For the Brazilians
it is absolutely necessary to reach an intelligent appre-
ciation of the complete revolution in the rubber situation
created by the development of the Eastern industry
with the very important factors of cheap labour and
efficient and enterprising direction.

The amazing incidents connected with the rapid pro-
gress of the rubber industry in Ceylon and Malaya since
1908 partake more of the character of a fairy tale than
the plain facts of a nineteenth-century ordinary com-
mercial undertaking. From the position of a constant
struggle for a bare existence, owners of plantations
advanced suddenly to an era of most unprecedented
prosperity. Poverty gave place to wealth, and in all
directions the conditions of life were transformed with
an almost incredible swiftness.

The period of fabulous dividends has passed ; the
large increased production has brought into play the
natural result of a regulation of prices on the basis of
demand and supply. Lower values do not necessarily
imply any serious injury to properly-managed plantations
as industrial undertakings, but rather an adjustment of
the administration and costs of production to a standard
allowing a fair profit on the invested capital. The wild-
cat flotations brought out during the period of inflation
between 1909 and 1911 will be reorganized or disappear,
and the rubber industry of the Orient will settle down into
a sound, vigorous enterprise with every prospect of re-

INTRODUCTION xi

munerative and steady returns in regard to all properties
where the initial expenditure has been restrained within
conservative limits.

The Brazilian situation differs widely from that of the
Eastern plantations. The problems to be faced in the
Amazon Valley are a cheaper labour-supply, reduced
taxation, and better administration. On those three
factors depend the future existence of the Brazilian
rubber industry ; and unless some satisfactory solution
of these difficulties be found, the production will diminish
rapidly in the near future, and soon cease to influence
the world's market.

Looking back over the past five years, there can be
no doubt that the paramount difference between the
producers in the Orient and those of the Amazon
Valley has been that the former anticipated and made
ready for a fall in values, while the latter persistently
believed in higher prices. This attitude of the Brazilians
has left them unprepared to meet the serious effects of
Eastern competition, and the consequent shrinkage in
the money value of the output that was so marked a
feature during the year 1913. Trade prospects at the
great manufacturing centres of Europe and America
show signs of improvement, but they do not justify the
hope that any sudden increased demand for the raw
material will lead to a reversion of prices to the level of
1912 ; the available supplies from the Orient will more
than suffice to meet the void occasioned by the probable
diminution in the production of wild rubber from Africa
and other countries, and in the circumstances the most

xiv THE RUBBER INDUSTRY

the Orient ; therefore the price must eventually adjust
itself, no matter how great may be the fluctuations in
the immediate future.

Three factors will exercise an important influence
over the future of the rubber market. The first is the
advent of the steel wire wound or webbed tyre for
motor-cars; after long research, a system has been
found for the manufacture of these tyres with the re-
quired resiliency at one-third the cost of the rubber
tyre. The second is that synthetic rubber will become
a commercial possibility at no distant date. The third
is the amount of reformed rubber that will result from
the largely increased production of the crude material.

C. E. AKERS.

February, 1914.

INTRODUCTION

NOTE

IN all considerations of the rubber industry in the
Orient, the value of the currency unit is a most impor-
tant factor ; on it depends to a great extent the cost in
sterling of every pound of rubber produced. The num-
ber of cents for the daily wage rate varies very slightly
in the different centres of production, no matter if the
unit be rupees, dollars, or guilders ; but the influence of
the monetary unit on the aggregate annual expenditure
is one of the most prominent features in the situation.

In regard to the countries dealt with in this volume,
the following standard of values should be kept in mind
for all purposes of comparison :

Country.

Unit.

Sterling Value.

i. Ceylon and India
2. Malay Peninsula
3. Sumatra
4- Java

Rupee
Dollar
Guilder or florin
Guilder or florin

16 pence

28 „

20 „
20 „

PART I

THE RUBBER INDUSTRY OF THE
AMAZON VALLEY

CHAPTER I
HISTORY AND GENERAL CONDITIONS

Origin of the Brazilian rubber industry — First steps in manu-
facture of rubber articles— Discovery of vulcanization— Varieties
of Hevca — Castilloa or caitcho — Hevea Brasiliensis the mainstay
of the Amazon industry— Superiority of the black Hevea— The
white Hevea — Itapiru and Bariguda — Different qualities of
rubber — Output and classification for season ending June 30,
1913— Rubber from Ceara — Total Brazilian shipments— Area of
rubber-producing lands in the Amazon Valley — Principal affluents
of the Amazon — Rubber the only important industry in the
Amazon Valley — Forest vegetation — Varieties of timber — Slight
fall in gradient of rivers— Strong currents— Rivers fed by melting
snows from the Andes — Annual rise in the water-level — Inundations
and agricultural enterprise— Lands above flood-level— Variations
of temperature — Dry and wet seasons — Rainfall — Climatic diseases
— Malaria — Beri-beri — Yellow fever — Difficulty of enforcing sani-
tation measures— Anaemic condition of inhabitants— Classification
of population.

THE origin of the Brazilian rubber industry can be
traced back for several centuries, to a period when
the Indian population of the Amazon Valley made
use of the gum for various domestic purposes. As far
back as 1536 mention is made by Orviedo y Valle, in
his " Historia Universal de las Indias," published at

2 , THE RUBBER INDUSTRY

Madrid in that year, of different articles manufactured
from the coagulated latex of the rubber-tree by the
Amazonian Indians. In 1734 La Condamine was sent
by the Paris Academy in charge of a scientific expedi-
tion to the Equator, and in 1736 he forwarded to Paris
a small quantity of rubber under the designation of
" caoutchouc," giving a description of the uses to which
it was put. To the species of tree from which this
rubber was obtained La Condamine gave the name of
heve, a word of Indian derivation, and this later was
transformed into hevea, a term covering the many
varieties providing the principal source of production
in Brazil and the Orient at the present time. In 1770
Priestly discovered that caoutchouc would erase pencil-
marks from paper, and hence arose its common name
of indiarubber.

In 1823 the first important step was made towards
the application of rubber for practical purposes in
Europe. In that year Charles Mclntosh discovered
that it was soluble in benzine, and he applied this
knowledge to the manufacture of waterproof coats and
other rain-resisting articles. A few years later, in 1832,
the firm of Chaffee and Haskins founded the Roxbury
Indiarubber Company in the United States for making
waterproof materials. It was in connection with this
latter enterprise that a chemist named Charles Good-
year, after many experiments, proved that a mixture of
sulphur with rubber rendered the latter capable of
resisting great extremes of cold and heat, and this
process, subsequently known as " vulcanization," was
adopted generally in the manufacture of all classes of
rubber goods.

HISTORY AND GENERAL CONDITIONS 3

It is from the various species of the Hevea that the
greater part of the rubber of the Amazon Valley is
obtained. Of these, some seventeen varieties are
known to exist, the most common being the Hevea
Brasiliensis, the Hevea Guayanensis, and the Hevea
spruceana. The Castilloa elastica, yielding the product
known locally as caucho, as distinct from goma, or
rubber, is found principally on the higher reaches of
the Amazon tributaries, and of recent years has pro-
vided one-fifth of the total rubber exports from Brazil.

The mainstay of the Amazon Valley industry is the
Hevea Brasiliensis, the three varieties most in evidence
being the black (preta), the white (branca), and the red
(vermelho). Broadly speaking, it may be said that the
white and red species belong more particularly to the
districts of the Lower Amazon and its feeders ; the
black to the upper rivers and the territories adjoining
the frontier of Bolivia, and also in certain sections of
that country. In this latter area are found also trees
of the white and red variety, the former in greater
abundance than the latter.

It is from the latex of the black Hevea that the
finest rubber is prepared, and when free from impuri-
ties, and without any addition of latex from other
varieties, it is undoubtedly of exceptional value on
account of its high standard of resiliency. The best
quality of this rubber is classified as "fine hard Para,"
the lower grade being placed on the market as entre
fina. The tree grows to a great size in girth and
height, and yields freely, the latex being of high
density, and easily, although slowly, coagulated by the
smoke of the Urucury nuts employed for this purpose.

4 THE RUBBER INDUSTRY

Tests made with acetic acid show that fifteen to
twenty minutes are required before coagulation takes
place.

From the white Hevea the rubber obtained is desig-
nated locally as fraca (weak). It is, however, of good
quality, and the fraca fina and fine island grades sell
readily at only 20 per cent, less value than fine hard
Para. It has less resiliency than the product of the
black Hevea, and, as a general rule, less care is taken
in its manufacture, with the result that the percentage
of impurities is greater than is the case with the rubber
from the upper rivers. The latex from the Itapiru
(Hevea Guayanensis) and the Bariguda (Hevea spru-
ceana) is mixed frequently with that from the white
Hevea whenever those varieties are plentiful in the
neighbourhood.

The latex of the red Hevea reaches the market in
a condition locally qualified as " soft." It does not
coagulate as freely as the black and white species, and
contains a greater percentage of moisture than the
other two varieties when forwarded for shipment, the
consequence being a lower selling value.

Scrap, or sernamby, is an unavoidable by-product, in
more or less degree, of all classes of rubber, and it
forms a considerable proportion of the total export
from the Amazon Valley, often representing 15 per
cent, of the annual shipments. In the upper rivers
the scrap comprises only the unavoidable cup coagula-
tions and the lump formed when the latex is being
brought in to the smoking-house ; but in many dis-
tricts of the Lower Amazon the latex is allowed to
remain purposely in the cups until coagulation has

HISTORY AND GENERAL CONDITIONS 5

taken place, and is then collected and shipped without
undergoing any curative process.

The gum of the Castilloa elastica is dealt with in
the markets of Manaos and Para under the designation
of caucho, but appears in the export returns as part of
the rubber shipments. It is obtained from the upper
river districts in Brazilian territory, and from Peru and
Bolivia. It formed in 1913 more than 23 per cent, of
the total rubber exports from the Amazon Valley ; but
it is unlikely that this proportion will be maintained in
future, for, apart from the deterrent effect of a very low
market price, the method of collection entails cutting
down the trees to obtain the latex, and the consequent
destruction of the source of supply.

The total output of all grades of rubber from the
Amazon Valley for the twelve months ending June 30,
1913, was 43,362 tons. Of this amount, 31,362 tons
was produced on the upper rivers, including Bolivia
and Peru, and 12,000 tons in the districts of the Lower
Amazon and its tributaries. The percentages and
quantities of all classes for this period were —

Grade. ,

Tons.

Percentage of Total.

I. Fine hard Para
2. Entre Fina and Fraca...
3. Sernamby
4. Caucho (Castilloa)

Total

16,971
8,860
7,400
10,131

39-12
20-44
17-07
23-37

43,362 lOO'OO

Outside the Amazon Valley the Brazilian shipments
were 4,000 tons, in round figures, chiefly of the manihot
varieties, produced in Ceara and the adjacent States.

6 THE RUBBER INDUSTRY

Therefore the total Brazilian crop for the year ending
I June 30, 1913, was 47,000 tons, equal to 40 per cent, of
j the world's production.

In order to understand the general conditions con-
nected with the rubber industry of the Amazon Valley,
it is necessary to realize and appreciate the vast area
covered by the rubber-producing districts. It extends
from the Atlantic seaboard on the east, and on the west
to the southern boundary of Colombia, at a point not
more than 150 miles in a direct line from the Pacific
Ocean, a total distance of some 3,000 miles. As far as
Iquitos in Peru, 2,400 miles from the Atlantic coast,
a regular service of steamers is maintained from Liver-
pool by the Booth Steamship Company, and beyond
that place the waterways are navigable for small craft
for some hundreds of miles. The valley formed by the
Amazon and its numerous tributaries is fan-shaped,
with the apex situated 100 miles to the east of Para,
where the river discharges into the Atlantic. At the
delta of the river the valley is some 200 miles wide,
and then it broadens out rapidly until reaching the
foot-hills of the Andes, where the extreme width exceeds
1,500 miles. This great area covers 2,400,000 square
miles approximately, and, in addition to Brazilian
territory, it embraces large sections of Bolivia, Co-
lombia, Ecuador, and Peru. A rough calculation
computes the waterways of the main rivers and their
tributaries navigable for ocean steamers and river craft
at 30,000 miles. These waterways, in addition to the
Amazon, include to the south the Rivers Tocantins,
Xingu, Tapajoz, Madeira, Madre de Dios, Beni,
Guapore, Marmora", Araguaya, Purus, Aquiry, Jurua,

HISTORY AND GENERAL CONDITIONS 7

Javary, Ucayali, Maranon, and many others ; to the
north the principal rivers are the Jary, Pary, Trom-
petas, Rio Negro, Rio Branco, Yapura, Napo, and
many less important streams too numerous to chronicle.
It "is on the banks of these rivers that the chief de-
velopment of the rubber industry has taken place during
the last quarter of a century, the annual output during
that period having increased from 10,000 to 43,000 .
tons. Throughout this enormous territory the only
established industry of real importance since 1880 has
been the collection and shipment of rubber. Minor
enterprises, such as the cultivation of cacao and the
collection of cinchona bark, were carried on to some
extent in certain districts, but of recent years these
declined to such small proportions that they ceased to
be a factor calling for any serious attention.

Heavy forest growth is the characteristic feature of
the vegetation of the whole Amazon Valley. In a few dis-
tricts a comparatively limited area of savanas, or open
grasslands, are found; but these are confined princi-
pally to the country adjacent to the Rio Branco on the
north and the Rio Beni to the south-west, the latter
lying within the boundaries of Bolivia. These great
forests contain quantities of fine timber trees, some of
the most valuable being red cedar, sandalwood, lance-
wood, and many varieties of fine hard woods. In spite
of the abundance of the supply, no systematic effort
has been made as yet to tap this source of natural
wealth. Climatic conditions, difficulties and cost of
transport, and lack of energy on the part of the
population, have prevented these virgin forests being
exploited hitherto, but in future years they will become

8 THE RUBBER INDUSTRY

an important factor in the lumber industry of the
world. It is in these forests that the many varieties
of rubber-yielding trees are found, but no accurate
information as to the number is available. There is
not the smallest doubt that the total runs into hun-
dreds of millions, and for practical purposes may be
considered inexhaustible ; but the supply of latex for
the manufacture of rubber for export is controlled by
the lack of any large labouring population, and by the
cost of collection and carriage to the river-banks for
transport to any commercial market.

One most remarkable fact in connection with the
waterways of the Amazon Valley is the very insignifi-
cant gradient of the rivers. The fall seldom exceeds
10 feet in 100 miles. The difference between sea-level
on the Atlantic coast and Iquitos, 2,400 miles inland,
is less than 200 feet, or approximately 0*0000015 Per
cent. In spite of this very slight difference in levels,
the average current in the main river and its tributaries
in normal seasons is at the rate of four miles an hour,
increasing to a noticeable degree in times of flood.
This strong current is accounted for by the discharge
of water from the melting of the snow in the Andine
ranges, and the enormous accumulations of rain-water
in the basin through which the upper rivers take their
course.

The melting of the snow in the Cordillera of the
Andes and the heaviest rainfall take place con-
currently during a period extending from the middle
of November to the end of March in each twelve
months, and it is then that the volume of water in
the river channels attains its maximum height. The

HISTORY AND GENERAL CONDITIONS 9

absence of any adequate gradient between the districts
of the interior and the seaboard impedes the rapid
discharge of these additional waters, and consequently
the rise in the water-level is phenomenal through-
out all sections of the Amazon Valley. In the season
1912-13, at Porto Velho, 1,600 miles inland, the River
Madeira rose nearly 50 feet from the lowest point ; at
Manaos, distant 1,000 miles from the sea-coast, the rise
was 45 feet. Even in the main body of the Amazon,
between Manaos and Para, the differences of the water-
level were from 12 to 20 feet. In these periods of flood
the country is inundated for many miles from the
river-banks, and frequently is under water until the
beginning of May. The impossibility of controlling
these annual floods is one of the greatest difficulties
in the way of any successful colonization and the
establishment of permanent agricultural and industrial
enterprises. Owing to these conditions, agricultural
operations can be attempted only during some five
months of the year, and therefore all efforts at cultiva-
tion must be confined to crops coming quickly to
maturity, or such trees and plants as can resist the
effects of being constantly in water for months at a
time. In nearly all districts of the Amazon Valley
there exist certain lands above the annual flood-level ;
but as a rule the soil on these higher sections is of
poorer quality than on the flat, and they lie some miles
from the river, thus necessitating the construction of
costly roadways to maintain communication and trans-
port produce during the period of the inundations.
Indeed, the cost of any such work would be pro-
hibitive ; for, to be effective, a causeway above the

THE RUBBER INDUSTRY

flood-level would be required, and to build anything of
the kind in a country where stone is rarely found would
entail an expenditure out of all proportion to any
possible results to be obtained from a colonization or
agricultural standpoint.

In such a vast extension of territory as that com-
prised within the area embraced by the Amazon Valley,
considerable difference of climate must necessarily
exist ; but throughout a very large section, more
especially in those districts where rubber-yielding trees
are most abundant, the variations of temperature are
not so great as might be expected. In the portion of
the Amazon Valley situated between the Atlantic coast
and Porto Velho, a distance of 1,600 miles, the follow-
ing results were obtained as the average maximum and
minimum records, extending over a period of the five
years from 1907 to 1912 :

Average Fahrenheit.

Absolute Fahrenheit.

Location

Max.

Min.

Max.

Min.

i. Porto Velho (River

Madeira)

857

67*5

98-0

58-0

2. Manaos (River Negro)
3. Obidos (River Ama-

937

72-3

98-2

66-2

zon)

87-8

69-8

97'5

65*0

4. Government Farm 100

miles east from Para

87-8

687

92-1

62-6

5- Para

89-2

7I-6

95*9

, 66-5

No accurate statistics are available to determine any
variations at other points ; but the deductions to be
drawn from occasional reports and observations are

>RTO VEI.HO, RIVER MADEIRA. BRAZIL

I'ORTO VEI.HO, RIVER MADEIRA, I'.RAZII.

HISTORY AND GENERAL CONDITIONS n

that the differences are unimportant, except in the
vicinity of the foot-hills of the Andes, where at the
higher elevation above sea-level lower temperatures
occur, especially at night-time.

For practical purposes the year in the Amazon
Valley may be divided into the dry and the wet seasons.
The former covers the months of May to October ; the
latter extends from November to April. The rainfall
varies to a marked degree in different sections, owing
to the existence of the Tumuc Humac and other
mountain ranges on the southern borders of the
Guianas. These mountains precipitate the rainfall
before it reaches the north-eastern part of the Amazon
Valley, the effect being particularly noticeable through-
out a section of some 500 miles from east to west, of
which Manaos and Obidos are the two principal points.
Outside the influence of these northern mountain
ranges the rainfall is comparatively equable. Reliable
records of the meteorological conditions are available
at five points only. In 1911 these observations showed
the following precipitations :

Location.

Rainfall in Inches.

i Para

2. Government Farm at Igarape-Assu ...

94
e-i

4. Madeira-Mai-more* Railway, Porto Velho

6-?

These figures give an annual average of 58 inches
for the dry sections affected by the Guiana Mountains,
and 99*33 inches for the districts free from that in-
fluence. From notes taken in connection with the

12 THE RUBBER INDUSTRY

Rivers Beni, Purtis, and Jurua, and the Acre division
of Brazilian territory, there is little doubt that the
average of 99 inches is applicable equally to those
sections of Bolivia and Brazil, and may be taken
approximately as the basis generally in the Amazon
Valley. The maximum rainfall recorded in 1911 was
4*70 inches in twenty-four hours, at Porto Velho. At
the same place the average for five years, from July i,
1907, to June 30, 1912, was I03'96 inches.

The moist heat prevalent throughout the Amazon
Valley is conducive to the many climatic diseases
common to tropical zones. Mosquitoes, flies, and many
other insects, constitute a pest and cause of infection
difficult to resist. Malaria, blackwater fever, and
similar forms of illness, are constantly in evidence.
Beri-beri and dysentery are common evils. Yellow
fever has been stamped out of Para, and the necessary
sanitary measures have been taken to eradicate this
plague from Manaos, where it has been endemic for
many years past. Except in the more populous centres,
such as Para, Manaos, Iquitos, and a few other places,
it is a practical impossibility to grapple with the
question of sanitation in the Amazon Valley. With
a scanty population scattered over an enormous area,
there is probably less than one inhabitant to the square
mile ; and to establish any effective system of medical
assistance, dispensaries or hospitals, is out of the ques-
tion under existing conditions. Something can be
done to improve the welfare of the dwellers in the
various small towns and villages, but this can be carried
out only at a very heavy cost, and will require years of
steady effort to achieve. To go farther, and attempt

HISTORY AND GENERAL CONDITIONS 13

to enforce public hygiene and adequate medical super-
vision throughout the districts of the Amazon and its
tributaries, is only to court disaster and waste immense
sums of money for no useful purpose. A large pro-
portion of the population suffers from anaemia, induced
partly by climatic causes, and partly by the poor
quality and little variety of the food. The result of
this widespread anaemic condition of the people is a
lack of energy in regard to all work, especially amongst
the European inhabitants, and a general apathy in
regard to all present or future development of the
great natural resources of the country.

As an indication of the effect of climatic diseases
on the working population, the case of the Madeira-
Marmore* Railway may be cited. From June, 1907, to
December, 1912, the pay-rolls show 13,186 men em-
ployed, and 1,238 deaths, principally due to malaria.

No proper census of the population of the Amazon
Valley has ever been taken, and the figures quoted in
official returns from time to time are guesswork made
by irresponsible persons at different points on the
principal rivers. Probably the total number of inhabi-
tants is about 900,000 approximately, comprising some
250,000 whites or their descendants, with a certain
mixture of Indian blood ; 450,000 negroes and mulat-
toes ; and 200,000 domesticated and wild Indians. The
white population comprises the descendants of Portu-
guese and Spanish settlers, and the results of inter-*
marriage with native Indian women ; Brazilians,
Bolivians, Colombians, Ecuadorians, and Peruvians,
who have drifted to the Amazon Valley from other
sections of South America ; and European immigrants

14 THE RUBBER INDUSTRY

from Portugal and Spain, and a few from Italy.
Except in the cities of Mandos, Para, and Iquitos, or
in connection with railway enterprises at Porto Velho
or elsewhere, persons of British, American, French, or
German nationality are met with only on rare occa-
sions. The negro and mulatto part of the population
owes its origin to the former slaves, and to the immi-
grants from the States of Ceard, Rio Grande del
Norte, Parahyba, and Maranhao, who have been
brought to the Amazon Valley as labourers, or come
there on their own account owing to the attraction of
high wages in connection with the rubber industry.
A small number of negroes from Barbadoes and other
West Indian islands are found also in various districts.
The number of native domesticated Indians is not
large, and they are established principally in Bolivian
and Peruvian territory. The wild Indians are an
unknown factor. They are nomads, and they live in
the interior of the forests for the most part, only
coming temporarily to the principal rivers on fishing
expeditions or for trading purposes. As far as possible,
they avoid all contact with the civilized portion of the
community.

CHAPTER II
LOCAL CHARACTERISTICS

Land tenure — Origin of Brazilian titles to real estate — Absence
of any survey of properties — Small value of real estates as security
for loans— Characteristic features of the soil— Possible future
development — Tax on land transfer — Export and import duties
— Federal and State contributions — Political relations of Federal
and State Governments — The waterways of the Amazon Valley —
Impediments to navigation— Means of communication and social
life — Exchange and industrial enterprise.

THE tenure of land in the Amazon Valley is on a
very unsatisfactory basis ; in the great majority of
properties the title is defective, and practically always
open to dispute in regard to boundaries whenever a
transfer of ownership takes place. The titles of rural
real estate so far as Brazil is concerned may be classified
under six separate headings. These are — (i) Old grants
issued by the Portuguese Crown during the colonial
period ; (2) grants given under the Empire ; (3) con-
cessions sanctioned after the establishment of the
Republic in 1889; (4) lands sold or conceded for a
nominal consideration by the authorities of the States
of Para, Amazonas, and Matto Grosso; (5) lands
purchased outright from the National or State Govern-
ment; and (6) lands acquired by occupation under
the conditions of settlers' rights.

With the exception of a very few properties owned
by foreigners or in the hands of foreign syndicates, no

16 THE RUBBER INDUSTRY

attempt has been made to survey the lands held under
the various classes of title by which ownership is
claimed. Boundaries are defined by a certain length
of frontage to a river, with imaginary lines running
inland for so many leagues or kilometres, or occasion-
ally from a point on the river to a hill in the back-
ground, thence to some other prominent physical
feature and back to the river-bank. This condition of
affairs naturally leads to frequent disputes, especially
in districts rich in rubber-yielding trees ; but the area of
land is so vast and the population of such scanty pro-
portions that resource to litigation is almost unknown.
Might is right in most cases where these boundary
disputes arise, and the privileges of possession must be
maintained by force or abandoned to the successful
intruder. Many of these properties nominally com-
prise areas of several hundreds of square miles, and
it happens frequently that large sections have been
left unexplored by the owners.

In such circumstances, titles to real estate possess
small value as negotiable securities for commercial
purposes. They are not assets against which bankers
or merchants are justified in making advances of money,
and are only accepted as additional security in cases
where loans are contracted to enable the crop of rubber
to be harvested under conditions entailing the shipment
of the year's produce to the creditor for sale in Manaos
or Para, or for export to Europe or the United States.
This uncertainty in regard to the tenure of land has
been one of the principal drawbacks in the past to the
acquisition to any great extent of real estate by foreign
syndicates, and has proved a serious obstacle to the

LOCAL CHARACTERISTICS 17

rapid development of the Amazon Valley, especially in
connection with properties held under the three first
headings enumerated. In the case of lands conceded
for a nominal consideration by the Brazilian State
Governments, the accompanying conditions, as a rule,
are not easy to fulfil in the exact terms of the wording
of the grant ; hence the title is open to dispute in nearly
all such concessions whenever political considerations
are strong enough to provoke a hostile attitude on the
part of the authorities.

The soil in the Amazon Valley varies to some extent
in the different districts, but speaking broadly it may
be described as a red or yellow clay subsoil covered
with a considerable depth of vegetable mould, this layer
of humus being particularly rich in organic matter. On
the foreshore of all the principal rivers, after the
subsidence of the annual inundations, a deposit of silt
from two to three feet in depth is left by the falling
waters, and this is of surprising fertility. If a com-
parison be made of the river-banks of the waterways of
the Amazon Valley and those of the Nile, the con-
ditions for cultivation are distinctly in favour of the
former. The lack of population is the only reason why
advantage is not taken of the extraordinarily productive
qualities of these deposits to cultivate many classes of
tropical cereals and other suitable crops. If at some
future period adequate methods are established for
controlling the waters of these rivers for irrigation
purposes, and securing the riparian lands from inunda-
tion, the Amazon Valley may develop into one of the
greatest centres of tropical agriculture throughout the
world, and it may become the outlet for the surplus

i8 THE RUBBER INDUSTRY

millions in China and other densely-populated countries
in Asia and elsewhere.

On land sales a tax of 6 per cent, is levied, but other
direct contributions are not onerous, the principal
impost being a small charge in proportion to the
number of rubber -trees tapped by the collectors
employed on each of the various properties. Indirect
taxation, on the other hand, is exceptionally heavy, and
takes the form of duties on all rubber exported and on
merchandise brought into the country. This export
duty up to the end of 1913 was at the rate of 20 per
cent, of the value on rubber produced in the States of
Pard and in the national territories, and 18 per cent,
for that from Amazonas ; but in January, 1914, the duty
was reduced to 18 per cent, in the case of Para and the
national territory, and a further diminution is promised.*
A duty of 8 per cent, is levied by Bolivia at present,
but a reduction in the immediate future is proposed.

The whole question of taxation is on a most unsatis-
factory basis as regards both the State and Federal
Governments. In the case of the former, the export
duties on rubber have yielded a large revenue of recent
years, and a costly and cumbrous administration has been
created as a result of the period of high prices from 1909
to 1912. Heavy public indebtedness has been contracted
without any compensating benefit to the State, and the
rubber industry is now called upon to bear the burden
of the extravagant expenditure incurred during the
last few years of unusual prosperity. In the present
situation of the rubber market, it is inevitable that the
State revenues must show a most serious falling off in

* Although the State of Para formally agreed to this reduction,
the lower rate had not come into force in April, 1914.

LOCAL CHARACTERISTICS ig

the near future ; and in the existing condition of severe
competition with Oriental production, it is doubtful if it
will be possible to levy any export duty at all on rubber
shipments in the near future if the industry is to survive
the crisis that has now overtaken it. Unless the pro-
ducers obtain certain measures of relief, they will be
ruined, and the whole fabric of the trade of the Amazon
Valley will be broken down ; but to give any appreciable
assistance the most drastic economies must be practised
by the local administrations, and these are extremely
difficult to effect at the present time.

All duties on merchandise imported into the Brazilian
section of the Amazon Valley are collected on account
of the Federal Government, and the high rates charged
under the existing tariff are a constant cause of com-
plaint on the part of every class of the community.
Industrial enterprise is hampered severely by these
duties, on account of the increased cost thereby entailed
for most of the necessities of life causing an abnormally
high wage rate. The average charges exceed 100 per
cent, on the value of all imported materials ; and as this
applies to the canned goods and provisions required for
the maintenance of the labourers in the interior districts,
the price of living is unduly enhanced and the cost of
the production of rubber relatively increased. The
refusal of the Federal authorities to afford any relief in
this direction is based on constitutional law, the
argument being that if any reduction of duties was
made for the Amazon Valley to aid the rubber industry,
a similar concession would be necessary for the
remainder of the States forming the Brazilian Republic.
This may be the correct interpretation of the letter of
the law, but the exceptional difficulties confronting the

20 THE RUBBER INDUSTRY

northern States at the present juncture call for extra-
ordinary measures to save the situation ; and unless
action is taken in the immediate future to meet the
conditions now prevailing, a collapse in the industrial
position must occur very shortly.

The question of the high duties on imported mer-
chandise has been the cause of no little friction between
the States situated in the Amazon Valley and the Federal
Government, and it is within the scope of practical
politics that it may lead to a complete readjustment of
the relations of the northern section of Brazil w;th the
administration at Rio de Janeiro. As matters are to-
day, the fact that the dominant partner is separated
from Para and Amazonas by a two weeks' journey is a
factor of too great importance to be ignored. It means
that all disputes with the Federal authorities must be
taken at great loss of time and money -to the Federal
capital, and months may elapse before any decision be
obtained. A natural corollary to the present state of
affairs would be an arrangement by which the States in
the north are allowed exemption from the general tariff,
or, failing this concession, the declaration of their sepa-
• ration from the remainder of Brazil.

As an example of the relations existing between the
Federal authority and the State Governments in the
north of Brazil, the conditions prevailing in Amazonas
may be quoted. When the newly-elected Governor
took office in 1913, he found the Legislature in opposi-
tion to his policy ; he dissolved the Chambers at once,
disregarding all the tenets of Brazilian constitutional
law. At the fresh elections the Governor secured a
favourable majority; thereupon the members of the

LOCAL CHARACTERISTICS 21

former Legislature appealed to the Supreme Court at
Rio de Janeiro, and obtained a decision declaring the
new elections to be invalid. The Governor accepted
the situation, and stated that the former Chambers
could meet without interference, but that he intended
to carry on all legislation with the recently-elected
majority favourable to himself. And so the matter
remained, both sets of legislators meeting at intervals
to discuss public affairs, and no effort being made by
the Federal Administration to enforce the ruling pro-
nounced in the Supreme Court at Rio de Janeiro.

It is necessary to refer to the political conditions in
the Amazon Valley, as they exercise a most powerful
influence in connection with all industrial enterprise.
The question of Federal and State taxation is one of
the most important factors for the Brazilian rubber
industry, and unless joint action be taken in the imme-
diate future by the Federal and State authorities, the
position of the rubber producers will become most pre-
carious and arouse a spirit of dangerous discontent,
leading to serious political disturbances.

It has been the custom to regard the network of
rivers in the Amazon Valley as providing easy means of
transport throughout the greater part of these vast
territories. To a certain extent this popular view is
not without justification, but there are many circum-
stances minimizing the usefulness of this system of
natural waterways. In the first place, the rivers are not
properly charted, buoyed, or lighted for navigation pur-
poses, and the blame for this state of affairs can only be
attributed to the apathy of the Federal authorities.
Then the cost of fuel is abnormally dear, due in great

22 THE RUBBER INDUSTRY

part to the high wage for labourers handling the coal at
Para, Manaos, and elsewhere, or cutting firewood on the
river-banks for the supplies required by passing steamers.
The crews of vessels engaged in the river traffic are paid
out of all proportion to the services rendered, and the
National Coasting Trade Law obliges the owners of
such craft to employ many more men than are actually
required for efficient navigation. The port authorities
are dilatory in despatching and receiving shipping, and
serious delay, entailing loss of time and money, thereby
results. Representations to the Federal Government
in connection with these unsatisfactory conditions have
availed nothing hitherto, and there is small immediate
prospect of any practical reforms being adopted to meet
the urgent necessities of the situation. The consequence
of the difficulties referred to is that the transport charges
for freight and passengers are abnormally high, in view of
the heavy fall in the value of rubber during the last two
years, and they have become a factor of very great im-
portance at the present critical stage of the industry.

Apart from unnecessary obstacles, due for the most
part to incompetent administration, many natural phys-
ical impediments to navigation exist in a large number
of the rivers. These consist principally of cataracts
and rapids obstructing the passage of all craft except
flat-bottomed boats or native canoes, and they occur
notably on the rivers Jurua, Purus, Madeira, Tapajoz,
Xingu, Tocantins, and Rio Branco. In one case only
has this difficulty been overcome by establishing a rail-
way to connect the upper and lower reaches of the river,
the line of the Madeira-Marmore Company starting
from below the cataract of San Antonio and giving

HAULING A ISOAT OVER CATARACT AT LO\V RIVER ABOVE SAN ANT(
RIVER MADEIRA

KARIPUN INDIANS, RIVER MADEIRA, HRAZH.

LOCAL CHARACTERISTICS 23

access to the navigable waters of the Beni, Marmote",
and Guapore". An attempt was made also to build a
railway to open traffic from the Tocantins to the
Araguaya, but after some thirty miles of track had been
constructed the effort was abandoned. In some cases
channels could be cut through the rapids to allow the
passage of vessels, but broadly speaking the only prac-
tical means of overcoming these natural obstacles is by
the provision of railway communication to connect the
navigable sections of the rivers. It is a public work of
such great magnitude that its accomplishment is un-
likely in the present condition of the Brazilian finances.
In another direction much beneficial work could be
achieved without any very heavy expenditure by sys-
tematically clearing the principal waterways of the
dangerous snags and drift logs brought down by the
annual inundations. These form a constant menace
to the steamer traffic, and are the cause of much delay
in transit, owing to the fact that they render night
travelling on many of the rivers practically impossible
with any degree of comfort or safety.

Telegraphic communication between the Amazon
Valley and the outside world is maintained by cable
connection between Para and Manaos, land lines linking
up Para and Rio de Janeiro by way of Matto Grosso,
and by wireless stations at Para, Manaos, Rio Branco,
Porto Velho, Senna Madureira, and Iquitos. The
cable is the property of a public company ; the wireless
installations and the land lines belong to the Federal
Government, and are controlled and operated by Federal
employes. By the cable an efficient service is available,
but over the wireless system and the land lines com-

24 THE RUBBER INDUSTRY

munication is dilatory and the subject of constant com-
plaints. The postal arrangements are sadly deficient,
and outside the principal towns the delivery of letters
is always uncertain, and frequently results in a delay of
months before they are received.

Outside the more important towns social life can
hardly be said to exist. The distances between the
various homesteads on the rubber-producing properties
are too great to admit of any constant interchange of
friendly courtesies, and as a consequence the life on the
rivers is dull and monotonous to an extreme degree.
During the annual floods from, March to May, in the
great majority of localities, the only means of moving
about when leaving the dwelling-house is by canoe or
flat-bottomed boat, and the effect is that for all intents
and purposes the inhabitants are marooned for several
months in the year. The isolation under such condi-
tions is one of the most trying features of the situation
for all concerned, while for educated Brazilians or
foreigners it is a hardship of the most severe description.
Work is impossible during this epoch of the inunda-
tions, and, to add to the general misery, swarms of
insects are a continuous source of irritation by day and
night. In view of these circumstances it is not surprising
that a large proportion of the owners of rubber-pro-
ducing properties abandon their estates for six months
in the year, and migrate to Manaos or Para, leaving the
administration of their affairs in charge of managers
who, for the most part, are lacking in any high standard
of intelligence or sense of responsibility. >

No adequate appreciation of the industrial situation
in Brazil is possible without due consideration of the
effect of the variation in the exchange value of the local

LOCAL CHARACTERISTICS 25

currency in its relation to gold. This factor is of
special importance in connection with rubber pro-
duction, for not less than 75 per cent, of the total cost
is due to payments to collectors working on a profit-
sharing system. These payments are made in currency,
whereas the value of all rubber is regulated by the gold
prices quoted in Europe or the United States. How
far-reaching is this question of exchange may be
gathered from the fact that during the last twenty years
the sterling value of the milreis has varied from sixpence
to eighteenpence. A sudden drop or rise in exchange
does not meet with any corresponding difference in the
rate paid for the necessities of life, and it is only after a
comparatively prolonged period that the prices of local
commodities respond to the higher or lower sterling
value of the currency. At present the established rate for
nearly all calculations is sixteen pence to the milreis.
If gold should be drained away from Brazil, and the
rate fall to twelve pence, a substantial gain would accrue
to the producer, for he would receive a greater number
of milreis for every pound of rubber delivered. Where
daily wages are the rule the amount paid in currency
fluctuates very slightly, even when substantial variation
in exchange takes place. Hence it is that when the
currency depreciates and the national credit is adversely
affected the situation becomes distinctly more favourable
for all industrial undertakings where the value of the
production is regulated by the prices ruling in foreign
markets. However incongruous the statement may
appear to be, there is no doubt that national bankruptcy
might infer an immediate revival of prosperity for the
rubber industry in the Amazon Valley, and prove to be
a temporary solution of the present crisis.

CHAPTER III
THE PRINCIPAL RUBBER DISTRICTS

General definition of the Amazon industry — Collection of
castiUoa— Rubber-producing area divided into three sections—
The Lower Amazon — Highlands of the Lower Amazon — The
central districts — Rivers Madeira, Purus, and Jurua — Population
on the River Madeira — Rubber-planting on the Madeira, Purus,
and Jurua— Western section of the Amazon Valley— Bolivian
rubber districts — Buildings on rubber properties — Access difficult
to upper rivers— Expeditions from Peru— Acre territory— Iquitos.

THE characteristic features of the Amazon Valley
rubber industry vary in a very marked degree in
the different sections of the country, and some explana-
tion is necessary to emphasize the salient points in the
principal districts. As a general rule the industry is
understood to consist of the collection of rubber from
trees scattered throughout the forests, as opposed to the
systematic plan of cultivation in plantations prevailing
throughout the Orient. Broadly speaking this popular
idea of the Amazon Valley situation is correct, although
it is qualified to some extent by the fact that some
hundreds of thousands of rubber-trees have been planted
from time to time in various localities. An erroneous
impression, however, has been conceived in many
quarters, that because the rubber is obtained from
forest-grown trees it necessitates the annual despatch of
numbers of expeditions to the interior regions for the
purpose of collecting the product. In former years

THE PRINCIPAL RUBBER DISTRICTS 27

such expeditions were sent from the Pacific slope for
that purpose ; but that system has long disappeared,
and to-day practically all the rubber is obtained by the
employes of permanent establishments working regu-
larly within the circumscribed areas of their respective
concessions. The only variation from this rule is in
the case of certain districts where small gangs of men
obtain permission to collect caucho or castilloa, and even
when this occurs stringent conditions are exacted as to
the terms under which the work shall be done, and the
subsequent delivery of the product to the owners of the
property exploited.

For descriptive purposes, the rubber-producing dis-
tricts of the Amazon Valley may be divided into three
sections, and in each of these the methods employed
differ in many practices. The first section comprises
the delta of the Amazon, the numerous islands situated
in the river, and the tributaries discharging into the
main stream for a distance of some 500 miles from its
junction with the Atlantic; the second area is the
territory stretching eastwards from the vicinity of
Santarem, and including the neighbourhood of Manaos,
the Madeira, the lower portions of the Rivers Purus and
Jurua, a part of the Rio Negro, and many other water-
ways ; the third section takes in the rubber districts of
Bolivia, the upper rivers, and the country included
within the boundaries of Peru, Ecuador, and as far
north as Colombia.

On the islands in the Amazon delta the land is low-
lying and subject to the effect of ocean tides. At high-
water the ground is inundated over a very large propor-
tion of the area where rubber-trees are found within

28 THE RUBBER INDUSTRY

fairly close proximity to the foreshore. This condition
applies also to the riparian lands of many of the tribu-
taries, and to large sections of the main river, the tidal
influence being felt as far inland as Santarem, a dis-
tance of some 530 miles from the seaboard. The
number of trees in these very low-lying districts is
abundant, but they have neither the development nor
the healthy appearance of those found in drier locali-
ties, and they are nearly all of the white variety of
Hevea Brasiliensis, yielding rubber classed as weak
(fraca) in the Manaos and Pard markets. In this
section of the Amazon Valley, the population generally,
and the rubber collectors especially, live for the most
part in a state of the utmost poverty. They dwell in tem-
porary wooden or reed huts built on piles to raise them
above the tidal level, and they exist on fish caught in
the river, together with the absolute necessities of life
purchased with the proceeds of the rubber they take to
the nearest store for sale. Year after year this desolate
and wretched existence is dragged out, with small profit
to the people individually and no substantial benefit
whatever to the community as a whole.

On the higher lands of these districts of the Lower
Amazon some attempts have been made to establish
plantations of rubber-trees, but seldom with any satis-
factory results. In many cases the young plants have
been set out in clearings opened for growing crops of
mandioca, maize, and other foodstuffs, but it is rarely
that any effort is made to keep the young trees tree
from undergrowth and weeds, and where they survive
at all they are stunted and of such slow development as
to be of little value. Occasionally the forest is cleaned

A RUBBER PROPERTY. RIVER MADEIRA

THE MADEIRA FALLS, BRAZIL

THE PRINCIPAL RUBBER DISTRICTS

of scrub, and rubber seedlings planted under the thick
shade of the bigger trees ; but the growth is abnormally
backward owing to lack of air and light, and the develop-
ment in twenty years under such conditions no more
than equals that attained in one quarter of the time by
systematic cultivation on plantations in Ceylon or
Malaya.

The rubber-trees in this section of the Amazon Valley
are worked on the estrada system, but in much more
irregular fashion than prevails elsewhere in Brazil.
Where the land is comparatively dry, paths are cut
through the jungle from tree to tree to enable the col-
lectors to carry out tapping operations and gather the
latex ; but it happens frequently that in districts subject
to tidal influence passage on foot is impossible, and re-
course to canoes is necessary to enable the daily round
to be made. In these circumstances the total number
of trees alloted to each estrada is dependent on the exist-
ing facilities of access, and it varies according to local
conditions — so much so, indeed, is this the case that the
term estrada may apply to any number from fifty to
two hundred. Practically no supervision over the col-
lectors is attempted in regard to methods of tapping or
preparation of the rubber, and consequently the product
is of poorer and more uneven quality than that from
the other rubber-producing districts in the Amazon
territory'. This section, comprising the islands of the
delta and the lands of the adjacent waterways, has been
exploited for a much longer period than the districts of
the upper rivers, and the output now shows signs of a
steady diminution in the immediate future, although it
is provided with a fairly abundant local resident popula-

30 THE RUBBER INDUSTRY

lation,and is not dependent on an imported, and there-
fore costly, labour-supply. The trees have been so badly
treated in the past that the yield is seriously affected at
the present time.

The second section, from Santarem eastwards for
about a thousand miles, and including the Rivers Tapa-
joz, Madeira, and the lower portions of the Purus and
Jurua, is free from any tidal influence. It is only sub-
ject to inundation between the middle of March and
the end of May, as the result of the annual rains during
the wet season and the increased volume of water caused
by the melting of the snows in the higher Andirie ranges.
Throughout this area systematic efforts have been made
to organize and regulate the rubber industry on method-
ical lines as far as the surrounding circumstances per-
mitted, and, faulty as the outcome has been, it is a
model of progress compared to the conditions existent
in the Lower Amazon territory. The districts of the
River Madeira afford the best example of the industrial
development that has taken place during the last fifty
years.

On the properties situated along the River Madeira,
and to a lesser extent on the Purus and Jurua, perma-
nent buildings erected at considerable cost indicate the
profitable nature of the rubber industry in the past.
These are frequently constructed of stone, brought from
long distances at great expense, and roofed with tiles
imported from France or Portugal. In many cases
where the slightly higher elevation of the land per-
mitted, quite extensive gardens have been laid out, and
stocked with flowering plants and fruit-trees obtained
from Rio de Janeiro or elsewhere. Since the rubber

THE PRINCIPAL RUBBER DISTRICTS 31

crisis has developed to an acute stage both buildings
and gardens have been neglected, the former falling
rapidly into a dilapidated state, and the latter becoming
choked with undergrowth and rank weeds.

In these districts the rubber-trees are found in the
forests at distances varying from 200 to 250 feet
apart, and from 130 to 150 trees are allowed to each
estrada. Pathways are cleared through the jungle from
tree to tree, and these are cleaned up once a year
to free them from vines and other quick-growing
vegetation. To each collector is allotted one or more
estradas, according to his capacity for work, and also
with regard to the quality of the trees. Rules are im-
posed in connection with methods of tapping, but
these are more often followed in the breach than in the
observance. Nominally the collection of the latex is
under the supervision of headmen appointed to safe-
guard the interests of the owner ; but all discipline is
slack, and regulations of any kind seldom enforced, except
in the case of a very few establishments. Many of the
rubber-producing properties in the Madeira districts
extend back from the river for several miles, and to
these inland stations access is obtained by creeks avail-
able for steam-launches or boats when the water is
high, or by canoe or road in the dry season. Where
roads are cut through the jungle, the brush and logs are
cleared to an extent permitting the passage of pack
animals, but are not sufficiently open to allow the use
of wheeled vehicles of any description. In this section
the lands lying a few miles back from the waterways are
undulating in character, and for the most part are
situated above the flood-level; but all communication

32 THE RUBBER INDUSTRY

through them is difficult when the rivers are high, as
the ravines and depressions fill with water, and the
majority of the pathways and roads become impass-
able. One rule established for many years past in the
districts immediately adjoining the River Madeira, and
generally adhered to by the collectors, is that the rubber-
trees shall be tapped only for some 10 feet from the
ground. This condition is not observed elsewhere in
the Amazon Valley, overhead tapping to a height of
20 to 30 feet being a common practice in the delta,
on the Jurua and Purus, and in the national territories
of the Acre.

A small resident population is found in the vicinity
of the River Madeira, and a certain proportion of the
collectors and labourers employed are drawn from this
source ; but in all other districts in this section the work
of the rubber industry is carried on exclusively by
labour imported from Ceara and the adjacent States.
Foodstuffs for the maintenance of the labourers are
cultivated to some extent in this district, but it is the
only example of any systematic effort to raise a supply
of the common necessities of life for local consumption
to be found throughout these regions until the recent
fall in the price of rubber forced property owners to pay
some attention to this important factor in the industrial
situation. The general conditions on the Madeira have
been influenced by the additional traffic caused by the
transport of men and material for the construction of
the Madeira- Marmore railway between 1907 and 1913.
Ocean steamers frequently made the journey to Porto
Velho with cargo for the railroad, and many thousands
of labourers of various nationalities were imported for

THE PRINCIPAL RUBBER DISTRICTS 33

carrying out the works. During this period a steady
demand existed for many different kinds of produce to
provision this large labour force, and high prices were
paid for all supplies of fresh food brought to Porto
Velho or San Antonio. Under these conditions a
limited number of settlers were induced to cultivate,
land and raise crops of fruit and vegetables, subse-
quently planting rubber-trees on the cleared spaces.
With the completion of the railway, the demand for
fresh provisions has rapidly decreased, and what prom-
ised to become a profitable industry has now been
abandoned for all practical purposes, and left very little
permanent impression behind it.

On the properties adjoining the River Madeira, and
to a less extent on those situated on the Purus and
Jurua, the planting of a limited number of rubber-trees
has been a general practice, extending over a period of
some fifteen years past. As a rule the clearings made
for growing mandioca and other food products have
been utilized for this purpose, but in only very rare
cases has any subsequent cultivation been attempted.
The initial growth of the young trees has been retarded
by rank vegetation, and those that have survived are
stunted in appearance owing to all natural development
having been checked by thick scrub. Trees of fifteen
years of age are no bigger in girth and height than
those of six years old found in the average plantation
of Ceylon or the Malay Peninsula. These conditions
are largely due to the high wages paid to daily labourers,
and to the inefficiency of supervision when they are
employed. For an approximate estimate of the plant-
ing enterprise in this section, it is safe to say that more
3

34 THE RUBBER INDUSTRY

titan 2,000,000 young trees have been set out during
the past twenty years, and that less than 20 per cent, of
these have reached maturity owing to subsequent
neglect in regard to cultivation.

The third section of the rubber-producing area of the
Amazon Valley includes the Brazilian State of Matto
Grosso ; the lands adjacent to the Rivers Beni and
Madre de Dios in Bolivia; those comprised in the
Brazilian national territory extending over the Upper
Purus and Jurua, and known as the Acre ; the Puta-
mayo and Iquitos districts of Peru ; and certain por-
tions of Ecuador and Colombia. It is from this section
that the bulk of the best quality of rubber, classified as
fine hard Para, is exported ; and it is from this quarter
also that the largely increased production of recent
years has been obtained. It is these districts, more-
over, that have supplied a very great proportion of the
caucho (castilloa) that has been such a prominent feature
in the Amazon Valley for several years past and helped
so largely towards the development and successful pro-
gress of Iquitos and the districts in its vicinity. The
quantity of rubber exported from Iquitos is insignifi-
cant in comparison to the amount of caucho shipped
annually from that port.

In this section the lands immediately adjoining the
rivers and creeks are subject to annual inundations
similar to those occurring in the central districts ; but
a short distance away from the waterways the ground,
as a general rule, gradually rises to an elevation above
the flood-level, and in many cases it attains an altitude
of several hundred feet. These conditions of a dry soil
are favourable to the development of the black hevea^

THE PRINCIPAL RUBBER DISTRICTS 35

and it is the predominant species of rubber-tree
throughout these regions. Castilloa also flourishes at
the higher elevations, but the ruthless destruction of
the trees during recent years by the caucho collectors is
a serious menace to its future profitable exploitation.

In the rubber-producing districts of Bolivia in the
neighbourhood of the River Beni and the adjacent
waterways, a considerable proportion of the collectors
is recruited from the domesticated Indian population
who have been settled in this part of the country since
the Inca period. Nowhere else, however, in the Amazon
Valley is there any regular supply of Indian labourers,
all efforts to civilize the various nomad tribes having
proved futile in Brazilian and Peruvian territory. In
these circumstances the exploitation of the rubber-trees
has been carried on almost entirely by imported work-
men, and the expense of recruiting these immigrants in
Ceara and elsewhere, and transporting them over the
2,000 miles intervening between this section of country
and the Atlantic seaboard, has been one of the most
formidable obstacles in the way of the expansion of the
industry in the past, and promises to be a very serious
problem in the future.

With few exceptions, the buildings erected in the
third section of the Amazon Valley are of a temporary
character, and constructed of timber or reeds, with floors
raised on piles above the level of the annual inunda-
tions. It is a remarkable fact that, although high and dry
land is very frequently available within a few hundred
yards from the banks of the rivers, the general custom
is to locate the homesteads as close as possible to the
water, the only explanation being that this habit saves

36 THE RUBBER INDUSTRY

time and trouble in the transport of merchandise and
rubber to and from passing vessels. There is, indeed,
very little outstanding evidence in this section of the
great wealth extracted from these regions during the past
decade ; and should low prices lead to the abandonment
of the properties for a year or two, all proofs of civiliza-
tion would disappear, and the greater part of the country
revert to its pristine state of jungle and impenetrable
undergrowth.

Access to the territories comprised in the third sec-
tion of the Amazon Valley is made difficult by the pres-
ence of a rocky ledge which exists for some thousands
of miles, outcropping to the east of the River Tocantins,
and following the contour of the foot-hills of the Andes
in a north-westerly direction for a distance of some
2,500 miles. This ledge is the cause of the cataracts
and rapids dividing the upper and lower rivers of the
southern and western areas ; it passes through the
State of Matto Grosso, crossing the Rivers Tocantins,
Xingu, and Tapajoz, thence to the vicinity of Porto
Velho on the Madeira; it continues to Cachoeira on
the Purus and Sao Felipe on the Jurua; and finally
it reaches the Ucayale, to the south-west of Iquitos.
The cataracts formed by this outcrop of rocky stratifi-
cation are a serious impediment to navigation ; the fact
that in the dry season they restrict all communication
except by flat-bottomed vessels of very shallow
draught, and that when the river is unusually low
even these cannot pass the rapids, adds materially to
the difficulties of working on the rubber properties.
They increase the cost of transport for both inward
and outward freight, and necessitate a heavy capital

THE PRINCIPAL RUBBER DISTRICTS 37

expenditure for the purchase of large stores of provisions
to maintain the labourers for many months, until fresh
supplies can be forwarded by merchants at Manaos or
Para, this obligation constituting a serious considera-
tion at the present critical stage of the rubber industry.

In former years the difficulties of reaching this terri-
tory from the Atlantic seaboard induced the despatch
of large expeditions from the Pacific slopes of Bolivia
and Peru for rubber-collecting purposes. It was from
this custom the idea arose that the Amazon Valley
rubber was obtained by organizing such expeditions to
work the great forest areas situated to the east of the
Andine ranges. For the past fifteen years these methods
have been abandoned as unnecessary and unprofitable,
and the only semblance remaining of the practice is the
occasional recruiting of gangs of labourers in Bolivia
and Peru to work on the rubber-producing properties
of the Acre and other similarly-situated districts.

The Acre territory has been the scene of much inter-
national intrigue during recent years. It was claimed
by Brazil, Bolivia, and Peru, and only after these
countries had been brought to the verge of war was the
dispute concerning its ownership submitted to arbitra-
tion. In the end the greater portion of these districts
was awarded to Brazil. While this international
question was pending local politics became disturbed,
and a movement set afoot by a Colonel Galvez ended
by proclaiming the territory an independent republic.
This occurred in 1903, and for some two years subse-
quently disturbed conditions prevailed, and it was not
until a military expedition was sent from Rio de Janeiro
by the Federal Government that order was restored

38 THE RUBBER INDUSTRY

and Brazilian authority recognized once more. Since
that period the country has been administered as
national territory under the authority of Federal
officials.

Throughout this eastern section of the Amazon
Valley no systematic attempt has been made to create
plantations of rubber-trees. Probably this is due to
the great abundance of the wild rubber and to the
scarcity of labour. The principal development in these
districts has taken place in comparatively recent years
only, and received its strongest encouragement from
the high prices ruling for the raw material from
1909 to 1911 ; and during that period all available men
were employed as collectors, to the complete neglect of
any form of agricultural enterprise. The result of this
condition of affairs was that the wage rate reached an
abnormally high figure, and it has not fallen to any
extent since the profits of the rubber industry have
been reduced to a minimum. It is unlikely now that
any serious attention will be paid to the opening up of
any plantation industry on a substantial scale in the
immediate future, the fear of lower prices due to Eastern
competition acting as a strong deterrent to any such
innovation. Moreover, the lands comprised in this
area are still enormously wealthy in virgin trees avail-
able for tapping whenever the financial situation shows
any marked improvement, or when different methods
permit of a decided reduction in the cost of production.

With the exception of Iquitos, this region contains
no centres of any particular political or commercial
importance. Such towns as exist are nothing more
than distributing posts to supply the necessities of the

THE PRINCIPAL RUBBER DISTRICTS 39

rubber industry, and entirely dependent on that source
of wealth for their existence. The population consists
for the most part of labourers imported to work on the
rubber-producing properties, and they seldom become
permanent settlers on the land. There are many tribes
of wild Indians in these districts, but they come little
in contact with the civilized portion of the community,
and retire from the waterways to the interior of the
forests as soon as settlements spring up on the banks
of the rivers. They show determined hostility in many
cases to the advance of civilization, but only attack
isolated groups or solitary individuals.

CHAPTER IV

DISEASES AND PESTS COMMON TO RUBBER-
TREES IN BRAZIL

Disease little in evidence — Parasitical growths — Canker — Bark
disease — Cambium rot — Experiments in regard to cambium rot
in 1913 — Opinion of Ceylon Government nrycologist concerning
cambium rot— Why Eastern methods are inapplicable in Brazil-
Cambium rot prevents use of gouge — Decay of latex cells — The
borer pest — White ants — The sauba, or red ant.

MANY of the diseases in connection with the
development of Hevea Brasiliensis so familiar to
the planter in Ceylon and Malaysia are little in evidence
in the Amazon Valley. Doubtless few, if any, are
absent, but in the heavy forest they attract no special
attention unless carefully searched for with some
specific object in view. Of those commonly observed,
the most prominent are parasitical growths, canker in
various forms, bark disease, and cambium rot. Amongst
the injurious insects are the white ant (termes), the red
ant, locally known as sauba (Mcodoma cephalotes), and
the borer.

Of the parasites, the commonest and most destructive
is a growth resembling mistletoe. This pest is found
throughout all sections of the Amazon Valley. Its
effects are most apparent on old trees, and from these
it draws out all vitality, until branch after branch dies
away and the tree is killed. It has most tenacious
roots, spreads rapidly once it has established a footing,

DISEASES AND PESTS >i

and is often propagated from seeds dropped by birds^
and lodging in crevices of the bark or in joints where
moisture has collected. The injurious character of this
parasite is recognized locally, but no effort is made to
eradicate it from the trees affected, or in any way check
its spread. In every district the annual loss from this
plague amounts to many thousands of trees.

Canker is of frequent occurrence on both wild and
planted trees. It is found generally at the junction of
the main lateral branches with the trunk, where a lodg-
ment of rain-water has taken place. The effect is to
rot both branches and stem until the tree becomes
exhausted and dies. No attention is paid to it, and the
disease is allowed invariably to run its course, although
a very little energy at the outset in the direction of
pruning away the affected parts would insure a com-
plete recovery.

The most common form of bark disease is a ftfngoid
growth carrying a black powdery substance on the
surface. It appears first near the foot of the tree, and
gradually spreads up the stem to the main lateral
branches. For the most part it is found in low-lying
localities, where the soil is a stiff yellow clay. The
obvious remedy is adequate drainage and the application
of lime ; but the circumstances connected with the wild
rubber industry render any action of this nature
practically impossible, and where it occurs on planta-
tions the cost of labour and the general apathy of the
owners prevent any effective attempt being made to
grapple with it.

The existence of cambium rot in the Amazon Valley
threatens to exercise a rrfbst unfavourable influence in

42 THE RUBBER INDUSTRY

connection with the future progress of the rubber
industry. It is not so much on account of the actual
damage caused by this disease at present that it is to
be dreaded, but for the fact that recent experiments
demonstrate that it breaks out in virulent form when
Oriental methods of tapping are attempted. This
means that the herring-bone system cannot be em ployed
in order to obtain a greater yield of latex with no
additional labour force, and by such means reduce
substantially the ultimate cost of production. It will
be explained at a later period why this condition is
such a very important factor in the prosperity of
the industry. The disease occurs on trees tapped
with the small axe (machadinho) as well as on those
worked with the gouge on the herring-bone system in
vogue in the Orient ; it is neither so apparent nor so
destructive on the former, on account of the fact that
the overhanging flap of the axe-cut covers the incision,
and because the scrap is not collected from the wound,
but allowed to remain and form a protective shield
against atmospheric action. Hence, in the case of
machadinho tapping the rot remains dormant for all
practical purposes, while with the excision of the bark
when the herring-bone system is followed no conceal-
ment of the disease is possible.

Experiments carried out for some months in 1913 on
trees in the districts adjoining the Rivers Madeira and
Purvis, and on a smaller scale near Manaos, with the
full herring-bone, half herring-bone, and single V
systems, showed that the rot set in on the tapped
surface after about one inch of bark had been removed.
The tool used for this work was the bent gouge, which

DISEASES AND PESTS 43

in the Orient has given such excellent results, and is
preferred by very many planters to the various patent
knives placed in the market of recent years. The first
sign of the disease is the appearance of the mycelium
in the form of a blue mould on the tapped cortex,
where the cambium is protected only by a very thin
layer of bark, or is entirely exposed by wounds resulting
from bad tapping. This mycelium develops rapidly
from dark spots on the bast tissues to a stage when its
filaments cover the wounded area, and thence extend
horizontally and vertically to the remainder of the
tapped surface. When the disease becomes firmly
established, an exudation of sticky matter of a resinous
character frequently takes place on the rotting cortex.
In low-lying localities, where the soil is cold and damp,
the trees are affected to a greater extent than on higher
lands with better natural drainage, but the latter
conditions are no guarantee of immunity from the
pest. The effect of this disease is not very serious as
regards the mortality of the trees, but it is of the
utmost importance in so far that it weakens the
quality of the latex to a marked degree. Moreover,
the labour conditions in the Amazon Valley are of such
a nature that the methodical treatment of any outbreak
of disease is never sufficiently thorough to insure satis-
factory results. The experiments made in 1913 proved
that in the great majority of cases a healthy bark
renewal took place under the diseased cortex after the
lapse of a few weeks, but that for several months the
proper action of the cambium and latex cells was
paralyzed to a very great extent by the injuries sus-
tained. Cambium rot is quite well known in the

44 THE RUBBER INDUSTRY

Orient, but is rendered practically harmless by an
adequate system of inspection and the application
of the necessary remedies. Mr. Fetch, the Ceylon
Government mycologist, recommends that the affected
cortex be painted regularly with a solution of 20 parts
of lime, 15 of sulphur, and 50 of water, and he states
that the rot is checked immediately if this solution is
used when the disease first appears on the tapped
portion of the tree.

In the Preangar District of Java this same cambium
disease occurs in a form quite as virulent as anything
seen in the Amazon Valley, and it frequently appears
in the Matale District of Ceylon. It is not regarded as
a menace to the future of the industry in Ceylon or
Malaysia.

On July 7 last, when lecturing before the Kelani
Valley Planters' Association, Mr. Petch made the
following remarks in regard to cambium rot, and
these apply equally to the Amazon Valley as far as that
disease is concerned :

" The second disease I wish to talk about is the
decay which often occurs on the tapped cortex. It
frequently happens that the thin layer of original cortex
which is left overlying the cambium dies in patches.
This occurs especially in wet weather, and is more
common, apparently, during the north-east than south-
west monsoons. The decaying patches usually run
vertically, and first appear on the exposed cortex
within an inch of the tapping cut. The first thing
noticed is the appearance of narrow sunken vertical
lines just above the cut. Along these lines the thin
residual layer of original cortex is sunken, and if it is

DISEASES AND PESTS 45

cut away a narrow black streak will be found extending
into the wood. The black line indicates a region of
decay.

" What ultimately happens depends to a great extent
upon the weather. If it continues wet, the black lines
extend upwards and downwards, and at the same
time increase in width. If a number of these lines
have arisen close together, they may coalesce, and thus
a wide horizontal strip of renewing cortex may be
destroyed. But more usually a number of parallel
vertical wounds are formed. When the dry weather
sets in, this decay stops and the wounds begin to heal
up. But the renewal is, in any case, rough, and where
several wounds have coalesced so much cortex is
destroyed that renewal cannot be completed for many
years.

" This decay of the tapped surface is often attributed
to bad tapping. However, it is as a rule quite easy
to distinguish. Wounds due to tapping are seldom
vertical ; they are more usually horizontal. But there
is a better guide than that. When the tapper cuts
into the wood, he removes all the cortex overlying the
wound, and exposes the wood, which can easily be
recognized by its vertical fibres. But when this decay
occurs, the thin layer of cortex left after tapping is con-
tinuous over the wound. It is usually sunk below the
level of the surrounding healthy cortex, but it is unmis-
takably there. Even when the wounds are six months
old and have acquired a swollen margin, the dead layer
of cortex may generally be found overlying the wood
in the wound.

" This decay occurs both in Ceylon and the F.M.S.,

46 THE RUBBER INDUSTRY

and in neither country has any explanation of it been
found, except that it may be caused by the action of
rain-water on the newly-exposed inner layer of the
cortex. In Java it is attributed to canker, but there
everything is attributed to canker at present. Bacteria
and a Nectria have been found in these wounds in
Ceylon, but inoculations with both have failed to
reproduce the decay.

" Hitherto it has not been considered advisable to stop
tapping when this decay appeared. Nor has it been
considered necessary to cut out the decayed cortex,
because the wounds made by cutting out were in many
cases larger than those which would have been caused
if it had been untouched.

" A method of treatment, which is said to have given
good results, has, however, been adopted in Java, and,
as this decay has serious effects as far as regards the
renewed bark, it should be adopted here. The Java
treatment is as follows :

" As soon as the narrow vertical lines are observed,
the tree is put out of tapping. The decaying tapped
surface is then washed every four or five days with a
50 per cent, solution of Carbolineum Plantarium. In
about four weeks the tree can be tapped again. If a
large patch has decayed, the dead cortex is cut out
before treating with Carbolineum."

To treat forest trees scattered over a wide area in the
manner suggested by Mr. Fetch for plantations is im-
practicable as matters stand in Brazil at present, the
principal obstacles being the lack of intelligent super-
vision and the abnormally high rate of the daily wage
earned by labourers in the rubber-producing districts.

DISEASES AND PESTS 47

Hence the advantages accruing from a greater yield of
latex from the application of Oriental methods of tap-
ping are not possible from a profit-earning point of view,
even if further experiments demonstrate that the dis-
ease can be controlled provided proper remedies are
available.

The scope of the tapping experiments from which
the foregoing deductions are drawn extended over the
greater portion of the districts adjoining the River
Madeira, actual work on some seventy different prop-
erties being carried out under the superintendence of
competent instructors brought for the purpose from
Ceylon and the Malay Peninsula. These different prop-
erties were situated at various places between the
junction of the Madeira with the Amazon and Porto
Velho, and also at two points near the Madeira-
Marmore* railway, at distances respectively of 150 and
1 60 miles eastwards from Porto Velho. Similar
operations were conducted on the River Purus, on some
thirty properties situated between its junction with the
River Solimoes and with the River Pauhiny. Experi-
ments were made also on a smaller scale in localities
near Manaos and Obidos, and on the Rivers Tapajoz
and Xingu. Practically none of these districts were
free from cambium rot in an active or dormant state ;
it was only after most careful investigation and observa-
tion that the decision was reached that the endeavour
to introduce any excision system of tapping must be
abandoned, in consequence of the difficulty of dealing
effectively with this disease. The experiments began
in August, 1912, and were discontinued in November,
1913, and were conducted at the expense of the various

48 THE RUBBER INDUSTRY

interests connected with the Booth Steamship Company
and the Port of Para. It is possible that some sections
of the Amazon Valley may be free from this pest ; but
the area tested included both forest and plantation trees,
dry and wet lands, and all classes of soil, and was con-
tinued under varying atmospheric conditions. In dry
weather the wounds healed and the growth of new bark
was rapid ; but with the resumption of tapping the dis-
ease reappeared immediately a wet period occurred, and
this necessitated the suspension of the work.

Another disease of the bark common to rubber-trees
in the Amazon Valley is a decay of the latex cells on
untapped portions of the stem, The result is a copious
exudation of the gum through the outer skin ; there
it collects moisture, and leads gradually to the putrefac-
tion of the surface bark, thence affecting the cortex, and
finally extending to the wood and rotting away the
trunk until the tree is killed. The danger from this
cause would be minimized if the tree trunks were main-
tained in a clean condition, but here, again, effective
supervision to this end is not available under existing
circumstances.

Of the insect pests, the borer is the most destructive
to mature forest trees, and no section of the Amazon
Valley is free from it. Wherever the wood of the stem
has been laid bare it is liable to attack, and this con-
dition occurs to a very large proportion of the rubber-
trees, on account of the careless use of the machadinho
by the collectors. The borer cuts its way to the centre
of the trunk, and in a comparatively short time hollows
out the heart of the tree, leaving it without power to
resist the force of a strong gust of wind, and with the

DISEASES AND PESTS 49

result that it is snapped off a few feet from the ground
whenever a gale occurs. In more sheltered positions
the tree remains standing, but weakens and gradually
dies as the work of the borer progresses. The disastrous
effects produced by this pest are quite well understood
locally, and attempts are made in some districts to
check its devastation by digging out the insect in the
early stages of its attack on the stem, and also occa-
sionally by plastering the exposed wood with clay. The
borer seldom or never enters the trunk of the tree
through live bark, the latex cells providing efficient
protection against its depredations. Two species of
borer are found in Brazil ; they are not unlike in
appearance, but differ very much in size.

Another constant source of damage is from the white
ant (termes). Every district in the rubber-producing
area is infested with this pest, and no effort is made to
check its ravages in connection with the wild rubber-
trees in the forest or those set out in plantations.

One of the worst enemies to any agriculture develop-
ment in the Amazon Valley is the red ant (JBcodoma
cephalotes), known locally as sauba. This plague
attacks the foliage of rubber-trees of all ages, whether
in the forest or in planted areas. It strips off the
leaves and carries them away, leaving nothing but bare
branches, and in the case of young plants, in addition
to the foliage, it cuts off the tender growing shoots. In
a single night a field of several acres of young beans,
maize, or other foodstuffs, is frequently ruined by this
pest. The sauba is stated by Bates, in his " Naturalist
on the Amazon," to be the most destructive insect in
South America, and experience confirms his description

50 THE RUBBER INDUSTRY

of its power for evil. It is difficult to destroy, for not
only does it excavate immense underground chambers
deep down from the surface, but it also travels rapidly
and for long distances whenever attracted by any class
of vegetation particularly to its liking. The sauba is
dreaded by the residents of the Amazon Valley, and
efforts are often made to fight against it by digging out
or flooding the nests, but such attempts avail little in
view of the enormous armies of these ants congregated
in every section of the country. If the Amazon Valley
should become the centre of a great agricultural
development in the future, one of the principal obstacles
in the way of successful results will be the constant
battle against the ravages of this plague. The means
at the disposition of the settlers at the present time are
quite inadequate to overcome this evil. For some un-
explained reason, the sauba avoids the fertile alluvial
deposits on the foreshore available for cultivation when
the rivers are low.

CHAPTER V
THE LABOUR-SUPPLY

No relief suggested by Federal or State Government — Recruit-
ing of labourers — Engagement and transport of labourers —
Relations between master and man — Housing accommodation-
Allotment of work — Percentage of labour force employed as col-
lectors—Rates of wages — Supervision of work — Women and
children — Discipline on rubber estates — The truck system —
Methods of payment— Effects of truck system — Truck system in
Bolivia and Peru— Food- supplies.

r I ^HE labour-supply is one of the most important
JL questions confronting the rubber producers of the
Amazon Valley at the present time. No practical
solution has been offered by the Federal or State
Governments to afford relief to the industry in the
direction of a more plentiful provision of hands at a
wage rate proportionate to the severe decline in rubber
values throughout the markets of Europe and America.
The suggestions put forward from time to time for the
encouragement of immigration from Portugal, Italy, and
Spain, meet with little support, for the climatic and
sanitary conditions of the Amazon Valley are not con-
ducive to the employment of full-blooded white men in
field and forest. The proposal to introduce Chinese
coolies was rejected on the grounds of the initial
expense connected with recruiting and transport, a fear
that the control of any large number of Orientals would
prove to be a difficult matter, and, finally, on account

52 THE RUBBER INDUSTRY

of a sentimental feeling that Chinese labourers, by
greater industry and thrift, would make the position of
Brazilian workmen untenable in the northern States of
Brazil. While academic discussion has been busy with
this crucial question of an adequate labour-supply, the
present acute crisis has overtaken the rubber industry
without the adoption of any practical measures to
safeguard the individual or national interests involved.
The most prolific recruiting-ground for the labour-
supply of the Amazon Valley in recent years has been
in the States of Ceara, and to a lesser degree Rio
Grande do Norte, Parahyba, and Maranhao. Local
circumstances in Ceara, where constant droughts led
to a shortage of food-supplies, made life difficult for
the agricultural population, and a large proportion of
the able-bodied men were attracted by the high rate of
earnings prevalent in the rubber districts. A small
percentage of these immigrants brought their families
with them, although as a general rule their intention
was to work for a season, and then return to their
homes. So long as rubber prices remained high this
annual migration was a common practice, but since the
fall in values began, two years ago, the custom has been
abandoned to a large extent, in consequence of the
reduced profits and the expense of transportation by
river and sea. These immigrants from Ceara and the
other northern States are descendants of Portuguese
settlers, negroes, mulattoes, and half-caste Indians.
They live in a poverty-stricken condition in their own
country, gaining only a bare pittance whether they
work small farms for their own account or hire them-
selves out for a daily wage. During the last two years,
however, the situation in Ceara has undergone a decided

THE LABOUR-SUPPLY 53

change, and the construction of railways, irrigation
reservoirs and canals, and other public works, has
created a certain local demand for labour, and raised
serious obstacles in the way of obtaining recruits freely
for the rubber industry.*

To insure a supply of labourers, it is customary for
the owners of large properties to send agents to Ceara
to engage the men required, and for the less important
employers to pay a commission to a resident agent to
contract for the number needed. In both cases sub-
stantial advances are exacted by the labourers on the
pretence of providing for their families during their
absence, or to pay off outstanding indebtedness before
their departure. After enlistment the men are em-
barked on board an ocean steamer for transport to
Para or Manaos; they are carried as third-class pas-
sengers at the expense of the employer. On arrival at
Para or Manaos the immigrants are landed, and lodged
and fed by the employers until transport on a river
steamer is available to carry them to their final destina-
tion ; on these river boats they are given deck passages.
The journey from the date of embarkation at Ceara to
the time of landing at a property situated on the Upper
Purus or Jurua frequently occupies from four to five
weeks, and the aggregate average out-of-pocket ex-
penses for passages, advances, and maintenance, is never
less than £20 per head. All this expenditure is recover-
able from the labourer, with the result that he begins
\vork with a heavy indebtedness to his employer. For
the employer the position is equally unsatisfactory ; for
he has very little real hold over the men, and practically

* Quite recently revolutionary outbreaks in Ceara have caused
the suspension of all public works.

54 THE RUBBER INDUSTRY

no punishment can be inflicted on them for desertion.
If the employer can ascertain the whereabouts of an
absconder, he can take civil process against him for
debt, but it is unlikely that he will recover any portion
of his claim. These conditions only refer to Brazil;
in Bolivia a deserter can be arrested and returned to
the estate, and by law must remain and work on the
property until the amount of his indebtedness has been
discharged.

A certain number of labourers are recruited annually
from Para and the immediate neighbourhood, and a few
also from Manaos. Only a small proportion of these
belong, strictly speaking, to the permanent resident
population, the majority being the flotsam and jetsam
from gangs employed on contract work, various trades,
deserters from ships, or discharged sailors and others
who have drifted to the Amazon Valley from various
causes. They comprise Portuguese, Italians, some
Spaniards, Brazilians — white, black, and mulatto —
negroes from the British West Indies, and occasionally
coolies from Calcutta who have drifted down from
British Guiana. These men are engaged by commis-
sion agents, and forwarded to different parts of the
rubber-producing districts on the same terms as the
immigrants from Ceara and the adjoining States.

From the many thousands of labourers annually
brought to the rubber properties, a certain percentage
remain permanently on the estates, partly because they
find themselves heavily in debt to their employer, and
frequently for the lack of funds to pay for a return pas-
sage to their homes. As a general rule the men are well
treated so far as personal relations between master and
man are concerned, and the fact that they are charged

THE LABOUR-SUPPLY 55

abnormally high prices for the provisions and merchan-
dise they purchase from the estate store carries very
little weight with them, provided they are allowed to
obtain what they desire without any restriction of
credit. The life appeals to them on account of the
freedom from restraint and obligation to regular hours
of work. So long as a collector delivers a fair weight
of rubber during the month, there is practically no
interference with his mode of life, and he can, and does,
take holidays whenever he is so inclined, without asking
the consent of the employer. The present crisis is
changing these conditions in many respects; but the
old-established habits are hard to suppress, and it
will be some time yet before property owners will be in
a position to exact regularity of service from the men
they employ.

For the most part the housing accommodation for
the labourers on the rubber properties, especially those
situated on the upper rivers, is of a primitive and tem-
porary character, and consists of huts with walls of
reeds, a floor of split palm stems, and the roof thatched
with grass or palm leaves. A man may build a hut for
himself if he chooses to do so, but no compensation is
allowed for the time occupied for this purpose. No
attempt is made to enforce hygienic regulations of any
description, with the result that the conditions in the
vicinity of these dwellings are always offensive. The
labourers are not encouraged to cultivate any plots of
land in their spare time, the reason being that any food-
stuffs produced would mean a proportionate decrease in
the quantity of provisions purchased at the store, and a
corresponding loss of profit to the owner.

56 THE RUBBER INDUSTRY

The allotment of work is made by estradas con-
taining a varying number of rubber-trees. In the
Madeira districts the rule is to mark out 130 to
150 trees to each estrada, according to the inter-
vening distances ; in the Purus and Jurua districts
the number is often 200, and sometimes more. In
the former the custom is to set aside one estrada for
each collector, and this is supposed to be tapped
daily ; in the latter two estradas are reserved generally
for each man, and these are tapped on alternate
days. Once the allotment of estradas is made, the
collector becomes a temporary partner with the owners ;
for he is paid by a percentage of the rubber collected,
and this is fixed in most districts at one-half of the
amount delivered. The collector prepares the rubber
daily, and he brings it fortnightly to the storekeeper to
be weighed, with no restrictions as to quantity and very
little care as to quality.

Fully 90 per cent, of the labour force employed on
the rubber properties is occupied in the collection and
preparation of latex, and only some 10 per cent, is in
receipt of a daily wage. These men are supposed
nominally to work for ten hours each day; they are
paid at rates varying greatly in different sections of the
Amazon Valley. Near Para a labourer earns from four
to five shillings daily without rations, and in the vicinity
of Manaos the rate is six to eight shillings without
food ; in the districts adjoining the River Madeira the
average pay is seven shillings per day, or seven pounds
sterling per month, with rations. In the neighbourhood
of the Madeira-Marmore' Railway men are paid ten
shillings a day with rations. In the districts of the

THE LABOUR-SUPPLY 57

Purus and Jurua the average daily wage is from ten to
twelve shillings with rations. While these rates appear
at first sight to be extraordinarily high, the actual value
is modified to a very considerable extent by the fact
that the truck system is in vogue in connection with all
disbursements.

Supervision over the work of the collectors in the
estradas and in the preparation of the rubber is delegated
to fiscales, or foremen. As a general rule these men
perform their duties in a most incompetent and per-
functory manner, and it is the exception to find a man
who is willing to make any real effort to protect the
interests of his employer, or to attempt to enforce any
instructions issued in regard to the careful treatment of
trees, or, indeed, any other matters requiring the exer-
cise of authority and influence. These fiscales are paid
at rates varying from fifteen to twenty pounds per month,
with free maintenance. In charge of the property is a
manager, who is sometimes the owner, but more fre-
quently a man receiving his salary in the form of a
percentage of the yearly profits. He is responsible for
the general conduct of the work and the management
of the store and accounts. So long as an average
quantity of rubber is delivered each month, these
managers pay little attention to any details connected
with the collection of the latex, and the condition of
the rubber-trees in all districts bears marked evidence of
this neglect.

Women and children take no part whatever in the
field work of the rubber industry. When a collector is
married, his wife cooks his food for him, makes some
attempt at keeping the hut in order, and takes care of

58 THE RUBBER INDUSTRY

the children. As far as possible, she obtains ready-
made clothing at the store rather than make her own
garments, and in this and in other household matters
she is extravagant and thriftless. With very few excep-
tions, no educational facilities are provided on the rubber-
producing properties, and the children of resident
families grow up in an absolutely illiterate state.

While the discipline among the labourers is extremely
slack, the general conditions in the rubber districts are
far more orderly than might be expected in view of the
total absence of any police force. Serious crime is of
comparatively rare occurrence. Murders and other
acts of violence take place occasionally, but only at
long intervals. This is the more remarkable in face of
the fact that a rifle and ammunition is part of the
equipment of every collector. Petty theft is a frequent
practice, and larceny in regard to rubber is not uncom-
mon. This latter offence is due principally to the
instigation of Syrian pedlars, who ply their trade in
boats and launches on all the waterways. They are
known locally as regatones, and they carry an assortment
of cheap merchandise and strong drinks, and with
these inducements tempt the seringueiro (collector) to
dispose of rubber far below its market value. These
Syrians meet with short shrift when their dealings are
discovered by the owners or managers, and their dis-
appearance leads to no very searching investigation on
the part of the local authorities. Whenever disturbances
do occur on the estates, the onus of restoring order
rests with the management ; for there is no organized
civil or military body to appeal to when trouble arises,
and refractory members of the labour force necessitate

THE LABOUR-SUPPLY 59

the application of strong measures to reduce them to
obedience. Taking all the circumstances into considera-
tion, the general standard of orderliness is better than
the isolated situation of the principal districts and the
mixed character of the population really warrants.

The truck system is firmly established throughout
the Amazon Valley as the basis of all money dealings
with the labourers employed in the rubber-producing
districts. That it is thoroughly vicious in principle
does not admit of discussion, and not a single sound
argument can be advanced to support its past or present
practice. It is nothing less than legalized robbery, and
is one of the most potent causes of the existing crisis
in the rubber industry. The abnormally high wage
rate is due chiefly to the iniquitous conditions resulting
from it, and its influence extends to every branch of
commerce and trade in this section of Brazil. The out-
come is seen in the high cost of transport, the excessive
prices of commodities, the restriction of enterprise in
all directions, and the poverty-stricken surroundings of
the majority of the inhabitants. The heavy duties on
imported merchandise undoubtedly add very largely
to the cost of living, but the prevalence of the truck
system is more to blame for the difficult situation of
to-day than any of the taxation imposed on foreign
supplies by the Federal Government.

A glance at a few of the main facts connected with
this baneful system demonstrates the depth to which it
permeates the present situation. The merchants sell
to the aviadores (purveyors of goods to the rubber-
producing community) at a large profit ; the aviadores
furnish supplies to the rubber districts at charges

60 THE RUBBER INDUSTRY

allowing a very large margin of gain; the owner of
a rubber estate retails these articles to the seringueiro
(collector) at prices equal to anything from 50 to 200 per
cent, above cost. As a result, the unfortunate con-
sumer pays from 300 to 400 per cent, above the value
of the goods when first landed at Manaos or Pard. The
excuse for so much profit-snatching is that credit is long,
freights high, and -payments uncertain. To a limited
extent these statements are true ; but the reason at the
bottom of them is that under existing circumstances a
chain of indebtedness is a necessary adjunct to the
methods employed throughout the rubber districts, for
without it the truck system, and the opportunity it
offers for illegitimate gain, would very soon become a
thing of the past. The rubber industry of the Amazon
Valley can never be conducted on a sound commercial
basis until this evil factor is eliminated.

The mode of payment to labourers on the rubber
properties is for the manager to credit their accounts
at the estate store with the amount of wages earned or
the value of the rubber delivered. In the latter case the
general practice is to allow the collector one-half the
total price for which the rubber is sold at Manaos or
Para, after making liberal deductions for loss of weight
and incidental expenses. Against the value of the rubber
the collector buys the goods actually required for his
personal use, and, in addition, any other articles which
may catch his fancy. Brazilians are naturally extrava-
gant, and this characteristic is fostered to the utmost
extent by the custom prevailing of late years in the
rubber districts to give unlimited credit to the collectors.
So long as the value of rubber stood at an abnormally

THE LABOUR-SUPPLY 61

high price there was something over for the labourer at
the end of the season, in spite of the charges against
him at the store ; but at the present time, so far from a
balance in his favour, there remains only a record of
debt. And this situation becomes more hopeless for the
men as time passes ; for they are not permitted to buy
elsewhere than at the store of the property where they
work, and hence they have no alternative but to accept
the exorbitant prices charged against them, or starve.

The standard of honesty that tolerates the mulcting
of the labourer through the truck system reacts on the
general commercial situation in hard times, such as
have now overtaken the rubber industry. The property
owners do not discharge their indebtedness to the
aviadores; the aviadores are unable to fulfil their promises
to pay the merchants; the merchants fail in their
obligations to the manufacturers. Such is the state of
affairs that has been reached to-day in the Amazon
Valley, and the confusion resulting from these con-
ditions has enmeshed banks, financial institutions, and
all varieties of commercial undertakings maintaining
business relations with this section of South America.
It entails a severe restriction of credit for many years
to come.

In Bolivia the truck system is also the paramount
feature of all payments to labourers on the rubber-
producing properties, and it enjoys State protection in
so far that the law of the country does not permit a man
to leave the service of his employer unless he can first
provide for the discharge of his indebtedness. In dis-
honest hands this means the condemnation of the
labourer to a condition not far removed from what can

62 THE RUBBER INDUSTRY

only be described as " virtual slavery." Of course, the
fact must not be forgotten that these conditions are
relics of feudal habits established many years ago,
when the country was beyond the scope of civilizing
influences, and when drastic measures were necessary
to hold in check the somewhat turbulent semi- Indian
population. That they continue in force to-day cannot
be ignored in any consideration of the territories com-
prised within the area of the Amazon Valley.

In Peru a similar state of affairs prevails to that per-
taining to Bolivia, and it leads to abuses in many
directions. It is a matter for regret that more satis-
factory arrangements cannot be enacted to regulate the
relations between master and servant ; but in a country
of such sparse population, and extending over so vast
an area, the solution of the problem is beset with diffi-
culties, and much time must elapse before it can be
grappled with successfully. Until the spread of educa-
tion lifts the people out of their present barbaric sur-
roundings, there is small reason to hope that any
marked change for the better will become an accom-
plished fact, or that the existing chains of bondage will
be relaxed.

The question of food-supplies for the labourers in the
rubber districts is one of the greatest importance in
connection with the future development of the industry.
The principal commodities absolutely necessary to sus-
tain life on a fairly healthy basis are beans, xarque
(dried meat), coffee, farinha (mandioca), maize, lard,
salt, sugar, and tobacco. At present the great majority
of these products are imported from other sections of
Brazil or from the River Plate. The foreshore of the

THE LABOUR-SUPPLY 63

waterways in the Amazon Valley during the months
when the rivers are low contain an ample area of agri-
cultural land of the finest quality available for the
cultivation of beans, farinha, and maize, the staple
articles of consumption. Tobacco does well on these
alluvial soils, and yields exceptionally heavy crops.
While the conditions are not ideal for raising cattle, and
the climate does not permit of the preparation of dried
meat (xarque), a sufficient number of animals could be
bred to provide the necessary rations of fresh meat.
Fish can be obtained from the rivers at most seasons
of the year. If adequate attention was devoted to these
natural resources, the cost of living could be diminished
to a substantial extent, and this would help materially
to prepare the way for a lower wage rate. To approach
this question in a practical spirit and establish local
production throughout the Amazon Valley, it is neces-
sary to insist that every labourer should cultivate a
patch of ground large enough to supply his own needs.
This entails trenching severely on the truck system,
and therefore it will be the cause of a great deal of
opposition on the part of owners and managers of prop-
erties; but unless some such measures are enforced
the future existence of the rubber industry will be
seriously affected, and it may even reach the point of
being threatened with almost complete extinction in
many districts.

CHAPTER VI
TAPPING

Tapping season— Tapping tools— Experiments with the gouge
— Collectors supply all necessary implements — Hours for tapping
— Overhead tapping — Indian system on the Tapajoz — Pricking
the latex cells — Tapping castilloa — Girth of trees — Bark renewal
— Lack of cleanliness — Conditions of life for the collectors.

THE tapping season throughout the Amazon Valley
extends from the beginning of June to the end
of January. In the latter month the prevalence of the
heavy rainfall prevents a continuance of production,
owing to the cups filling with rain-water and spoiling
the latex for the purpose of coagulation. In March
the annual inundation of the riparian lands commences,
and until the latter part of May the flooded condition
of the country makes all work impossible in the forests.
The only tapping tool in general use is the machadinho
(small axe). It is in the shape of a tomahawk, and is
made in two sizes — the larger sort 4 inches long by
2 inches wide at the edge, and the smaller 3 inches by
i inch. It is made of iron, in deference to the wide-
spread superstition that the use of steel is detrimental
to the quality of the latex, and eventually causes the
death of the tree. These axes are fitted with handles
varying from 3 to 4 feet in length, and head and handle
together weigh 2 pounds and i pound for the large
and small size respectively. Many attempts have
been made to invent a patent tapping instrument so

TAPPING 65

graduated as to prevent damage to the cambium, but
hitherto nothing of a practical description has been
evolved.

Experiments with the curved gouge, similar to that
used so successfully in the Orient, have not given satis-
factory results. The two principal reasons why this is
the case are that the trunks of the trees have been so
much injured by the machadinho in past years that any
form of excision tapping is necessarily slow over the
rough renewed bark, and consequently a collector taps
only half the number of trees ; and because the excision
of the cortex renders the tree liable to attacks of cambium
disease, resulting in a weakening of the latex. Another
and serious drawback to gouge tapping is that constant
and competent supervision is required to obtain the full
benefits of the system, and this factor is unattainable
under present circumstances in the Amazon Valley.
Even on planted and also virgin forest trees the use of
the gouge is impracticable if it leads to damage from
cambium rot, as was the case in the experiments tried
in 1912 and 1913 ; and the fact that a greater yield of
latex per tree can be obtained by the application of
the herring-bone system is insufficient compensation
if this additional quantity is of distinctly inferior
quality.

The established custom is for the collectors to supply
the machadinhos, latex cups and cans, and all other
implements required for their work. The charge made
for the small machadinho heads in general use is two
shillings and eightpence each, at least four times the
proper retail value. A proportionately extortionate rate
is made for all other articles the collector may require.
5

66 THE RUBBER INDUSTRY

The collector begins work in the early morning,
generally about an hour before daybreak. He carries a
lantern to enable him to make his way along the estrada
allotted to him, and he taps each rubber-tree with an
upward stroke of his machadinho, inflicting a wound in
the form of an inverted triangle, some 2 inches wide at
the base, and almost invariably penetrating to the wood.
The number of cuts made depends on the girth and
general condition of the tree, sometimes amounting to
as many as eight, and in other cases to only three or four.
At the apex of each cut a cup is pushed into the bark,
to receive the latex dripping from the wounded cells.
This process is repeated from tree to tree until the end
of the estrada is reached, an average distance of from
three to four miles, and containing from 130 to 150 trees
in the Madeira districts and in those of the lower rivers,
and as many as 200 trees in the vicinity of the Purus,
Jurua, and other sections of the upper waterways. As
a rule the collector completes the tapping before g a.m.,
and he then retraces his steps, to gather the latex from
the receiving cups and bring it to the smoking-hut for
coagulation. He also collects any lumps of rubber
formed in the cups, but none of the bark scrap that is
such an important item in the returns of Oriental plan-
tations. There are two reasons for leaving this bark
scrap untouched. The first is that the amount is prac-
tically insignificant, owing to the method of tapping,
and the value low in comparison with other grades of
rubber; and, secondly, this scrap left in the wound
forms a protective shield for the cambium and cortex
against atmospheric influences, and attacks by borer or
other insect plagues. Indeed, it is not too much to say

i I

TAPPING 67

that this residue of latex left in the cut is the salvation
of the industry, when the serious injury inflicted on
the trees from the constant use of the axe is taken into
consideration.

Experiments carried out in 1913, using a bent gouge
instead of the machadinho, showed that a collector could
only tap from sixty to seventy trees with two or three
cuts regularly each day, or one-half the number possible
with the machadinho. It is true that as long as the
trees remained healthy and free from bark disease the
yield from the herring-bone system was double that
obtained by the axe, but in many cases the quality of
the latex became thin and the percentage of dry rubber
diminished. The natural and probably correct deduc-
tion drawn from these results was that the trees were
I unable to sustain the additional drain upon their
; resources caused by the greater number of latex cells
opened in the length of surface exposed by the gouge,
as compared to the triangular incision made by the
machadinho.

Overhead tapping — that is, above the reach of a man
standing on the ground — is practically prohibited in the
Madeira districts, and entirely so in the section of the
State of Matto Grosso traversed by the Madeira-
Marmore Railway. However, it is common practice in
the vicinity of the Lower Amazon and its tributaries,
on the Purus and Jurua, and in the districts of the upper
rivers and their affluents. In many cases, especially
on the islands of the delta, the tapping is carried up
to a height of 40 feet from the base of the tree. To
enable the collector to use his axe and gather the latex,
rough platforms are constructed of saplings, a notched

68 THE RUBBER INDUSTRY

trunk being placed against the tree to give access to the
staging. Experience proves that overhead tapping is
no more injurious to the rubber-tree than when the
latex is drawn from the lower levels ; but the yield is
not so abundant, and the first cost of erecting the plat-
form, and the loss of time and the danger to life and
limb when ascending and descending the primitive
appliance doing duty for a ladder, are factors that must
be duly taken into account as affecting a final cost of
production. It often happens that the lower portions
of the stems are so badly scarred by ill usage with the
machadinho that tapping is impossible, and then the
trees must be abandoned unless the work is continued
overhead ; in such cases it is absurd to allow old super-
stitions regarding possible injurious effects to stand in
the way of a harvest being obtained by utilizing this
method.

A system of tapping in vogue among the Indians
many years ago is still practised to a small extent,
especially near the River Tapajoz. Split canes about
ij inches wide are twisted round the lower part of
the tree, and the interstices between the trunk and
the cane filled with clay, thus forming a channel round
the stem. Above this channel incisions are made with
the machadinho, the latex flowing from these cuts to the
cane trough, and thence to a tin cup placed at the foot
of the tree. This method is interesting as a relic of
ancient usage, but in itself has no particular advantages
to recommend it as superior to the customary process
employed ; it has, however, a very important bearing in
regard to the application of another form of tapping
attempted in Ceylon and Java, and, although not so

TAPPING 69

satisfactory as the system of bark incision with a gouge
or similar tools, may prove to be the solution of the
problem in the Amazon Valley, by procuring a marked
increase of latex without additional labour or the
exposure of the tree to any danger of damage from
cambium disease or borer.

A few years ago in Ceylon a suggestion was put
forward by Mr. Northway to establish a system of
tapping the latex cells by the use of incision instead of
excision methods. The idea was to prick the cells in
place of paring away the cortex with a gouge or other
species of tapping knife. For this purpose a many-
pointed rotary disc some 2 inches in diameter was
invented, and this was attached to a handle about
9 inches in length. A shallow cut with a gouge was
made in the outer bark to provide a channel leading to
the receiving cup ; this cut was reopened daily, and the
pricker was run over the exposed cortex with sufficient
force to penetrate the latex cells, causing the milk to
exude freely and flow down the channel to the receiver
at the base of the tree. The objections raised to this
system by the Ceylon planters were that it was slow in
comparison with gouge work done by expert tappers, that
the yield per tree was no greater, and the number of
trees tapped daily by each coolie was considerably less
than with the existing methods, and that under efficient
supervision the prevailing system of bark excision in-
flicted no practical damage on the trees and admitted of
a satisfactory renewal within a reasonable period of time.
In these circumstances the ideas of Mr. Northway made
little progress in Ceylon or the Malay Peninsula ; but
they have been applied successfully on his own estate,

70 THE RUBBER INDUSTRY

and also practised with quite good effects on several
properties in the Malang district of Java.

There is no reason why the Northway system, in con-
junction with the principle of the exterior latex channel,
both modified to fit the varying local conditions, should
not be applied with marked success throughout the
rubber districts of the Amazon Valley. In any event
the experiment is worth a trial, for it offers a better
prospect of a solution of the present difficulties than
any practical suggestion hitherto put forward to
counteract the crisis precipitated by the rapid fall in
the value of the raw material. The exterior latex
troughs can be affixed to the trees at a trifling cost of
money and labour if made of tin or zinc and supplied
in quantities sufficient to meet the requirements of the
industry ; no excision of bark is necessary, as was the
practice in Ceylon, for the exterior channel takes the
place of the one formerly cut in the stem of the tree ;
the injury to the bark surface consequent upon the long
previous use of the machadinho will not prevent the free
application of the pricker ; the collector will be able to
tap more trees per day under this system than he does
at present with an axe ; a minimum of damage will be
done in the future to trees handled in this way ; and,
finally, the yield per tree will be increased by a very
appreciable amount, if the results obtained in Ceylon
and Java are any criterion for drawing a rational
deduction in regard to the application of this method
to both forest-grown and planted trees in the Amazon
Valley. The experiment of testing this system at
different points in the rubber districts can be effected
without any heavy expenditure, for all that is necessary

TAPPING 71

is strict observance of definite instructions in regard to
the use of the pricker, and accurate returns of the
labour employed and the yield obtained from the
various classes of trees. The experiment may need
the attention of one man with practical experience of
the Northway method for a time, but a period of six
months should be ample to prove the success or failure
of the system so far as it applies to existing conditions
in Brazil.

The only really serious difficulties in the way of the
widespread adoption of the extraction of the latex by
means of pricking instead of cutting the cells with the
machadinho or gouge are the thickness and irregularity
in the bark of forest-grown trees, and in connection with
the high density of the milk causing coagulation in the
channels before reaching the receiving cups. There is
small doubt that these obstacles can be overcome
successfully by careful attention to, and intelligent
appreciation of, the general circumstances, and to the
local conditions in regard to common-sense modifica-
tions in the construction of the pricker and the applica-
tion of the latex troughs to the stems of the rubber-trees.

The collection of rubber from castilloa trees is carried
out on quite different principles from the custom estab-
lished in connection with the Hevea, and it is conducted
in the following manner: Gangs of men, varying in
numbers from half a dozen to twenty or thirty, travel
through the forests where the castilloa is known to be
fairly abundant, and tap each group of trees as they are
discovered. The trunks are slashed to a height of from
6 to 8 feet from the base, and the latex allowed to
flow into cavities hollowed out near the foot of the

72 THE RUBBER INDUSTRY

tree. This process of hacking the stem bark is con-
tinued for some ten days, or until the milk ceases to
run. Then the tree is felled, and the bark of the upper
portion of the trunk and branches is subjected to a
further slashing to open the remaining latex cells.
After a lapse of some thirty hours the exudation of
milk stops, the tree is abandoned, and the gang passes
on to the next group, and so the process is repeated.
The rubber is wound into balls, or the lumps are
packed into bales of from 60 to 70 pounds weight, and
from time to time these are conveyed to some convenient
central locality to await the end of the tapping season,
or for shipment as opportunity offers. Many of these
caucho-gaihering gangs work under agreements to sell
their harvest to the owners of the forest tracts where
they carry on their operations; others are quite inde-
pendent, and confine their enterprise to the national
territories, and then dispose of the rubber to the nearest
dealers.

The destructive methods employed for the extraction
of castilloa latex are only tolerated on account of the
scanty yield obtained by other systems of tapping, and
for the fact that the industry cannot be continued on a
profitable basis unless a comparatively large quantity
can be gathered, to enable these gangs of men to earn
an adequate return for their labour. In view of the fact
that nearly one-quarter of the total rubber exports of
the Amazon Valley consist of cauclio, it is evident that
the exhaustion of the sources of supply cannot be far
distant, unless the low prices now prevailing for this
product act as a restriction on the amount annually
collected.

INDIAN COOLIES TAPPING TREES IN THE 1THUC GARDENS AT I'ARA

TAPPING 73

In Ceylon the tree at Henaratgoda known as No. 2,
and planted in 1876, has a circumference of 137 inches
at 3 feet from the ground. It is considered one of
the finest in the East, and it is interesting to com-
pare this specimen with trees in Brazil. The girth of
forest-grown rubber-trees varies to a marked degree in
different localities of the Amazon Valley. For mature
trees it ranges from 50 to 200 inches in circumference
measured at a height of 3 feet from the base of the
trunk. Occasional examples occur of the girth attain-
ing such colossal dimensions as 300 inches. It is safe
to consider the average girth of estrada trees in tapping
as 100 inches or thereabouts, and the average height
100 feet approximately. The age of the trees is extremely
difficult to gauge with any degree of accuracy, owing to
the absence of all reliable records in this direction. In
the Madeira districts and elsewhere many trees are
found that have been tapped for sixty years past, there-
fore they are probably not less than eighty years old ;
but the growth and development is so far influenced by
surrounding conditions of locality, light, air, soil, and ex-
posure, that size cannot be regarded as a criterion of age.

So far as planted trees are concerned, the indications
are that the growth in the Amazon Valley is distinctly
less rapid than in Malaysia, or even in Ceylon, where
the development is much slower than in the Federated
Malay States, the Straits Settlements, Java, or Sumatra.
Rubber-trees in the gardens of the Museo Goeldi at
Para, carefully cared for during the last fifteen years, are
no greater in girth or height than those of seven years
old in many of the Malay plantations. In clearings
where plants have been set out, they are in even a more

74 THE RUBBER INDUSTRY

backward condition, and after twenty years' growth are
frequently under 30 inches in girth at 3 feet from the
ground. Although slow development is due in part to
neglect to keep them clean from the scrub and weeds
choking all progress, it does not account for the marked
disparity between the rate of growth in Brazil and the
Orient, after making ample allowances for lack of
cultivation in the former country.

The bark renewal after tapping is exceptionally good
in all districts of the Amazon Valley. Even when trees
are hacked about unmercifully with the machadinho, the
cortex makes the most vigorous effort to repair the
damages inflicted by the many careless collectors. On
trees of all ages tapped with the gouge in 1913, and
subsequently attacked on the tapped surface by a most
virulent form of cambium rot, the renewal of bark was
extraordinary; moreover, it wras equally strong in the
case of forest trees shut out from the free access of air
and light, and on those growing close to the river-banks
and receiving a full allowance of sunshine. In the
Orient, experience shows that deep shade is a deterrent
to bark renewal, whereas in the Amazon Valley the
evidence available proves that it produces no such
effect ; in fact, the idea is deep-rooted in most districts
that exposure to the direct rays of the sun causes the
latex cells to become barren, and arrests the growth of
new bark. It is extremely difficult to reconcile these
absolutely reverse conditions of the same tree under
atmospheric influences containing practically no differ-
ence in the characteristic features of moisture, soil, and
temperature, or to attribute them solely to variations
resulting from the effects of regular cultivation.

TAPPING 75

No attempt is made by the collectors to keep the
cups and latex cans in a cleanly state ; the former are
never washed, and remain in the estradas covered with
rust throughout the tapping season, while the latter are
not even rinsed out after the latex is brought into the
smoking-huts. Naturally, the dirt in cups and cans
induces fermentation, and leads to the formation of a
larger proportion of lump than would be the case if
cleanliness was practised. The profitable character of
the industry in past years made the rubber producers
careless in regard to the details connected with the col-
lection of the latex, and slovenly habits were permitted
without check or hindrance ; hence the difficulty of
changing established customs now that all possible
economy is necessary to meet successfully the com-
petition of Oriental production. A little care in con-
nection with the utensils in use would make a reduction
of not less than 5 per cent, in the proportion of low-
priced sernamby (scrap), and add that amount to the
output of fine rubber. The managers argue that to en-
force rules of cleanliness would entail considerable delay
for the collectors when making the rounds of the trees
in the estradas, but they forget that the collector would
benefit equally with the owner if adequate attention
was given to this important matter.

The conditions of life are replete with hardships for
the seringueiro (collector) under existing circumstances,
and his situation has undergone a marked change for the
worse during the last two years. So long as rubber
was in the neighbourhood of five shillings a pound the
collector made good money in his position of modified
partnership with the owner of a rubber-producing prop-

76 THE RUBBER INDUSTRY

erty. He prized his independence, and could afford
his inclination to make holiday whenever he so desired ;
moreover, his credit at the store was unlimited for all
practical purposes. At present, with more days and
longer hours of work, only one-half the money can be
earned ; this payment is barely sufficient to defray the
cost of subsistence during the tapping season, leaving
nothing to provide against the necessities of the lean
months when the collection of rubber is suspended.
Formerly the seringueiro could obtain credit from the
end of one working period to the beginning of the next ;
but to-day the property/owner is unable to afford any
such advances, and the slack months must be passed
in a state of the utmost poverty, often bordering on a
condition of semi-starvation. One of the attractions to
the men employed in the rubber districts was the ability
to indulge in extravagant purchases of any articles that
took their fancy, whereas now, when in full work, their
credit is frequently insufficient to meet the cost of the
daily rations. In these circumstances it is no matter
for surprise that a large proportion of the labourers are
drifting back to their homes in Ceara or elsewhere
whenever opportunity offers, rather than remain in the
Amazon Valley to face the privations and vicissitudes
inevitably to be expected in connection with the imme-
diate future of the rubber industry. It is due to this
state of affairs that the labour - supply is steadily
diminishing, and it is a factor that threatens to bring
most serious consequences to an already complicated
situation.

CHAPTER VII
YIELD AND DENSITY OF LATEX

Average yield varies in different districts— Yield on the Madeira,
Puriis, and Jurua — Yield on the upper rivers and in Bolivia —
Experiments with gouge tapping — Variation in quantity and
quality of latex — Tests for density on the Madeira and Puriis —
Further tests— Records kept at Santa Maria, River Madeira-
Records kept at Sevastopol, River Puriis— Exaggerated reports of
yields of trees.

'"T^HE average yield of rubber- trees in the Amazon
A Valley varies to a marked extent in different dis-
tricts, and, in the absence of accurate statistics extend-
ing over any lengthy period, the average quantity of
latex and amount of dry rubber produced can only be
calculated approximately for most sections of the
country. In the case of the properties on the Rivers
Madeira and Purus more detailed information is avail-
able, as a result of a series of experiments and tests
conducted under competent supervision in 1912 and
1913, in order to ascertain the density, yield and pro-
portion of rubber in comparison with returns obtained
in Ceylon and elsewhere in the Orient. These experi-
ments were prompted also by a desire to obtain definite
knowledge as to the relative conditions of latex extracted
by the use of the machadinho compared to that procured
by gouge tapping on the herring-bone system, and for
this purpose tests were carried out on both forest -
grown and planted trees in districts with many different

78 THE RUBBER INDUSTRY

characteristics of soil, elevation above water-level,
exposure, and general surroundings.

Throughout the rubber districts of the Lower
Amazon and those in the vicinity of the waterways
discharging into the delta, the average yield per tree is
less than in the other two sections of the Amazon
Valley, and a very rough estimate of the number of
labourers in comparison with the total output places
the weight of dry rubber per tree at slightly under
3 pounds. This is a very small return from fully
matured trees; but a great proportion of the trees in
these districts have been in tapping for half a century
past, and have been so seriously damaged by the care-
less use of the machadinho that the latex cells cannot
respond freely to the demands made upon them. In
the neighbourhood of the delta the conditions are
worse than on the upper reaches of the Rivers Tapajoz,
Xingu, and other tributaries ; while the yield in
these latter districts probably exceeds the average of
3 pounds per tree, the return on the islands and lower
sections of these rivers falls considerably short of that
figure.

In the districts of the Madeira, the lower portions of the
Purus and Jurua, and the tributaries of these rivers, the
annual yield is higher than in the territories mentioned
in the last paragraph ; and on the same basis of calcula-
tion the average return works out approximately at
5 pounds per tree. Local report places the amount
at a much higher figure, but is coloured by the quantity
obtained from individual free-milking trees scattered
through the estradas. The check on exaggerated state-
ments is to take the total output and compare it with

YIELD AND DENSITY OF LATEX 79

the number of collectors employed and the average
number of trees allotted to each collector. The ship-
ments from these districts in the season 1912-13
amounted to 21,000,000 pounds, and to obtain this crop
27,000 tappers were necessary, each working an estrada
containing on an average about 150 trees, for a period
of 1 60 days extending over seven months, from June to
January. Investigations conducted on about 100 prop-
erties revealed the fact that the monthly deliveries of
rubber from each collector averaged no to 112 pounds,
or 770 pounds, slightly more or less, during the season ;
this equals a total output of 20,790,000 pounds from
some 4,050,000 trees, or an average yield of 5*13 pounds
per tree.

In the third section of the Amazon Valley, comprising
the rubber-producing districts of Bolivia, the Acre terri-
tories, the Upper Purus and Jurua, the Jutahy, Javary,
and other rivers, a higher average yield is obtained.
This is due to the fact that the majority of the trees
have been worked for a comparatively short period, and
also because a large number of virgin trees are brought
into tapping annually. In Bolivia the output for the
season 1912-13 was 6,700,000 pounds, and this quantity
was produced by 7,500 collectors from 1,100,000 trees,
equivalent to a return of a little less than 6 pounds
per tree. In the other districts enumerated the aggre-
gate crop was 25,900,000 pounds, gathered by 26,000
collectors from 3,770,000 trees, an average of 6'8 pounds
per tree. In these calculations all reference to caucho
(castilloa) is omitted, no data of any kind being avail-
able at present for working out the average per tree, on
account of the methods employed for the collection of

8o THE RUBBER INDUSTRY

this class of rubber. Moreover, the number of men
comprised in the gangs formed to exploit the caucho
industry varies greatly from month to month, and this
adds to the difficulty of drawing up any statistics of a
reliable character.

Experiments tried in 1913 with the gouge, working
on the herring-bone system for both forest-grown and
planted trees, showed that for the first three or four
weeks the average yield of latex per tree was double
that obtained with the machadinho, but the collector
tapped only one-half the number of trees daily. Doubt-
less this drawback would have been remedied to some
extent as the tappers became more expert ; but an out-
break of cambium disease occurred soon after the
experiments were commenced, and it was of such a
virulent nature that the work was abandoned. Another
objection to excision methods was that after the first
month the quality of the latex weakened even when the
trees were free from disease, and the conclusion reached
was that the additional milk extracted overtaxed the
general functions of the trees. These experiments were
carried out over a period of six months in the Madeira
and Purus districts to test thoroughly the possibility of
increasing the average yield by the introduction of
gouge tapping ; they were only relinquished in view of
the combined effects of cambium disease and the lower
quality of latex obtained. The trials were made at
some seventy different properties on the Madeira and
Purus, and they may be accepted, therefore, as conclusive
proof that any system of bark excision is unsuitable for
rubber-trees in the Amazon Valley owing to unexplained
atmospheric influences.

YIELD AND DENSITY OF LATEX

The quality and quantity of the latex varies con-
siderably during the tapping season. From the middle
of June to the end of July the density is high and the
yield abundant; in August and September there is a
marked diminution in quantity, and this is attributed
locally to the fact that in these two months the trees
are wintering, and the rainfall is much less than at any
other time of the year ; in October the quality falls off,
owing to the trees flowering during this month. To-
wards the end of the tapping season the density is
lower than in June and July, showing that the trees
feel the effects of the daily extraction of latex. It is
interesting to note these facts, as they differ widely from
the conditions prevailing in Ceylon and the Malay
Peninsula.

A few of the tests made in 1913 demonstrate clearly
the average density of the latex obtained from trees
in the districts adjoining the Rivers Madeira and
Purus. They also permit some comparison in the
quality incidental to the use of the machadinho and the
gouge. On the Madeira the tests were made during
the first fortnight in September, and the results
were —

No.

Name of Property.

District.

No.ofC.C.
taken for
Test.

Tapping Tool
used.

No.ofC.C.
to i Pound
of Dry
Rubber.

Santa Catharina

Madeira

1,000

Machadinho

1,000

Santa Maria ...

„

1,000

Gouge

M43

Recreio

950

i,435

Mirary

225

>»

1,200

82 THE RUBBER INDUSTRY

The latex tested was obtained from trees in regular
tapping since the beginning of the season ; Nos. i, 2
and 4 from forest-grown trees, and No. 3 from a twelve-
year-old plantation.

Another test made was on forest-grown trees in the
vicinity of Abuna, on the Madeira-Marmore Railway,
where some experiments in gouge tapping on the
herring-bone system had been tried in the previous
July. Two sets of trees were tapped for fifteen days,
one with the machadinho and the other by the gouge,
using the half herring-bone system with two and three
cuts, according to the general condition of bark surface
and trees. For this work it was necessary to pay
wages to each man at the rate of thirteen shillings and
fourpence per diem, and it will be seen that such pay-
ments entail a severe loss on every pound of rubber
harvested. The experiment was commenced on Sep-
tember 29, and concluded on October 15 ; it furnishes
interesting data regarding the relative results obtained
by the gouge and the machadinho. On the gouge-
tapped trees indications of cambium disease appeared
towards the end of the experiment, and thus confirmed
the deduction previously reached, to the effect that
any excision system of extracting latex was inappli-
cable in the Amazon Valley, for the reason that the
increased yield did not compensate for the danger from
cambium rot and the additional labour force required.
The subjoined daily record of the results of this experi-
ment is self-explanatory. An allowance of 20 per
cent, for waste should be made to ascertain the dry
weight of the lump and scrap?in calculating the aggre-
gate amount of marketable rubber :

YIELD AND DENSITY OF LATEX

MACHADINHO TAPPING

Date, 1913.

*- ! -H^'

&£

1«

*£ j JJ

II-

S«

°%

Sept. 29 ...

210 | 4,000

2,650

550

—

3,200

—

,750

,, 30 ..

235 2,500

1.750

925

150

2,825

6,025

,100

Oct. i ...

235 4,I25

3,2OO

400

3,600

9,625 i ,950

2 ...

235

5.250

4,!5o

45°

200

4,800:14,425! ,500

3 .

235

6,500

4,800

550

—

5,350:19,775

,900

6 ...

too

3,ooo

2,100

IOO

400

2,600:22,375

,250

7 ...

235

4,500

3,050

600

3,650^6,025

,800

8 ...

235

4»50o

3,400

150

2OO

3.750 129,775

,950

9 -

235

5,250

4,100

—

350

4,450

34,225

2,370

10 ...

235

5,625

4.225

125

300

4.650

38,875

2,500

ii ...

235

5,750

4,350

250

4,600

43,475

2,550

13 ...

235

6,375

4,700

—

350

5.050

48,525

2,800

14 ...

235

6,125

4,350

—

200

4,550

53,075

2.570

15 ...

235

5,250

3,850

—

400

4.250

57,325 1 2,250

Total ...

3,190 (68,750

50,675

3,850

2,6OO

57,325

—

30,240

GOUGE TAPPING

! Sept. 29 ...

2,500

1,450

600

400

2,450

750

„ 30 ...

1.750

1,150

600

150

1,900

4,350

650

jOct. i ...

2,125

1,600

400

300

2,300

6,650

850

2 ...

2.750

1,900

400

2OO

2,500

9,i5o

1,020

3 ...

2,250

1,750

300

175

2,225

n,375

870

4 -.

2,500

1, 800

250

200

2,250

13.625

920

5 ...

2,125

!,55o

250

160

1,960

15,585

800

6 ...

2,000

1,360

300

150

1,810

1 7,395

670

7 ...

2,500

1,700

300

IOO

2,100

J9,495

820

8 ...

2,375

1,400

600

250

2,250

21,745

700

9 -

2,250

i,45o

250

200

1,900

23,645

720

10 ...

2,250

1,500

400

200

2, IOO

25,745

720

ii ...

2,375

i, 600

150

1,900

27,645

800

13 ...

2,250

1,250

400

300

J.950

29-595

600

Total ...

798

32,000

21,460

5,200

2,935

29,595

—

10,890

From this record it will be seen that the total amount
of dry rubber, including lump and scrap after deduct-
ing 20 per cent, for loss of weight in drying, was 77*52

THE RUBBER INDUSTRY

pounds from 3,190 tappings with the machadinho on

235 trees; and 38*27 pounds from 798 tappings with
the gouge on 57 trees. This gives 2i'8 c.c. and 40*1 c.c.
per tree respectively for machadinho and gouge. Briefly
summed up, the result of the experiment was —

Tool used.

No. of
Trees
tapped.

No. of
Tappings.

Total
Yield of
Latex.

Quantity
of Latex
per Tree
per
Diem.

Total Dry
Rubber,
including
Lump and
Scrap.

No. of
C.C. to
i Pound
of Dry
Rubber.

C.C.

Pounds.

Machadinho

235

3.190

68,750

21-8

77-52

886

Gouge

798

32,000

40-1

38-27

836

Based on these calculations, the yield per tree with
machadinho tapping on 180 days in the year would be
4*4 pounds, and for a similar period with the gouge
the return would be 8 '6 pounds ; of these totals, the
amount of lump and scrap with the machadinho would
be 14^ per cent., while writh the gouge the quantity
would be equal to 37} per cent.

On the Lower Purus experimental tests carried out
from September 27 to October 7, 1913, to ascertain
the density of the latex extracted by means of the
machadinho and gouge respectively on forest-grown
trees, gave the following results :

Locality.

Tool used.

Quantity
tested.

Dry Rubber
obtained.

No. of C.C. to

i Pound of
Dry Rubber.

C.C.

Ounces.

Aliang?.

Machadinho

l.OOO

I5-33

1.043

Gouge

I,OOO

I.OOO

Axioma

Machadinho

500

7'5o

1, 066

Gouge

500 j 7-66

1,044

YIELD AND DENSITY OF LATEX

At Alian^a, in order to make the list as thorough
as possible, various methods of tapping were employed ;
these are shown in the annexed table :

Hours of
Tapping.

No. of
Trees
tapped.

Tool
used.

Daily or
Otherwise.

Method employed.

6 a.m. to

Macha-

Daily

Four to six cuts, accord-

9a.m.

dinho

ing to girth

Alternate

Four to six cuts, accord-

Gouge

days
Daily

ing to girth
Double herring - bone

with four cuts

»>

Single herring - bone

with two cuts

»>

Double and single her-

ring-bone on a quarter

circumference of tree

Broad V cuts

9 9

Small V cuts

Alternate

Single herring - bone

days

with two cuts

A further test taken at the Sevastopol estate, on the
River Punas, extended over a period of eight days, on
forty trees tapped by the gouge with half herring-bone
and two cuts. For the last six days of this experiment
the results were —

Date,
1913-

Latex.

Wet

Rubber.

Dry

Rubber.

Lump.

Scrap .

Aggregate
Dry Lump
and Scrap.

Remarks.

Oct. 13

» 14

» *5

, 16
> 17
, 18

c.c.

250
359
483
616
650
583

Gnus.
1 80
260
36o
400
460
350

Grms.
108
156
216
240
276
210

Grras.
IOO
90

85
120

135

IOO

Grms.
30
7°
50
60

47
40

Grms.
I04
128

108

144

145
112

Forty per cent,
deducted from
wet rubber and
20 per cent, from
lump and scrap
for waste in dry-

Total

2,941

2,010

1 ,206

630

297

741

ing

86 THE RUBBER INDUSTRY

These figures are equal to a total yield of 70*2 ounces
of dry rubber, or an average of 1*75 ounces for each of
the forty trees tapped during the six days' trial. The
density of 670 c.c. to i pound of dry rubber is extra-
ordinarily high, and it compares with an average of
1,341 c.c. at the Ceylon Government Gardens of
Henaratgoda, according to official returns published
in May, 1913.

In all the foregoing experiments coagulation of the
latex was obtained by the use of a solution of acetic acid,
preference being given to this method in order to enable
the rubber to be dried without the long delay necessary
when the coagulation is effected by smoke.

The records kept by Mr. da Costa at the Santa
Maria estate, in the Madeira district, furnish some
useful information concerning density and yield of
latex, and they may be accepted as an accurate basis
on which to calculate returns for that section of the
Amazon Valley. On this property the quantity of
latex extracted in the month of June, 1913, from gouge
tapping with the double and single herring-bone system,
was 329,000 c.c. ; this latex was coagulated by the
smoking process, and yielded 528 pounds of wet rubber,
equal to 291 pounds when dried, not including any
lump or scrap. This gives a density of 1,038 c.c. to
i pound of dry rubber. On the same property one
collector obtained a daily average of 4,000 c.c. from
170 trees, tapping with the gouge on the single-V
system during the first three months of the season, an
equivalent of 23*5 c.c. per tree per day; this should
give 3*3 pounds of first-quality rubber per tree during
a tapping season of 150 days, and in addition about

YIELD AND DENSITY OF LATEX

ri pounds of lump and scrap, making a total of 4*4
pounds of dry rubber in six months of twenty-five
working days each. At the near-by estate of Lembranga
two men tapping 300 trees obtained a daily average of
latex of 6,000 c.c. each; this yield, on the basis of 150
working days in the season, is equal to 578 pounds of
dry fine rubber, and 1*73 pounds of lump and scrap,
an aggregate of 7*51 pounds of dry rubber per tree per
annum. These trees were tapped on the single- V plan
with the gouge.

The following details, extracted from the records
kept at Santa Maria, are instructive and interesting in
regard to density and yield with both gouge and
machadinho tapping; they may be relied upon as
approximately correct, and are fairly representative of
the average conditions, in this section of territory, of
old-established properties regularly worked for the last
quarter of a century :

Estrada.

Days.

Trees.

System.

Total Litres.

Average C.C.
per Tree.

NO. I2J

122

180

G.V.
M.

2I,OOO
18,800

24
14

130

G.V.

45.ooo

" 3\

210

31,900

100

G.V.

61,900

" 4l

180

33,000

176

53.ooo

" 9\

18 (July)

200

60,000

„ 5

160

G.H.

75.200

„ 8

G. and J.

80,400

Note. — G.V. stands for gouge tapping with separate Vs.

G.H. ,, ,, ,, ,, herring-bone system.

M. ,, machadinho tapping.
J. ,, jebong tapping.

The average yield of the five sets of gouge tapping is 30 c.c. first
latex per tree.

The average yield of the five sets of machadinho tapping is 17 c.c.
first latex per tree.

88 THE RUBBER INDUSTRY

Mr. da Costa states that after the first month he
obtains only 25 per cent, dry rubber from the gouge
tapping, against 40 per cent, from machadinho work.
Therefore-
Dry rubber from machadinho, 40 per cent, of $7, 6*8,

plus 10 per cent, scrap = 7*48.

Dry rubber from gouge, 25 per cent, of 30, 7*5, plus
30 per cent, scrap = 975.

No. 12 estrada mentioned above was tapped on
sixteen days in July with the herring-bone system,
and averaged 32^ c.c. per tree per day.

No. 4 estrada was tapped altogether only for twenty
days with the gouge, and this may account for the
higher yield in comparison with the others.

A fairly accurate idea of the uncertain position of
the rubber collectors in the central section of the
Amazon Valley may be gathered from the following
figures, extracted from the books kept at the Sevastopol
estate, on the Lower Purus: In 1912 the total pro-
duction of a division comprising twenty-two estradas
of 120 trees each was 3,406 kilogrammes, consisting
of 2,887 kilogrammes of fine rubber and 519 kilo-
grammes of lump and scrap (sernamby) ; this equals
154*9 kilogrammes for each estrada, or 1,290 grammes
per tree, equivalent to 2*84 pounds. The trees were
tapped on alternate days with the machadinho, and
eleven men were employed throughout the season at
this work; therefore the average amount of rubber
delivered by each man was 262*45 kilogrammes of fine
rubber and 47*18 kilogrammes of scrap, equal to 577*45
pounds and 93*81 pounds of fine rubber and scrap
respectively. The collector is entitled to one-half of

YIELD AND DENSITY OF LATEX 89

this amount, less 10 per cent, for loss in weight and
10 per cent, for expenses on fine, with no deduction on
scrap, or 210*58 pounds of fine and 46*9 pounds of
scrap. With the price in London at 33. per pound,
the equivalent rate on the Lower Purus is 2s. per
pound ; therefore the money value to the collector
is £21 is. for the fine rubber, and £3 2s. 6d. for
scrap, a total of £24 35. 6d. for seven months* work.
Against this sum take the cost of the absolute neces-
sities of life at the comparatively moderate prices
charged on this estate. The monthly requirements for

each man are —

£ s. d.

Rice: 3 kilos at 2 s. yd = o 7 9

Beans : 4 kilos at 2s. yd = o 10 4

Coffee : i kilo at 25. xod. ... = o 2 10

Sugar : 2 kilos at 2S. i£d. ... = o 4 3

Dried meat : 4 kilos at 35. 2|d. ... = o 12 10

Salt : 2 kilos at g^d = 017

Soap : £ kilo at is. 6d. .. ... = o p 9

Farinha : 20 litres at 8d = o 13 .4

Kerosene: i litre at is. .. ... = o i o

Lard: 2 kilos at 2S. 4d. .. ... = 048

Tobacco: i kilo at 135. 4d ... = o 13 4

Matches : 2 packets at 2s. 2d. ... = o 4 4

Cigarette-papers: 2 packets at lod. = o i 8

.£3 19 6

Living in the most frugal manner possible on the
above scale, a collector will spend not less than £27 in
the tapping season of seven months, receiving £24 for
his work during that period. He remains with a debt
of £3, and no credit to help him to tide over the five
months of the year before he can resume his occupa-
tion. In the circumstances the situation for many
properties must be considered most precarious.

go THE RUBBER INDUSTRY

Throughout all districts of the Amazon Valley ex-
traordinary tales are told of the yield from indi-
vidual trees, and often of whole estradas of such trees.
There is no doubt that the proportion of very free
milkers is comparatively large, especially on the prop-
erties more recently opened for regular work in the
national territories in the vicinity of the Acre, the
upper portions of the Purus and Jurua, the Javary, and
other waterways. There are many authenticated cases
of individual trees yielding as much as 500 c.c. in one
tapping, equal to half a pound of dry rubber, but no
reliable data is extant to show for what period this
rate of yield was maintained. In the districts of the
upper rivers it is not an unusual occurrence for a
collector to deliver 1,000 kilogrammes (2,200 pounds)
of dry rubber in the tapping season, equal to 15 pounds
per tree on an estrada of 150 trees; but this only
happens in localities where virgin trees are fairly
abundant. In many parts of the central section,
covering the Madeira and the lower portions of the
Purus and Jurua, the returns in a season from single
estradas of 150 trees frequently amount to 1,200 pounds,
and sometimes 1,500 pounds, of dry rubber ; but the
average is lowered by the very much smaller deliveries
on the older-established properties, as is demonstrated
quite clearly by the tests made during 1913. When
all the circumstances are given due consideration, it
is evident that the future of the industry is dependent
on the average returns, and not on any abnormal yield
from exceptionally favoured estates. All the conditions
will be altered for the worse if the price of rubber falls
to a point which compels a cessation of work on the
older properties.

CHAPTER VIII
CURING AND PREPARATION OF RUBBER

Method of coagulation — Latex not strained — Disadvantages of
present system— Difficulty of introducing improved methods-
Reasons against radical alterations — Various modes of smoking
latex — Delivery of rubber by collectors — Weighing of rubber —
Necessity of readjustment of terms of remuneration to collectors
—Transport of rubber to port of shipment— Cost of transport by
land and river — Payment of freights — Expenses at Manaos and
Pard— Ocean freight rates — Grading of rubber at Mangos and
Para — Classification of crop for season 1912-13 — Origin of crop
for season 1912-13— Estimated output for season July i, 1913, to
June 30, 1914.

IN the East a tapper finishes his daily task when he
makes delivery of the latex at the factory ; in Brazil
the seringueiro not only taps his trees and collects the
yield, but must also coagulate the latex before his
work for the day is done. In place of the up-to-date
establishment, maintained in scrupulously clean con-
dition, common to Oriental plantations, all the appli-
ances used in Brazil for the preparation of rubber are
of the most primitive description. A thatched hut with
mud floor serves as the coagulating shed ; a hole in the
centre of this floor surmounted by a battered cone-
shaped tin funnel constitutes the smoking apparatus.
A dirty basin receives the latex, and a tin cup or shell
of a gourd is utilized as a ladle to pour it little by little
over the stick or paddle as the coagulation proceeds. A

92 THE RUBBER INDUSTRY

fire of Urucury nuts creates a dense smoke containing
a large percentage of carbonic acid gas, and this, passing
through the tin funnel, reaches the paddle or stick
turned slowly by hand, and constantly basted with coat-
ings of latex from the receiving basin. This process
continues until the balls of rubber accumulate to the
required size, and it is then begun afresh. If balls
(pelles) are to be made a stick is used; for knapsack
the paddle is employed. Lump and scrap are thrown
down on the mud floor in the corner of the hut without
the slightest attempt to prevent the admixture of dirt
or a rapid putrefaction.

Amidst these squalid surroundings, and in an atmo-
sphere dense with smoke and impregnated with carbonic
acid gas, the collector passes two to three hours every
afternoon. It is often sundown before the day's yield
of latex is coagulated, and this means that the man has
been at work since 4 a.m., with the exception of the
noontide rest of some two hours or so. In a climate
such as that prevailing in the Amazon Valley, the tax on
health and strength from these conditions is unusually
severe, and it is no matter for wonder that the number
of men constantly incapacitated for work is abnormally
high.

No effort is made to clean the latex by straining
before coagulation, and this accounts for a large pro-
portion of the impurities so frequently apparent in the
rubber. The statements sometimes put forward, that
foreign substances are mixed deliberately with the latex
during the process of smoking, have very slight founda-
tion in fact ; when they are found in the finished prod-
uct, they are due as a rule to excessive carelessness

CURING AND PREPARATION OF RUBBER 93

and absolute neglect of every principle of cleanliness
while the preparation of the latex is taking place.

The disadvantages of the present system of manu-
facture are obvious. Any undue proportion of impuri-
ties reduces the selling value of the rubber, and
frequently it results in the classification in a lower
grade than should be the case after arrival at Manaos
or Para. Under existing conditions the pelles and
knapsacks contain an abnormally high percentage of
moisture ; they lose from 10 to 15 per cent, in weight
from the time of shipment at the estate to the date
when they are reweighed in Manaos or Para before
the sale is effected. A further loss of importance
occurs between the time of embarkation at Manaos or
Para and disposal to manufacturers in Europe or the
United States. These losses of weight represent extra
freight charges ; therefore the matter calls for most
serious consideration in view of the present crisis in the
rubber industry, and the fact that every fraction of a
penny per pound is of the utmost importance.

In spite of the crude methods of the existing system
of preparing the latex, and the many disadvantages it
entails, there are several very strong points favourable
to it in connection with prevailing conditions in the
Amazon Valley. In the first place, the coagulation of
the latex in central factories means additional labour
and incidental expense on account of the wide distances
separating the estradas, and the consequent length of
time required to convey the daily yield to any central
point ; then the question of the quality of the latex
delivered by individual collectors would crop up, and
cause constant friction between the manager and the

94 THE RUBBER INDUSTRY

seringueiro, so long as the present practice of working on
the share system is continued, and to pay daily wages
would increase the cost of production to a marked degree.
It is doubtful if a higher price for a cleaner rubber would
compensate for the expenditure necessary for the con-
struction, equipment, and maintenance, of a modern
factory, apart from the difficulty of competent supervision
to insure any satisfactory results. Moreover, it would
entail the complete reorganization of the labour system.
There is another and very important reason why the
present method of coagulation should not be abandoned
without the most careful consideration of the possible
effects on the quality of the rubber. When the latex is
coagulated by the smoking process on paddle or stick,
the rubber produced is not subjected to any form of
pressure, or to the unavoidable maceration entailed by
the use of the creping machinery common to factories
on Eastern plantations ; therefore no injury can be in-
flicted upon the product by the Brazilian methods as
generally practised at the present time. The conse-
quences to Eastern rubber produced by the severe
treatment accorded to it in the great majority of planta-
tion factories have never been clearly demonstrated, and
it may be that the higher standard of elasticity and
length of life so often claimed for the Brazilian product
may be due in some measure to the absence of all
crushing or tearing during the preparation of the latex.
In any case, the most careful laboratory investigation in
general, and special tests in particular, should be made
before a marked alteration is attempted in regard to the
substitution of any new system in place of the methods
now employed.

CURING AND PREPARATION OF RUBBER 95

Various experiments have been tried for the purpose
of finding a more convenient means of fumigating the
latex without the necessity of using either paddle or
stick, and at the same time maintaining the principle
exercised in the use of those implements. The nearest
approach to success in this direction has been the in-
vention of a tin cylinder revolving over the smoke
funnel. This drum is turned slowly by hand, and the
latex poured on to it in the same manner as with the
paddle or stick. When a thickness of about half an
inch has been attained, the sheet is taken off the cylinder
and the process repeated. The advantages of this
system are that the rubber dries easily, should show a
saving in freight charges on account of the lower per-
centage of moisture than in pelles or knapsacks, and can
be packed for shipment without difficulty. This method,
however, has not been adopted to any great extent, in
consequence of the opposition of agents and brokers at
Manaos and Para, who have refused persistently to give
any higher price for it than for pelles or knapsacks con-
taining at least 10 per cent., and often 15 per cent.,
greater percentage of moisture. A large proportion of
the owners of rubber-producing properties are so deeply
indebted to their agents that they are powerless to re-
sent their attitude in this matter, and this explains
why no systematic effort has been made to bring the
cylinder into more general use in order to manufacture
sheet in place of ball rubber. In 1913 some small
consignments of sheet rubber made by this process,
and shipped to Manaos by the Madeira- Marmore Rail-
way Company, were sold at the price then ruling for
fine rubber ; but in no case was a higher rate paid

96 THE RUBBER INDUSTRY

than that quoted for the first quality of pelles or knap-
sacks.

Simple and inexpensive improvements in connection
with the cylinder system can be made without difficulty
if the process should come into popular favour. A
receiver fitted with a conducting channel can be
adapted to distribute the latex automatically and evenly
over the drum in order to replace the hand dipping ; a
slight alteration in the form of the cone-shaped funnel
would allow the smoke to penetrate directly to every
part of the revolving cylinder, instead of rising in a
dense column and being dissipated throughout the hut ;
moreover, a flue could be adjusted above the cylinder
so as to permit the escape of the smoke after passing
over the latex, and thus relieve the collector from the
injurious effects of the daily immersion in an atmo-
sphere saturated with carbonic acid gas.

The general rule is for collectors to make delivery of
* the rubber once a fortnight on the properties located
near the river-banks, but how often it is received is left
to the decision of the manager. The longer the rubber
is kept by the collector, the greater the loss in weight ;
this consideration is a factor seldom ignored, and occa-
sionally the seringueiro insists on a weekly weighing.
In the districts of the upper rivers, where the estradas
are often two or three days' journey from the head-
quarters of the estate, the delivery is delayed frequently
by difficulties of transport, especially during the period
of low-water in the rivers, and the rubber is brought in
only twice or thrice during the tapping season.

The weighing of the rubber takes place at the estate
store. Each collector receives a note of the amount he

A RUBBER PROPERTY, MATTO

SMOKING LATEX, KIVEK MADEIRA

CURING AND PREPARATION OF RUBBER 97

delivers, less a deduction for waste pending shipment.
This deduction varies in different districts and accord-
ing to the period of the tapping season, the average
allowance being 10 per cent, for the first four months,
and 15 per cent, during the last three. Of the total
quantity, one-half is credited to the collector at the
market value in Manaos or Para, less a further deduction
of 10 per cent, to cover cost of freight commissions and
incidental expenses up to date of sale. Practically the
outcome is that the collector receives one-half of the
total amount less a deduction of 25 per cent.

It is abundantly evident from the facts given in con-
nection with tapping, the yield of rubber-trees, and the
cost of living, that the question of the remuneration of
labour on the rubber-producing properties needs a
thorough readjustment. If the relationship between
owners and collectors is to continue on the co-partner-
ship basis prevailing at present, the percentage to the
latter must be increased to a substantial extent, and
the deductions for loss in weight and expenses sensibly
diminished. In view of the rapid rise in Eastern pro-
duction, it is necessary to look for lower prices than
have been reached hitherto, and for this reason all
calculations should be made at a value not exceeding
two shillings and sixpence per pound for fine hard Para
rubber. To enable the seringueiro to earn a living wage,
his share must be increased to at least 75 per cent, of
the total amount he delivers, and any deductions made
should be for actual, not possible, loss of weight and
general charges. Unless most drastic innovations in
this direction are introduced in the immediate future,
the rubber industry in the Amazon Valley will dwindle
7

98 THE RUBBER INDUSTRY

away to vanishing-point for the lack of labourers to
keep it alive.

After the rubber is weighed, it is shipped to Manaos
or Pard with as little delay as possible. The matter of
transport presents no difficulty so far as the Lower
Amazon and its affluents are concerned, or in connec-
tion with the districts of the Madeira and those of the
lower portions of the Purus and Jurua. Bolivia has an
outlet always open by way of the railway to San Antonio
or Porto Velho, on the Madeira. Throughout all these
districts a regular service of steamers belonging to the
Amazon Steam Navigation Company, and also many
vessels privately owned, provide ample space for all
cargo requirements. The conditions in the Acre terri-
tory and the upper rivers are more complicated, for
there navigation is interrupted for six months in the
year by the insufficiency of water to permit the passage
of steamers through the numerous cataracts.

The cost of transport is a constant source of com-
plaint, and the charges undoubtedly are extremely high.
This is due in great part to the heavy expenditure for
wages, the dearness of fuel, and to the Federal Govern-
ment regulations in regard to the crew to be carried on
coasting and river craft. The rates vary according to
the distance, but an average cost struck for the whole
Amazon Valley brings out the charge for transport by
water at about one halfpenny for each pound of rubber
in a crop of 40,000 tons.

On many properties where the estradas are far distant
from the central homestead, a further expenditure is
incurred for transport of the rubber to the point of
shipment. In some districts creeks are available for

CURING AND PREPARATION OF RUBBER 99

the use of steam-launches, flat-bottomed boats, and
canoes, for this purpose ; in connection with a large pro-
portion of estates water carriage is impossible, especi-
ally during the dry season, from July to October, and
the employment of pack animals is necessary. In these
circumstances the cost of transport becomes a heavy
item, for the traffic must be taken over the rough jungle
tracks doing duty for roads, and nowhere is resort to
wheeled vehicles a possibility. The value of mules for
transportation work varies from £35 to £40 per head,
and even at that high price the supply is limited ;
moreover, the climate and grasses are not well suited
to either mules or horses, and consequently the mor-
tality is exceptionally heavy. These additional ex-
penses add approximately another halfpenny per
pound to the cost of the rubber, bringing the total
average charge to one penny per pound for land and
river transport to Manaos or Para.

The cost of freight on inward cargo is at a higher
rate, especially in regard to any description of fine
goods, steamship owners relying on this source of
income for earning profits. In the years of prosperity
following the rubber boom of 1909, the question of
freight rates attracted very little attention ; but with the
fall in prices this factor has become one of the most
serious problems in the situation, and it has resulted
in scores of steamers being dismantled and laid up at
Manaos and Para, on account of the diminution in the
quantity of imported merchandise.

Bolivian rubber is subjected to the abnormally high
charges made by the Madeira- Marmore* Railway Com-
pany, but in this connection a reduction in rates of at

ioo THE RUBBER INDUSTRY

least 50 per cent, in the immediate future must result
as a consequence of the present crisis.

Owing to the scarcity of ready money throughout
the rubber districts, freight charges are paid in Manaos
or Para. For inward cargo the payments are made
at the time of shipment by the commission agents
(aviadores) forwarding goods to the different sections
of the country, and the amount debited against the
accounts of the various estates. In the case of down-
river consignments, the value of the freight is collected
by the shipping agent at the point of destination, before
the rubber or other cargo is delivered to the consignee.

In order to obtain freight, a common practice, especi-
ally with privately-owned vessels, is for the master of a
steamer to make cash advances up to 60 per cent, of the
value of the rubber shipped, and to hold the consign-
ment after arrival in port until the loan has been dis-
charged. It is very seldom that any loss takes place in
connection with these transactions, for the margin
allowed is always ample to cover any fluctuation in the
market price.

On arrival at Manaos or Para an agent takes charge
of the rubber, and defrays the necessary expenses in
regard to dock dues, cartage, weighing, storage, and
grading, and he arranges also for the sale. For these
services a commission of 2\ per cent, is made on the
price realized and on the amount of all disbursements
incurred, these latter being deducted from the payments
received. As soon as the rubber is sold, accounts are
rendered to the owner or manager of the property
whence the consignment originated, giving full details
of the transaction.

The exporter into whose hands the rubber passes

CURING AND PREPARATION OF RUBBER ,101

before shipment to Europe or the United States must
pay the export duty, the municipal and other taxes, the
port charges, consular fees, cost of delivery at the quay,
and the charges for boxes and packing in cases con-
taining 350 pounds for the small and 700 pounds for
the large size.

Freight rates to Europe and the United States are
by measurement of 40 cubic feet, at the rate of sixty-five
shillings and sixty shillings from Manaos and Para
respectively. This is equal to nearly double that
amount per ton weight.

A question asked frequently is why fine rubber from
the Amazon Valley obtains a higher price than planta-
tion in the European and American markets. Although
the age of the trees undoubtedly exercises an influence,
the great difference existing in favour of the Brazilian
product is not due altogether to the quality of latex or
to the method of preparation, as is supposed generally
to be the case, but also to the systematic manner of
careful grading employed to separate the fina, the
entre fina, and fraca. This work is done in the ware-
house at Manaos and Para by a totally uneducated class
of men who often can neither read nor write ; but long
experience has taught them to distinguish accurately
the various grades of rubber passing through their
hands, and when they have completed this work the
classification of the raw material is practically without
a flaw. It is no exaggeration to say that less than
J per cent, of the total export from the Amazon Valley
is of other quality than is specified in the shipping
documents. In view of this fact manufacturers pay a
higher price for the security of obtaining an even
quality. Brazilian methods of grading may be cum-

IO2

THE RUBBER INDUSTRY

bersome and costly, but the drawbacks to them are
more than compensated for by the effective result.
Should smoked sheet take the place of pelles or knap-
sacks, it is an open question whether the present high
standard of grading will be maintained.

For the twelve months from July i, 1912, to June 30,
1913, the crop of rubber in the Amazon Valley was
31,731 tons, and to this must be joined the stock of
1,500 tons, making a total of 33,231 tons available at
Manaos and Para; in addition, the harvest of caucho
(castilloa) was 10,131 tons, bringing the aggregate
amount to 43,362 tons. The classification of this out-
put was —

UPPER RIVERS

Tons.

Percentage to
the Output.

Fina

15,771

Entre Fina and Fraca
Sernamby (Scrap)
Caucho (Castilloa)

£
4,060

3,200

8,331

27*

31.362

—

LOWER RIVERS

Fina

I 2OO

lot

Fraca

A BOO

A.Q

Sernamby (Scrap)
Caucho (Castilloa)

4,200
1,800

•|M

35 „
15*

12,000

—

Total

43»362

—

* Ball and scrap.

f From the Araguaya and upper sections of the Tapajoz,
Xingu, Tocantins, and Matto Grosso.

CURIN7G AND PREPARATION OF RUBBER 103

The percentages and quantities of the total output of
the Amazon Valley for 1912-13 were—

Tons.

Percentage.

16,071

39"! I

Entre Fina and Fraca
Sernamby
Caucho (Castilloa)

siSoo
7,400
10,131

20-43
17*06

2336*

Total

43>362

—

The distribution of this production for 1912-13 as to
origin was —

UPPER RIVERS

District.

Rubber.

Caucho
(Castilloa).

Total.

Tons.

i . Solimoes and Javary

2,360

298

2,658

2. Purus and Acre

10,700

3o49

14,249

3. Jurua
4. Madeira, including

4,224

645

4,869

Matto Grosso and

Bolivia

4,198

2,463 6,66 1

5. Rio Negro ...
6. Iquitos

471
1,078

i,357

490
2,435

23>03I

8,331 3i>36"2

LOWER RIVERS

Including the Tapajoz,
Xingu, Tocantins, the
Islands, etc

Total

[

10,200 1,800

12,000

33,231 10,131

43,362

* Ball and scrap.

104 THE RUBBER INDUSTRY

The shipments of rubber from Manaos and Para
during the season July i, 1912, to June 30, 1913,
amounted to 41,862 tons. To this must be added the
stock of 1,500 tons, making the total output for the
season 43,362 tons. All the indications for the twelve
months July i, 1913, to June 30, 1914, are to the effect
that the output will equal if not exceed that of last
year. Therefore the probable total for this season may
be taken as not less than 43,000 tons.

In spite of an equal quantity in 1913-14 as com-
pared to last year, the total value will be quite 25 per
cent, less than in 1912-13, in accordance with the lower
prices ruling during the present season in Europe and
the United States.

CHAPTER IX
COST OF PRODUCTION

Export duties — Total charges levied before shipment — Actual
average minimum cost of production per pound of rubber —
Average value per pound in January, 1914 — Necessary measures
for the Brazilian industry — Production during past eighty-six
years — Rubber industry and general prosperity of Brazil — Defesa
de Boracha — Why Government measures of relief are barren of
results — How the Federal Government can afford immediate
relief.

r I ^HE export duties and other charges levied on
A rubber shipments from Brazil have been the sub-
ject of much controversy during the last two years.
The Federal Government has urged the State adminis-
trations of Para, Amazonas, and Matto Grosso, to make
an immediate and substantial reduction in the duties,
and at one time even suggested a suspension of all
these taxes for an indefinite period. The State
Governments, however, argued that the suppression of
these charges practically entailed a condition of bank-
ruptcy, especially in the case of Para and Amazonas,
where 80 per cent, of the public revenue is derived
from this source. A counter-proposition put forward
was that the Federal authorities should make good any
loss of income resulting from an abatement in the toll
on exports ; but this was rejected on the grounds that,
if any such principle was applied for the relief of
industrial enterprise in the Amazon Valley, a corre-
sponding concession would be demanded by every

105

106 THE RUBBER INDUSTRY

State in the Union. Finally Para and Matto Grosso
agreed to an annual diminution of 10 per cent, in the
existing charge of 20 per cent, until the tax was
reduced to 10 per cent on the value of all shipments,
the Federal Government on its part undertaking to
apply similar terms for the rubber produced in the
national territories of the Acre and elsewhere. Ama-
zonas refused to join this compact, giving as a reason
that the tax in force in that State was only 18 per cent,
on the export value, and therefore the action taken by
Para, Matto Grosso, and the Federal Government,
effected nothing more than the establishment of equal
conditions so far as the immediate future was con-
cerned. The agreement in regard to the 10 per cent,
reduction for Para, Matto Grosso, and the national
territories, became operative on January i, 1914, but it
is quite inadequate to meet the exigencies of the situa-
tion created by the fall in the price of rubber. More-
over, the Governor of Para has stated publicly that he
favours the retention of the full 20 per cent, for
financial reasons and continues to levy that rate.

At present (January, 1914) the charges on a valua-
tion of two shillings per pound of rubber, including
the payment of duties at Manaos or Pard, the only
shipping ports in the Amazon Valley, are as follows :

MANAOS

Designation,

Description of
Contribution.

Amount.

i. Export duty ad valorem
2. Export duty ad valorem (additional
for financial purposes) ...
3. Port office (capatasia)
4. Mangos Harbour dues

State

Federal

i »

1 8 per cent.

9 reis per kilo
3

COST OF PRODUCTION

107

PARA

Designation.

Description of
Contribution.

Amount.

i. Export duty ad valorem
2. Export duty ad valorem (additional
for financial purposes) ...
3. Export duty ad valorem (additional
for service of Port of Para bonds)
4. Municipal tax ad valorem
5. Bourse tax ad valorem
6. Port office (capatasia)
7. Port of Pard harbour dues

State
>t
Federal

Federal

1 8 per cent.
2$ „

2 „

I ..

9 reis per kilo
3

FEDERAL TERRITORIES

i. Export duty ad valorem
2. Port office (capatasia)

3. Harbour dues at Manaos or Para

Federal
ii

18 per cent.
9 reis per kilo,
or $1.600 per
case
3 reis per kilo

The value of rubber for the payment of duties is
announced officially weekly, or more often if any violent
fluctuations occur in the price.

There is a very great difference in these charges. At
Para the taxation is equal to 5*80 pence per pound of
rubber; at Manaos 4*60 pence; and for rubber from
the Federal Territories only 4*40 pence per pound is
paid. Rubber from Matto Grosso is subject to the
export duty of 18 per cent., the port office charges, dock
dues, and the additional 2 per cent, tax if shipped from
Para, but is exempt from the 2\ per cent, financial
impost and from the municipal and bourse contributions.
These charges compare with an export duty of 2j per
cent, in the Federated Malay States ; a tax on the trees
in bearing equivalent to 2j per cent, on production in

108 THE RUBBER INDUSTRY

the Straits Settlements ; and no direct contribution of
any kind in Ceylon, Java, or Sumatra.

The question of the cost of production in the Amazon
Valley is a matter eliciting many differences of opinion
in Brazil and abroad. Individual views are coloured
by an imperfect general knowledge, and they reflect
the expenditure incurred in particular districts rather
than the average cost of gathering the total output, and
the subsequent expenses up to date of sale in Europe
or the United States. A careful investigation of all
the principal factors in the situation demonstrates that
the minimum average cost per pound of rubber sold is
28*3 pence in Europe or America, and 207 pence
previous to shipment, at Manaos or Para, before payment
of export duties, ocean freight, and foreign commissions
and charges. The details of this average cost are
instructive and not uninteresting. They are —

1. Maintenance of Collector. — For the crop season
July i, 1912, to June, 30, 1913, the total production of
rubber, exclusive of caucho (castilloa), was 32,000 tons,
and the number of collectors employed 94,000, approxi-
mately. This gives an average per seringueiro of
750 pounds in round figures. It has been shown else-
where that the minimum value of the necessaries of
life, during the tapping season of seven months, for each
collector is £27 i6s. 6d., equal to 107 pence per pound
of rubber delivered, and to this must be added not less
than 10 per cent, for clothing and other essential
articles, bringing the total to 117 pence per pound.

2. Transport to Manaos or Para. — The cost of handling
and conveyance by land and river to the port of ship-
ment averages about one penny per pound.

COST OF PRODUCTION 109

3. Commissions and Expenses at Port of Shipment. —
These include a charge of 2\ per cent, for brokerage,
carting, grading, and storage; at the lowest possible
calculation they cannot be reduced below an average
expenditure of i'8 pence per pound.

4. Administration, including Labour Expenses apart
from the Collectors. — This item covers charges for salary
of managers and assistants and wages of the labourers
on daily or monthly pay, together with the maintenance
of the staff. The average cost is not less than fourpence
per pound of the annual output.

5. Disbursements on Account of Charges for recruiting
Labour erst Interest on Loans, and Depreciation of Build-
ings.— Under this heading a reasonable allowance would
be 10 per cent., equal to 2*4 pence on the present local
price of rubber ; in most cases this amount is exceeded,
and the average is probably slightly higher than the
figure now given.

6. Ocean Freight. — The rates to Europe or the United
States are sixty and sixty-five shillings per ton of
40 cubic feet from Para and Manaos respectively ; this
is equivalent to slightly less than three-quarters of a
penny per pound weight of rubber.

7. Export Duty and Other Charges previous to Ship-
ment.— Including the dock dues, the average amount of
these charges on the total exportation is 4*9 pence
per pound.

8. Commissions and Expenses in Europe or the United
States. — At the present value of rubber the average
aggregate of these charges for brokerage, handling,
storage, and incidental expenses, is r8 pence per
pound.

no THE RUBBER INDUSTRY

These various items summarized per pound of rubber
are —

Pence.

1. Maintenance of collector 117

2. Transport i'o

3. Commissions and expenses at port of ship-

ment i§8

4. Administration 4-0

5. Owner's disbursements 2-4

6. Ocean freight 07

7. Export duty and other expenses 4*9

8. Foreign commissions and charges r8

Total 28-3

If the prices ruling in January, 1914, are applied to
the total shipments of 33,231 tons of fine, soft, and
scrap rubber for the season 1912-13, the average price of
these three qualities combined is 31 pence per pound.
A profit on the total output of 3 pence per pound is
a very small margin to meet the competition of the
Orient and the rapid expansion of production that
must inevitably occur in connection with the increased
acreage coming into bearing in the course of the next
three years, and also on account of the greater yield
from the trees as they grow older. In view of the
present situation, it is probable that the production of
the lower grades of Brazilian rubber will diminish to a
marked extent; in such case the average amount for
each collector would show an increase, and the average
selling price would be enhanced in direct proportion to
the shrinkage in the quantity of the inferior qualities.

To put the rubber industry of the Amazon Valley on
a safe and sound basis, three main objects must be
achieved. The first is to discover means of augment-

COST OF PRODUCTION

ing the yield per tree without additional labour; the
second, a substantial reduction in the cost of main-
tenance for the collector ; and the third is the suppres-
sion of all, or a very substantial part of, the export
duties and charges. Unless far-reaching and immediate
action is taken to cope successfully with these three
factors, production will decline rapidly, and in a very
few years the situation will become practically hopeless.
The very great importance of the rubber industry to
the general prosperity of Brazil is best shown by the
record of production for the past eighty-six years.
From 1827 to 1893 the returns are for the period
January i to December 31 ; from 1894 to date the
figures are for the crop season July I to June 30. Since
1827 the output has been —

Years.

Tons.

Years.

Tons.

1827

1870

6,591

1828

1880

8.679

1829

1890

16,394

1830

156

1891

17,790

1840

388

1892

18,609

1850

1.467

1893

19,430

1860

2,673

Crop Seasons.

Tons.

Crop Seasons.

Tons.

1894-95

19,470

1905-06

34,680

1895-96

20,975

1906-07

37,540

1896-97

22,320

1907-08

36,650

1897-98

22,260

1908-09

38,5"

1898-99

25,355

1909-10

39,494

1899-1900

28,695

1910-11

38,177

igoo-OI

27,650

I9II-I2 44,296*

1901-02

29,971

1912-13 43,23lf

1902-03

29,890

1913-14 43,000

1903-04

32,590

(estimated)

1904-05

33,090

Stock, 3,391 tons inclusive. f Stock, 1,500 tons inclusive.

112

THE RUBBER INDUSTRY

With the exception of produce from Bolivia, which
is transit cargo, and passes through the Brazilian ports
in bulk, all rubber is packed in boxes before shipment.
Records kept at Para in 1912 show that the average
weight of these cases in that year was —

RUBBER.

CAUcfto (CASTILLOA).

Origin.

i Average Gross
Description. Weight
| per Case.

Origin.

Descrip-
tion.

Average Gross
Weight
per Case.

Para
Acre
Para
Acre

Fina and Entre Fina

>» »
Scrap
. ,

Pounds.

SSS^
418-0
874-6
556-6

Para
Acre
Para
Acre

Ball

Scrap
> )

Pounds.
748
682
864-6
704

The Federal Government is quite aware of the
disastrous effect the ruin of the Amazon rubber industry
would entail in connection with the general prosperity
of Brazil, but in Rio de Janeiro generally the economic
conditions of the Northern States are not appreciated
or understood. The necessity of a journey of fifteen
days' duration between the Federal capital and the
city of Manaos creates a barrier effectually blocking
any free intercourse between the two sections of the
country ; furthermore, this lamentable ignorance of the
true circumstances underlying the existing critical state
of affairs in the rubber districts enables self-seeking
politicians to distort the real facts of the case to suit
their own purposes. The natural consequence of this
isolation between north and south is a complete lack of
sympathy on the part of the southern Brazilians with
their northern compatriots. Perhaps no better illustra-

COST OF PRODUCTION 113

tion of this feeling can be found than in the fact that
the price and market movements of rubber are ignored
completely in the commercial sections of the Rio de
Janeiro and other southern newspapers, and a similar
policy is maintained in regard to coffee by the Press in
the northern States.

In January, 1912, a law was sanctioned by the
Brazilian Congress for relieving the industrial situation
in the Amazon Valley, and on April 17 of that year
the measure was declared operative by the Executive
authority. Under this legislation a sum of £520,000
was provided by the National Treasury to meet the
necessary disbursements for the establishment of various
spheres of work in connection with the rubber industry,
and an office designated the Superintendent da Def esa
de Boracha was created to carry into effect the pro-
visions of the Act. This organization was placed under
the direction of Dr. Raymundo Pereira da Silva, a
clever and energetic administrator, who immediately
set afoot plans for the betterment of conditions in
Para, Amazonas, and the National Territories. From
the beginning, however, his efforts were crippled in
many directions, not the least of his difficulties being
the class of men available for service in the northern
Spates. In Rio de Janeiro commercial business was
flourishing and employment easy to obtain ; therefore
the Amazon Valley presented no attractions to capable
persons, in spite of the high salaries offered. In these
circumstances it was not surprising that the results
achieved by the various expeditions despatched for the
purpose of opening experimental farms for the cultiva-
tion of food products and the encouragement of agricul-

ii4 THE RUBBER INDUSTRY

tural enterprise generally were attended by complete
failure, in spite of the lavish expenditure incurred.

In great measure the law of January, 1912, proved
abortive, on account of the lack of knowledge of the
characteristic features of the Amazon territories. It
provided for immigration for the purpose of creating
agricultural settlements, although the prevailing con-
ditions are such as to render the establishment of small
isolated communities futile of any benefit to the settlers
themselves or to anybody else. Provision was made
for the betterment of the sanitary state of the popula-
tion, without realizing the magnitude of a task of this
nature. None of the methods embraced by the new
law were of any practical value as remedies to counter-
act the effects emanating from Oriental competition;
therefore, after its application had been attempted for
eighteen months, it was abandoned, and the department
of the Defesa de Boracha suppressed.

It is possible for the Federal Government to afford
effective and immediate relief to the rubber industry
by taking action in two directions : the first by an
agreement with the States interested to suspend the
export duties, and the second by temporarily rescinding
all charges levied upon the necessities of life imported
into the Amazon Valley. So far as the first suggestion
is concerned, the equitable basis for any such arrange-
ment is for the Federal and State revenues to bear the
loss equally. This would entail an annual subsidy of
an aggregate sum of £1,000,000, approximately, from
the Federal Treasury to the States of Para, Amazonas,
Matto Grosso, and the administration of the National
Territories ; for the local Governments concerned, the

COST OF PRODUCTION 115

suppression of the export duties infers a drastic re-
trenchment of all public expenditure, and a compromise
with all creditors in regard to the partial suspension of
interest payments on foreign and home indebtedness.
If the Federal Administration offer to guarantee the
principal of the internal claims and external loans, and
one-half of the subsidy be devoted to the debt service,
any hardship incidental to reduced cash payments
could be mitigated to a very large extent.

The suspension of duties on imported merchandise
is entirely within the province of the Federal Govern-
ment, and in no way affects the State revenues. A
special Act of Congress may be necessary to allow this
step to be taken without any infringement of the Con-
stitutional Law of the Republic ; but no serious objec-
tion could be raised to the passage of the measure in
view of the existing situation, and it is unlikely that
any strong opposition would be offered to such a pro-
posal put forward by the Executive as an immediate
and urgent necessity to save the rubber industry from
partial ruin in the present, and possibly total extinction
in the near future, at a loss of revenue to the Federal
Exchequer of approximately £650,000 annually.

The effect of the suspension of the export duties
would benefit the rubber producers to the extent of
fivepence per pound ; the suppression of the Customs
charges on the necessities of life imported from abroad
would diminish by not less than 25 per cent., the
average cost of maintenance for the collector. Together
these two items permit the substantial reduction of
eightpence per pound in the average cost of production,
bringing it down to twenty pence per pound. On this

n6 THE RUBBER INDUSTRY

basis the rubber industry of the Amazon Valley could
make a strong fight against the competition of Eastern
plantations, even allowing for a considerable fall in
the value of the product below the present level of
prices.

The immediate relief afforded by the suppression of
export and import duties is not sufficient to insure the
future of the industry ; it is essential that methods of
tapping should be introduced increasing the yield per
tree without the employment of additional labourers.
A Commission should be appointed to investigate
thoroughly this vexed question, and also to carry out
practical experiments until the desired end be attained.
For the purposes of this Commission, the services of
scientific experts would be necessary, but this entails
no difficulty whatever at the present time ; in Dr. Willis,
the Director of the Botanical Gardens at Rio de Janeiro,
and formerly in charge of the Peradenyia station in
Ceylon, and in Dr. Jacques Huber, the head of the
Museo Goeldi at Para, the country has two men of
sound knowledge and ripe experience in Brazil and the
Orient.* The remaining members of the Commission
should be selected from men actually engaged in the
business of rubber production in the Amazon Valley,
and from that section of the commercial community
directly connected with the rubber industry.

Briefly summed up, these suggestions for meeting the
present crisis in a practical way are — The Federal
Government to arrange with the States interested for

* Dr. Huber died after the above was written. His successor
should be selected with special reference to the knowledge of the
rubber industry.

COST OF PRODUCTION 117

the suppression of the export duties, in consideration of
an annual grant of £1,000,000 for such period as may
be required ; to suspend temporarily the Customs
charges on imported foodstuffs and other necessities
of life, at an annual cost to the National Exchequer of
some £650,000 ; and to appoint a competent Commis-
sion to investigate the question of the extraction of
latex, in order to ascertain in what direction improve-
ments can be made to increase the yield. The obliga-
tion to the State Governments is the introduction of
drastic financial reforms and economies with a view to
reduce public expenditure to one-half the present
amount. It remains with the Brazilian people to
decide whether the conservation of the rubber industry
is worth the inevitable sacrifices it entails.

CHAPTER X

A COMPARISON OF THE BRAZILIAN AND
ORIENTAL RUBBER INDUSTRIES

Collective and individual energy — Sources of production — Area
—Varieties of Hevea in Brazil and the Orient— Soil— Climatic
conditions — Labour-supply — Wage rate — Cost of living — Ad-
ministration— Age of production for rubber-trees— Girth and
height of trees — Yield — Method of tapping — Preparation of latex
— Transport facilities— Comparative exportation in 1913— Initial
expenditure — Cost of production — Future costs of production.

IN 1876 Mr. Wickham obtained from the Amazon
Valley the seed for the foundation of the rubber
industry of the Orient, and for that reason a comparison
of the conditions and methods employed in connection
with the two principal sources of the world's supply is
instructive and interesting, in view of the present
critical situation in both Brazil and the East.

In the Orient an abundant and cheap labour-supply
permits the employment of large bodies of workmen,
under efficient superintendence, for the daily perform-
ance of any manual labour required for plantation or
other purposes. In Brazil the high wage rate prac-
tically prohibits the use of collective force, and all
enterprise is dependent on the result of individual
energy, with little or no supervision over the work in
hand. In the former case the man is paid a specified
sum and a fixed amount of work is exacted from him ;
in the latter the individual devotes as much or as little

BRAZIL AND THE EAST COMPARED 119

of his time to the task as he pleases, and receives pay-
ment for results only.

With collective force methodical practices become
an absolute necessity ; with individual energy the line
of least resistance is followed by instinct, and the out-
come is often slovenly and uneven. If the work on
the plantations of the Orient is compared with the
exploitation of the rubber-trees in the Amazon Valley,
the truth of this definition becomes apparent at once,
and it is to the fundamental principles thereby involved
that the great difference in the conditions of the rubber
industry in Brazil and the East is due. It is more
convenient to contrast the general physical features of
the two centres of production to illustrate clearly the
dissimilarity in existing conditions.

In the Orient the rubber-trees are carefully and
systematically cultivated, and all possible assistance
extended to foster rapid development and afford pro-
tection against disease. In Brazil the tree is a natural
product of the forest, and no effort whatever is made to
aid its growth or check the spread of pests of any kind.
In the East the seed is selected with care, planted in
specially prepared nurseries, and the young trees trans-
ferred subsequently to properly prepared land where
the conditions afford every possible chance for both
branch and root growth.

In Brazil the trees are self-sown, and only a very
limited proportion of those germinating come to
maturity in the dense shade of the surrounding forest.
The acreage of planted trees in the Amazon " Valley is
of such limited extent that it does not affect the general
conditions, and calls for no special consideration.

120 THE RUBBER INDUSTRY

The planted area in the East may be taken approxi-
mately as 1,500,000 acres, containing from 180,000,000 to
200,000,000 trees. In the Amazon Valley no secure basis
exists for an accurate estimate of the number of trees, but
there is no reason to suppose that the figure of 200,000,000 ,
constantly put forward in official statements is an
exaggeration. Indeed, many well-informed persons are
of opinion that the total greatly exceeds that number.

In the East the industry was founded from seed taken
by Mr. Wickham from the River Tapajoz in 1876^
resulting in the reproduction of the white variety, and
yielding rubber classified as " weak " (fraca) in the
markets of Manaos and Para. In the Amazon Valley the
species principally utilized are the black (preta), the white
(branca), the red (vermelha), and the Itapuru (Hevea
Guayanensis). The first of these stands out -pre-
eminently for the resilient quality of the rubber it
yields, while the product of the remaining three species
is designated as " weak " (fraca), and sold on the Brazi-
lian markets for 20 per cent, less value than that of the
black (preta) variety.

It is needless to refer to the yield of rubber from the
castilloa, always designated in Brazil as caucho, for it
exists in such small quantities in the East that it is not
a factor of any importance when discussing the com-
parative production of Brazil and the Orient; more-
over, the exportation of this rubber from the Amazon
Valley will be a thing of the past in the course of a few
years, for reasons explained in the section dealing with
the general conditions of the Brazilian industry.

In the East the rubber-tree is planted upon many
different classes of soil, and with the aid of careful

BRAZIL AND THE EAST COMPARED 121

cultivation it thrives in a surprising manner in nearly all
localities selected with reasonable foresight in regard
to the avoidance of undrained swampy lands or those
exposed to strong prevailing winds. Throughout the
Amazon Valley the soil is alluvial deposit on yellow or
red clay, and rich in vegetable matter brought down by
the rivers and distributed over the land by the annual
floods. In many districts of the Lower Amazon the
trees have their roots permanently below the water-level,
and are flourishing under such circumstances in direct
contrast to the result of all experience in the Orient.

In the matter of rainfall, there is no great difference
between the Amazon Valley and the Malay Peninsula.
Both receive an average quantity of a little over
100 inches annually ; but in Malay the distribution is
more even than in Brazil, where a dry season, beginning
in June and ending in October, is a regular occurrence.
The temperature records show no very great variation,
although they are slightly lower in the Amazon Valley.
The heat, however, is less trying in Brazil than in
Malaysia, for during the dry season there is only a
comparatively small amount of moisture in the atmo-
sphere.

The labour for working the rubber plantations in
the Orient is drawn from China, India, or local sources,
and it is sufficiently abundant to insure large num-
bers being available at a comparatively low cost for
all classes of work in the fields or factories. Skilled
mechanics are also cheap and plentiful, and the supply
of domestic servants is ample.

In the Amazon Valley the labourers are brought from
the States of Ceara, Rio Grande do Norte, Maranhao,

122 THE RUBBER INDUSTRY

and Parahyba, where the bulk of the population is of
negro or half-caste blood. Skilled labour is scarce and
expensive, no matter whether Brazilians or Europeans
are employed, and trained household servants are not
obtainable.

In the Orient the average daily wage rate is under
one shilling, without rations, for able-bodied men, and
women and children receive a much smaller remunera-
tion. In the rubber districts of Brazil the average rate
is six shillings and eightpence per day, with rations,
together nearly eight shillings when allowance is made
for the price of the food.

. The rubber collector receives no money wage, but is
a partner with the owner of the estate, and is entitled
to 50 per cent, of the rubber he delivers during the
season.

In the East the coolie lives on rice and curry, at a
cost of a few pence a day. In the Amazon Valley the
labourers cannot buy the necessities of life for a less
expenditure than two shillings and sixpence per day.

Throughout the Orient large numbers of competent
men, experienced in the management of agricultural
and plantation enterprises, are always to be found,
while in the rubber districts of Brazil it is seldom that
the services of any capable administrators or managers
are available. In the East a modest salary suffices for
such men ; in the Amazon Valley a princely income is
demanded for the indifferent performance of the duties
essential to any responsible post.

In the Orient rubber-trees begin to produce when
four years old. In Brazil young trees are left un-
touched at this period, and the generally accepted

BRAZIL AND THE EAST COMPARED 123

theory is that they cannot be tapped without injurious
effects until they are twelve or fifteen years of age.

In the East a rubber-tree 75 feet high with a girth
of 100 inches at 3 feet from the ground is looked upon
as a giant. In the Amazon Valley a tree of 150 feet
high and 200 inches in girth is not considered anything
out of the common.

On account of the lack of reliable records in the past,
it is practically impossible to compare the yield of
forest trees in Brazil with those cultivated in the
plantations of the Orient. In the districts of the
River Madeira and the River Purus, the average return
for thoroughly mature trees works out approximately
at 5 pounds per tree; in the country adjoining the
upper rivers, where the trees have been tapped only in
recent years, the average yield is higher, and reaches
nearly 7 pounds per tree. This would correspond to
a crop in Malay from good trees of from twelve to
fifteen years of age.

In the districts of the Lower Amazon, where the
trees have been damaged severely by bad tapping
extending over half a century, the average return does
not exceed 3 pounds per tree.

In the Orient the excision system of herring-bone
tapping, with occasional modifications, has become the
basis for the extraction of latex from all trees of the
Hevea species. It has been reduced to something
approaching perfection by expert tappers under com-
petent and vigilant superintendence, and it has been
so far developed as to allow of thirty cuts to the inch
of bark without injury to the cambium. An average
of twenty to twenty-three cuts to the inch is expected

124 THE RUBBER INDUSTRY

from tappers on the majority of the estates, and this
is done with gouge, farrier's or Burgess knife, or other
tools constructed on like principles.

In the Amazon Valley the incision method is
universal, and the implement used is the small axe
known as the machadinho, with which a triangular gash
is made. Every cut so inflicted penetrates to the
cambium, and in a large proportion of cases renders
the trees open to the ravages of the borer and white
ant. The result of this ruthless slashing of the trunk
is that in a few years the tree is covered with warts,
over which the bark grows very slowly, and tapping
becomes extremely difficult and uncertain. Sometimes
overhead tapping is resorted to ; more often the tree is
abandoned for several years, until Nature repairs the
damage done. The work is left entirely in the hands
of the ignorant freguez (collector), who cares nothing
about the welfare of the trees, and looks only to the
amount of latex he can obtain to repay him for his
work of collection and preparation.

On the River Madeira a little supervision has been
attempted, but elsewhere the proprietors have regarded
with apathy in the past the practical destruction of
their trees, owing in great part to the fact that the
number untouched in the forest was so great that fresh
sources of supply could be opened up when those in
tapping became worthless.

In the East the preparation of latex takes place in
systematically-arranged factories where cleanliness is
always kept in view. Coagulation is attained generally
by acids, and effective machinery is employed to pre-
pare and dry the rubber for the market. Economy is

BRAZIL AND THE EAST COMPARED 125

practised in all details from the time of the collection
of the latex and scrap in the field to the date of ship-
ment for exportation. In Brazil the latex is carried
to a temporary shack and coagulated with the smoke
of the Urucury nut. No effort at cleanliness is
attempted, and grit, sand, and other foreign matter
from the dirty surroundings, invariably find their way
into the rubber to more or less extent. No systematic
effort is made to dry the rubber before shipment, and
it contains as a rule not less than 20 per cent, of
moisture, and not infrequently over 25 per cent. Very
little of the tree scrap is collected, and the cup coagu-
lations brought in are thrown on the mud floor of the
hut, there to remain until the accumulated quantity is
sufficient for delivery-. This scrap is shipped to the
market in a semi-putrid condition, and in that state
finds its way to Europe or the United States. Eco-
nomical methods are unknown on a Brazilian rubber
property, and consequently the loss in value on the
quality of fine rubber and quantity in the scrap from
the time the latex is extracted from the tree to the date
of sale is certainly not less than 10 per cent., and is
often very much greater.

In the East transport to the port of shipment is easy
and inexpensive, no matter whether the production be
in Ceylon, Malay, Java, or Sumatra. In the Amazon
Valley the rubber properties are for the most part
situated on rivers far distant from Manaos or Para,
and the cost of steamer freight to one or other of those
ports is a considerable item in the cost of production.

The total exportation of rubber from the Orient in
1913 was stated to be 56,000 tons. From the Amazon

126 THE RUBBER INDUSTRY

Valley the shipments for the season July i, 1912, to
June 30, 1913, were 43,230 tons, including 10,130 tons
of castilloa. For 1914 the total export of the East is
calculated at 84,000 tons, while that of Brazil for the
season 1913-14 is estimated at 43,000 tons. For the
first time in history, last year saw a greater supply of
rubber from the Orient than from the Amazon Valley.
This means that plantation rubber becomes the domi-
nant factor in the market, and prices for the raw
material will depend more and more in future on the
plantation industry, and not on the forest product.

In the Malay Peninsula a fair basis of price for bring-
ing 1,000 acres of rubber into bearing is £30 per acre.
In the Amazon Valley the only initial expenditure
required is for the construction of houses for the ad-
ministration, and the cost of bringing the collectors to
the property, this latter expense being recoverable
nominally from the men.

In the Malay Peninsula in 1912 the average cost of
producing a pound of rubber was —

Cents.

1. Collection (including cost of cups, deprecia-

tion, etc.) 32

2. Preparation (including depreciation of build-

ings, factory, and machinery) 6

3. Weeding 6

4. Roads, drains, and cultivation 6

5. Management 7

6. Hospital 5

7. Transport A

8. Commission f

9. Rent 2

10. Export duty 2^

67**

* 67^ cents of Straits dollar, worth 2s. 4d. at par, is. 7d.
f.o.b. at Penang or Singapore.

BRAZIL AND THE EAST COMPARED 127

To this must be added the following expenses to date
of sale in Europe :

Pence.

1. Freight 075

2. Brokerage 0*25

3. Sundry charges 175

4. Commission 0*25

3*00

This brings the total cost up to date of sale to is. lod.
per pound.

In Brazil the cost per pound of rubber up to date of

sale in 1913 was —

Pence.

1. Freight to Manaos or Para •... ro

2. Commission and charges 1*8

3. Administration and owners' disbursements 6*4

4. Cost of maintenance of collector delivering

750 pounds of rubber 117

5. Duties 4*9

6. Freight and charges to Europe to date of sale 2*5

28-3

For the purposes of this calculation, the average value
of all qualities of rubber is taken at as. 7d. per pound
sold in London.

It is stated on good authority that as the trees grow
older and yield more freely, and the expense of weeding
diminishes, the costs in the Orient can be reduced to a
substantial extent, and that these factors, combined
with a lower range of prices affecting all ad valorem
charges, will enable an average cost of is. 3d. to be
reached within five years. I see no reason to doubt
that this lower figure will be attained within the time
indicated, especially as it is already an accomplished
fact on many Ceylon properties.

In the Amazon Valley a similar position can be

128 THE RUBBER INDUSTRY

achieved if improved methods of tapping, largely in-
creasing production without additional labour, can be
introduced ; by more systematic administration ; by
opening up the reserves of untouched trees ; by cheapen-
ing the price of living by a reduction in the charges on
imported foodstuffs ; and by diminution or abolition
of the export duties.

By such means only is it possible for Brazil to meet
successfully the competition of the Orient in the world's
markets. That such reduced costs can be brought
about there is no doubt whatever, if the measures indi-
cated in detail elsewhere in this description of the
Brazilian rubber industry are adopted without undue
delay.

PART II

THE RUBBER INDUSTRY IN THE
ORIENT

CHAPTER XI
CEYLON

Locality — Extent — Tenure of land — Taxation — Elevation above
sea-level— Rainfall— Soil— Origin of the rubber industry — Health
of rubber-trees — The rubber " boom " and Ceylon — Capitalization
of rubber estates — Working expenses — Revenue from young
plantations — Organization of estates— Frequency of tapping —
Recent experiments in regard to preparation of latex.

has taken a leading place in the develop-
>^ ment of tropical agriculture in the past, and with
the establishment of the proposed School of Tropical
Agriculture at Peradeniya the island will become the
scientific training centre for the British possessions in
the East.

Since Ceylon was separated from the Madras Presi-
dency in 1801, and created into a Crown colony, the
main source of industry and wealth has been agricul-
tural. The island has experienced many phases of
existence during the past century, and more than once
has been on the verge of bankruptcy. From 1875 to
1880 the community was faced with ruin by the dev-
astation of the coffee plantations from leaf disease
(Hamilia vastatrix) ; in five years this pest assumed such

9 129

130 THE RUBBER INDUSTRY

alarming proportions that the majority of the coffee
estates were abandoned. In this extremity the planters
turned their attention to the cultivation of cinchona
and tea, and for several years struggled hard against
adverse circumstances. At the time when the yield
from the cinchona plantations should have brought relief,
all hopes in this direction were shattered by a heavy drop
in the value of the bark owing to over-production.
With the cultivation of tea the community was more
fortunate, and after a long period of constant struggle
this industry was successfully established on a profitable
and sound basis. The training undergone by the planters
in the successive experiences of the cultivation of coffee,
cinchona, and tea, served them in good stead when the
question of the creation of rubber estates came to the
front, and they are now reaping the reward of the
knowledge they acquired under less prosperous con-
ditions. The most important facts concerning the
Ceylon rubber industry are summarized in the follow-
ing brief description of the present situation :

It is in the districts of the south-west portion of the
island where the principal rubber plantations are
situated. They are comprised within an area lying
five miles in a direct line from the seaboard, and extend
from Galle on the south coast, northwards to Kandy
and Matale ; from the latter point westward to Kurune-
gala, and from that place in a south-westerly direction
towards Negombo ; thence to Colombo, Kalutara, and
Alutgama. Nine-tenths of the rubber-producing indus-
try is within this zone.

The total extent of the rubber estates of Ceylon in
1911 was 215,000 acres ; in 1912 it increased to 234,000

CEYLON 131

acres ; and in 1913 a further extension to 247,000 acres
took place. There remains a large reserve of forest,
probably not less than 200,000 acres, suitable for rubber-
planting. These lands are owned partly by the Crown,
and partly by private persons. In the latter case the
values have risen very greatly during the past five
years, and as a result planters are unwilling at present
to pay the price demanded by the proprietors, who for
the most part are Sinhalese. Cro\vn lands are sold by
public auction on the application of the would-be pur-
chaser. In this case also the average price per acre has
advanced to three and four times the value ruling a few
years ago. The reserve price is placed at a low figure,
but not less than Rs. 15 per acre ; but sales at
Rs. 100 per acre are not infrequent, and even higher
prices are occasionally recorded when the land adjoins
established plantations.

Nearly all real estate is freehold, with title direct
from the Crown. The only exceptions are certain
tracts claimed "by Sinhalese in virtue of long occupation
and cultivation. On these areas no rubber plantations
have yet been opened.

No direct taxation is imposed on the rubber-growing
industry. The public revenue is derived from import
duties, licences, stamps, sales of land, and other indirect
sources. A small contribution of Rs. ij per capita
is enacted for the maintenance of public roads, but
members of any volunteer military organization in
Ceylon are exempted from payment. Indian coolie
labourers are also exempt from this tax.

The altitude of the rubber-growing districts varies
from a few feet above sea-level in the Kalutara, Kelani

132 THE RUBBER INDUSTRY

Valley, and other districts, to that of 1,700 feet at Pera-
deniya and the vicinity of Kandy. The development
of Para rubber-trees at elevations from sea-level to a
height of 700 feet in the districts of Kelani Valley,
Kalutara, and those lying to the south of Adam's Peak,
is undoubtedly much greater than is obtained at the
higher altitudes around and to the north of Kandy, but
this may be accounted for to a very great extent by the
more abundant rainfall in the former area.

The rainfall is very unevenly distributed throughout
the island. To the south of the range of mountains of
which Adam's Peak is the central point, the annual
fall varies from 132 inches to 170 inches ; in the neigh-
bourhood of Kandy it is from 72 inches to 92 inches ;
in the district of Matale it averages 75 inches. In the
northern section of the island, at Anuradhapura and
the surrounding districts, the annual fall is frequently
below 40 inches. The moisture brought by the north-
east and south-west monsoons is precipitated by the
mountain ranges in the vicinity of Adam's Peak, 7,200
feet above sea-level.

The soil throughout the rubber-growing districts is
a gritty and somewhat sandy red loam. A large pro-
portion of the planted sections were cultivated many
years before the introduction of the rubber industry,
and humus and topsoil have been washed away by
constant heavy rainfall. Many plantations are located
on rocky hillsides, and the trees are thriving under
those conditions. To remedy the effects of the loss of
topsoil, the practice of manuring has become accepted
as a necessity on nearly all plantations, and, as a
general rule, this work is commenced immediately
the young trees are planted. The usual practice is to

CEYLON 133

apply 840 pounds of superphosphates, mixed with other
artificial fertilizers, per acre during the first six years
of the plantation, and subsequently to continue this
treatment after the trees reach the tapping stage.
Green crops also are grown amongst young trees for
purposes of manuring, and this method has given some
excellent results. It remains to be seen how far
manuring will benefit the trees when further develop-
ment causes them to resume a forest character.

/ The rubber industry in Ceylon owes its foundation
to seeds collected in 1876, by Mr. Wickham, in the
Amazon Valley. These were germinated at Kew, and
plants were then sent to Ceylon, and set out in the
gardens at Heneratgoda and Peradeniya. Seeds from
these trees were distributed freely to owners of estates
between 1881 and 1891 ; but the idea prevailed that
only marshy ground was suitable for their growth, and
therefore little interest was taken in their cultivation.
A few experiments, however, were made for planting
them on hillsides, and these proved of so successful a
character that the area rapidly increased. Between
1898 and 1904 a large number of tea plantations were
interplanted with rubber-trees, and from the latter date
the extension of existing plantations and the opening
up of new ones has been pushed forward with energy
and method. The industry to-day is firmly established
in Ceylon, and promises to become quite as staple and
valuable as the cultivation of tea, rice, cacao, or coco-
nuts. » An indication of the permanent manner in
which it has taken root is seen in the small patches
of rubber-trees planted by many Sinhalese near their
houses and villages.

In all the districts the trees are in a sound and

134 THE RUBBER INDUSTRY

healthy condition, whether at high or low altitudes.
A little fungus leading to canker exists in some locali-
ties, but not to an extent threatening any serious loss
to plantations. Cambium rot and bark disease is prev-
alent in some districts, especially Matale, but is kept
in check by adequate measures and remedies. A
certain percentage of the older trees have been damaged
by bad tapping through inexperience, but the majority
of these show every indication of practically complete
recovery. A few insect pests are noticed, such as
borer and white ants, but none that cannot be controlled
by proper treatment. A liberal estimate of the loss
of trees from all causes on the existing rubber planta-
tions should not exceed 3 per cent. The worst enemy
of the rubber industry in Ceylon is wind. Where con-
tinuous strong winds prevail a stunted growth results ;
but these conditions are only found in a few localities
— for instance, certain sections of the Matale district,
where plantations are exposed to strong prevailing
winds on the higher ridges.

A large number of the rubber estates established
previous to 1904 were due to the fact that rubber
was interplanted with tea as a shade tree for the
latter. As the trees developed and rubber became
more valuable, the tea was abandoned owing to the
shade becoming too dense to allow of profitable cul-
tivation, but not until the tapping of the rubber-trees
had begun. In these conditions the initial cost of
the rubber estates for all practical purposes has been
nil. When the rubber boom began, many of these
properties were purchased by companies formed in
London and elsewhere. In some cases exorbitant

CEYLON 135

prices were paid, but as a general rule the valuation
was not excessive, in view of the price at which rubber
was then selling in Europe. Since 1904 new estates
have been opened up and additional acreage added to
existing estates, but as a rule this work has been carried
out on a conservative basis of cost. The same condi-
tions apply to estates being planted at the present
time, with the exception of paying a higher price for
suitable land.

Close investigation of all essential details shows the
following expenditure to be necessary for the establish-
ment of new plantations on forest lands :

DISTRIBUTION OF COST WHEN OPENING AN ESTATE : EXPENSES
FIRST Six YEARS

Rupees.

1. Value of 1,200 acres of forest land at

Rs. 60 per acre 72,000

2. Felling, lopping, burning, and cleaning

1,000 acres 15,000

3. Weeding 1,000 acres for six years ... 90,000

4. Draining 1,000 acres 15,000

5. Roads and bridges 20,000

6. Holing, lining, and filling, on 1,000 acres 4,000

7. Planting and supplying 2,000

8. 200,000 two-year-old plants 6,000

9. Building and equipment of factory ... 50,000

10. Building bungalows for manager, assist-

ant, and conductors 20,000

11. Building lines for coolies 24,000

12. Purchase of tools, etc 10,000

13. Manuring 45,ooo

14. Management for six years 90,000

Total 463,000

Value of 200 acres forest ... 12,000

Capital value 1,000 acres rubber 451,000

136 THE RUBBER INDUSTRY

This allows a high rate of cost for all work and for
the erection of first-class permanent buildings, but does
not include the capital employed for recruiting coolies,
which on an estate of 1,000 acres would amount to the
sum of from Rs. 15,000 to Rs. 20,000. Nominally these
so-called "^oast advances" are recoverable; in reality
they are very seldom refunded.

As has been pointed out already, the older planta-
tions, where rubber has taken the place of tea, can
hardly be said to have any original capital value, unless
the cost of bringing the tea under cultivation in former
years is taken into consideration. What frequently
happened was that local companies were formed to
obtain control of groups of these former tea estates.
These, again, were sold to London companies with
sterling capital. One such group was the Grand
Central, which now has 12,500 acres under rubber. In
this case the properties were turned over by the vendors
at a valuation of £91 per acre. Another instance is
the small property of Doranakandy, which was pur-
chased for £44,000, contains 220 acres of rubber now
averaging twelve years old, and yielded 112,000 pounds
of rubber in 1913. In very few instances do any fixed
interest charges exist, nearly all development being
carried out by money subscribed for the ordinary shares.
As shown in the foregoing calculation, the actual neces-
sary cost of opening up a new plantation, and main-
taining it properly until the trees are six years old,
should not exceed £30 per acre for estates of from 500
to 1,000 acres, this including purchase price of land and
the necessary buildings and machinery. A carefully
checked estimate furnished by a most reliable and
practical planter places the cost of a thoroughly well

CEYLON 137

equipped factory, capable of handling not less than
400,000 pounds of rubber annually, at a sum not
exceeding £3,300. The machinery now in general
use is simple, effective, and not costly. Oil-engines
burning liquid fuel provide the required motive power.
These engines in Ceylon are generally supplied by
Hornsby and Co. or Crossley and Co., and other
British manufacturers, and the fuel for them costs
approximately threepence per gallon, delivered on the
estate. The price of the creping and washing machines
is £95 each, delivered at the factory. The most modern
washing machines for scrap are more expensive, and
they run as high as £250, but only one is required
when handling a crop of 400,000 to 450,000 pounds of
rubber. The only other machine is the dryer; one
with two chambers of the Passberg patent would be
required for a crop of the size mentioned, and could
be installed for approximately £800. A less costly
dryer, but not so effective, is supplied by the Colombo
Commercial Company for £260.

For an estate of 1,000 acres of rubber six years old
the working expenses should be approximately as
follows :

Rupees.

1. Collecting and curing 50,000

2. Maintenance of roads and drains ... 5,000

3. Weeding 6,000

4. Manuring ... ... ... ... ... 18,000

5. Cultivation (forking over land, etc.) ... 12,000

6. Management (manager, two European

assistants, chemist, two conductors,

clerks, etc.) 25,000

7. Depreciation on buildings and machinery 15,000

8. Transport 3,ooo

9. Colombo agents' commission 4,000

10. Contingencies 10,000

Total 148,000

138 THE RUBBER INDUSTRY

Allowing for the high rate of exchange now ruling,
this equals £10,000. Of this total expenditure, two-
thirds, or Rs. 100,000, is for payments to labourers
employed on the estate. The average rate of wages
for men, women, and children, is 35 cents per day for
Tamil coolies, and for an estate of 1,000 acres about
1,000 in all are required, these working twenty-four
days in each month.

The total yield from an estate of 1,000 acres of six-
year-old trees in districts such as Kalutara or Kelani
Valley should be not less than 150,000 pounds of fine
dry rubber, equal to I pound per tree of dry rubber,
or one-third of a gallon of latex. In addition to this
yield of fine quality there will be 15 per cent, scrap.
Values in Colombo to-day (January, 1914) range from
2s. 2d. to 2s. 4d. per pound for fine plantation. At
these prices the value of the crop of 150,000 pounds
of first latex would be in round figures £16,708,
and in addition £2,000 for the value of the lump
and scrap, making a total of £18,700, leaving a
net profit of £8,700 to the estate. If prices fall
to half the present value, the net deficit would be
£300 on an estate of 1,000 acres of six-year-old
trees, representing a capital investment of £30,000,
unless expenditure is curtailed below the present
scale, as probably would happen. The yield should
increase steadily during the succeeding years in much
greater ratio than the costs of production, and when
the trees are twelve years old the output from 1,000
acres of 150 trees per acre should not fall short of
450,000 pounds of dry rubber. When this period of
development is reached, the average cost per pound

CEYLON 139

of dry rubber placed f.o.b. Colombo should be as
follows :

Cents.

1. Collecting (including maintenance of drains

and roads) 20

2. Curing (including depreciation of factory and

machinery) , ... 6

3. Management (including all charges connected

with administration) 7

4. Weeding 2*

5. Manuring 6+

6. Cultivation (forking over land, cutting out,

pruning, etc.) 2

7. Transport 2j

8. Colombo agents 2^

Total 47£

Allowing 2^ cents per pound for all unforeseen
contingencies, production should not cost more than
50 cents per pound, equal to 8d., f.o.b. at Colombo.
At this rate a crop of 400,000 pounds would cost
£13,300 to collect and place in Colombo. At is. per
pound it would be worth £20,000, and return a profit
of 20 per cent, on £30 per acre.

The charges per pound from Colombo to London at
present are —

Pence.

1. Freight at 655. per 50 cubic feet 70

2. Brokerage (£ per cent.) '12

3. Insurance, sale charges, and other expenses

(ii per cent.) -37

4. Merchants' commission (i per cent.) ... '25

Total 1-44

(Calculated on a price of 25. per pound.)

* This figure is considered somewhat high.
t Allows Rs. 27 per acre per annum.
I Practically a permanent charge.

140 THE RUBBER INDUSTRY

With a drop in the value of rubber to is. 6d. per
pound, these charges, with the exception of that for
freight, will be reduced automatically.

From the data given, it will be seen that the actual
necessary cost of Ceylon rubber from estates with trees
averaging twelve years of age should not exceed gd. to
zod. per pound placed in the London market. In
several cases the total cost has been brought below that
figure already, and a further reduction is anticipated in
the near future.

In opening up an estate on jungle lands, the work of
felling the timber, lopping, and burning, is given out to
contractors, the usual price paid being Rs. 15 per
acre. Lining, holing, and filling, costs Rs. 4 per acre.
Weeding is done by contract at Rs. 2j per acre
per month for the first year, Rs. 2 per acre per month
the second year, and Rs. ij per acre per month
the third year. The price is then gradually reduced
until it reaches 60 cents, or sometimes as low as
50 cents, per acre per month, and it continues to be an
annual charge at this rate. In Ceylon trees have been
planted at varying distances apart during past years,
but the measurements hitherto accepted as most satis-
factory are 20 feet by 15 feet, giving 149 trees to the
acre ; there is, however, a growing tendency towards
wider planting and a reduction of the number of trees
to 100 or less per acre. As a rule two-year-old stumps
are used in planting an estate ; but some very success-
ful results have been obtained from planting seeds,
although there is always danger of injury from rats and
other pests. The planting of catch crops between the
lines of rubber-trees is now generally deprecated as

CEYLON 141

seriously retarding the growth, and the practice has
been abandoned, with few exceptions. Tapping is
begun on trees of five years old if the girth is 18 inches
or more at 3 feet from the base, the methods in general
use being the single V, the half-spiral, and the herring-
bone. Women, and children of fourteen to sixteen
years, are frequently employed at this work, and become
expert tappers. Tapping begins at daybreak, and by
10 a. m. the bulk of the latex is delivered at the factory,
where it is mixed with an equal quantity of water and
then treated with acetic acid in the proportion of i part
acid to 1,000 parts latex, or an even weaker solution if
the density is high, to produce coagulation ; it is then
passed through the washing and creping machines,
and thence to the vacuum dryer or the drying-rooms.
The proportion of rubber to latex of average density
should be i pound of dry rubber to one-third of a
gallon of latex. When the drying machine is used, the
rubber after treatment is conveyed to well-ventilated
rooms, where it is hung for some days ; when no arti-
ficial heat is possible, the rubber is suspended in sheds
for several weeks to allow the moisture to evaporate.
It is then packed in wooden boxes containing 112 pounds
each, and is ready for shipment to Colombo, where it is
received and stored by agents until shipped or sold
locally.

Opinion is much divided on the question of frequency
of tapping. In some quarters it is stated that practical
experience shows the trees tapped daily or on alternate
days yield an equal quantity of latex at the end of a
year. A few planters maintain that tri-weekly tapping
will produce as much latex as in the case of trees

142 THE RUBBER INDUSTRY

opened daily. Various experiments have been under-
taken at Peradeniya and on private estates with the
object of deciding this very important point, but the
evidence brought forward hitherto is not conclusive in
regard to the general average results over large areas.
The tendency of the trials made in different districts is
to demonstrate that results are very largely dependent on
local conditions of rainfall, soil, and atmospheric in-
fluences, and the state of health of the trees. It may
be possible to adjust conditions to some extent by the
application of various classes of manure. Some tests in
this direction have been made recently, but these have
not yet been carried out to a sufficient extent to permit
of the formation of any definite opinion on the subject.
It is of the utmost importance that this question should
be solved, for fewer tappings mean economy in labour
and a substantial reduction in the cost of production of
every pound of rubber, and also additional time for the
recovery of the latex cells and the general health of the
tree.

The renewal of the cortex over the tapped surface is
fairly satisfactory in Ceylon, although not nearly so
rapid as the growth in the Malay Peninsula or in the
Amazon Valley. At the higher altitudes the renewal is
slower than in the districts of the Kelani Valley and
Kalutara. In order to counteract any unsatisfactory
results in connection with the somewhat slow growth,
the experiment is being made of tapping with one cut
only in place of two or three excisions ; on one estate in
Matale where this test has been made the average yield
of latex per acre showed no diminution at the end of
a trial extending over six months. If further experience

CEYLON 143

proves that fewer cuts mean no substantial reduction in
the quantity of rubber, a most important advance will
be achieved, for the constant drain on the resources of
the trees will be lightened to an appreciable extent.

In view of the lower prices for plantation rubber as
compared to the fine product from Brazil, various ex-
periments were made in 1913 to apply Brazilian methods
of coagulating the latex by the smoking process. In
this connection Mr. H. A. Wickham, the "father of
the rubber industry," has taken an active part ; he has
succeeded in producing an article closely resembling
fine hard Para, and a small consignment of this was
sold recently in the London market at the same price
as that quoted for the highest-grade Brazilian product.
The inference is that some change in the established
methods of preparing the latex may prove of distinct
advantage to the producers. To cure the latex without
any injury to the nerve of the rubber is a consideration
calling for very close attention, and the present system
of maceration after coagulation obviously does not tend
in that direction, although the tearing apart of the
tissues in the creping machines inflicts less harm on
the crude material than might be expected. As matters
are to-day, the curing process is convenient and rapid ;
but it remains to be seen if more tardy results obtained
by a partial reversion to the means employed in the
Amazon Valley are not justified by higher values in
the markets, and whether the additional price does not
more than compensate for the cost of the extra labour
employed. Reference to this subject has been made in
the section of this book devoted to the Brazilian rubber
industry ; but many of the principal difficulties in con-

144 THE RUBBER INDUSTRY

nection with preparation of latex in the Amazon Valley
do not exist in Ceylon, and experiments on a com-
paratively large scale can be conducted throughout
the East at comparatively trifling expense to test any
process likely to prove beneficial to the industry
generally.

CHAPTER XII
CEYLON— Continued

Yield and density of latex— Bulletin of the Ceylon Government
Department of Agriculture — Advantages of Ceylon for rubber pro-
duction— The labour question — Discipline on estates — Standard
of living — Future development and cost of production — Ceara
and castilloa — Exportation^ rubber from Ceylon since 1904.

WITH the exception of the period covered by
February and March, when the weather is dry
and the trees are wintering, tapping in Ceylon is con-
tinued regularly throughout the year. On some " itates
it is not suspended during the time mentioned, but the
general rule has been to stop the work for these few
weeks to allow the trees to recuperate from the exhaust-
ing effects of the constant extraction of latex during
the previous ten months. When tapping does take
place in this latter portion of the dry season, the yield
deteriorates both in quality and quantity.

The ages of trees on Ceylon estates vary so greatly
that it is difficult to obtain accurate statistics of yields
over any large acreage. At Culloden Estate, in the
Kalutara District, a section comprising seventy-nine
trees gave the following results :

Year.

Age of Trees.

Yield.

1908
1909
1910
I9II

5 years old
6 „

8 "

° »>

•77 pound
1*02 pounds
2-n „
2-90 „

10 145

146 THE RUBBER INDUSTRY

On the same estate a field of 62 acres of ten-year-
old trees yielded 700 pounds per acre of dry rubber in
191 1 ; while another field of 46 acres, also of ten-year-
old trees, gave a return of 500 pounds of dry rubber to
the acre. At Doranakandy 220 acres with trees averag-
ing twelve years old yielded 85,000 pounds of dry rubber
in 1911, and 80,000 pounds and 112,000 pounds in 1912
and 1913 respectively. This shows the average yield per
acre to be approximately 500 pounds of dry rubber.
On the Sunnycroft Estate, 4,950 trees seven and a half to
eight and a half years old yielded in 1910-11 an average
°f 2'55 pounds of dry rubber in ten months' tapping,
equal to 380 pounds to an acre.

The following interesting statistical information con-
cerning density of latex, yield, girth, root growth, and
spacing of trees, was published in 1913 by the Ceylon
Government Department of Agriculture :

HEVEA: YIELDS OF SOME HENARATGODA
TREES

The fame of the Henaratgoda trees as rubber yielders
rests upon the performance of the great tree known
departmentally as No. 2, which in three and a half
years yielded 275 pounds of dry rubber. There are
other trees at Henaratgoda equal in age and size to this
great tree, but, never having been subjected to systematic
tapping, their capacities were unknown. Some of these
trees, though they could hardly be expected to equal
No. 2, might nevertheless, it was thought, be good
yielders.

At Henaratgoda there are three old Hevea plantations,
known as the First, Second, and Riverside.

CEYLON 147

The First Plantation is from the original seed pro-
cured by Mr. Wickham from the Amazon in 1876.
The plants reached Ceylon towards the end of that
year, and were planted at Henaratgoda in 1877; this
plantation is therefore thirty-six years old. It contains
forty trees planted irregularly; the inside trees con-
gested and small in circumference, the outside trees
large.

The Second Plantation was planted about ten years
later — that is to say, in about 1886 — with seed from the
original trees; it is therefore of the second generation.
It contains 211 trees planted 12 feet by 12 feet. The
contrast between the size of the outside trees and that
of the inside is also very marked.

In the Riverside Plantation, also of the second genera-
tion, there are eighty-one trees scattered about, the trees
being larger than those of the second. The outside trees
also show a superiority of growth over their companions.
In October last it was decided to place the outside
trees of the three plantations under systematic tapping,
with the object of ascertaining (i) whether any other
trees besides No. 2 were good yielders ; (2) the effect of
room on the yield of Hevea trees.

Table I. brings out very strikingly the effect of room
on the girth of Hevea. The average girth i yard
from the ground of the ten trees in the outside row in
the Second Plantation is 76 inches ; that of the trees in
the row next inside 44 inches. The trees are tabulated
as they grow; for example, No. 220, with a girth of
32 inches, is next to No. 221, with a girth of nof inches.
The famous No. 2, measuring 117^ inches, is not the
largest tree, No. 39 (not in the table) being 10 inches

148

THE RUBBER INDUSTRY

larger in girth (127$ inches). Some of the inside trees
of the First Plantation, which are crowded and over-
topped, are very poor specimens, though presumably
equal in age to the others. Thus, No. 20 is 40 inches
in circumference ; No. 13, 33 inches.

TABLE I. : GIRTH MEASUREMENTS
First Plantation : 15 Trees, 37 Years old (Original Trees)

No. of Tree.

Girth Measurement.

j No. of Tree.

Girth Measurement.

Inches.

I
2

77i
"7|

22
23

884

80}

ioc4

8oJ

1,288*

»3i

Mean girth = 85-88 inches.
Second Plantation : 10 Trees, 27 Years old (Second Generation)

No. of Tree.

Girth Measurement.

No. of Tree.

Girth Measurement.

Inches.

64|

100

67^

III

221

nof

72|

762*

Mean girth = 76-27 inches.

CEYLON

149

TABLE I. : GIRTH MEASUREMENTS — continued
Second Plantation : 10 Adjacent Trees next Row inside

No. of Tree.

Girth Measurement. !

• No. of Tree.

Girth Measurement.

Inches.

44!

62;

49i

48;

220

52;

44°i

Mean girth = 44x52 inches.
Riverside Plantation : 13 TYeds, 27 F«jrs old (Second Generation)

No. of Tree.

Girth Measurement, jj No. of Tree.

Girth Measurement.

•
Inches. Inches.

390

63i

407

39 l

78*

438

83 i

395

439

65!

55i

444

66£

397

445

400

8o£

401

753

929!

406

65*

Mean girth=7i'5i inches.

Tapping on the three V system half round the tree of
these thirty-eight outside trees was begun on Novem-
ber i, 1912, and continued to February 15, 1913, when,
dry weather having set in, the trees were rested.
Tapping therefore took place daily for three and a
half months. Tables II., III. and IV. give the weight of
biscuit and scrap produced from these trees in the three
plantations respectively.

150

THE RUBBER INDUSTRY

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CEYLON 153

The great No. 2 yielded 45 pounds 3^ ounces of dry
rubber in seventy-six days, an average of just over
9J ounces a day. This tree far surpassed any other.
No. 439 in the Riverside Plantation is next in order to
No. 2, with 24 pounds g\ ounces, an average of a little
more than 5 ounces a day. The next two in point of
yield, Nos. 401 and 438, are also in the Riverside
Plantation. The trees of this plantation averaged for
the thirteen trees 12 pounds f ounces, against n pounds
15 ounces of those a generation older, and 7 pounds
T2 ounces of the Second Plantation. The superiority
of Riverside must be attributed to some extent to its
proximity to the river.

But the yields from all these trees are good, and can
only be attributed to the fact that they have had room
to extend in one direction. In Bulletin No. i of Sep-
tember, 1912, p. 8, the yields of some trees of the
Second Plantation are given as equal to an average of
1*4 pounds per tree per annum. These trees are planted
12 feet by 12 feet, and Dr. Lock attributes the small
yields to close planting. From this view there would
appear to be no escape, as within a few yards of these
trees others, 12 feet from their neighbours in one
direction, but in the other with ample room for roots and
branches to extend unchecked, have far surpassed them.

An examination of the manner in which these pro-
ductive trees have branched and developed foliage
reveals the remarkable power of Hevea to adapt itself
to circumstances and to take opportunities. If we may
be permitted a pleasantry, we can say that there is
nothing of the Turveydrop about Hevea; it despises
deportment. Its motto seems to be, Get to air and

154 THE RUBBER INDUSTRY

light ; elegantly if you can, but get there. This power
of reaching light regardless of symmetry of dome is a
valuable characteristic in the tree, and should be taken
advantage of by planters. It possesses this power in a
greater degree than any tree with which the writer is
acquainted, resembling in this respect a bamboo more
than an ordinary tree.

The famous No. 2, the butt of which, with Mr.
Wickham at its side, figured so prominently in a
photograph at the recent New York Rubber Exhibition,
possesses no symmetry of form whatever at the top.
It has a magnificent upright trunk dividing into two at
a height of 12 feet from the ground. These two stems
then continue upwards, but soon begin to lean outwards,
finally expanding into a mass of branches and foliage
bending in one direction — outwards. The shape of the
whole tree but for the fork is not unlike that of an
ostrich plume. Other of these trees exhibit the same
disregard of shape, though all alike possess large leaf
areas.

The foliage of No. 2 extends to a distance of 55 feet
laterally from the base of the trunk.

No. 439, the second heaviest yielder, is isolated. The
foliage of 401 extends outwards about 40 feet ; there is
a nutmeg within 8 feet of it ; No. 445 has a very fine
crown, overtopping small clove-trees in the vicinity.
The foliage of No. i extends to 44 feet, No. 7 to 31 feet.

No definite conclusion can be drawn as to the effect
of early branching. The two heaviest yielders branch
early : No. 2 at 12 feet and No. 439 at 15 feet ; No. 438
also at 15 feet, No. i at 5 feet, No. 3 at 7 feet, No. 390
at 12 feet, No. 391 at 15 feet. On the other hand, 401,

CEYLON 155

85, 90, 221, 23, 36, 40, run up to from 20 to 40 feet
before branching.

No. 439, the best yielder after No. 2, is one of the
smallest trees under trial. The trees of the Riverside
Plantation, which gave the highest average yield of dry
rubber, have a mean girth of 71 inches, against an
average of 89 inches in the thirty-seven-year-old trees.
All are large trees, but as far as they go these trials
seem to show that after a certain size has been reached
increased girth measurement does not necessarily mean
increased yield.

Given room, the trees have extended their roots to a
greater distance than their branches. At 55 feet the
roots of No. 2 were of the size of a lead pencil and
still extending, but they were not visible at the surface.
A root of No. i, i£ inches in thickness, was observed at
the surface 60 feet from the base of the trunk. It then
descended into the ground. A root of No. 40 outcrops
at 80 feet from the trunk. This tree gave 17 pounds
5^ ounces of dry rubber in the three and a half months.

These trials seem to bring out very strongly the
importance of giving Hevea room to extend in one
direction. It is perhaps reasonable to suppose that
had these trees room in every direction even better
results would have been obtained; but it is not the
object of this paper to attempt to evolve the ideal
plantation, but to record facts and to offer suggestions
based on those facts. The Henaratgoda trees are
particularly happy in not having the issue complicated
by subsidiary influences. The soil is poor, the trees
have never been manured, the ground is not forked or
weeded or grazed. Twice a year the bents are cut with

156 THE RUBBER INDUSTRY

O-i o'-O 40' o- « o - O

J J J J

o o o o

T T 77

O-io'-O O-i o'-O

O-10-O O-10*-

J J *i ^1

o o o o

O-io'-O 40' O-io-O

FIG. i. — PLAN OF PLANTATION

At spacings of 10 feet by 40 feet as shown, an acre would carry
sixty-nine trees.

CEYLON 157

O-12-O 40' O-12-O

1-1 2- O

O-12-O

O-12'-O O-12-O

sio \o

O-12-O 0-12^-0

O-i2'-O 40' O-12-O

FIG. 2.— MODIFICATION OF THE SYSTEM SHOWN IN FIG. i.
40 feet by 12 feet by 15 feet gives 112 trees per acre.

158 THE RUBBER INDUSTRY

a sickle, and periodically the leaves are swept up and
taken away, Henaratgoda being a botanic garden to be
kept tidy. This is the treatment these trees have been
subjected to. There is a river close by, but this does
not enable the inside congested trees to give more than
I '4 pounds per annum. We are driven to the conclusion
that the controlling factors have been air, light, and
root room, these trees having had room at least on one
side to extend.

It has not escaped some observers that Hevea trees
growing in pairs do not seem to suffer from the fact,
and at the meeting of the Committee of Agricultural
Experiments held at Peradeniya on March 16 it was
decided to lay out a plantation to test this principle.
Fig. i (p. 156) is a plan of a plantation based on this
principle, but carried one step farther, four trees being
planted closely together (10 feet by 10 feet) instead of
two. Two would perhaps be better than four, and
one than two; but the Henaratgoda trials afford good
grounds for expecting a plantation laid out on the four-
square plan illustrated in Fig. i would be in time return-
ing heavy yields as compared with present standards.
It gives every tree room to extend freely on two sides.

Tables V., VI. and VII. give interesting comparisons
of the proportion of latex to dry rubber in the various
trees. In the great No. 2 tree the latex is rich, though
one or two trees showed a slightly higher proportion
of rubber. With the old original trees a mean of
1,253*44 c.c. of latex produced i pound of dry rubber;
with those of the Second Plantation, 1,330*88 ; the
Riverside, 1,416*96. Taking the figures of the old
trees as unity, the proportions may be represented as

CEYLON

159

i, 1*077, 1*163 — i.c.t 1*032 times as much latex was
required from the trees of the Second Plantation as
from those of the First to make i pound of dry

rubber.

TABLE V. : FIRST PLANTATION
Cubic Centimetres of Latex to One Pound of Dry Rubber

No. of Tree.

Latex.

Dry Rubber.

C.C. to i Lb.
Rubber.

C.C.

Lb. Oz.

;

".253

9 5

I,248-00

46,310

45 34

1,024-80

15,515 n "4

1,327*36

8,575

7 3

I,I92-96

9,026

8 5

1,08576

8,803 7 9

I, 164-00

13,863

10 3i

1,360-64

6,561

4 4:

1,543-68

12,567

8 9j:

1,467-52

7i7J7

1,23472

12,586 7 6j

1,706-56

12,656 10 2

1,249-92

17,710 13 ij

1,355-68

40
3i

23,290 17 5*
18,038 13 o±

I,345'I2
1,387-52

Average per tree 14,964-66 n 15

i. 253 '44

TABLE VI. : SECOND PLANTATION
Cubic Centimetres of Latex to One Pound of Dry Rubber

No. of Tree.

Latex.

Dry Rubber.

C.C. to i Lb.

Rubber

C.C.

Lb. Oz.

7,369

5 I2|

1,281-44

17,308

II 7f

I,5I3-28

13,574

8 15*

i,5l872

7,749

5 4f

1,476-00

6,266

5 144

1,066-40

11,727

7 8i

1,563-52

6,762

5 8

1,229-49

zoo

8,239

6 74

1,279-84

III

221

17,128
8,686

I3 1

1,262-88
1,037-12

Average per tree

10,480-8

7 14

1,330-88

i6o

THE RUBBER INDUSTRY

TABLE VII.: RIVERSIDE PLANTATION
Cubic Centimetres of Latex to One Pound of Dry Rubber

No. of Tree.

Latex.

Dry Rubber.

C.C. to i Lb.
Rubber.

C.C.

Lb. Oz.

390

",539

8 4ft

I,398'56

391

7,536

6 2

1,230-24

395

i5,44i

10 5l

1,497-28

396

12,125

6 i3ft

1,779-68

397

11,138

6 n|

1,665-44

400

15,386

II I2i

I,309!44

401

33,313

22 8

1,480-48

406

n,834

8 of

1,479-20

407

5,i99

5 4ft

990-24

438

25,002

18 lof

1,342-24

439

36,418

24 9^

1,482-56

444

13,448

9 14

1,361-76

445

23,522

17 8

1,344-00

Average per tree

17,069-3

12 0|

1,416-96

There are many advantages in Ceylon for growing
rubber. It is true that suitable land is not cheap, and
not always easy to obtain. But the industry is well
established, transport facilities are excellent, the organ-
ization of estates is based on long experience gained in
the cultivation of tea and coffee, competent superin-
tendents can be obtained to undertake the important
task of administration, and taxation is practically non-
existent. The general conditions and productiveness
of the trees is distinctly satisfactory. The renewal of
bark after tapping is fairly rapid. Third renewals in
both the Kelani Valley and Kalutara districts are
exceptionally healthy, and yield latex freely. While
malarial fever is not uncommon amongst the labourers,
it is rarely of sufficient importance to affect seriously

CEYLON 161

the work on the plantations. Government dispensaries
and hospitals are established in all districts, and these
are attended to by resident Government Medical Officers.
In 1912 official statistics showed 550,000 Indian coolies
and 150,000 Sinhalese and other nationalities engaged
in agricultural work in Ceylon. On September 30, 1911,
the published returns gave 421,305 Indian coolies em-
ployed in 1,830 estates ; of these the males numbered
218,709, and females 202,596. The great majority of
these labourers are thoroughly conversant with ordinary
plantation work, and a very large percentage of them
have become skilled tappers. The children grow up on
the estates, and develop ability and intelligence in all
branches of rubber production, as occurred in connection
with coffee and tea planting in former years. Nearly
all these coolies are Tamils, immigrating to Ceylon
from the Madras Presidency, where they formed part of
a population of some 30,000,000. With the linking up
of the Ceylon railway system with that of Southern
India the transport facilities for these immigrants will
be greatly improved, and the agricultural industry of
Ceylon reap a corresponding benefit. These coolies
are recruited by kanganies sent out from the estates,
and the cost of their passages is advanced by the owners
of plantations. They are under no indenture, although
an indenture ordinance exists in Ceylon, and after due
notice and payment of any indebtedness they are
legally free to leave the estate for employment else-
where. Many complaints are heard in regard to this
condition of affairs, but on the whole the system works
on fairly satisfactory lines. The wage rate varies from
40 cents for men to 25 cents for women, and 18 cents
ii

162 THE RUBBER INDUSTRY

for boys and girls from thirteen to sixteen years of age.
There is a slight tendency to a higher wage rate,
induced, probably, by the demand from the Malay
Peninsula for this same class of labourers.

The hours of work in Ceylon are from 6 a.m. to
4 p.m. on six days in the week for ordinary labour, and
seven for tapping ; but a very great proportion of the
work is by task, and can as a rule be finished much
earlier in the day. Discipline on the estates is well
maintained, and it is seldom any serious dispute arises
between employer and labourer. The standard of
living is low according to European ideas, but adequate
for the class of labourer engaged. They are well
housed in permanent lines, constructed with steel
frames, galvanized iron roofing, plastered walls, and
6-foot wide verandas. These barracks are divided into
rooms 10 feet by 12 feet, and four coolies are allotted
to each room. The usual custom is for these buildings
to contain twelve rooms, built at a cost of Rs. 120 per
room. The distribution of the rooms is left to the dis-
cretion of the head kangany. The food consists of
rice, supplemented by curry, dried fish, vegetables, and
fruit. Occasionally meat and chicken are eaten, but
not as a regular diet. Rice is supplied at cost price by
the estate, and always at a cheaper rate than in the
bazaars. The estates are compelled to establish and
maintain free primary schools for the benefit of the
children of the Indian coolies employed.

In addition to the Tamil labourers, the Sinhalese are
now employed much more frequently than formerly.
The objection raised by the planters to this class of
coolie labour is that the wage rate is higher, averaging

A RUBBER FACTORY IX CEYLON, SHOWING A PASSBERG VACUUM DRYER

A RUBBER FACTORY IN CEYLON, SHOWING RUBBER HANGING IN DRYING SHED

CEYLON 163

50 cents per diem in place of 35 cents ; also that it is
not possible to maintain with them the same standard
of discipline as with the Tamils. The Sinhalese is close
to his own home, and when he is tired of work he
takes his wage and departs. In wet weather he will
not turn out, and when his village is busy harvesting
rice or other products he prefers that occupation to
the work on an estate.

There is every reason to anticipate satisfactory con-
ditions in regard to future production of rubber in
Ceylon within the next seven years. If the present
average yield is applied to 225,000 acres, and is taken
as a basis for calculation, there can be small doubt that
in 1919 the average production should be at the rate
of not less than 4 hundredweights per acre. This
would give a total output available for exportation of
50,000 tons. This may be regarded as a minimum
figure when calculating probable exports after 1919, for
extensions of the present cultivated area will assuredly
occur from year to year, and these may even duplicate
the area of the existing plantations in the course of
another fifteen or twenty years. In 1910 the exporta-
tion of local origin from Ceylon in round figures was
1,500 tons; in 1911 it rose to 3,000 tons; in 1912 it was
6,200 tons; in 1913 the amount reached 10,686 tons ;
in 1914 the export will exceed 15,000 tons; in 1915
additional large areas come into bearing, and the expor-
tation will not fall far short of 25,000 tons. Steady
increases will take place in the three years following,
and in 1919 the production will be approximately
45,000 tons, with the prospect of further steady
development.

164

THE RUBBER INDUSTRY

So far as can be seen at present, the average cost of
Ceylon plantation rubber f.o.b. Colombo should not
exceed 8d. per pound, although the cost may be con-
siderably below that figure, and in the case of some
estates has been reduced already to 6|d. per pound.

The question of Para rubber (Hevea Brasiliensis) only
has been dealt with. Ceara grows well in various dis-
tricts; but it is not much in favour, owing to difficulty
in tapping, therefore the acreage cultivated is insig-
nificant. Castilloa has been tried, but proved a failure
wherever its cultivation was attempted, on account of
the smallness of the yield.

The following statistics show clearly the develop-
ment of the Ceylon rubber industry during the past ten
years :

Years.

Acres planted.

Export (Tons).

1904

25,000

1905

40,000

1906

100,000

150

1907

150,000

250

1908

180,000

400

1909

184,000

681

1910

204,000

1,500

1911

215,000

3,ooo

1912

225,000

6,250

1913 234,000

10,686

In 1913 the total exports of rubber from Colombo
were 11,835 tons, but of this amount 1,149 tons were
imported and reshipped after sale at the local
auctions; in 1912 some 200 tons were classified as
re-exported.

CEYLON 165

The estimated exportation for the next six years is —

Year.

Acres planted.

Export (Tons).

1914

247,000

15,000

1915

250,000

25,000

1916

250,000

30,000

1917

250,000

35,000

1918

250,000

40,000

1919

250,000

45,000

> CHAPTER XIII

THE MALAY PENINSULA

f Origin of the Malay rubber industry — Diseases and pests
common to rubber-trees in Malay-*-Principal localities of the
rubber plantations— 'Area of rubber estates — Reserve lands suit-
able for cultivation — Acquisition and tenure of land — Taxation of
the rubber industry— ^Altitude of rubber estates — Characteristic
features of the soil — Meteorological conditions — Variations of
temperature — Capitalization of Malay rubber estates — Excessive
capitalization, and its effects on the Malay rubber industry.

IT was only when agricultural enterprise had fallen
to desperate straits in the Malay Peninsula that
the planting community began to consider the possi-
bilities of rubber production to avert a ruinous condi-
tion of affairs. The coffee industry was no longer
profitable, and the cost of labour was too high to
enable successful competition with Ceylon and India
in the cultivation of tea. The cost of planting the
coffee estates with rubber-trees was comparatively
trivial, and many proprietors adopted that course as a
last resource to save the capital already invested. The
trees flourished to an amazing degree, and an extra-
ordinary prosperity has resulted to the whole Malay
Peninsula. Perhaps no better comparison is possible
than to glance at the thriving circumstances of to-day
in the Federated Malay States, and to remember that
less than forty years ago the city of Kuala Lumpur was
the headquarters of one of the most bloodthirsty hordes
of pirates that ever existed.

1 66

THE MALAY PENINSULA 167

The rubber industry in the Malay Peninsula originated
from plants sent from Kew Gardens in 1877, and germ-
inated from seed collected by Mr. Wickham during the
previous year in the Amazon Valley. The establish-
ment of plantations of rubber-trees was due mainly to
the persistent efforts of Mr. Henry N. Ridley, the late
chief of the Botanic Gardens at Singapore. For years
" his voice was as the voice of one crying in the wilder-
ness," for nobody was inclined to give credit to his
assurances of the profitable future of rubber production.
At length he induced a few planters to give the new
cultivation a trial, but it was not until 1898 that any
serious attention was devoted to it, and only then
because the production of coffee and sugar-cane became
unremunerative. Then coffee and sugar estates were
interplanted with Para trees, and many tapioca planta-
tions, owned in great part by Chinamen, were treated
in the same way. /It was not until 1905 that the true
value of Para rubber plantations was appreciated and
understood. Since that date the area has increased
from some 40,000 acres to the extent of 680,000 acres.
It says much for the hardy character of the Hevea
Brasiliensis that this development has taken place ; for
very little attention or care was given to the trees in
the early stages of the industry, and even when large
areas were opened up a great lack of knowledge existed
in regard to methods of cultivation and treatment.
Evidence of this is seen everywhere on the older estates,
where trees are crowded together without any regard
to adequate space for futura»development, and also in
the damage done to the stejps when tapping was begun.
It is only within the last fiye years that planters gener-

1 68 THE RUBBER INDUSTRY

ally realized the mistakes that had been made, and the
necessity of careful and methodical cultivation and
treatment to insure successful results.,/

After visiting the principal centres of the rubber-
planting industry, the conclusion reached can only be
that healthy conditions are the rule. The usual
diseases exist, but not in an aggravated form ; the most
serious obstacles in this direction are : (i) Root canker,
or fomes ; this disease produces disastrous results if
neglected; but it is understood, and when found is
immediately treated by isolating the immediate sur-
roundings of the tree, digging up and burning the roots,
and applying lime to the infected area. (2) White ants
are attacked as soon as they appear. (3) " Die-back "
rarely does much damage. (4) Probably the worst pest,
and one found in every district of the peninsula to
more or less extent, is the formation of burrs or nodules
in the bark. While these do not materially affect the
general health conditions of the tree, they are a serious
interference to tapping. They occur principally on old
trees that have been badly tapped in past years, but
they are found also on trees that have never been
tapped. Dr. Huber of Para considers that they are
the result of suppressed bud expansion in conjunction
with bad tapping, and this diagnosis is supported by
Mr. Lewton Brain, Director of Agriculture in the
Federated Malay States. Dr. Huber further thinks
they may be induced by the action of hot sunshine on
renewed bark causing some form of irritation. In the
earlier stages of growth these burrs can be removed
without damage to the cambium, but if neglected they
spread, and unite with the wood of the tree. Taking a

THE MALAY PENINSULA 169

broad view, however, of this and other pests, and even
of the bad tapping in past years, the actual proportion
of trees affected certainly does not exceed 2 per cent,
of the total number in cultivation, and probably, if an
accurate census was taken, would be found to be much
below that figure. All well-conducted estates maintain
a special gang of coolies whose duty it is to search con-
stantly for any signs of disease, and report immediately
any indication of an outbreak.

The most important centres of the rubber-producing
districts are situated between Singapore and Penang,
and include the Native State of Johore, the Federated
Malay States of Negri Sembilan, Selangor, and Perak,
and the Settlements of Malacca, Province Wellesley,
and Penang. In the State of Johore the development
of rubber estates has been retarded by lack of transport
facilities, but it is now making rapid progress. In
Pahang similar difficulties exist, and these, in conjunc-
tion with the mountainous nature of the country, have
resulted in only a limited number of plantations being
opened. In ICelantan, where the soil is well adapted
for rubber-growing and local labour is abundant,
insufficient means of communication have hitherto re-
stricted planting enterprise ; but the construction of rail-
ways and roads is being pushed forward rapidly, and will
alter these conditions very shortly. Similar considera-
tions also apply to the Native State of Trengganu. In
Kedah the area planted with rubber is extending ; com-
munication by road is now open between the principal
centres and the Province Wellesley, and_railway con-
nection will be establishjed^shortly.

Along the railway-line from Tampin, in the State of

i>70 THE RUBBER INDUSTRY

Negri Sembilan, to Penang, the cultivation of rubber
estates is practically continuous, although broken at
intervals by Government forest reserves, and occasion-
ally by tin-mining operations. For the greater part of
this distance the planted area to the west of the railway
extends to the seaboard, and to the east to the foot-hills
of the mountain ranges intersecting the Peninsula. To
give an idea of the extension of this area, it may be
approximately calculated at 200 miles long, averaging
five miles wide, and containing a total of some 640,000
acres, including 500,000 acres of rubber estates. From
Tampin to Singapore, a distance of 150 miles through
the State of Johore, the cultivation is much more scat-
tered along the line of railway ; but it is rapidly increas-
ing, and it now exceeds 100,000 acres.

Absolutely accurate returns of the acreage planted
throughout the Peninsula are not available to show the
present cultivated area. In 1910 the figures were given
officially as 362,000 acres, but all inquiries tend to
indicate that the statement was only an approximate
one. The difficulty lies in the fact that many Chinese
proprietors of large holdings do not make any
return, nor do the very numerous class of Malay and
Chinese owners of small patches planted with rubber,
but also cultivated with other crops between the trees.
In the Federated Malay States the export duty of
2j per cent, on the value is no check upon the acreage,
as the ages of the trees vary from those newly planted
to others twenty years old. In the Straits Settlements
of Malacca the assessment tax on trees is an equally
unreliable guide, for it only takes effect on trees of six
years and upwards. In the Native States no returns

THE MALAY PENINSULA

171

are available, and the area can only be estimated. In
view of these circumstances, the only method of obtain-
ing approximately accurate estimates of acreage at
each centre of cultivation is from visiting agents,
resident planters, Government officials, business men,
and also from secretaries of planters' associations and
others interested in the industry. The estimates now
given were revised with the assistance of the Secretary
to the Planters' Labour Association, who has returns
from 485 estates in connection with the distribution ot
all Indian immigrants brought to Penang in accordance
with the quarantine regulations. If the official figures
are taken from 1906 to 1912, together with an allow-
ance of 5 per cent, for the area planted in 1913, the
total result shows 685,000 acres under rubber. The
very large area planted in 1911 and 1912 was due to
the great amount of capital subscribed for rubber
enterprises during the boom of 1909-10. The fol-
lowing table shows the expansion of the rubber in-
dustry in the Malay Peninsula during the last eight
years :

Year.

Acreage.

Planted Each
Year.

Rubber
exported.

Tons.

1906

99,230

— -

430

1907

179,227

79,997

485

1908

241,138

61,911

1,629

1909

292,035

5°»897

3,340

1910

362,853

70,818

6,504

1911

538,000

176,000

10,700

1912

650,000

112,000

23,400

*913

685,000

32,500

35,352

172 THE RUBBER INDUSTRY

This area of 685,000 acres is distributed as follows :

Acres.

1. Federated Malay States 408,000

2. Malacca 110,000

3. Province Wellesley and Penang ... 25,000

4. Kedah 10,000

5. Kelantan 15,000

6. Johore 100,000

7. Singapore 15,000

8. Trengganu 2,000

685,000

In April, 1912, the Director of Agriculture for the
Federated Malay States published a statement that the
total area under cultivation with rubber in the Malay
Peninsula was 621,000 acres, exclusive of all holdings
of less than 100 acres in extent. If due allowance is
made for these small estates and for the expansion in
1913, this statement tallies with the figures now given.

The area of 112,000 acres planted in 1912 was as
follows :

Acres.

1. Federated Malay States 55,ooo

2. Johore 18,000

3. Malacca 17,000

4. Kelantan 10,000

5. Kedah 5,000

6. Singapore 5,ooo

7. Province Wellesley and Penang ... 2,000

112,000

Apart from the 685,000 acres now under cultiva-
tion, an area of 400,000 acres has been alienated under
permanent title in the Federated Malay States for
planting, and of this about two-thirds, or 260,000 acres,
is available for rubber cultivation, and the remaining

THE MALAY PENINSULA 173

140,000 acres for coconuts. It is reasonable to suppose
that a large proportion of this alienated land will be
planted in the course of the next few years, in view of
the fact that it represents a considerable capital expen-
diture for premium paid, annual rent, and survey fees,
already disbursed.

The number of small holdings of under i acre
belonging to Chinese settlers and Malays is a remark-
able feature. They amount to many thousands, but in
the aggregate do not comprise 5 per cent, of the total
rubber acreage.

In addition to the land occupied in the Federated
Malay States for agricultural purposes, there remains in
Johore, Kedah, Kelantan, and Trengganu, a very large
area suitable for rubber cultivation. The extent of this
acreage cannot be gauged with any proper degree of
accuracy, as the lands in question have not been sur-
veyed ; but it embraces several million acres, and of
this probably not less than 1 5 per cent, will be available
for plantation purposes. In Johore the percentage is
certainly higher than 15 per cent. In point of fact, the
question of suitable land will not check extensions for
many years to come, especially in the case of established
estates with reserves of forest lands, for with the exist-
ing organization the cost of additional development
will be comparatively low. The only real checks to
future extension will arise from a further fall in the
value of rubber, a marked increase in the wage rate
of coolies, or a shortage of labour. It is possible that
one or all of these circumstances may occur.

Conditions for acquiring land for agricultural pur-
poses differ in the various States and in the Straits

I74 THE RUBBER INDUSTRY

Settlements. In Perak, Selangor, and Negri Sembilan,
for land exceeding 10 acres in extent, a premium of
3 dollars per acre is paid if with frontage to a public
road, and 2 dollars per acre if without such frontage.
The rent may be fixed by the Resident, with a minimum
of i dollar per acre per annum for the first six years,
and thereafter at 4 dollars per acre per annum for first-
class lands, and 3 dollars per acre per annum for second-
class lands. For lalang (grass) lands no premium is paid,
but no difference is made in the annual rent. For
lands planted with coconuts, fruit-trees, or rice, a rebate
can be obtained reducing the annual rent to 2 dollars
per acre per annum, but no such reduction is granted
in the case of rubber plantations. In Pahang the
annual rent for the first six years is 50 cents per acre,
and thereafter 2 dollars per acre per annum. These
provisions apply to all lands alienated in the Federated
Malay States since January 19, 1906.

In the Natiye_States of Johore, Kedah, Kelantan,
Perlis, and Trengganu, land grants are obtained from
the Sultans on constantly varying terms, and seldom
conceded without the approval of the British Resident.
As these States will undoubtedly come into the
Federation in the near future, the tenure of land will be
similar to that applied in the present Federated States.

In the Straits_^Settlements, comprising Singapore,
Malacca, Bindings, Province Wellesley, and Penang,
the premium on agricultural lands is 3 dollars per
acre. An annual rent of 50 cents per acre is charged
for the first six years, and thenceforth 3 dollars per
acre. No difference is made between lalang (grass)
lands and forest.

THE MALAY PENINSULA 175

In many cases existing estates are held under con-
ditions ruling before the present land regulations came
into force in the Federated Malay States or the Straits
Settlements. Some properties are freehold, or pay
only a small quit-rent, while others are subject to a
revision of the rent-charge at the end of thirty years ;
but the majority of the plantations are now held under
the terms in force since 1906.

The following fixed charges are exacted in connec-
tion with all agricultural lands granted in the Federated
Malay States :

Dol. Ct

1. Preparation of grant 2 o

2. Survey fees for i oo acres 135 o

For each additional acre up to 300 acres ... o 90

Survey fees for 300 acres 315 o

For each additional acre up to 500 acres o 80

Survey fees for 500 acres 475 o

For each additional acre up to 1,000 acres o 70

Survey fees for 1,000 acres 825 o

For each additional acre up to 2,000 acres o 60

Survey fees for 2,000 acres 1,425 o

For each additional acre up to 4,000 acres o 50

Survey fees for 4,000 acres 2,425 o

For each additional acre up to 6,000 acres o 40

Survey fees for 6,000 acres 3?225 °

For each additional acre up to 10,000 acres o 30

Survey fees for 10,000 acres 4425 o

For each additional acre above 10,000 acres o 20

3. Registration of grant i o

4. Certificate of title 2 o

The charges and fees in the Straits Settlements are
practically similar, and need not be repeated, especially
in view of the fact that the remaining area of land
available for rubber plantations in those sections of the

176 THE RUBBER INDUSTRY

Peninsula is extremely limited. In the four Native
States of Johore, Kedah, Kelantan, and Trengganu, the
same scale will be applied as soon as they become
units of the Federation.

In the Straits Settlements the method of taxing
rubber varies. In Malacca there is an assessment tax
on rubber-trees over six years old of 7 cents per tree,
the rate altering from time to time, but fixed at that
amount for 1913. It is not an easy tax to collect,
especially in the case of Chinese and native holdings,
but was imposed in this form in order to avoid any
portion of the revenue becoming liable to contribution
towards national defence, as is the case with all receipts
from Customs duties. In Penang a tax not exceeding
5 per cent, on the profits of an estate is exacted.

In the Federated Malay States an export duty of
2\ per cent, ad valorem is collected on all shipments
of rubber, and the revenue so derived is employed for
the maintenance of roads and other public works.

The general revenue of the Straits Settlements and
the Federated Malay States is derived from export
duties on tin and tin ores, agricultural, miscellaneous
and forest products, licences to sell and manufacture
opium (chandu) and for the sale of alcoholic liquors and
other purposes, premium and rent on lands alienated
for agricultural and mining operations, revenue from
posts and telegraphs, profits from State railways, and
import duties on opium, petroleum, and intoxicating
liquors. With the exception of the latter charges, all
imported merchandise is duty-free.

The elevation above sea-level of the rubber estates
is best classified under four headings : (i) Old sugar

THE MALAY PENINSULA 177

lands near the seaboard situated about 4 feet above
sea-level ; (2) lands formerly cultivated with tapioca
and other products, and having an elevation of from
10 to 50 feet ; (3) old coffee estates lying some 50 to
150 feet above sea-level; and (4) forest lands opened up
during the past seven years, with an elevation of 100 to
300 feet. Above 300 feet practically no rubber culti-
vation has been attempted as yet ; but several experi-
mental stations have been established in the Federated
Malay States, and at these Pard rubber is planted at
varying elevations up to 2,000 feet, in order to ascer-
tain the suitability of the highlands for its culti-
vation.

''The three characteristic varieties of soil in the rubber-
growing districts of Malaya are — (i) A strong, grey
loam in the low lands near the seaboard, where sugar-
cane was formerly cultivated, and where the water-
level is only some 4 to 5 feet from the surface ; (2) a
hard, laterite soil preponderating in Malacca, in some
of the southern sections of Negri Sembilan, and appear-
ing in portions of Selangor and Perak ; (3) a deep, red
loam lying on a laterite subsoil, and found over a great
extent of Negri Sembilan, Selangor, and Perak. The
Para rubber-tree flourishes in all three of these soils^/
In the first the root growth is chiefly lateral, the tap-
root disappearing when the water-level is reached.
Sluice-gates are necessary on these lands to prevent
inundations from high tides. The trees mature early
and yield, well, but are subject to damage from strong
winds, on account of the absence of deep tap-roots. In
the laterite soils the growth is slower, and the yield of
latex is smaller during the first two or three years of

178 THE RUBBER INDUSTRY

tapping ; but trees from ten to twelve years yield more
freely proportionately than at the earlier stages, and
at that stage of development show little difference to
those grown on the grey loam of the low lands near
the seaboard and river estuaries. The third soil, ex-
tending to the foot-hills of the mountain ranges in
Negri Sembilan, Selangor, and Perak, is, in the opinion
of impartial experts, best adapted of all for the culti-
vation of the Para rubber-tree. The growth is rapid
in the earlier stages, and the tree sends down a deep
tap-root which gives a firm hold for resistance to strong
winds. Occasionally these trees are snapped off by a
violent gust, but seldom thrown down. The trees grow
evenly, mature well, and they give a satisfactory return
of latex from four years upwards ; moreover, they show
steadily increasing yield with additional age. There
are large areas of this red loam soil in Johore, Pahang,
Kelantan, and Kedah, and these will undoubtedly be
a great attraction to practical planters in the future
development of rubber estates in the Malay Peninsula.
The objection to it is that on steep hillsides it washes
badly in heavy rains, on account of its friable nature ;
even with a system of drainage scientifically applied
there is great difficulty in saving the topsoil, especially
when an estate is clean-weeded in the earlier stages of
its development.

/throughout the Federated Malay States the rainfall
varies greatly, and is influenced to a marked degree by
the proximity of different localities to the mountain
ranges forming the backbone of the Peninsula. The
following records for seven years ending 1910 show
the average distribution : /

THE MALAY PENINSULA

179

»• 00 to tx IO O to cOO lx ON O> IO tx tx i- io cOfO « txOO ON O
O ON O ^ ON co ONOO •<*• ON »O N ON « vp p oo p »O ON N « ^ .-1"

-oo -i « N ON -i to « > ON oo xoo *x x v tx « o\ « » to

oo Ok ON o

tx co oc 0 tx o\ o\

« oo vp
b oo

00 N O OMO to

txoo o» \ >o v xoo «

<?> * «

coovoix«g> «c\g\-"txio OOCONO « «o-4-
N « oo o\ o\ oo ^ ^ N o n v oo M w tx

«tx tooo vo

M Tf CO O COVO

«> JO - 00 ^ T(-

bsvb 'txiooo io

«otx « ; 10
tx Vo ioVj-'-<t»b

io cO Tj-O N i-iOOO^i-iMi "-"OGsO N Nco ^J-00 tx «
M oc p\ ;t N N N tx p rx p oo rf jo tx tx jooo vp ci io tx^
' '

tx j- -t CO tx

O IOOO O O to O^'O
p JO O p p ON vp p

tx tx tx « f 00 o\ ooo j- txv o Cx

o >O Cx o^ 00

OOtxOOi-iO ONtxlOON'*

o * 0 oo ex oo

OO^lOO\ O O^- OOcOcOii
JO « « p p vp JO « p p JN JX. N ^ p Tf w O>

tx ooo » «-' Vx oivb Vo b> Vt- b\ oo tx iovb to tooo *c Io b "txv

O •-
O vp

VO 00 COVO ONtx txONVONO N-^-Ti-i-i N DON VO-iCOVON
"-•pNjOpp^ CSpKlJONM OOOOJX, ON J^"O OOOtxON
vb iovb bs ON co tx ix, Vf tx iovb Jo co io V to iovb txvb vb io M

cOVO TJ-VO ^00 CO'-ONCNO''!'
ON p p O« p ON p « 00 oq 00 «

vb ON « b Vo io vb txvb vb tx V)

o\ oco VOIN^IO

00 p 1-1 O C tx jo

V Jo co ON o\ b cc i

i8o

THE RUBBER INDUSTRY

January and February, 1912, were exceptionally dry
months, rain falling on very few days during that
period. This drought did not materially affect the
yield of latex as far as can be judged by the output for
that year. In 1913 another dry period occurred in the
middle of the year, and in this case a decided shortage
of latex resulted in several districts.

Throughout the Malay Peninsula a very even tem-
perature prevails in the low lands. The following gives
the average mean maximum and minimum returns for
fifteen years, from 1896 to 1910 :

Maximum.

Minimum.

PERAK.

Taiping

90*52

72"2I

Batu Gajah

90-58

' .,
72-46

72'6^

Telok Anson

89-89

70-88

Tapah ... .

90*22

69-16

Parit Buntar

89-38

72-66

SELANGOR.

Kuala Lumpur

89*90

71-30

Klang

86'8o

71-80

87-00

74-40

Kuala Selangor

86-80

/2 T"

76-00

Kuala Kubu

89-80

72-40

NEGRI SEMBILAN.

Seremban

88-40

69-20

PAHANG (1910 only).

Kuala Lipis

92-80

68-70

Raub

Q2'OO

64-00

80-60

71-00

Q2"OO

66-00

i _^

For the consideration of the capital cost and present

THE MALAY PENINSULA 181

value of rubber plantations in the Malay Peninsula, it
is convenient to separate them into three groups, each
with its distinctive heading. With the present com-
paratively low price for the crude material, an adjust-
ment of the market value of shares in rubber companies
is a natural corollary to the inflation of the quotations
ruling from 1909 to 1912, for the rubber industry has
passed the phase of exaggerated speculation, and has
now entered the stage of providing sound opportunities
for the investment of capital on a solid and dividend-
earning basis. Because profits are reduced, it does not
follow that the industry is any less staple than formerly ;
indeed, quite the reverse is the case, for present de-
velopments are more attractive to the conservative
investor than was the case when market values were
subject to wild fluctuations at the hands of irresponsible
gamblers. Tropical agricultural enterprise should
receive a high rate of profit, on account of the inevitable
risks attending such undertakings, and a fair remunera-
tion on capital so employed may be placed at not less
than 15 per cent, per annum. The majority of Malay
plantations can earn this rate of dividend on a valua-
tion of the actual cost of establishing an estate and
defraying all necessary charges for the first five years,
such expenditure not exceeding a total outlay of £30
per acre. Experience shows this figure to be ample to
cover all expenses when the work is carried out on
practical lines and stripped of all extravagant ideas.
/The following classification gives the characteristic
factors of each of the three groups of plantations:
(i) Estates opened and worked before 1908 by private
enterprise or joint-stock companies, before the situation

i8a THE RUBBER INDUSTRY

was influenced by high prices for rubber and conducted
on strictly economical principles ; (2) estates purchased
at high prices by syndicates and joint-stock companies
in 1909-10 from Group No. i, together with new estates
opened up during the "boom " period; (3) estates estab-
lished during 1911-12 by public companies or private
enterprise.

The first of these groups originally comprised about
250,000 acres, and they consisted principally of coffee,
sugar, and tapioca estates, converted into rubber plan-
tations by interplanting existing crops with Para rubber-
trees; they were owned partly by British capital, and
partly by Chinamen resident in the Malay Peninsula.
The original capitalization was small, and the cost of
interplanting with rubber exceptionally low. When
the rubber boom occurred, some two-thirds of these
properties were purchased at high prices by joint-stock
companies formed in Europe, Shanghai, Hong-Kong,
and Singapore. The remaining area of this group,
containing approximately 80,000 acres, continued work-
ing and producing on^ their original low capital basis,
and they naturally succeeded in paying very high
dividends. Among these were Bukit Rajah, Cicely,
Federated Selangor, Inch Kenneth, Linggi, Pataling,
Selangor, Vallambrosa, and many others.

Group No. 2 comprises some 500,000 acres owned
by joint-stock companies formed chiefly during 1909
and 1910 ; it consists of estates purchased from Group
No. i at boom prices, and of new plantations opened
in 1909, 1910, and 1911. This group must be regarded
as decidedly over-capitalized in relation to the necessary
cost per acre for bringing plantations to the yielding
stage.

THE MALAY PENINSULA 183

The third group consists of companies and indi-
viduals who have established new plantations on a
conservative basis under careful and experienced
management, and limited the total expenditure up to the
time the trees are yielding to a sum of from £25 to £30
per acre. Under these conditions some 70,000 acres
are comprised. In this group are to be found many
practical planters and successful estate managers who
are opening up properties for their own account.

Briefly summed up, the position is this : If £30 per
acre is taken as a fair basis of cost for bringing an
estate to the dividend-paying stage — and it will be
shown presently that this is the case — the groups
may be classified as follows :

1. Old-established estates working on original Acres.

capital 80,000

2. Companies formed during the " boom" ... 500,000

3. New plantations limited to a capital expen-

diture of from £2$ to £30 per acre ... 100,000

680,000

The first noticeable effect of over-capitalization is a
marked inclination on the part of many estates to extend
the area under cultivation on strictly economical prin-
ciples, and so reduce the average capital charge per acre.
With the price of rubber at 53. per pound or thereabouts,
it was easy to find money to effect these extensions,
but with the great fall in the value of the raw material,
the raising of fresh capital has become more and more
difficult. It is only natural to suppose that many of the
rubber companies launched during the " boom " will be
subject to the usual vicissitudes of any great industry,

184 THE RUBBER INDUSTRY

and meet with unforeseen contingencies requiring most
substantial financial assistance. Failing such aid a
deadlock must ensue, and the liquidation of the company
follow. In cases where debentures have been issued,
the assumption is that the holders will foreclose, and
obtain possession of the property on a low capital basis.
Where no fixed charges exist the estates will be absorbed
by more fortunate concerns, or purchased at a compara-
tively low cost by European, Chinese, or local capi-
talists. There does not appear to be any likelihood of
such properties going out of cultivation unless in very
exceptional circumstances. It is safe to assume that
the general effect of over-capitalization will be towards
the extension of the present cultivated area and the
consolidation of properties into larger holdings.

As an indication of the amount of over-capitalization
resulting from the rubber boom of 1909-10, it is neces-
sary to refer to the value of the flotations made in
those years in Europe, Hong-Kong, Shanghai, and
locally. It is not possible to give exact figures, but
the approximate amount, certainly on the cautious
side, may be taken as —

British, subscribed in 1909-1911 ^24,000,000

Local and Chinese, subscribed in 1909- 1911 3,000,000

£27,000,000

This gives an average capitalization of £54 per acre,
distributed over 500,000 acres comprised in Group
No. 2. Groups Nos. i and 3 may be capitalized at
£4,000,000, or an average of £27 per acre.

From 1907 to the end of 1911, the nominal capital
of rubber companies floated in London for all countries

THE MALAY PENINSULA 185

was £74,122,325 ; in 1912 the amount increased to
£76,500,000, and in 1913 to £78,000,000 in round
figures. In the latter year the new capital provided for
rubber enterprises in the Orient was £1,292,250, appor-
tioned as follows :

1. Malay Peninsula £740,000

2. Sumatra 285,000

3. Ceylon 105,250

4. India 60,000

5. British North Borneo 50,000

£1,292,250

In addition to this amount for Eastern undertakings,
a sum of £102,500 was subscribed for concerns in
Africa, bringing the total new issues in London for
1913 to £1,342,750. Money for rubber plantation
purposes was provided also in France, Belgium, and
Holland, although to a lesser extent than in London.
The combined capital invested in European and local
companies in the rubber industry of Malay, Ceylon,
Java, Sumatra, India, Burmah, Borneo, and Saigon, is
certainly not less than £100,000,000; probably it ex-
ceeds that figure by a substantial amount, the greater
part of this enormous sum having been subscribed in
the five years from 1907 to 1912.

CHAPTER XIV
THE MALAY PENINSULA—

Cost of opening and bringing into bearing an estate of 1,000
acres — Cost of maintaining 1,000 acres containing 108 six-year-
old trees to the acre — General conditions concerning mainte-
nance costs-f-Estate management — Equipment of factories and
preparation of rubber — (Numbers and nationality of estate
labourers— Tamil coolies— The Tamil immigration fund— Labour
from Java— Malay labourers— Population of the Malay Penin-
sula— Varying rates of wages — Daily work-hours — Only small
percentage of skilled labour required — Sanitary conditions and
medical regulations.

r I ^HE cost of establishing a rubber plantation and
-A- maintaining it until it reaches the profit-earning
stage has been the subject of much difference of
opinion in the past, due in great measure to the fact
that abnormally high prices for the crude material led
to many extravagant practices in estate management.
With rubber at three times the present value, share-
holders cared little whether the expenditure was £30
per acre or half as much more. To-day matters are on
a different basis, and all expenses must be reduced to
the lowest possible point consistent with thoroughly
efficient results. The figures now given for the average
necessary cost of plantations are the outcome of prac-
tical experience, but they are, of course, subject to
slight variations occasioned by possible exceptional
circumstances. The detailed description of the labour

conditions is for the purpose of permitting a full appre-

186

THE MALAY PENINSULA 187

ciation of this essentially important factor in the situa-
tion. Assertions are made frequently that a shortage
of labour exists for the plantation industry, and that
consequently the output of rubber will be curtailed.
Speaking broadly, there is no foundation for any such
statements ; for with Canton and Shanghai only three
days distant, and the cost of passage 12 dollars per head
from those centres of population, it is absurd to regard
the labour problem as a serious difficulty, or one that
offers a grave menace to the Malay rubber industry.

In opening an estate on forest land not less than
50 feet above sea-level, the estimated cost includes all
necessary charges up to the end of the fourth year, when
the yield should be sufficient to allow the capital account
to be closed. Felling and cleaning up after the burn-
ing of the timber is done by contract. Weeding may
be by contract or day labour, whichever the manager
considers the cheaper method. Prices vary slightly
according to the situation of the estate, and whether it
is close to or distant from the native labour employed
for felling and clearing. No allowance is made for the
removal of the stumps of trees or big logs, as the great
majority of practical planters do not consider the pos-
sible benefit compensates for the expense ; as a rule they
prefer to maintain a vigilant lookout for fomes, white
ants, and other pests, and to treat individual cases as
they occur. The distribution of costs is self-explanatory.

The cost of opening up lalang (grass) land is more
or less the same as forest. There is no premium on
this land, but the expenditure for eradicating the lalang
is very heavy. On forest land the total for felling, clean-
ing, and weeding, for four years amounts to 66J dollars

i88 THE RUBBER INDUSTRY

per acre ; on lalang land the cost is 45 dollars for clean-
ing and 24 dollars per acre for weeding for four years,
or 69 dollars altogether. Some planters are inclined to
prefer lalang land because it is free from stumps and

COST OF OPENING I,OOO ACRES AND FOUR YEARS'

MAINTENANCE

Dollars.

1. Premium on land, i, ooo acres 3,ooo

2. Survey fees, etc 1,000

3. Rent for four years 4,000

4. Felling, clearing, and burning 15,000

5. Cleaning up after burning 7>5oo

6. Weeding: First nine months 18,000

„ Second year 12,000

„ Third year 9,000

„ Fourth year 5,000

7. Draining 5,ooo

8. Roads and bridges 7,500

9. Holing, lining, and filling 4,000

TO. Planting and supplying 2,000

11. 150,000 plants two years old (providing

for supplies) 4,000

12. Manager's bungalow (6,000 dollars), assis-

tants' bungalow (4,000 dollars) ... 10,000

13. Factory and machinery 25,000

14. Lines for coolies 20,000

15. Tools 10,000

16. Management 50,000

17. Hospital, medical attendance, etc. ... 15,000

18. Contingencies 8,000

Total 230,000

This is equal to £26 los. per acre.'

timber ; against this is the fact that it has been already
under cultivation, and has lost a large proportion of its
topsoil.

If the land to be opened up is low-lying and swampy,

THE MALAY PENINSULA 189

the extra cost of draining will be approximately
£3 per acre.

The following estimate has been compiled after most
careful inquiry :

MAINTENANCE OF Six- YEAR-OLD PLANTATION

Dollars.

1. Rent 4,000

2. Collecting 75,000*

3. Curing and preparation 14,000!

4. 2j per cent, duty on 300,000 pounds

rubber 7,500

5. Transport, shipping charges, and com-

mission 6,000

6. Management 17,500+

7. Hospital and medical attendance ... 6,ooo§

8. Weeding 3,500

9. Maintenance of roads and drains ... 3,500

10. Cultivation 6,000

11. Contingencies 7,000

12. Depreciation of buildings other than

factory 5>25°

Total 155,250

With a yield of 300 pounds of rubber to the acre, the
cost would be 51^ cents, or 14 J pence, per pound f.o.b.
at port of shipment. At present the average actual
costs of production are higher than stated ; but in most
cases estates contain trees of various ages, a large pro-
portion of them yielding for the first time, and therefore
more expensive to tap and collect ; or they have been
allowed to become overgrown with lalang and weeds, and
this has entailed a heavy additional expenditure charged

9 Includes depreciation on all tools and materials.

t Allows 20 per cent, depreciation on factory and machinery.

J Allows for manager, two assistants, and two clerks.

§ In conjunction with neighbouring estates.

igo THE RUBBER INDUSTRY

against revenue. Therefore the estimate given is a fair
one for an estate of 1,000 acres planted with 100 trees
to the acre, and properly cared for from the commence-
ment. As the trees grow older and the yield increases,
the costs of tapping and collecting per pound of rubber
should substantially diminish ; this should be the case
also in somewhat lesser proportion with the other items
of expenditure. At the present rate of costs from the
Malay Peninsula to date of sale in London or Liverpool,
a sum of i^d. per pound of rubber must be added to
the aforesaid cost of production, and this will bring
the total costs per pound to is. 4d. If the price of
rubber drops below 2s. per pound, the ad valorem charges
for duty, commissions, and brokerage, will be propor-
tionately reduced, and the total cost up to date of sale
would be approximately is. 2d., still leaving a sub-
stantial net profit to the producer.

The yield of an estate properly cared for is taken at
300 pounds of dry rubber per acre at six years old ; but,
as is shown later on, all the indications are that well-
grown six-year-old trees in Malay frequently give a
greater return than 3 pounds per tree. It is better,
however, to be on the safe side. The quality of the
rubber made in nearly all the factories, whether crepe
or sheet, is distinctly good, although the colour is not
quite so bright as the Ceylon product, probably on
account of the discoloured water common to the Penin-
sula. The percentage of first latex and lump is low ;
on many estates it only averages 70 per cent., and scrap
bark and earth scrap 30 per cent. In a few cases, as at
Kamuning, the return was 82 per cent, first latex and
lump, and 18 per cent, scrap bark and earth scrap.

THE MALAY PENINSULA 191

There is a ready sale in Singapore and Penang for the
produce of the estates, but as a rule a margin is allowed
for commission. In Ceylon the reverse obtains, and the
relative price in Colombo is frequently higher than in
London, and for this reason a certain quantity of
Malay rubber has been shipped to Colombo for sale
during 1912 and 1913.

The managers of the Malay estates are nearly all men
of trained planting experience and good education.
Many of them came to the country twenty years ago,
and learnt their work as planters on the coffee and
sugar plantations, and then helped to convert those
properties into rubber estates. Others have been re-
cruited from Ceylon and Southern India, and several
officials resigned the Government service for planting.
All are required to be efficient in the handling of labour
and the organization of the routine work of estates.
They are responsible in every way for the well-being of
the estates and their personnel, and it is seldom that any
serious fault is found with their administration abilities.
When the rubber boom was at its height, a certain
number of incompetent men obtained employment, but
they are fast being weeded out. Over the managers
are the visiting agents appointed by companies and
private owners to inspect estates from time to time,
and to advise on the general policy to be followed in
connection with the administration.

Until three years ago it was only on a comparatively
small proportion of the rubber estates that factories
specially designed and equipped for the curing and
preparation of rubber existed. In very many cases old
coffee- stores and sugar-houses were utilized, and tem-

192 THE RUBBER INDUSTRY

porary buildings erected for the treatment of the latex,
drying, and smoking. Frequently hand machines were
used for creping and for rolling out sheets. In fact,
most primitive methods were customary on the great
majority of plantations. During the last three years,
however, a complete change has occurred, and modern
machinery driven by Tangye, Diesel, Hornsby, Black-
stone, Crossley, and many other types of engines, has
been installed on all estates of any importance. Hither-
to many estate managers have preferred to send their
latex to a neighbouring factory for treatment ; but, as
greater areas of trees begin to yield, it is found more
economical and satisfactory to undertake the curing and
preparation on the estate than to pay for having the
work done outside. On many large estates where the
fields are far distant coagulating stations are established,
and the latex treated with acid before being sent to the
factory.

The expense of a modern factory is comparatively
light apart from the cost of the building. This, as a
general rule, is steel-framed, with corrugated iron roof
and sides. Concrete floors are laid down, with adequate
guttering to allow free drainage for constant sluicing
and washing, for cleanliness is regarded as a necessity
in the preparation of the latex. On one side of the
factory are installed the machines for washing, creping,
or rolling sheets, and these are driven from overhead or
underneath shafting served by engines of the type
already mentioned. The machines most in use are the
Shaw or the Bridge patent, and these are of three
grades, for the purposes of breaking down the coagu-
lated latex, rolling, and finishing. Opposite the machines

THE MALAY PENINSULA 193

are the coagulating jars or tanks ; if the former they are
made of glazed earthenware, and if the latter they are
lined with glazed tiles and built in oblong* form.
Coagulation is effected by the use of acetic, formic, or
fluoric acid. Down the middle of the building are
tables for handling the coagulated latex before it passes
into the machines, and the crepe or sheet after passing
through them. Where sheet is made, it is coagulated
in flat pans 15 inches long, 10 inches wide, and 2 inches
in depth ; m these the latex is allowed to set for some
hours before machining. The fuel for generating the
necessary engine power varies, liquid fuel, suction gas,
and anthracite, being employed, the latter being most
.commonly used at present. The washing machines for
scrap of the Werner, Pfleiderer and Perkins patent
work smoothly and give excellent results.

From the factory creped rubber is taken to the drying-
sheds, and hung for a period varying from twelve to
twenty days, or sometimes longer, until the moisture
has evaporated, the time required for this operation
being dependent very largely on weather conditions.
Sheet rubber is taken from the factory to the smoking-
house, and remains in smoke produced by burning cocoa-
nut husks or wood for four to five days. It is then
removed to the drying-shed and hung up until fit for
packing. Scrap, bark scrap, and earth scrap, are made
into crepe and dried in the same manner as first latex
and lump. In the Malay Peninsula the practice of
smoking crepe has been abandoned on many estates,
and a light, bright colour is the object desired. In
this connection the bad water-supply occasions many
difficulties, on account of its muddy and discoloured
13

194 THE RUBBER INDUSTRY

character, and it is frequently necessary to filter it
before use in the creping and washing machines.
Another result of this condition of the water-supply
is the heavy wear and tear on the rollers of the machines
on account of grit.

On only very few estates are mechanical dryers in
use. On three plantations — Kent, Wardiebrun, and
Bukit Rajah — vacuum dryers on the Passberg system
were erected, but the managers had received orders
from London not to make use of them. It is difficult
to understand this policy, as the results obtained from
these machines in Ceylon are distinctly satisfactory,
and the saving in labour and economy in time is of
undeniable advantage. With a dryer the latex can be
ready for shipment twenty-four hours after its delivery
at the factory, and, moreover, the expense of drying-
sheds is avoided. Many managers state that artificial
dryers must come widely into use very shortly, in view
of the rapidly increasing output of the factories.

When dry the rubber is packed in wooden boxes and
despatched to the port of shipment. The cases used
are the " Venesta " imported from Russia, the " Momi "
from Japan, and various kinds manufactured from
native woods. The weight of rubber in these boxes
varies on different estates from 112 pounds net to
230 pounds net. The ton weight far exceeds the
50 cubic feet measurement settled by the Shipping
Convention, and for which the charge is 655. from
Singapore, Port Swettenham, or Penang, to London or
Liverpool or the Continent of Europe.

In connection with this high charge for freight, some
experiments are now being made in the direction of

THE MALAY PENINSULA

195

reducing the rubber in presses similar to those used in
Sumatra for tobacco, and then baling with Javanese
mats. By this method something more than a ton
weight of rubber can be shipped in the 50 cubic feet
allowed by the Shipping Convention, and by this means
a considerable saving in the freight charge can be
effected. There is little doubt that, if the trial shipments
in this form are successful, boxes will be discarded for
bales in the near future throughout this country.

Official returns show that the labour force, not in-
cluding contractors to fell and clean up new estates, in
1911 was —

Tamils.

Javanese.

Malays, j Chinese.

Others.

Total.

98,988*

I7,76ot

14,258 45,663

2,361

179,030

In 1912 the Superintendent of Indian Immigration
supplied the following data : The total number of deck
passengers from India during the previous twelve
months was 101,218 adults and 7,253 minors, making
108,471 in all ; of these, 78,376 adults and 6,013 minors
were sent to plantations, and of the remaining 24,082
who had paid their own passages from India no record
was kept, but the majority probably went to different
estates. The number of coolies returning to India
during the same period was 48,103, thus leaving a
balance in favour of Malay of 60,268. From these
figures the Indian coolies working on estates or on

*~Males, 74,966 ; females, 24,022.
t Males, 13,003 ; females, 4,757.

ig6 THE RUBBER INDUSTRY

public works may be placed at not less than 150,000 at
the end of 1912. Recruiting in India is being carried
out actively, and only a few days ago 300 men from
various estates left for India for recruiting purposes.
The Superintendent of Indian Immigration stated that
he fully expected a large increase in the number of
Tamil coolies during 1912-13.

The method of recruiting Indian coolies for work on
the Malay rubber estates is best explained by the fol-
lowing notice, issued by the Superintendent of Indian
Immigration for the Malay Peninsula:

THE TAMIL IMMIGRATION FUND

For years previous to 1907 there had been continual
complaints from employers importing Tamil labour that
coolies imported by them were attracted away to the
service of other employers who paid no portion of the
expense of importation.

The Immigration Committee, appointed by the
Government in that year, recommended that the cost
of the importation of Tamil labourers should be distrib-
uted amongst all those who employed them ; and the
Tamil Immigration Fund Enactment, based on the
recommendations of the Committee, was subsequently
passed.

Under this law an assessment on the amount of
work done by their coolies is levied upon all employers
of Tamil labour, and the proceeds are paid into a fund
styled the Immigration Fund. Employers are required
to send in to the Superintendent of Immigrants,
Penang, on printed forms which may be obtained from

THE MALAY PENINSULA 197

him, certified returns of their Tamil labour for every
quarter ; the returns must be sent during the months
of April, July, October, and January.

The amounts at which they are then assessed must
be forwarded to the Superintendent to be credited to
the Immigration Fund. This Fund is not part of the
general revenue of the Government. It is adminis-
tered by the Superintendent of Immigrants under the
authority of the Immigration Committee solely in the
interests of importers of Tamil labour. The Govern-
ment is, in fact, the largest contributor to the Fund
through the assessments which it pays on all Tamil
coolies employed on the railway and in the Public
Works Department.

The purposes for which the Fund can be used are
expressly laid down in the enactment as follows :

(a) The payment of free passages for Tamil labourers
and their families from the Madras Presidency to this
country.

(b) The general expenses incurred in connection with
the recruiting of labour in the Madras Presidency.

The Government bears all the expenses of adminis-
tering the Fund, paying the salaries of officials and
clerks ; maintains large kangany camps at Madras and
Negapatam, where coolies recruited by kanganies are
housed pending shipment by steamer ; provides officials
in India (the Emigration Agent at Madras and the
Superintendent of Emigration Depot at Negapatam),
who superintend these camps and generally assist in
matters connected with recruiting; provides coolie
depots at Penang and Port Swettenham ; and grants a
large annual subsidy to the steamship company which

ig8 THE RUBBER INDUSTRY

maintains the weekly coolie service from India to the
Straits.

The Immigration Committee pay from the Fund
passage money from India and trainage in India, as
explained below, and also maintain native agents (at pre-
sent eleven in number) in India at various places, whose
duties are to assist kanganies, help in forwarding their
coolies, and arrange the payment of their train fares.

Whenever the balance to the credit of the Fund
after paying the above expenses justifies such a course,
a recruiting allowance is paid to employers in respect
of each coolie imported by them from India under the
Committee's licences. At one time an allowance of
3 dollars per head was paid, and this was subsequently
increased to 4! dollars. The number of coolies imported
in the summer of 1910 was, however, so large, and the
bills for steamer tickets consequently so high, that the
Immigration Fund became temporarily depleted. As
the assessment on the increasing number of Tamils
now in the country is received, the Fund will again
have a balance to dispose of, but at the time of writing
(November, 1910) it has been necessary to suspend for
the present the payment of recruiting allowances.
The allowances will, however, be renewed as soon as
possible.

It will be seen that practically all the money col-
lected from employers in the form of assessment goes
back directly or indirectly to those employers who
import labour, the only portion that does not do so
being the small amount paid in connection with the
native agents appointed at various places in India.

THE MALAY PENINSULA 199

INSTRUCTIONS FOR RECRUITING BY KANGANIES IN

INDIA

Kanganies receive licences to recruit in the Madras
Presidency from the Superintendent of Immigrants,
Penang. The licences are granted free of charge.

Forms, to be rilled in by the employer, will be sent
on application to the Superintendent of Immigrants ;
when the required details have been filled in by the
employer, the licences should be sent to the Superin-
tendent of Immigrants for registration and signature.

The usual procedure is as follows :

The employer sends his kangany over to India, and
generally makes arrangements with either the Madura
Company in Negapatam or Messrs. Binny and Co.
in Madras (these firms are the British India Steamship
Company's agents in each case) to finance him ; the
custom is for the firm to pay the kangany so much per
head for each coolie actually produced by him and
shipped.

By this system the risk is avoided of giving to the
kangany large advances in cash, which he might very
likely squander. These two firms have agents in the
Straits and Federated Malay States to whom they cable
information of the number of coolies shipped for each
estate ; the local agents inform the employers, and it
is thus possible for each estate manager to know before
arrival of the steamer the number of coolies shipped
for him.

There are officers of this department stationed at
Negapatam and Madras; at the former he is styled
Superintendent of the Emigration Depot, and at the

200 THE RUBBER INDUSTRY

latter Emigration Agent. They give assistance and
advice to kanganies, and they superintend the kangany
camps at Negapatam and Madras respectively, where
coolies are accommodated until shipment.

Kanganies holding registered licences will be
granted —

(a) The train fares of coolies from various centres
in the Madras Presidency to Negapatam or Madras.

(6) The steamer fares of coolies from Negapatam or
Madras to Penang or Port Swettenham.

The local train fares are paid to the kanganies them-
selves by the Committee's agents in India. The system
by which they are paid is simple and works easily,
and is explained to every kangany on his arrival in the
recruiting districts.

The steamer fares are paid direct to the steamship
company by the Committee's agents in India, and all
coolies for shipment must be brought to the kangany
camps at Negapatam and Madras, and shipped from
thence by the contract steamers to Penang or Port
Swettenham.

All Tamil coolies are entitled to leave their employer
after a month's notice, whether they are imported from
India or recruited locally, and no deductions may be
made from their wages for any sums advanced them or
expended in their recruitment before their arrival at
their place of employment.

L. H. CLAYTON,

Superintendent of Immigrants,
S.S. and F.M.S.

PENANG,
November 24, 1910.

THE MALAY PENINSULA 201

Employers of Tamils were assessed at the rate of 8 dol-
lars per coolie for 1912. If coolies are engaged locally,
and not through the Immigration Department, an addi-
tional assessment of 4 dollars per head is imposed, the
object being to stop the crimping of coolies from other
estates. Out of the funds so obtained free passages are
provided from the recruiting districts in Southern India
to the estate in the Malay Peninsula. Hitherto a rebate
has been allowed to estates despatching kanganies to
the recruiting districts, but this practice has been
suspended for the present.

Javanese labourers are divided into two classes:
(i) Those imported under indentures to serve on
estates for a period of three years ; and (2) those
recruited locally as day labourers without any time
contracts. The indentured Javanese are obtained
through agents in Java and under conditions imposed
by the Javanese Government. A copy of the approved
contract is reproduced, showing the responsibilities of
both parties to the agreement. The cost of recruiting
and importing these coolies varied from 92 to 100 dollars
per head in 1912, and is a most serious consideration
for many employers. The advantages of possessing a
permanent labour force must be set against this high
initial expenditure. Endeavours have been made to
reduce the cost of importation and arrange for a more
plentiful supply; a Commission with this purpose in
view was despatched to Java in 1912, to approach the
Government on the subject, but met with no practical
success.

The Javanese recruited locally in the Malay Penin-
sula are labourers who have come to the country in

202 THE RUBBER INDUSTRY

past years under indenture, and not cared to return to
their homes. They do not form a large proportion of
the estate labourers.

The following is the form of agreement between
labourers and employers approved by the Javanese
Government :

LABOUR AGREEMENT

As per Government resolution dated 28th of February,
1894, No. 5 (Supplement No. 4,964; Juncto No. 5,826
and 7,073). The recruiting is permitted by Govern-
ment resolution dated

We the undersigned [Register No. ; Running No. ;
Name; Age; Origin; Last Residence ; Remarks], con-
tractors on the one side, and Soesman's Emigratie
Vendu en Commissie Kantoor, acting in this instance
as the attorneys of , situated

, contractors on the other side,
hereby declare to have mutually agreed as follows :

i. The contractors on the one side undertake to
perform the following work on behalf of the estate
of

For Men. — Field and manufactory labour in connec-
tion with the cultivation of rubber, sugar, coffee, and
tobacco, laying out water-courses (gutters) and roads
should they be able to do so, building sheds and houses
(carpentering which requires more skill excepted), felling
forests, performing the duty of a carter and rendering
assistance in case of danger caused by fire or water — in
short, all such labour as generally performed by natives.

For Women. — Cleaning the seedlings beds and gardens,

THE MALAY PENINSULA 203

cleaning buildings and premises, and performing all
such work as can be done by and demanded from
women.

2. The extent of the labour to be performed on
behalf of the estate is at most nine hours
on every working day, provided always that the con-
tractors on the one side shall not work for more than
six hours at a stretch. Only under exceptional circum-
stances the contractors on the one side may be required
to work for more than nine hours. In such cases, and
in case the contractors on the one side out of their own
free will perform labour beyond the working time,
extra wages will be paid to them on the first pay-day,
such wages to be calculated per hour and under the
condition that such extra payment shall be at least
50 per cent, more than the contracted wages per hour.

3. The contractors on the other side shall pay to the
party on the one side daily wages of 25 dollar cents to
a man and 15 dollar cents to a woman, to be settled on
or before the I5th of the month during which the
wages are earned. The wages shall also be paid for
the days during which labour is not performed owing
to inability beyond the labourer's fault. In case of
sickness not caused by misbehaviour, half-wages shall
be granted for only one-tenth of the contracted period.
No wages are due for the rest and holidays mentioned
in this agreement. Deductions from the contracted
wages are only allowed for settling advances or debts
due to the contractors on the other side.

4. The contractors on the one side acknowledge
having received an advance of f. 15 for each unmarried
person and f . 20 for each married couple, which advances

204 THE RUBBER INDUSTRY

shall be paid off in monthly instalments of not exceed-
ing 2 dollars each.

5. The contractors on the one side are free from
labour during one day of every week and during two
days on the occasion of native New Year.

6. The contractors on the other side supply to the
contractors on the one side, as well as to their family,
free lodging, free medical attendance, free board, and
free drink-water.

The free board shall consist of — Raw rice i £ pounds,
spice i ounce, tamarind i ounce, fish (fresh or salted)
6 ounces, salt i ounce, onions I ounce, vegetables
6 ounces, cocoanut-oil J ounce, fresh cocoanut ; blachan
i ounce, green pepper i ounce. Children, whether doing
any work or not, shall receive the following ration :

Children between 12 and 15 years, full ration.

„ „ 10 „ 12 „ three-quarter ration.

„ „ 3 „ 10 „ one-third ration.

The free board is furnished for the days when work
is done, for those days which the labourers may count
as working days, and for the holidays as per agreement.

7. The labourers shall not be separated from their
families against their will.

8. Contractors on the other side shall pay the passage
money for conveying the labourers and their families (if
any) to their destination, and at the termination of the
contracted period, or in the event of the agreement
being dissolved by force majeure, convey them back to
their residences free of charges. In case the contract
is renewed, the labourers and their families shall be
entitled to a free passage to their respective homes, this

THE MALAY PENINSULA 205

right holding good for five years after the lapse of the
last contract. Should a labourer die in the course of
his service-time, the contractors on the other side shall
for their account send back the family to their original
residences within three months after the decease if
desired, and keep them pending a shipping oppor-
tunity.

9. The time lost by the contractors on the one side
on account of the consequences of a misbehaviour or
sickness during more than one-tenth of the contracted
period, leave, desertion, or punishment in gaol, shall not
be counted as a part of the contracted time.

10. At the expiration of any agreement, contractors
on the other side shall at their expense send home the
labourers and their families, and keep them pending
shipping opportunity.

11. Any agreement lapsed and any renewal of con-
tract must be reported to the Dutch Consul at Singa-
pore. The contractors on the other side must also
report to the above Consul whether any of the released
labourers have renewed the agreement or whether they
have been sent home, and, if so, by what opportunity and
whether they have settled down somewhere else.

12. The contractors on the one side shall present
themselves to the manager of the estate on the

day of the month of the year 19 .

13. This agreement has been made to hold good for

from date of presentation to the manager
Thus agreed at Samarang on this date, the
day of the month 19 .

The contractors on the other side.

206 THE RUBBER INDUSTRY

After having explained the above-mentioned to the
contractors on the other side and to the contractors on
the one side in their own language, and after they have
agreed to the above-mentioned, and the contractors on
the one side have declared that the above conditions
are well known to them and that they accept these
conditions, the advance of f. 2.50 for the unmarried
and f. 5 for the married was paid in my presence, while
another f. 2.50 to the unmarried and f. 5 to the married
shall be paid before embarkation, and the remaining
f. 10 per head at Singapore, in presence of the Dutch
Consul, to which they agreed.

The Recruiting Commissioner

SAMARANG, 19 .

Malays do not constitute a large section of the estate
labour. They do excellent work in felling timber and
opening up land on contract, but care little for the
steady drudgery of day-to-day work throughout the
year. They are not very numerous in the planting
districts, except in Kelantan, where the development of
the rubber industry is only beginning, and there they
are employed to a considerable extent.

Next to the Tamils the most important factor in the
labour question is the Chinese element. The class
known as the Singkeh was indentured for one year, and
agreed to perform 300 days' work. The men received
only 8 cents per day as pay, but were provided with rations
and other articles costing 20 cents per day. The cost
of recruiting these men and bringing them to the
estates was approximately 60 dollars per head. Notwith-
standing this high charge, the average cost for the day's

THE MALAY PENINSULA

207

wage was reasonable if it had not been for the heavy
percentage of desertions, frequently amounting to 25
per cent, of the total force. The tin-mining industry
attracted these men so strongly that they were unable
to resist the temptation of breaking their contract for
agricultural labour in order to take their chance in the
mining districts. In this respect conditions have
become so unsatisfactory of late years that this class of
indentured labour was prohibited in 1913.

The Chinese labourers now employed on estates are
free from any form of indenture. They are a most
valuable addition to the labour force ; but they demand
high wages, and in some cases are paid as much as
90 cents a head per day. They do better work on con-
tract than for a daily wage, and in this manner are
employed, with most satisfactory results, on many estates
for tapping, weeding, and all other labour which can be
contracted out on reasonable terms.

According to the last census, taken on March 10,
191 1, the total population of the Malay Peninsula was
2,649,970, divided as follows :

Males.

Females.

Total.

Europeans

7375

3^9°

11,065

Eurasians

5,296

So11

10,807

Malays ...
Chinese ...

720,110
734,384

692,086
181,499

1,412,196
915,883

Indians ...

204,220

62,950

267,170

Others

16,481

16,368

32,849

The indentured Javanese are the only estate labourers
receiving fixed remuneration under contract. The
former are paid at the rate of 25 cents a day for men,

208 THE RUBBER INDUSTRY

and 15 cents for women. With the cost of rations
added, this means the equivalent of 40 cents for men
and 26 cents for women per diem, plus the cost of
importation, amounting to not less than 92 dolars —
distributed over three years — and a sum of 5 dollars
for repatriation. This brings the actual value of a day's
work to 54 cents for men and 40 cents for women.

The Tamil coolie is free to obtain such daily wages
as he can bargain for, but the rate varies in every dis-
trict, and often even on neighbouring estates. On an
old-established and popular estate, such as Linggi, the
average rate for men is 27 cents, and 22 cents for women.
Tappers receive 30 cents and 25 cents. On Devon
Estate, only thirty miles distant, men are paid 45 cents
and women 35 cents, with higher rates for tappers. In
the Klang district the average rate paid is 30 cents for
men and 25 cents for women, with 33 cents and 28 cents
for tappers. In fact, the rate paid depends very largely
on the management of the estate and the reputation it
has in Southern India. Taking an average on a number
of estates employing Tamil labour in the Federated
Malay States and the Straits Settlements, the daily
rate isapproximately 38 to 40 cents for men and 33 to
35 cents for women, including the amount of the
assessment for the Indian Immigration Fund.

Malay labourers receive 45 cents for men and 35 cents
for women as a general rule. Occasionally higher rates
are paid when the demand for labour is urgent.

Chinese labourers ask a higher wage than any
other nationality. It varies from 60 to 90 cents per
day, and in some cases even a dollar is paid. When
calculating contract work, the usual custom is to allow

THE MALAY PENINSULA 209

60 cents per day per man, and at this rate arrangements
can be made for nearly all classes of estate work,
whether tapping, weeding, roading, or draining. Many
managers prefer to work with Chinese contractors
rather than by daily employment of Tamils or Javanese,
and assert that the labour is better and more expedi-
tiously accomplished.

During the last two or three years the demand for
coolies has been very great, on account of the large area
being opened for new plantations, and this has created
a decided tendency towards a rise in the rate of wages.
For the present, however, prices appear to have reached
as high a scale as they are likely to average for some
years to come, unless unexpectedly large additions
should be made to the area under cultivation. The
satisfactory annual increase in the importation of
Tamil labour is an important factor in keeping down
the wage rate, especially in regard to the Chinese. If
for any reason Tamil immigration should decline, and
the estate owners become dependent on Chinamen,
there is small doubt that increased wages would result.

A day's work is nominally nine hours; but the dis-
tribution is by task which coolies can finish by 2 p.m.,
and often at an earlier hour. In the factories, as a rule,
work continues until the day's delivery of latex has
been put through the machines, and special rates are
paid to the men detailed for this purpose.

The only skilled labour required on an estate is for
tapping and factory work. Intelligent coolies learn
both very quickly under competent supervision. On a
plantation where all trees are yielding latex, at least
80 per cent, of the men, women, and children, will be
14

210 THE RUBBER INDUSTRY

employed at tapping and collecting. For factory work
specially intelligent men are selected, but the whole
process of the curing and preparation of rubber is so
simple that there is seldom any difficulty in connection
with the labour employed. Cleanliness is one of the
principal factors, and that depends on supervision.

Health conditions vary very greatly throughout the
Malay Peninsula, but the three principal diseases found
in more or less degree in all districts are malaria,
dysentery, and diarrhoea. The deaths amongst Indian
coolies from the former in 1910 numbered 2,597, and
from dysentery 1,350, while 683 were due to diarrhoea.

Sanitary regulations are now enforced by Government
ordinance on all estates. Adequate hospital accommo-
dation must be provided, with properly qualified medical
attendance and supervision, and these hospitals are
constantly visited by official medical officers. The
cost of the erection and equipment of the estate
hospitals is a serious item of expenditure ; but in the
case of smaller properties it is not uncommon for an
arrangement to be made to contribute to the cost of a
joint hospital situated in a central position, and to pay
pro rata of the coolies employed to defray the expenses
of the resident doctor and the maintenance of the wards.
Naturally, planters grumble a good deal at the strict
medical inspection practised by the authorities ; but it
is obviously necessary to enforce all possible measures
for the health of the labourers, both on account of the
loss of work occasioned by sickness, and also in order
to maintain a good reputation for the Malay planta-
tions in the districts of Southern India where the
coolies are recruited.

CHAPTER XV
THE MALAY PENINSULA— Continued

'Organization of rubber estates — Catch crops — Tapping —
Housing accommodation — Discipline — (• Dietary — Educational
facilities — Yield of trees — Cost of production — Analysis of expen-
diture—Charges after shipment — " All in" costs — Past and future
production-fFuture development.

THE organization of a rubber estate in the Malay
Peninsula offers no very serious difficulties to an
experienced planter. If Government forest land is
required, an application for the area in question is
submitted to the authorities, and this request will be
attended to without undue delay. The land is then
surveyed and the fees charged, according to the scale
set out in the Land Enactment Act. If the area
chosen lies low and near the water-level, under condi-
tions such as exist in sections in Malacca, Klang, Teluk
Anson, Province Wellesley, and other districts, it must
be drained before the timber is felled, otherwise the
debris after felling and lopping will not burn. On the
undulating forest lands away from the seaboard this
preliminary draining work is unnecessary.

Contractors for felling and cleaning the requisite
acreage can be engaged without difficulty, Malay labour
doing this work most effectively at a cost of from
12 to 15 dollars per acre for felling and lopping,
and 7J dollars per acre for the subsequent cleaning
up. After the burn has taken place, the work of lining

211

212 THE RUBBER INDUSTRY

and holing is carried out, the holes being cut 2 feet
in diameter and 2 feet deep. If the estate is to be
clean-weeded, the planter will arrange for weeding by
contract or day labour, to begin shortly after the burn.
He must buy the necessary plants, if he has not made
his own nurseries the previous year. Before the plant-
ing season comes, the holes will have been filled in
ready for planting. This operation takes place in all
months, but October and November are regarded as
most suitable, on account of weather conditions.

The distance apart for planting Para rubber varies
so much that no hard-and-fast rule can be laid down.
Close planting means a greater yield of latex during
the first few years the trees are tapped; but wider
distances apart insure better development after the
first seven or eight years. Gradually the custom is
being established of planting 20 feet by 20 feet (108
trees to the acre), 30 feet by 10 feet, or 36 feet by
12 feet, the two latter systems termed in Malaya
" avenue planting." Considerations of land and general
conditions must influence any decision as to what
distance the trees should be apart.

The planting of catch crops is condemned univer-
sally in Malaya. A few estates still continue the
practice, but the opinion of the great majority of
planters is distinctly adverse to it, on the grounds that
it seriously retards the development of young rubber-
trees. Tapioca has been the principal catch crop
grown by both Europeans and Chinese when rubber
estates are opened in this manner. Robusta coffee is
found in certain districts, and in Province Wellesley
a little sugar-cane is still cultivated. One effect of any

THE MALAY PENINSULA

213

catch crop is to produce an uneven growth in young
plantations, and this adds considerably to the cost of
tapping when the trees begin to mature.

As showing the detrimental effects of sugar-cane as
a catch crop, the following return, furnished by the
Penang Sugar Estates Company, is sufficient proof.
These young trees were grown for two years inter-
planted with sugar-cane, and their yield at seven and
eight years old is far below the average :

Field.

Acres.

Planted.

| Per Tree.

Per Acre.

Lb.

A , 1 1

150
68

1903 and 1904
1904 „ 1905

2-17

2'53

227
265

152

1904 „ 1905

2'2O

239

Chankat Dain

1904 „ 1905

2'55

270

These trees are planted on the average 20 feet by
20 feet, or, say, 108 to the acre.

In the colony of Singapore and in the south of the
State of Johore a considerable area of rubber is inter-
planted with pineapples as a catch crop, the estimated
area being 12,000 acres for Singapore and 10,000
for Johore. The reason is that a pineapple canning
industry has been established in Singapore for some
years past, and has proved to be a profitable enter-
prise. From a rubber planter's point of view nothing
can be said in favour of this product as a catch crop ;
it exhausts the soil of both nitrogen and phosphates,
and the serrated edges of the leaves occasion constant
damage to the bark on the lower portion of the stems
of the rubber-trees. One can well understand, however,
the attractions of this cultivation for the Chinese

214 THE RUBBER INDUSTRY

agriculturists, who possess the principal interest in it.
Within a few months of planting a remunerative crop
is obtained, and this profitable return continues for
some three years, with no other expenses for cultiva-
tion than keeping the ground free from weeds and
picking the fruit when ripe. Moreover, the fruiting
season extends practically over the whole year, and so
causes no inconvenience in regard to any addition or
reduction of the labour force employed.

Tapping begins when the trees have attained a girth
of 1 8 inches at 3 feet from the base, and as a rule in
Malaya this development occurs when they are about
three and a half years of age. In three or four days
after the first tapping of the trees the latex runs freely.
The yield is not great during the first year of tapping,
generally not more than J pound to J pound per tree,
and the cost of collection is high. Provided the
tapping is well done, with a single V at the base, no
apparent damage is occasioned to the trees by begin-
ning at this early age ; in fact, they appear to gain in
girth when compared to trees left untapped. The
latex, however, is undoubtedly inferior to latex from
trees of more mature age. Throughout Malaya the
Jebong or Burgess knife, a replica of the farrier's
knife with very slight modifications, or the bent
gouge, is preferred to any of the more modern im-
plements. After tapping for two years with the
single V on alternate sides, the tree is divided into
quarters above the V tapping, and is then tapped on
the half herring-bone system. This allows four years'
time for the renovation of the bark, and in the opinion
of practical planters this period is sufficient for the

THE MALAY PENINSULA 215

purpose. The cups used are glass, porcelain, aluminium
or other metal, but the two former are preferable.

By the end of the fourth year, when the estate is
yielding evenly throughout, the planter will have
thoroughly established his methods of work, and also
his connections in Southern India for recruiting pur-
poses, if he employs Tamil labour. Similarly, if he
prefers Chinese or Javanese coolies, he will have made
his arrangements in the proper quarters, and should
have no serious difficulty in regard to his annual labour
requirements. During the first four years of an estate,
the bungalows, lines for coolies, factory and other
buildings, should have been erected in accordance with
the scale laid down in the estimate already given for
the cost of opening up a plantation. The method of
the curing and preparation of rubber is given under the
description of factories, and need not be repeated.

On estates averaging six to eight years old, a good
tapper will look after 300 trees, tapping daily with
three cuts to the tree, collecting the scrap, washing the
cups, and delivering the latex and scrap at the factory.
On some estates the average is 400 trees per day with
three cuts. One estate averaged 420 trees with three
cuts per tree. On the majority of estates daily tapping
is the rule, but on quite a large number the trees are
tapped on alternate days only. Many different opinions
are expressed as to the class of labourer most suitable
and efficient for tapping. On the estates equally good
and bad tapping is done by Tamils, Javanese, Chinese,
and Malays. The best work was invariably found where
the most competent supervision existed, and it is safe
to say that the general standard of tapping on an estate

216 THE RUBBER INDUSTRY

depends on the attention and care devoted to the
superintendence of the work by the manager and his
assistants.

The Governments of the Straits Settlements and the
Federated Malay States insist that housing accom-
modation for estate labourers shall be provided in
accordance with certain requirements in regard to space
and elevation of floors above the ground. The usual
type of lines now erected are built on brick pillars, with
an open air space 4 feet high below the flooring. Steel
or hard-wood framing is used, with galvanized iron or
attap (palm leaf) thatch roofing. The sides are of
galvanized iron or hard-wood, and a plank flooring is
provided. As a rule a 6- foot veranda is constructed
on both sides of the building. The rooms are generally
12 feet by 10 feet, to accommodate four coolies, but on
a few estates the size is 10 feet by 8 feet, and in these
two coolies are housed. Proper drainage is necessary
round the lines, and the regulations require that
adequate latrines be erected. The cost of these
barracks varies considerably, in accordance with the
material employed in construction, but the price may
be taken approximately at 100 to 150 dollars per room
of 12 feet by 10 feet.

Ample hospital accommodation is required, with
separate wards for men and women, and equipped with
dispensary, cook-house, and other necessary adjuncts.
The wards are furnished with beds fitted with mosquito-
nets, and supplied with all modern sanitary requirements.

Bungalows on estates may be expensive or econo-
mical, according to the ideas of the planter, but
thoroughly serviceable plantation houses with accom-

THE MALAY PENINSULA 217

modation for two persons can be built at a cost of
from 5,000 to 6,000 dollars, and these fulfil all require-
ments on a young estate.

On estates the standard of discipline depends on
the tact and common-sense of the manager and his
assistants. Tamils are tractable and give little trouble
when justly treated ; Chinese are more difficult, and
are best handled through their own headmen ; the
same remark applies to Javanese. As a general rule
there is very little serious trouble with estate labourers ;
but recently the Chinese have been unsettled by the
events taking place in their own country; they have
shown a turbulent spirit on several estates and in
various towns in the Malay Peninsula, and on several
occasions the assistance of the military and the police
has been necessary to quell disturbances.

Rice forms the principal food of all classes of coolies
working on estates in Malaya. In addition, the diet
comprises dried fish, cocoanut-oil, curry stuffs, fruit,
and vegetables. Meat of any kind is a luxury, and
never an article of everyday use. Rice is supplied at
cost price to all estate coolies, and below cost when
prices are unduly high.

There is no obligation on the part of the planter, and
no efforts are made, to provide any sort of schools for
the children of estate coolies. In the villages public
schools have been established for native children taught
in the vernacular, but none for those of Chinese or
Indian parentage.

It has been no easy task to obtain accurate returns
of the yield per acre of rubber plantations, for the
reason that on every estate the ages of trees vary, and

218

THE RUBBER INDUSTRY

only in comparatively few instances have separate
records been kept for different fields. Reliable data
from twenty estates scattered throughout the Federated
Malay States and the Straits Settlements enable the
approximate yield to be defined. The returns show —

Age of Tree.

No. of Acres.

Yield per Acre.

Years.

Lb.

4 to 5

33i4

188

5 ,, 6

5,266

306

6 „ 7

3.973

349

7 „ 12

7>438

5oi*

The only efficient method of calculating the yield is
by dividing the production at each stage of development
by the number of acres. It would be much more satis-
factory if a larger acreage could be taken, but to secure
this result nothing short of an estate-to-estate visitation
would serve, and in the great majority of cases the
inquiry would be barren of any useful result for lack of
definite records on the different plantations. The cal-
culations of yield now made are based on returns
obtained from the following properties :

Trees

Yield

Estates.

Acres.

Age.

per

Locality.

Acre.

Lb.

400

150

ioO

400

ISO

3l6

i. Wardieburn •

400
400

ISO
150

4i4
460

Kuala Lumpur,
Selangor

1 2O

230

130

!>339;

THE MALAY PENINSULA

219

Estates.

Acres.

Age.

Trees
to

Acre.

Yield
per
Acre.

Locality.

Yrs.

Lb.

1,200

150

IIO^

2. Kumendore -[

I,2OO
I,2OO

150

23ol
320 |

Malacca

I,2OO

I ^O

47O./

3. Bernham, Perak

135

2OO

150

Teluk Anson, Perak

4. Nova Scotia ...

1, 60O

150

273

» »

5. Changkat Salak

300

150

173

Kuala Kangaar,

Perak

6. Kent

150

250

Kuala Lumpur,

Selangor

7. Lauderdale

300
IOO

41 f

160
180

350!
242 /

Taiping, Perak

8. Pegoh

651

150

323

Malacca

9. Kamuning j

600

650!

Sungei Siput, Perak

10. Bukit Rajah ..

I,2OO

150

650

Klang, Selangor

ii. Belmont

700

150

437

Kajang, Selangor

12. Vallambrosa ..

*,517

J5o

391

Klang, Selangor

13. Linggi

600

150

520

Seremban, Negri

Sembilan

14. Rubana

1,100

161

563

Teluk Anson, Perak

15. Labu ...

1,350

150

437

Labu, Negri Sem-

bilan

16. Cicely ... |

139
700

ii
Si

150

°oo\
375J

Teluk Anson, Perak

17. Gedong

2,000

{\So]

18. TaliAyer

I,O23

{161

234

» »

19. Caledonia

240

780

Province Wellesley

20. Caledonia

(Krian)

4OO

130

375

The variation in the cost of production per pound of
rubber has been very great during the past few years,
as will be seen from the following returns :

220

THE RUBBER INDUSTRY

COST OF PRODUCTION ON FORTY ESTATES IN 1909-10

Furnished by Messrs. Kennedy and Co., Agents and Stockbrokers, Penang

Company.

Year.

Crop
Rubber :
Lb. Dry.

Inclusive Cost
per Lb.
(f.o.b.).

s. d.

Anglo-Malay

1909

5J7*55°

o 10-68

Batu Caves ...

45*769

2 4'23

Bukit Rajah

1909-10

314,778

I 4*31

Carey United
Cicely

107,194
85,280

I I'll

Consolidated Malay

1909

215*893

i ii'22

Damansara ...

202,440

i 9'oo

Federated Malay

1909-10

293,066

2 0-68*

Federated (Selangor)

101,444

i 4-41

Golconda

1909

96,260

i 10-54

Golden Hope

51,420

i 4-91

Highlands and Lowlands . . .

346,259

i 1-03

Inch Kenneth

1909-10

127,677

2 2-36

Jugra Estate

60,017

2 438

Kamuning

67,046

I 6-41

Kuala Lumpur

489,807

I 7-40

Labu

1909

86,763

2 072

Lanadron ...

249,247

I 2*94

Ledbury

66,881

2 376

Linggi

C4^ 2IO

I 1-48

London Asiatic

75*427

2 i'68

Mabira Forest

82,424

"3 5'O3

Malacca

236,969

2 O'2I

North Hummock

1909-10

47*994

I 676

P. P. K

1909

45*474

2 4'iS

Pataling

152,000

I 0-62

Perak

1909-10

H5*895

I 2-19

Sagga

Af\ C^/l

^ zL*2 £

Seafield

1909

43*746

2 3'l8

Sekong

1909-10

41,178

3 672

Selangor

1909

326,654

i 1-58

Seremban

124,021

i 9-14

Shelford ...
Singapore Para

1909-10

33*097
60,437

2 7'6o
i 777

Straits (Bertam)
Sumatra Para

,,
,,

99,097
122,248

i 2-64

2 073

Sungei Kapar '

1909

114,970

i 6-16

United Serdang

1909-10

67,828

2 2'24

Vallambrosa

371,316

I 2-83

Yam Seng

4.0,0-27

2 4'O7

T"y*y«? i

" /

* Francs 2.60.

THE MALAY PENINSULA 221

This shows an average cost of 22*17 pence per pound
in 1909-10, as compared to 17*30 pence per pound in
1911.

To ascertain further the cost of production f.o.b.
at Singapore, Penang, or Port Swettenham, the returns
of twenty-two representative estates scattered throughout
the Straits Settlements and the Federated Malay States
are given. Careful investigation in connection with
these estates shows that the proportionate adjustment
of expenses has been made to revenue and capital
accounts, although there is invariably an inclination to
charge more to revenue and less to capital when any
doubt exists on the subject.

The average cost of production on the twenty-two
estates selected was 17*30 pence in 1911-12 f.o.b. The
distribution of these charges was approximately —

Cents.

1. Collection 32*

2. Curing and preparation 5t

3. Weeding 6±

4. Cultivation and roads and drains ... 61

5. Management 7$

6. Hospitals, etc 5J|

7. Transport *5o

8. Commissions '50

9. Shipping charges '50

10. Rent 2'oo

11. Export duty or assessment 2-50

Total 67-00

(67 cents = 17-30 pence per pound of dry rubber.)

* Includes cost of implements, cups, etc., and a proportion of
depreciation on buildings.

t Includes depreciation on machinery and factory.
J Includes a proportion of depreciation on buildings.
§ Includes depreciation on bungalows and all salaries.
|| Includes salary of doctor and all expenses.

222

THE RUBBER INDUSTRY

COSTS F.O.B. PORT SWETTENHAM, PENANG, OR SINGAPORE,
1911-12

Estates.

Pence.

Locality.

I. London Asiatic

Malacca and Selangor

2. Kamuning

Perak

3. Anglo-Malay

Selangor and

Negri

Sembilan

4. Linggi

14!

Negri Sembilan

5. Labu

17^

» 11

6. Kuala Lumpur

Selangor

7. Pegoh

Malacca

8. West Country

Selangor

9. Ayer Panas

Malacca

10. Kumendore

ii. Bukit Rajah

io£

Selangor

12. Vallambrosa

13. Cicely

Perak

14. Changkat Salak

„

15. Nova Scotia

16. Lauderdale

17. Gedong (Straits Rub-

ber Company)

14^

1 8. Caledonia

19. Rubana

21*

20. Tali Ayer

21. Batak Rabit

22. Hai Kee

The average from the foregoing figures is 17*30 pence
per pound of rubber f.o.b. ; but for January and
February, 1912, the costs at Gedong were at the rate
of 38 cents per pound, equal to ii pence sterling, and
several others show substantial decreases in 1913, while
in very few instances are higher costs recorded than in
1911-12.

All practical planters are agreed that there will be a
substantial reduction in costs when a larger acreage
comes into bearing and trees average a greater age.

THE MALAY PENINSULA 223

Indeed, many experienced men are strongly of opinion
that a marked decrease will take place in 1914. The
minimum average cost for the next five years should
not exceed i shilling (424 cents) per pound of rubber
f.o.b., distributed as follows, and with the same con-
ditions regarding depreciation, etc., as in 1911 :

Cents.

1. Collecting and tapping 20

2. Curing and preparation for market 4

3. Weeding 2

4. Cultivation and roads and drains 2

5. Management 5

6. Hospital, etc 2

7. Transport 4

8. Commissions 4

9. Shipping charges 4

10. Rent i

11. Contingencies 24

12. Export duty or assessment 24

Total 424

(Equal to i shilling per pound of dry rubber f.o.b.
Port Swettenham, Penang, or Singapore.)

From the average cost of production and the estimate
of ultimate minimum cost, it will be seen that the
principal expenditure is for the collection of latex,
weeding, and cultivation — all items dependent on the
wage rates. It has been pointed out that the cost of
collection of latex should decrease rapidly as the
trees become older and the yield greater. So, also,
weeding will become cheaper as the trees give more
shade; indeed, when the trees on an estate average
eight years old, the cost of weeding should be reduced
to, practically, a negligible quantity, as the work will

224 THE RUBBER INDUSTRY

consist only of a general cleaning up once or twice
a year. Cultivation will remain to some extent a
permanent charge, as pruning of trees, treatment of
diseases, and manuring, will be necessary for old trees.
The remaining items must be considered as permanent
recurring charges, with the exception of the value of
the export duty, which will vary with the fluctuations
in the price of rubber. Of course, this refers only to
estates worked on the principles in force to-day ; great
amalgamations of plantation interests may be able to
reduce expenditure to a much lower level.

The present scale of charges from the Malay
Peninsula to London or Liverpool, dating from January,
1914, are shown in the following table. The freight
under the last Shipping Convention is fixed at
65 shillings for 50 cubic feet from Singapore, Penang,
Port Swettenham, and all other ports. Commis-
sions are calculated on the basis of an average selling
value of 24 pence per pound, and would, of course, rise
or fall with any fluctuation in prices. Previous to
1914 the allowances for rebates and draft added about
a penny to the present costs :

Pence per Lb.

1. Freight 070

2. Brokerage 0-12

3. Sale charges, insurance, storage, and sun-

dries ... ... ... ... ... ... 0*50

4. Merchants' commission 0*20

Total rja

Shipments to Antwerp work out slightly cheaper, on
account of smaller commissions; similar conditions,
though not quite to the same extent, occur in con-
nection with Hamburg.

THE MALAY PENINSULA 225

The average cost per pound f.o.b. Malay Peninsula in
1911-12 was 17*30 pence. The cost from port of ship-
ment to London or Liverpool was 2*52 pence in 1913,
and allowance must also be made for London and
other headquarter office expenses, directors' fees, per-
centage of preliminary expenses incurred in the forma-
tion of companies, income-tax, and other items. In
the circumstances it is safe to conclude that the total
average cost of every pound of rubber sold in London
during 1913 was not less than 20 pence sterling.

That the cost of production in the immediate future
will be substantially reduced may be regarded as
assured. In the next three or four years the average cost
f.o.b. in Malaya should not exceed i shilling per pound.
A saving of i farthing per pound can be effected by
shipping in Java mat bales in place of boxes, thus
reducing cost of freight and packing. Taking these
facts into consideration, the average cost per pound up
to time of sale should not exceed 13*25 pence plus the
London office charges for directors' fees, etc.

In calculating future production, the most satisfactory
method is to take the area under cultivation in 1912,
650,000 acres, and allow for it a yield based on the
average returns already given. In 1919 the trees com-
prised in this acreage will be of an average age of from
ten to eleven years. The average yield from 7,438 acres
situated in different sections of Malaya, from trees of
seven years upwards, was shown to be 50 1£ pounds of
rubber per acre. Taking the average yield of ten-year-
old trees at 4 hundredweights per acre, the total yield
in 1919 would be 130,000 tons. Young trees planted
after 1912 will add considerably to the output, but it is
15

226

THE RUBBER INDUSTRY

safer to allow this extra yield to compensate for any
shortage of sections that may from unforeseen circum-
stances fall below the estimated ultimate average yield
of 4 hundredweights to an acre.

The following table gives the actual yield from 1906
to 1913, and the estimated output from 1914 to 1919 :

ACTUAL YIELD, 1906 TO 1913

Year.

Acreage under Tapping.

Output in Tons.

1906

9,600

1907
1908

IO,8oo
24,300

5
9

1909

37400

3»34«>

1910

66,2OO

6>5°4

1911

95,800

10,700

1912

l8o,OOO

19,400

1913

241,000

35.750

ESTIMATED OUTPUT, 1914 TO 1919

1914

292,000

43,800

I9r5

362,000

63,300

1916

538,000

80,700

1917

650,000

97.5oo

1918

650,000

H3.750

1919

650,000

130,000

The estimated return is calculated on the ages of
trees in tapping, allowing 260 pounds per acre for trees
averaging six years old, 336 pounds for seven-year-old
trees, and 392 pounds for an average of eight years.
For 1916 and 1917 only 336 pounds per acre is cal-
culated, on account of the large proportion of young
trees yielding for the first time ; in 1918 an average
return of 392 pounds per acre is estimated for nine-year-
old trees ; and in 1919 a yield of 448 pounds per acre is

THE MALAY PENINSULA 227

calculated for 650,000 acres averaging ten years of
age.

In another ten years the rubber estates will form,
practically, a continuous forest from Penang to Singa-
pore, and the natural inference is that this great area of
rubber-trees will be treated as a forest proposition in
place of being exploited in the shape of comparatively
small estates, as is now the case. The principal motives
for this change of system will be greater economy of
administration and the necessity of standardizing
methods of production. It is too soon to lay down the
lines for this probable evolution of the industry, but
there does not appear to be any insuperable difficulty in
the direction of an amalgamation of existing interests
on the basis of acreage or number of trees with a fair
quota of the total output. The future of the industry
would be more secure under the control of a great
central corporation than can be the case if the numerous
properties remain in the hands of individual owners. A
pooling of interests does not mean a tendency towards
depreciation ; indeed, the result of any such action
would be, probably, to enhance values to a substantial
extent.

CHAPTER XVI
THE NETHERLANDS EAST INDIES : SUMATRA

Principal rubber-producing districts — Extension of the rubber
plantations — Available lands for new plantations — Land tenure —
Freedom from taxation — Altitude of rubber estates — Character-
istic features of the soil — Meteorological conditions — How the
rubber industry originated — Custom of planting catch crops —
General health of the rubber-trees — Value of rubber plantations —
Cost of opening, equipping, and maintaining, an estate of 1,000
acres — Maintenance of an estate six years old.

UNTIL 1890 the development of the eastern section
of Sumatra was confined to a comparatively nar-
row strip of land adjoining the seaboard in the provinces
of Deli and Asahan. Previous to that year active
military operations were constantly in progress between
the Dutch troops and the followers of the Sultan of
Acheen, and even the comparatively settled districts
near the sea-coast were not infrequently subjected to
raids made by the hostile tribes of the country in the
interior of the island. Under these circumstances
access to the inland districts was forbidden by the
authorities until 1899, and for some years after that
date permission was only granted with a chary hand.
The first section of the island to enjoy settled conditions
was the province of Deli ; this soon became the centre
of a most profitable tobacco-planting industry, which
has developed to important proportions during the past
twenty years. At a later period Liberian coffee planta-

228

THE NETHERLANDS EAST INDIES 229

tions were established at various points on the east
coast, and extending as far as the valley of the River
Bila. Liberian coffee has now given place to rubber,
cultivated in many cases in conjunction with Robusta
coffee ; but this latter product as a general rule is only
grown as a catch crop, and it will disappear as the
rubber-trees approach maturity. From Belawa, the
port for the city of Medan, to Penang is only a journey
of some eight hours by coasting steamer, and constant
communication is maintained between the two places.
Belawa is connected with Medan by railway, the dis-
tance of twenty miles occupying less than an hour in
transit.

The principal rubber-growing districts of Sumatra
lie on the east coast of the island, and include the dis-
tricts of Lankat, Deli, Serdang, Padang, Batoe-Bahra,
Asahan, and Bila. A few estates have been opened in
other sections of the country, but difficulties of trans-
port have prevented any extensive cultivation outside
the districts mentioned. Roads and railways are in
course of construction, or projected, to link up the
existing planted areas and to give access to forest lands
hitherto lying idle ; but some years must elapse before
these undertakings materialize, for the Dutch Colonial
Government is slow to move in such matters, and re-
quires very substantial proof of the necessity and
financial value of such enterprises before becoming in
any way responsible for them. It is for this reason
that the rubber-planting industry has been practically
confined hitherto within the districts where coffee and
tobacco estates were established many years ago and
transport already existed, or to certain sections along

230 THE RUBBER INDUSTRY

the Bila River where communication by water is avail-
able.

Statistics regarding the extent of cultivated rubber in
Sumatra vary considerably, and no official return is
made of acreage or number of trees. A handbook pub-
lished in Medan estimates the area at 126,000 acres in
1911, but qualifies this by stating that details of many
plantations are omitted. A census furnished by the
Nederlandsche Handel Maatschappij gives the number
of trees in 1911 as 16,733,470, or approximately
167,000 acres.

The Secretary of the Planters' Association of Sumatra
stated that the returns for 1911, on which subscriptions
were based, showed about 145,000 acres under cultiva-
tion, but that these did not include isolated estates on
the west coast or any Chinese or Malayan holdings.
In the circumstances the returns of the Nederlandsche
Handel Maatschappij must be accepted as much the
most reliable, on account of the facilities of that very
important corporation for acquiring accurate infor-
mation ; therefore, the estimate of 167,000 acres may
be taken as a conservative calculation of the area under
cultivation in December, 1911. The area planted
during 1912 was not less than 60,000 acres ; of this
area 55,000 acres lie in the districts on the east coast,
and 5,000 in the south-eastern and western sections of
the island. Many planters insist that this figure of
60,000 acres for 1912 is too low, but confirmation as to
any greater area is not forthcoming. In 1913 an
additional 10,000 acres was placed under cultivation.

The following table shows the expansion of the
rubber-planting industry during the past eight years :

THE NETHERLANDS EAST INDIES 231

Year.

Area under Cultivation.

Increase in Acres.

1906

6,140

—

1907

20,150

14,010

1908

38,800

19,650

1909

67,000

28,200

1910*
1911*

100,000

167,000

33,000
67,000

1912*

227,000

60,000

1913

237,000

10,000

The ficus-trees, of which 351,000 were planted pre-
vious to 1909, are not included in the above figures, as
they are being gradually cut out on the majority of the
estates. The holdings of Malays and Chinese settlers
are numerous, but are of limited extent, and in the
aggregate are only a small proportion of the total
acreage.

During the last five years the tendency has been to
open larger plantations than formerly, a notable case in
point being the Holland-American Company at Asahan,
where 30,000 acres have been planted in the last four
years, and further extensions are contemplated to bring
the total area under cultivation to 50,000 acres.

The amount of land available for the extension of
rubber-planting in Sumatra must be counted by millions
of acres, for two-thirds of the island remain untouched
to-day. Other considerations, however, besides suit-
able land must play a most important part in the
future development of the industry. The question of
the labour-supply enters largely into the problem ;
although at present no complaint is heard of any

* Shows effect of rubber boom of 1910-11.

232 THE RUBBER INDUSTRY

scarcity on the estates, the demand will be increased
substantially as the existing young plantations reach
the tapping stage. Then, again, means of communica-
tion require additions and improvements before the
necessary foreign capital will be attracted for the exten-
sion of the industry to the forest lands of the interior.
It is more probable that expansion in the near future
will take place along the banks of navigable rivers, or
in the localities hitherto reserved for growing tobacco,
and it is in this latter direction that a rapid develop-
ment is possible. For many years Deli has been the
centre of the tobacco industry, and to the east and west
of that district an area of some 400,000 acres has been
devoted to the cultivation of that product. After
one or at most two crops have been gathered, the land
is allowed to lie fallow for seven years before replant-
ing, and therefore 400,000 acres in reality only means
some 60,000 acres of cultivation. It is easy to plant
rubber-trees after the tobacco crop is harvested, and
practically no further expense is involved, beyond keep-
ing the land clean, to allow the trees to come to
maturity. If any substantial drop in the value of
tobacco occurs, there is small doubt that a very con-
siderable portion of these tobacco lands will be con-
verted into rubber estates.

Land is held in Sumatra under long leases from the
native Sultans, these concessions requiring the approval
of the Dutch Colonial Authorities. As a rule the
contracts are for not less than fifty, and not exceeding
one hundred, years. The rental varies, but is generally
at the rate of i guilder (20 pence sterling) for each bouw,
equal to if English acres. These land grants comprised

THE NETHERLANDS EAST INDIES 233

a large acreage when they were obtained for tobacco-
growing, on account of the necessity of fallowing the
land for seven years before replanting ; and this resulted
in the alienation of practically all the territory on the
east coast of Sumatra between the seaboard and the foot-
hills of the mountain ranges in the Lankat districts
on the west to Asahan on the east.

No direct taxation is imposed on the rubber industry,
and to assist the planters the Colonial Government
has promised that no export duty should be levied on
the raw material in the immediate future. It is the
general opinion, however, that this condition will be
revised before many years have elapsed, and that an
export duty will be collected. The general revenue of
the colony is derived from a 12 per cent, duty on all
imported merchandise, a 4 per cent, income-tax, and
from various municipal and local charges.

The rubber estates are situated at elevations of from
3 to 4 feet above sea-level to a height of not more than
1 20 feet at the foot-hills of the mountain ranges. The
former elevation covers the fiat lands near the banks of
navigable rivers, such as the Bila, and certain sections
of the tobacco districts, the latter those of the undu-
lating country stretching up to the mountains.

There are three distinct varieties of soil in the rubber
districts of Sumatra :

(i) A black, friable topsoil mixed with sand over-
lying a strong clay subsoil, forming the low-lying lands
adjoining the larger rivers; (2) a black, friable topsoil
mixed with sand on a subsoil of clay and sand, found
chiefly in the tobacco districts ; (3) a friable, chocolate
topsoil on a hard laterite subsoil, these latter charac-

234

THE RUBBER INDUSTRY

teristic features extending over the undulating lands
reaching to the foot-hills of the mountain ranges. In
Nos. i and 2 the water is near the surface, extensive
drainage is necessary, and the root growth of the trees
is principally lateral, the tap-root not penetrating below
the water-level. On the laterite soils the tap-root
penetrates to great depth, frequently as much below-
ground as the height of the tree is above the surface.
Intelligent appreciation, amongst planters, of this radical
difference of root growth is lacking, and no allowance
or consideration is given to it when laying out estates.
Trees are planted the same distance apart on high
lands, where a deep tap-root develops, as on low lands,
where the tap-root disappears, and its place is taken by
abnormal lateral growth. The trees develop rapidly
on both low or high lands ; but on the former they are
specially liable to serious damage from the severe
storms which constantly occur on the east coast of
Sumatra, and at times reach hurricane force.

The rainfall on the East Coast varies considerably ;
it is controlled to a great extent by the high mountain
ranges intersecting the whole length of the island. The
following records for 19 n give a general idea of the
precipitation of moisture in different districts :

Place.

District.

Rainfall in Inches.

i. Medan ...

Deli

2. Soengei Poetih

Serdang

3. Soengei Roean

Lankat

117

4. Soengei Gerpa
5. Tanah Besih
6. Lima Poeloeh

i Lankat
Padang (Tebing-Tinggi)
Batoe-Bahra

119
109
Q4

7. Telok Dalam

Asahan

108

THE NETHERLANDS EAST INDIES 235

The temperature varies very slightly throughout the
rubber districts, as is shown by the following observa-
tions, taken in March, 1912 :

Degrees Fahrenheit.

Place.

District.

Maximum.

Minimum.

i. Medan

Deli

2. Soengei Poetih ...
3. Soengei Gerpa ...

Serdang
Lankat

92
93

4. Tanah Besih

Padang

5. Telok Dalam

Asahan

6. Tandjong Balei ...
7. Bila

Asahan
Laboean Bilik

95
93

7°
71

The origin of the Sumatra rubber industry was the
severe depression in the price of coffee some twelve
years ago, due to the large increase in the Brazilian
output. A small area of rubber had been planted
previous to that period in the vicinity of the Bila River,
and it was known, therefore, that Hevea Brasiliensis
thrived on the east coast. The planters, looking for a
new product to take the place of coffee, were encouraged
to grow Para rubber by the successful results obtained
in the Malay Peninsula, and gradually the area culti-
vated with coffee was interplanted with trees grown
from seed imported from Vallambrosa and other well-
known estates in Malaya. The cultivation was fostered
by the Colonial Government, and promises were given
of freedom from internal taxation and export duty.
Following the lead of the coffee planters, a certain
number of tobacco growers also turned their attention
to rubber, and gave for that purpose a portion of the

236 THE RUBBER INDUSTRY

lands already under cultivation. In 1909, when abnormal
prices for rubber were realized, large sums were sub-
scribed for opening up estates in Sumatra, and forest
lands, as well as old estates, were cleared and planted,
until from an area of 38,000 acres in 1908 the cultiva-
tion in 1913 has reached 237,000 acres.

On the majority of the older estates in Sumatra the
rubber has been grown amongst other cultivations, and
many of the younger plantations are now planted with
Robusta coffee as a catch crop. There is not the
smallest doubt that the Para trees planted amongst
Liberian coffee have suffered severely in the past as
regards development, and in some cases this damage is
permanent. For the first two years the shade of the
Liberian coffee shuts out light and air from the young
trees, and the detrimental result is everywhere seen in
the uneven growth, plantations of five and six years old
often not tapping more than 50 per cent, of the trees.
Another product ^equally harmful is rice of the dry
land variety, which is frequently grown ; it only stands
to reason that a crop yielding 1,500 pounds of grain
and a large amount of straw to the acre must be harm-
ful to a plantation of young trees. Tobacco also has
been tried as a catch crop, but is universally condemned.
Robusta coffee, apparently, is the only product that can
be grown in conjunction with Para rubber without any
serious prejudicial effect, so far as present experience
goes. It certainly retards the growth to some slight
extent ; but the rubber-trees are not shut out from air and
sun, and amazing returns of 10 and 12, and even 15 hun-
dredweights to the acre are harvested when the bushes
are two and a half to three years of age. At the present

THE NETHERLANDS EAST INDIES 237

time this coffee is selling at 50 shillings per hundred-
weight, and at this price the temptation is certainly
very great to pick two or three crops before cutting it
out from the lines of rubber-trees. This is especially
the case when old coffee machinery exists on an estate,
and can be utilized for preparing the Robusta coffee for
the market.

In spite of the fact that many trees on the older
estates are stunted in development owing to inter-
planting with Liberian coffee and other crops, the
general condition of the plantations is distinctly good.
There is very little fames in evidence, and small damage
has been done by white ants ; this is due, in great
measure, to the fact that the land is exceptionally clear
of decaying timber and roots, on account of its former
cultivation for coffee and tobacco. In new clearings
also, the general rule, however, is an absence of pests.
Many estates show the effect of strong prevailing winds,
and a considerable proportion of trees of two and three
years of age were so bent over at two or three feet from
the ground as to interfere seriously with tapping opera-
tions. Many managers in Sumatra without experience
in planting rubber quite failed to grasp the importance
of straight-stemmed trees on an estate. In spite of
the defects alluded to, the general development on
young plantations is fair, and the growth, especially in
sheltered situations, quite equal to, if not more rapid
than, that of Malaya. The trees suffer from nodules
in the bark in the same manner as in the Malay Penin-
sula and Ceylon.

To calculate the value of rubber plantations in
Sumatra, it is necessary to divide them into five groups :

238 THE RUBBER INDUSTRY

1. Those consisting of the old Liberian coffee
estates interplanted with Para rubber, and from which
the coffee-trees are now rapidly disappearing.

2. The small area planted some twelve years ago
on low-lying forest lands and cultivated without catch
crops.

3. The various tobacco plantations converted into
rubber estates.

4. Plantations opened since 1909 on undulating
forest lands and cultivated without catch crops.

5. Recently-opened estates interplanted with catch
crops of Robusta coffee in order to defray the cost of
bringing the rubber-trees to the tapping stage.

In group No. i there is practically no capital cost,
although it is customary to estimate expenditure at
the rate £25 per acre ; the coffee has paid the expenses
of cultivation until the rubber-trees have become self-
supporting, but the result is an uneven development of
the trees adding greatly to the cost of collecting
the latex. No. 2 has given satisfactory results as
regards growth, but the area is so small that it does
not affect the aggregate production to any appreci-
able extent. No. 3 has proved both successful and
economical to bring into bearing, but these advantages
are counterbalanced by high prices paid for the lands.
No. 4 is only now beginning to give returns, but
promises well as to growth and is remarkably healthy
in appearance. No. 5 is in a satisfactory state so
far, but it is too soon to say what the final result of
interplanting with Robusta coffee will be in regard to
the development of the young trees, and as to whether
the immediate financial gain from two or three heavy

THE NETHERLANDS EAST INDIES 239

coffee crops will compensate for the damage such crop-
ping may do in the direction of exhausting the soil.
Approximately the area of these different groups is —

Acres.
No. i ......... ...... 47,ooo

*• 2 .................. 3,000

„ 3 .................. 100,000

,, 4 .................. 20,000

» 5 ..................

Total ...... 237,000

The immediate effect of the rubber boom of 1909-10
was to increase the area under cultivation by more
than 100 per cent. In 1909 the rubber estates covered
100,000 acres ; in 1912 the area planted was 227,000.
The total capital invested in the enterprise by public
companies and private individuals at the beginning of
1912 was —

1. British 5,068,000

2. Dutch 3,552,000

3. Belgian 35°>ooo

4. United States 800,000

5. German 72,000

6. Hong-Kong 40,000

7. Shanghai 25,000

8. Private enterprise 513,000

Total 10,420,000

This capital value must be divided into the amount
represented by estates established on conservative lines
and those created as the outcome of the boom. In the
former case the cost of bringing a plantation to the
bearing stage may be taken at £25 per acre, as will be
shown in detail later on. Under the latter circum-
stances the capitalization is out of all relation to the

240 THE RUBBER INDUSTRY

actual necessary expense for the establishment of
estates. The area of plantations existing on a conserva-
tive basis is approximately 100,000 acres, and that
affected by the " boom " about 120,000 acres. There-
fore the position may be summed up briefly as —

Area.

Capitalization.

Cost per Acre.

AcreC
IOO,OOO
I2O,OOO

2,500,000
7,920,000

It is evident that the concerns capitalized under the
" boom " conditions at an average cost of £66 per acre
must suffer severely when increased supplies throughout
the world bring the value of rubber down to the actual
cost of production plus a fair profit, say 15 per cent., to
the producer. In any consideration of this subject, the
essential factors to remember always are that the
reserve of land available for rubber cultivation in
Sumatra and elsewhere is practically unlimited; that
new plantations begin to yield in the fourth year ; and
that the present condition of the labour-supply in the
East offers no serious obstacle to the extension of the
industry.

The estimated cost of opening a rubber plantation of
1,000 acres on forest land situated at 50 feet above sea-
level includes all necessary charges up to the end of
the fourth year, when the yield should be sufficient to
allow the capital account to be closed. Allowance is
made for the cost of obtaining a grant of 1,000 bouws
of land (1,750 acres) in order to hold a reserve available
for future extensions. Felling and cleaning up after

THE NETHERLANDS EAST INDIES 241

the timber is burnt can be done by contract ; but con-
stant delays occur in Sumatra owing to the unpunc-
tuality of the native contractors in regard to work, and
it is more satisfactory to employ daily labour for these
preliminary operations, although the expense is slightly
higher. No allowance is made for the removal of the
stumps of big trees or the destruction of the large logs ;
the majority of practical planters do not consider such
expenditure justified by results, and they prefer to keep
a keen watch for any appearance of fomes, white ants,
or other pests, and to deal with each case as it occurs.
The subjoined estimate of the distribution of costs
explains itself; it is slightly lower in sterling value
than similar work in the Malay Peninsula, but this is
due to the lesser value of the Dutch guilder as com-
pared to the Straits dollar :

Guilders.

1. Expenses of land grant of 1,000 bouws,

survey fees, etc 7,000

2. Rent, 1,000 bouws (1,750 acres), i guilder

per bouw per annum for four years ... 4,000

3. Felling, clearing, and burning 1,000 acres 23,000

4. Cleaning up 1,000 acres 7,000

5. Weeding : first nine months, 18,000

guilders ; second year, 12,000 guilders ;
third year, 9,000 guilders ; fourth year,

5,000 guilders 44,000

6. Draining ... ... ... ... ... 4,000

7. Roads and bridges 8,000

8. Lining, holing, and filling 2,000

9. Planting and supplying 2,000

10. Nurseries or plants 2,000

11. Manager's bungalow, 6,500 guilders;

assistant's bungalow, 4,500 guilders ... 11,000

12. Factory and machinery 30,000

13. Lines for coolies : 100 rooms, 10 feet by

12 feet, at 150 guilders per room ... 15,000

Carried forward 159,000

242 THE RUBBER INDUSTRY

Guilders.
Brought forward 159,000

14. Tools, etc 10,000

15. Management 50,000

16. Hospital, medicines, attendance, etc. ... 15,000

17. Cost of importing 300 coolies : first three

years 31,500

Cost of importing 400 coolies : fourth

year 14,000*

1 8. Contingencies 11,500

Total 291,000

This sum of 291,000 guilders is equal to £24,250
sterling, or £24 53. for each acre brought into bearing.
Between the fourth and fifth year the estate should be
self-supporting.

The yearly cost of maintaining in first-class order an
estate of 1,000 acres with a forest reserve of 750 acres
should not exceed the following estimate :

Guilders.

1. Rent 1,000

2. Tapping and collecting (including de-

preciation on cups and implements) ... 65,000

3. Curing and preparation (including 20

per cent, depreciation on factory and
machinery 12,500

4. Transport, shipping charges, and com-

mission 5,ooo

5. Management (allows for manager, two

assistants, and two clerks) 17,500

6. Hospital and medical attendance ... 5,000

7. Weeding 7,5oo

8. Maintenance of roads and drains ... 5,000

9. Cultivation 5,ooo

10. Contingencies 6,500

u. Depreciation of buildings other than

factory 7,500

Total 137,500

* Proportion of cost of three years' contract.

THE NETHERLANDS EAST INDIES 243

This sum of 137,500 guilders is equal to £11,458
sterling. With an average crop of 250 pounds of
rubber to an acre containing 108 trees, the cost per
pound f .o.b. Sumatra works out at n pence sterling. It
is understood that the amount allocated to hospital and
medical attendance is for a share in a central hospital
in combination with two or three other estates. If a
separate hospital is maintained this charge would be
doubled.

The yield per acre should show a steady increase as
the trees grow older, and the cost of collection, curing,
weeding, management, and maintenance of roads and
drains, will be proportionately reduced per pound of
rubber.

In addition to the expenditure already set out, the
charges from Sumatra to date of sale in Europe come to
i '60 pence per pound with rubber selling at 2 shillings per
pound. Therefore the total cost up to date of sale would
be 12*60 pence sterling, leaving a net profit of 11*40
pence per pound of rubber. A well-cared-for plantation
planted with 108 trees to the acre will certainly yield
250 pounds per acre between six and seven years of
age. Under these conditions, a crop of 250,000 pounds
from 1,000 acres will leave a clear profit of £11,875
sterling with the average price of rubber at 24 pence
per pound. A fall in the value would automatically
reduce the European charges for commissions.

This lower cost of production in Sumatra as com-
pared to Malay is accounted for by (i) the smaller
value of the monetary unit, and (2) the absence of any
export duty or direct taxation on the industry.

CHAPTER XVII

THE NETHERLANDS EAST INDIES:

SUMATRA— Continued

Spacing of rubber-trees — Plantation management — Establish-
ment of rubber factories— The labour-supply — Hours of work
and rate of wages — Maintenance of labourers — Chinese coolies —
No necessity for skilled labour — Sanitary conditions and medical
supervision — Organization of plantations — Catch crops — Tapping
— Plantation buildings — Maintenance of discipline — Approximate
yield of trees — Average cost of production — Analysis of costs —
Costs after shipment— Average cost per pound of rubber sold—
Exports of rubber since 1906, and estimate of future production.

THE proximity of Sumatra to the principal centres
of the rubber industry of the Malay Peninsula has
been an important factor in the development of the
plantations of the east coast. The example of the
methods employed in the Federated Malay States has
saved many errors in Sumatra, and would have effected
even greater benefit in this direction if less antipathy
existed on the part of the Dutch planters towards
British nationality ; it is difficult to explain this attitude,
for it is not in evidence on the part of the British
planters, who have shown no hesitation in furnishing
any information requested in connection with general
plantation work. A substantial benefit derived by the
geographical position of Sumatra was the facility for
obtaining rubber seed and plants from the Malay
estates, thus overcoming what would have been a
most serious and costly difficulty at the outset of the

244

THE NETHERLANDS EAST INDIES 245

industry if the need had existed for importation from
Ceylon. The nearness of Penang and Singapore has
also been of great advantage, obviating many of the
difficulties of transport that would otherwise have
handicapped the pioneers of the industry. In the
matter of the construction and equipment of factories
for rubber plantations, the experiences of the Malay
Peninsula have been an invaluable guide for the
Sumatra estates.

The most satisfactory distance apart for planting
rubber-trees in Sumatra is now generally accepted as
20 feet by 20 feet, and the majority of the estates
opened up during the last five years have followed that
rule. In view of the rapid growth of the trees, this
distance is certainly not too great, but still it gives
ample room for expansion during the first ten years'
development. This spacing gives 108 trees to the acre.

The expansion of the rubber industry in Sumatra is
of such recent date that the number of experienced
planters in the country is not large. Naturally, the
ranks have been recruited from the coffee and tobacco
planters, and these men, accustomed to plantation work,
are rapidly acquiring a useful knowledge of rubber
cultivation. The majority of the managers and
assistants are of Dutch or Swiss nationality; a few
Englishmen are scattered through the planting districts,
but the number is extremely limited. The demand for
both managers and assistants in the Malay Peninsula
has been so great of late years that few men from
that community have cared to take up plantation
work in Sumatra under the Dutch flag; and so
it happens that, although many estates in Sumatra

246 THE RUBBER INDUSTRY

are owned by British companies, and more than half
the capital invested is of British origin, the work is
superintended by Dutch or Swiss representatives, with
very few exceptions. Probably the fact that fixed
salaries are 40 per cent, lower in Sumatra accounts
for this to some extent ; on the other hand, a liberal
bonus based on profits is customary. The system of
plantation management and accounts in vogue in
Ceylon and Malaya is gradually being introduced on all
rubber estates, and will become universally established
in the course of the next two or three years.

The erection of factories has been pushed forward
rapidly on the many young estates where tapping has
commenced. They are constructed on the model of
those working in Malay and Ceylon, and therefore no
need exists for a repetition of the description already
given in connection with those two countries. The
same machinery and the same methods are employed
in the curing and preparation of the rubber. One
point, however, merits notice. Attention has been
attracted to a new process for preparing the latex, and,
if successful, it will undoubtedly be adopted extensively.
It is the invention of a Swiss, Mr. Freudweiler, the
manager of the Sennah estates. The principle is to
coagulate and dry the latex by means of hot smoke
charged with carbonic acid gas, and without washing
or creping or using any acids. Briefly described, the
method is to pass the latex from a receiving tank
through fine sieves into a secondary tank, the latter
overflowing into three smaller settling basins. From
the last of these the latex falls gradually on to a wheel
of some 15 feet in diameter, fitted with a 15-inch

248 THE RUBBER INDUSTRY

receiving flange. This wheel revolves at slow speed
inside a casing, into which hot dry smoke is forced from
below and drawn away at the top by an exhaust fan.
The flange of the wheel is fitted with rills at every 3 or
4 feet, and a knife-edged arm works over the surface
to keep the latex spread at uniform thickness. The
invention has been tested in Europe, and declared to be
efficient so far as the working model is concerned, and
a full-sized machine was ordered to be in actual use in
1913. It was to be installed on the Sennah Company's
estates, and a thoroughly practical trial made of its
capabilities, but up to the present nothing definite as
to results has been made public.

The majority of the labourers on the Sumatra rubber
plantations are natives of Java. They are recruited
through agents at a cost, at present, of not less than
1 20 guilders per coolie, 15 guilders only of this sum
being recoverable from the wages paid. Both men and
women are indentured for a term of three years, and
at the end of the contract they are entitled to a free
passage to their homes. Government inspectors visit
the estates from time to time, to see that the regulations
in regard to housing and general treatment are carried
out by the employers.

The hours of work are nine hours per day, beginning
about 6.30 a.m., and with an interval of two hours at
noon. Work is compulsory on six days in the week,
and optional on the seventh. On a large number of the
estates the bulk of the work is by task which can be
finished by an industrious coolie by 2 p.m., and he then
has the remainder of the day to himself. This system
of tasks extends to all branches of ordinary labour on

THE NETHERLANDS EAST INDIES 249

an estate, including tapping and collecting, weeding,
road-making, cutting drains, and hoeing. On the
majority of the plantations the managers express
themselves satisfied with the work done by the
Javanese.

The rate of wages paid to indentured Javanese is
33 cents a day for men and 28 cents for women under
the contract, but on some plantations a higher wage is
given voluntarily to expert tappers.

When the three years' contract expires, a large number
of the coolies prefer to remain on the estates instead of
returning to Java. To such men as elect to follow this
course a wage of 40 cents per diem is given, but the
women continue to receive only 28 cents per day.

Rice is supplied by the employers at cost price, but
no other food. On most estates a store is established
and rented out to Chinamen, subject to certain restric-
tions in regard to prices on goods sold to the coolies.
This is a necessary prevision when the estate is at any
great distance from any village, for the labourers require
dried fish, cocoanut-oil, curry stuffs, fruit, vegetables,
and many other articles. Fresh fish, when obtainable,
forms a part of the regular diet, but meat, except pork,
is rarely eaten.

Chinese coolies are also employed on many estates.
They are recruited in China through agents, and in-
dentured to serve for one year, or, excepting holidays,
for 300 days. The cost of introduction at present is
85 guilders per head, no part of which is recoverable.
The wages rate for these indentured Chinese is 33 cents
per diem. They do fairly satisfactory work, but, owing
to the heavy preliminary cost and the short term of

250 THE RUBBER INDUSTRY

contract service, they prove much more expensive than
the Javanese.

Free Chinese labourers are also employed on the
plantations. For these the usual wage is from 50 to 60
cents per diem, but in some cases as much as a
guilder a day is paid when their services are urgently
needed.

The Malay population in Sumatra rarely work as day
labourers on the estates, although occasionally they take
contracts for felling and clearing forest lands.

At present there is no scarcity of labour on the east
coast of Sumatra so far as the principal rubber and
tobacco districts are concerned, but the demand will
increase greatly as tapping becomes more general.

The only skilled work required from estate coolies is
for tapping and factory work, and any fairly intelligent
labourer becomes proficient at both in a very short time
under careful supervision. On many estates in Sumatra
quite as good tapping is done by Javanese as any ac-
complished in Malaya by Indians or Chinese, and the
same remark applies to the work in the factories.

Throughout the east coast of Sumatra the health
conditions are exceptionally good. There is, compara-
tively speaking, very little malarial fever or dysentery,
and the parade of coolies for the daily muster seldom
shows a greater proportion than 2 to 3 per cent,
on the sick list. Sanitary regulations are enforced
by the Dutch Colonial Government, and properly-
equipped hospitals are maintained for all estates. The
large plantations each have their hospital and resident
doctor ; the smaller estates, when possible, combine to
establish a central hospital for the use of three or four

THE NETHERLANDS EAST INDIES 251

plantations, in order to reduce the cost of accommoda-
tion and medical attendance.

The organization of a rubber estate in Sumatra pre-
sents no exceptional difficulty. A grant of suitable
land must be secured from the Sultan of the district,
and this concession must be ratified by the Dutch
Assistant Resident. Arrangements are then made with
agents to secure the requisite number of Javanese or
Chinese coolies, and lines are erected to house the
labourers on arrival. Felling and clearing are com-
menced immediately and, probably, a portion of this
work is given out to Malay contractors. As soon as
the land is cleaned up after the de"bris of the timber
has been burnt, the work of lining and holing at once
begins. The planter will probably follow the custom of
the last five years, and cut holes 20 feet apart. When
holing is finished the work of filling takes place, and
planting commences as soon as the weather is favourable.

If nurseries have not been formed, plants or stumps
can be purchased at prices of from 15 to 18 guilders
per 1,000. Many planters prefer planting seeds at
stake, and on several estates this method has given
excellent results. Weeding should commence imme-
diately the land is cleaned after the burn ; if this work
is thoroughly carried out, the estate will be free of
weeds at the end of the first year, and monthly weeding
can then be established at a low cost. Roads should be
made at the time the holes are cut, and, if any draining
is necessary, that work should have been taken in hand
simultaneously with the road-making.

During the first year arrangements must be completed
for the construction of bungalows and other necessary

252 THE RUBBER INDUSTRY

buildings. Beyond this work and the weeding there is
little to be done after the estate is planted, until the end
of the third year, except to supply fresh plants where
those originally set out have died or been damaged, and
to keep a vigilant watch for the appearance of disease,
white ants, or other pests. In the third year prepara-
tions should be made for the erection of the factory, and
an appropriate site selected. This work should be
completed in the course of the fourth year, when a
census of the trees must be taken and those of sufficient
girth marked for tapping. The tapping begins when the
trees measure 16 to 18 inches in circumference at 3 feet
from the ground.

If a catch crop of Robusta coffee is grown, more work
is entailed. The bushes give a first crop when two and a
half years old, and the question of setting up the neces-
sary machinery and appliances for curing and prepara-
tion for the market has to be considered. The coffee
buildings are so erected that they can be converted into
a rubber factory at small expense when the shade from
the rubber-trees causes the further cultivation of coffee
to be abandoned.

However tempting a catch crop of coffee may appear
to be, it must not be forgotten that it entails certain
detrimental effects to young rubber. Whenever such a
crop is cultivated, the result under most favourable cir-
cumstances leads to an irregular growth of the rubber-
trees ; this means that, in place of tapping 70 per cent,
of the trees in the fourth year, only some 30 to 40 per
cent, will be available. The outcome is extra expense
in tapping and collecting, and also a reduced yield
during the fourth and fifth years.

THE NETHERLANDS EAST INDIES 253

The system of tapping in Sumatra is copied from
that practised in the Malay Peninsula and Ceylon, and
has been fully described in connection with the industry
of those countries.

The buildings on Sumatra rubber estates are similar
to those in use in Malaya ; but hard-wood frames and
thatched roofing are the general rule, and only in very
few cases does one meet with steel frames and galvanized
iron roofing. The principal difference is in the expense
of construction, those in Sumatra costing the same
number of guilders of 20 pence as the Malayan in
dollars of 28 pence.

The standard of discipline varies on plantations. On
some estates no complaints are made by the managers ;
but on others the reverse is the case, and much bitter
sentiment is expressed in connection with the attitude
of the Colonial Government. The pith of the matter is
that the planters are strictly forbidden to impose punish-
ment by fine or otherwise, and the authorities will take
no effective methods to correct abuses. This condition
is confirmed by quite independent and reliable sources,
such as the managers of the Nederlandsche Handel
Maatschappij and many agents and merchants in
Medan and elsewhere. In the Bila district during
1911, one English and two Swiss managers were mur-
dered by estate labourers, and inquiries failed to show
any reasonable provocation for these acts. Apparently
the managers were dissatisfied with the work of certain
coolies, and insisted that the men should do it in better
fashion ; disputes followed in each case, and the coolies
attacked the managers with hoes and knives and killed
them. One of the murderers is now in the gaol at

254

THE RUBBER INDUSTRY

Tandjong Balei, where he is serving a term of four years'
hard labour for his crime. The other men received
similar sentences. Obviously, such punishment is quite
inadequate to meet the case.

Accurate records of the yield per acre have not been
kept on the Sumatra estates. This is principally due
to the fact that the majority of the tapping hitherto
has been on trees planted amongst Liberian coffee and
other catch crops, and the growth has been so irregular
and uneven that the number of pounds of rubber to
the acre conveys no definite idea of the real condition
of the industry. Some returns of the yield per tree in
1911-12 are available, and they are given for what they
are worth ; but they must be considered as only an
approximate indication for a basis of calculation :

No. of

Name of Estate.

District

Age.

Trees

Yield per

tapped.

Years.

Lb.

i. Soengei Gerpa . .

Langkat

37,000

3 '42

})

35,000*

0-85

3. Blankahan

„

6£

49,000

2 '45

4. Soengei Roean . .

„

30,000

5. Soengei Poetih

Serdang

17,000

1-50

6. „ „

5,000

1-90

7. Telok Dalam

Asahan

18,083

1-92

8. „

800

7*00

9. Sennah Rubber Co.

Bila

30,000

i'33

No useful purpose can be served by quoting further
instances. As conditions in Sumatra are so very
similar to those existing in the Malay Peninsula, it is
safe, and more satisfactory in every way, to apply the
Malay averages to Sumatra.

* From August i, 1911,10 March i, 1912.

THE NETHERLANDS EAST INDIES 255

Owing to the method hitherto in vogue of keeping
estate accounts in Sumatra, it is no easy matter to
arrive at exact figures in regard to the cost of produc-
tion of a pound of rubber f.o.b. at port of shipment.
At present the expenses connected with coffee cultiva-
tion are bulked with rubber where the two products are
interplanted, or, where an estate has young trees and
older trees in bearing, the expense of weeding has not
been allocated in proper proportion to capital and
revenue accounts. This confusion will be eliminated
when the rubber industry has further developed, but
for the moment the only practical course is to pick out
the different items, and not rely implicitly on the general
returns from estates. As a case in point take Telok
Dalam Estate, where the cost of production f.o.b. for 191 1
was placed at 58 cents per pound of rubber. An examina-
tion of the accounts discloses an item of 3,000 guilders for
a supply of cups, sufficient to last for three years, charged
against tapping and collecting for 1911. Similarly, all
the recruiting charges for indentured coolies brought
to the estate in 1911 were charged against the cost of
production in that year, instead of being proportioned
over the contract term of three years. Then, again,
depreciation on buildings had been omitted. Taking
account of these errors, the results worked out at
12 cents per pound less than 58 cents, and the cost
f.o.b. was 48 cents, or 9*20 pence sterling. The ex-
planation afforded by the general manager was that
he only wished to pay 8 per cent dividend for 1911, and
so debited many unusual costs against the revenue for
that year. After very careful consideration of all
details, the average cost of production f.o.b. Sumatra
for 1913 should work out as follows :

256 THE RUBBER INDUSTRY

Cents.

1. Tapping and collecting (includes deprecia-

tion on cups and implements) 29

2. Curing (includes depreciation on factory and

machinery) 5

3. Transport i

4. Commissions and shipping charges i

5. Weeding 3

6. Cultivation 2

7. Management 7

8. Depreciation (on buildings other than factory) 3

9. Hospital (share of central hospital with other

estates) 2

10. Maintenance of roads and drains 2

11. Rent i

12. Contingencies 2

Total 58

This is equal to uj pence sterling. As the trees
become older, and the yield in the former coffee planta-
tions less uneven, the cost should show a substantial
decrease ; the average minimum cost in 1915 should
not exceed 50 cents, or 10 pence, per pound of rubber
f.o.b. at port of shipment.

An analysis of the foregoing cost of production shows
that 70 per cent, is for labour charges. Therefore any
increase or decrease in expenditure principally depends
on the wage rate of coolies and an efficient supervision
to insure economy of labour wherever possible. Man-
agement and labour combined sum up 47 cents out of
a total cost of 58 cents for each pound of rubber pro-
duced. The lower cost in Sumatra as compared to
Malaya is due to the smaller intrinsic value of the
monetary unit.

The charges from port of shipment, Sumatra, to

THE NETHERLANDS EAST INDIES 257

London, Liverpool, Antwerp, or Amsterdam, are the
same as those ruling from the Malay Peninsula.
Freight from Medan and other ports on the east coast
is fixed at 65 shillings per 50 cubic feet. Commissions
for statistical purposes are calculated on a selling value
of 24 pence per pound, and would rise or fall with any
fluctuation in prices. The custom in Sumatra is to
pack the rubber in wooden cases containing 112 pounds
each, and averaging ten boxes to the 50 cubic feet.
The charges are —

Pence per Lb.

1. Freight 0700

2. Brokerage 0-125

3. Sale charges, insurance, storage, and sun-

dries o'375

4. Merchants' commission 0*250

Total 1-450

With the average cost f.o.b. Sumatra of nj pence per
pound of rubber, the total cost up to date of sale in
London or Liverpool will be nj pence plus 1*45 pence,
making 12*95 pence per pound for 1913. As there is
every reason to suppose that the future average cost
of production f.o.b. Sumatra will not exceed 50 cents,
or 10 pence, the total cost with rubber at 24 pence
would be 1 1 '45 pence per pound ; or with the selling
value at i shilling it would be 11*13 pence per pound,
after making due allowance for the decrease in the rate
of ad valorem commissions.

In Sumatra at present it is useless to apply normal
yields to the total acreage under cultivation in order
to ascertain probable immediate production, for until
1909 nearly all the trees were interplanted with Liberian
coffee, their development choked, and their needs
'7

THE RUBBER INDUSTRY

neglected in every way. It is only in the last four
years that proper attention has been given to the
rubber, and the coffee cleared away to allow an oppor-
tunity for recovery from past ill-treatment. Large
numbers of trees that should yield 3 pounds of rubber
each at six and seven years of age are giving little
more than one-half of that amount. That these trees
have survived at all is a matter for surprise, and that
they are regaining normal conditions tends to show
their amazing vitality. After most careful investi-
gation of past details and existing circumstances, the
following results were reached in regard to the future
production over the area planted at the end of 1912 :

ACTUAL PRODUCTION, 1906 TO 1913

Year.

Area under Cultivation.

Rubber exported.

Acres.

Tons.

1906

6,140

1907

20,150

IOO

1908

38,800

150

1909

67,000

214

1910
1911

100,000

167,000

330
678

1912

227,000

1*923

i9J3

237,000

3440

ESTIMATED FUTURE PRODUCTION, 1914 TO 1919

1914

237,000

8,000

1915

240,000

12,000

1916

245,000

16,000

1917

250,000

22,OOO

1918

250,000

33,000

1919

250,000

44,000

THE NETHERLANDS EAST INDIES 259

No allowance has been made for yield from trees
planted after 1912 ; there will, however, be a substan-
tial increase from this source from 1916 onwards. This
additional production will offset any shortage that may
occur from unforeseen circumstances in connection
with the acreage in cultivation at the beginning of

CHAPTER XVIII
THE NETHERLANDS EAST INDIES : JAVA

Locality of rubber estates — Altitude of plantations above sea-
level— Meteorological conditions— Characteristic features of soil
— Extension of the rubber plantations — Origin of the Java rubber
industry— Trees of the black variety of Hevea Brasiliensis—Land
tenure — Revenue and taxation — Capitalization of rubber planta-
tions— Cost of establishing a plantation, including four years'
maintenance — Annual expenditure on a rubber plantation —
Revenue from young plantations — Superintendence of estates —
Spacing of trees on plantations— Construction of factories and
preparation of latex.

IN many respects the characteristic features of Java
and Ceylon are not unlike; similar vegetation is
common to both, agricultural industry is the source of
wealth in the two islands, and the same products are
cultivated under almost identical conditions of climate
and soil. Java has the advantages of a very much larger
population and a greater area of land suitable for all
descriptions of tropical agriculture ; Ceylon, on the other
hand, is better situated for the sale of produce in the
European markets. The two islands have been in
friendly competition for nearly a century past in con-
nection with various enterprises, amongst these being
the production of coffee, tea, cinchona bark, and, latterly,
rubber. So far as coffee was concerned Java showed a
greater power of resistance to the ravages of leaf disease
than did Ceylon, and the cultivation has survived ; in
regard to tea plantations Ceylon has more than held

260

THE NETHERLANDS EAST INDIES 261

her own, but in the matter of cinchona bark Java was
able to reduce the cost of production to a figure so low
that the Ceylon plantations were abandoned as unprofit-
able. In the direction of the rubber industry the pride
of place rests easily with Ceylon, but the estates in
Java are developing rapidly, and in a very few years
the rivalry between the two countries will be accen-
tuated to a marked degree.

The rubber estates of Java are scattered over the
island from east to west; but they are much more
numerous in the southern section, for the reason that
the rainfall is greater and more regular in the south.
The principal districts where plantations have been
opened are near Buitenzorg and Krawang, in the
province of Batavia; Rangkas-Bitoeng and Menes, in
Bantam; Tjandjoer, Bandoeng, and Banjar, in Preanger;
Langen, Tjipari, and Kiliminger, in Banjoemas; Malang
and Limburg, in Pasoerean ; Dj ember, Kalisat, and
Banjoewani, in Besoeki ; and at various points in the
provinces of Kediri and Soerabaja. In nearly all dis-
tricts where coffee plantations previously existed, rubber
has been planted whenever conditions of climate and
soil permitted. Experiments tried with Para rubber in
the northern sections of the island, between Batavia
and Soerabaja, have not proved successful, owing to
climatic reasons.

Java differs from the other rubber-producing coun-
tries of the Orient in that Para rubber flourishes at
elevations varying from sea-level to 2,000 feet. At the
latter height the growth may be somewhat slower,
although it is difficult to express a definite opinion on
this point, as all the rubber at high elevations has been

262

THE RUBBER INDUSTRY

interplanted with other cultivations, and little attention
given to it in the earlier stages. As regards yield of
latex, there is very small difference from trees of equal
ages at high and low elevations ; this is in marked con-
trast to the general characteristic features prevalent in
this respect in Ceylon, the only country where the
physical conditions in any way resemble those existing
in Java. The only plausible explanation is that south
of the Equator different climatic influences come into
action, and rainfall and temperature are not affected by
variations to the same extent as happens in countries
lying to the north of the equatorial line.

The following statistics, collected from various rubber
estates, afford a general idea of the climatic conditions :

Estate.

District.

Elevation
(Feet).

Max. and Min.
Temp. (Fahr.).

Rainfall
(Inches).

I. Kiara Pagoeng

Tjandjoer

1, 800

84°; 67°

164

2. Tjirandi

95°

86° ; 69°

I25

3. Baud (tea)
4. Pasir Oetjing -

Bandoeng

2,400
900

83° ; 64°
86° ; 69°

141

136

5. Batoe Lawan -

Ban jar

200

91° ; 72°

6. Banjasari

„

5°

92°; 71°

121

7. Tjipari -

Banjoemas

500

87° ; 70°

131

8. Kiliminger

2OO

85°; 71°

r35

9. Limburg-

Malang

1,050

84° ; 68°

10. Kalidjeroek

Dj ember

800

83° ; 69°

137

ii. Mamboel

300

84° ; 69°

12. Glen More

Bangoewani

2OO

85°; 70°

9<5

13. Buitenzorg

Batavia

7OO

87° ; 70°

124

14. Rangkas - Bito-

eng (Tjikadoa)

Bantam

2OO

87°; 71°

117

15. Menes (Pasir-

Wringin)

260

87°; 71°

198*

* Exceptional rainfall caused by proximity to mountain ranges.

THE NETHERLANDS EAST INDIES 263

The foregoing observations show a very even tem-
perature and a good average rainfall on the east,
west, and south sections of the island, and doubtless
explain to some extent the large average yields of latex
at comparatively high elevations. The heavy rainfall
at Menes is due to its close proximity to a high moun-
tain.

Throughout the highlands of the greater part of Java

the soil is red laterite, overlaid with a considerable

depth of humus and topsoil on all virgin forest-lands.

On low-lying flat country the general characteristics are

a dark brown greasy topsoil on stiff blue or yellow clay,

these lands requiring extensive draining previous to

cultivation to free them from accumulations of excessive

moisture. In the eastern provinces of Pasoerean and

Besoeki, the soil in the highlands is a rich chocolate,

friable loam, not infrequently mixed with black scauria

from the great volcanoes in those districts ; the soil of

the low-lying flat lands in these provinces is a rich

brown clayey loam, mixed with sand, alternating at

times with a black, sandy soil of volcanic origin. On

the laterite soil the growth of the rubber-trees is more

satisfactory, and they are less subject to disease than on

the low-lying clays ; but the latter could be very much

improved by adequate draining and occasional forking

over, with an application of lime as a top-dressing.

Near Rangkas-Bitoeng a curious white soil, very loose

on the surface and quite hard a foot or two down, is not

uncommon. The rubber planted in this vicinity is

healthy in appearance, and yields freely ; this class of

soil, however, will need heavy manuring in the near

future to insure satisfactory returns.

264

THE RUBBER INDUSTRY

Official returns for 1910 gave the area planted with
Para rubber as 158,000 acres on 215 estates ; in addition,
there were under cultivation 1,086,126 Ficus, 687,748
Castilloa, and 356,253 Ceara trees. In 1911 some
50,000 acres were planted with Para rubber, and in
1912 the area was increased by 25,000 acres. This
aggregate for 1911 and 1912 is compiled from informa-
tion supplied by estate agents and planters ; it is prob-
ably less than the actual amount, and in any case must
be considered a very conservative figure. Summed up,
the approximate extent now cultivated with Hevea
Brasiliensis is —

Year.

Acres.

Increase.

1910

158,003

1911

208,000

50,000

1912

233,000

25,000

IQIS

240,000

7,000

The extensions in 1911 and 1912 are directly due to
the rubber boom of 1909-10 ; they took place principally
in the eastern districts of the island in the provinces
of Besoeki, Pasoerean, and Kediri.

In 1898, when the price of coffee dropped so low that
no profit remained to planters, efforts were made to find
some product as a substitute. The question of con-
verting the coffee estates into rubber plantations was
considered in many districts, and application was made
to the Government Agricultural Department for advice
as to cultivation and the species of rubber-bearing tree
most suitable for the conditions prevalent in Java. The

THE NETHERLANDS EAST INDIES 265

authorities at Buitenzorg recommended the planting of
Ficus, Castilloa, and Ceara and emitted an opinion that
Pard rubber (Hevea Brasiliensis) was ill-adapted to the
soil and climate of the island. The cultivation of Ficus
elastica was strongly advocated on the grounds that it
was a natural product of the Java forests. It is due to
this advice from the experts of the Agricultural Depart-
ment that so large an area of Ficus, Castilloa and Ceard
trees are found in Java to-day. The cultivation of
Pard rubber was only begun seriously about 1905, when
the experiences of Ceylon and the Malay Peninsula
showed clearly its great superiority over all other species.
In a few districts a limited number of Hevea trees had
been planted before 1905, and the satisfactory develop-
ment of these proved that they could be successfully
cultivated, and that the opinion expressed by the
authorities at Buitenzorg in 1898 was entirely erro-
neous. In 1906-1908 arrangements were made to
obtain seed from the Klang district of Selangor, and
in those years a considerable number of coffee estates
were interplanted with Para trees. In 1909-1911 the
cultivated area was greatly extended in conjunction
with the planting of Robusta coffee as a catch crop.

On an estate named Pasir Oetjing, near Bandoeng,
there are growing 120 trees planted from seeds collected
in the Amazon Valley in 1899, and sent to Paris to the
care of Mr. Godefroy-Lebeuf. After germination the
plants were shipped to Java to Mr. A. Bovis, who
planted them at the Pasir Oetjing estate. An account
of these trees was published in the Journal d? Agriculture
Tropicale of May 31, 1904, and it is claimed that they
belong to the black variety of the Hevea Brasiliensis,

266 THE RUBBER INDUSTRY

considered in Brazil to be distinctly superior to any
other species of the Hevecz.

Land is held under long leases, seldom less than
seventy-five years, issued by the Dutch Colonial
authorities ; or in the case of semi-independent
Sultanates they are nominally conceded by the
Sultans, but must be approved by the resident Com-
missioner. The annual rental varies from is. 8d.
to 5s. lod. per bouw of if acres. A large proportion
of the public waste-lands is now reserved for
native plantations of rice and other foodstuffs, and
grants for establishing new estates for rubber or other
cultivations are difficult to obtain. It is, however, easy
to buy from the owners of existing leases, the price
varying from a few shillings to several pounds sterling
per acre, according to the conditions and situation of
the property.

In addition to the annual rental paid for leasehold
a land-tax of f per cent, is levied on a valuation
made once in every five years. While this cannot be
considered a very heavy contribution, it must be taken
into account in all propositions for opening up rubber
estates. No export duty is exacted on rubber shipments.
The general revenue of the colony is derived from
duties of 12 per cent, levied on all important merchan-
dise, a personal income tax of 6 per cent., and various
municipal rates charged on house property and other
real estate in cities and towns.

At the beginning of 1911 — that is to say, three years
ago, at the end of the boom period — the amount
invested in joint-stock rubber-producing companies in
Java was —

THE NETHERLANDS EAST INDIES 267

Nationality.

Authorized
Capital.

Shares
issued.

i. Dutch
2. Belgian and French
3. German
4. British

Total

Guilders.
i7>753>coo
2O,7CO,OOO
1,300,000
89,000,000

Guilders.
11,240,200
18,042,000
1,150,000
74,500,000

128,757,000 100,932,700

( = £10,729,750)! ( = £8,411,058)

Since those statistics were compiled several additional
companies have been formed and the greater part of the
unissued shares have been sold, so that to-day the total
issued capital of the rubber joint-stock undertakings in
Java is not far short of £12,250,000. The value of any
debenture issues or other fixed interest charges in con-
nection with these companies is so small that it need
not be taken into consideration. Under the head-
ing of " British Companies " is included the value of
various undertakings originating in Hong-Kong and
Shanghai.

For general financial purposes the rubber estates in
Java must be classified under three headings : (i) Plan-
tations opened on economical lines before the rubber
boom of 1909-10, and not sold during that period of
inflated prices; (-2) old estates purchased during the
boom or new plantations opened at that time ; (3) estates
established between 1912 and 1913, on a scale of expen-
diture restricted to conservative limits. Under the three
categories the approximate extent and values in 1912
were —

268

THE RUBBER INDUSTRY

Acres.

Value.

Average per
Acre.

i. Old estates with original
capital
2. Estates recapitalized in
1909-1911
3. Young estates now in
course of development

8o,OOO
128,000
32,000

1,600,000

9,750,000
800,000

20
76
25

With regard to the estates under the first heading, the
actual expenditure on rubber has been very small, as it
was interplanted with coffee still under cultivation. In
any considerations of the plantations capitalized during
the boom period, allowance must be made for the large
area of waste-land acquired by the companies in addi-
tion, and out of all proportion to the extent planted with
rubber. A nominal sum of £5 per acre for this may be
taken as a fair deduction, thus reducing the cost under
the second class to £ji per acre. Under the third
heading, the price given is the average cost per acre of
opening an estate and bringing it into bearing, but does
not include any premium paid for the acquisition of the
leasehold of the necessary land. It is difficult to esti-
mate the value of this premium, for if a Government
grant is obtained, the only payments are the survey fees ;
on the other hand, if the transfer of a lease from a
private individual is arranged, the value of the premium
may be anything from ios., or even less, to £5 sterling,
but as a general rule for rubber lands the average price
should seldom exceed £ i per acre.

The cost of opening and maintaining 1,000 acres
under rubber in Java until the estate becomes self-
supporting should be about 288,000 guilders, equal to

THE NETHERLANDS EAST INDIES 269

£24 per acre, exclusive of any premium paid for the
acquisition of the land. This cost is distributed as
follows :

Guilders.

1. Clearing, felling, and burning 15,000

2. Cleaning up after burning 20,000

3. Lining, holing, and filling 2,000

4. Roads and drains 12,000

5. Weeding : first nine months, 27,000

guilders ; second twelve months, 24,000
guilders; third twelve months, 18,000
guilders ; fourth twelve months, 12,000
guilders 81,000

6. Management : manager, 600 guilders per

month ; two assistants, 200 guilders each
per month ; two clerks, 100 guilders
each per month; contingencies, 2,000
guilders per annum (office expenses) ... 56,000

7. Planting and supplying 2,000

8. Nurseries or purchase of plants 4,000

9. Bungalows : one at 3,000 guilders ; one

at 2,500 guilders ; one at 500 guilders

(clerks) 6,000

10. Factory and machinery 30,000

11. Lines for coolies (125 rooms) 20,000

12. Hospital and maintenance (four years) ... 10,000

13. Rent 4,000

14. Contingencies (general account) 26,000

Total 288,000

This expenditure is calculated on the actual cost of
labour on rubber estates, whether the work is done by
contract or by daily payment of wages on the check-
roll. In some respects work in Java is cheaper than in
Malay or Sumatra. Serviceable bungalows, constructed
with wooden frames and interlaced bamboo walls, can
be built for 2,500 guilders, equal to similar buildings in

270 THE RUBBER INDUSTRY

the Malay Peninsula costing not less than 4,500 dollars,
and often exceeding that sum. Then, again, Government
regulations are not enforced concerning lines for coolies
or for hospitals, although, for the most part, both these
important essentials are well looked after by the estate
managers. As a rule the Javanese coolies prefer to live
in small huts, divided into two or three rooms, and this
type of building is found generally on the plantations,
in contrast to the barrack-like accommodation provided
in Malay, Sumatra, and Ceylon.

As in all rubber-growing countries, the larger pro-
portion of the outgoings is for the payment of labour
and cost of management. The rate of wages varies
so greatly even in the same district, as explained
elsewhere that no hard and fast rule can be laid
down for estate expenditure, but an average costjover
a number of plantations in various localities gives
an approximate estimate of the necessary expenses.
Another factor to be taken into account is that man-
agers and assistants are paid small salaries, with a
bonus on profits. The custom in Java is to allow
the manager 10 per cent, and the assistants %\ per
cent, on the net profits, in addition to a fixed salary
of about £500 per annum for the former and £250
for the latter. This rate is paid on important pro-
perties, with extensive interests at stake; on small
plantations a lower remuneration is given. When an
estate has reached the producing stage, this bonus
system appeals strongly to the individual manager, but
many complaints are heard in connection with newly
opened rubber plantations, where four or five years must
elapse before the concern becomes dividend-paying ;

THE NETHERLANDS EAST INDIES 271

certainly much of the enthusiasm in Java for inter-
planting rubber with coffee and other products arises
from the desire to earn profits at an early date. The
following is an approximate cost of the annual main-
tenance of an estate of 1,000 acres of six to seven-year-
old trees, planted 20 feet by 15 feet (149 trees to i acre),
or 20 feet by 20 feet (108 trees to i acre), and yielding
a crop of 280,000 pounds of dry rubber :

Guilders.

1. Rent, 1,000 acres at i guilder per acre 1,000

2. Tapping and collecting (including

50 per cent, depreciation on cups,
buckets, implements, etc.) 117,600

3. Curing and preparation (including

20 per cent, depreciation on factory

and machinery) 11,250

4. Transport, shipping-charges, and com-

mission 5,6oo

5. Management — manager, two assistants,

two clerks 11,250

6. Weeding (60 cents per acre) 6,000

7. Maintenance of roads and drains ... 6,000

8. Cultivation 8,500

9. Manuring 8,500

10. Depreciation of buildings other than

factory 6,000

11. Hospital and medical attendance

(optional, but necessary) 5,000

12. Contingencies (taxes, etc.) 5,ooo

Total 191,700

( = £15,975)

An allowance of 8^ guilders per acre has been made
for manuring, as with the prevailing system of catch
crops of coffee or other products some return to the
soil is necessary.

272 THE RUBBER INDUSTRY

The cost of tapping and collecting is very much
higher in Java than elsewhere in the Orient for reasons
explained elsewhere.

The yield of dry rubber from an estate planted
15 feet by 20 feet with 149 trees to the acre, or 20 feet
by 20 feet, with 108 trees to the acre, should not be less
than 280,000 pounds under normal conditions, basing
such figures on the actual returns obtained per tree, and
after making due allowance for local conditions. The
account at the close of the sixth year should be —

Lb.
Dry rubber 280,000

Value at 2S. per Ib 28,000

The annual expenditure is £15,975. Freight and
charges from port of shipment to date of sale are
ij pence per pound, or a sum of £1,750. The bonus to
manager and assistants would be £1,200. Directors'
fees and secretarial expenses in London or elsewhere,
about £1,500. Therefore the final return should be —

Gross return , 28,000

Less freight and charges, £1,750 ; com-
missions, ;£i,2oo ; cost production f.o.b.,
£I5>975 > European directors and office,
£i.5oo 20,425

Net profit 7,575

On a capital expenditure of £25,000 this would enable
a dividend of 30 per cent, to be paid. If the price of
rubber should drop to 18 pence per pound, the estate
would still be in a prosperous condition. Allowing that

THE NETHERLANDS EAST INDIES 273

no reduction be made in the annual estate expenditure,
other items would automatically decrease; various
charges would fall to £1,250 or less, manager's com-
missions would be reduced to £200. If the European
directors' fees and office charges are unaltered, the total
expenditure for the year would be £18,925, leaving a
net profit of £2,225, equivalent to a dividend of 9 per
cent, on a capitalization of £25,000.

The planting industry of Java has been established
for so many years that experienced estate managers for
tea, coffee, tobacco, sugar, cacao, cocoanuts, coca, and
almost all branches of tropical agriculture are found in
large numbers in the island. For rubber plantations,
however, there is a great scarcity of experienced
managers and superintendents. In knowledge of tapping
and general conditions in connection with Para rubber
there has been until very recently a marked lack of
competent men ; even now thoroughly capable men
; are not easy to find. Of course this is only a passing
phase, for with the expansion of the rubber area and the
beginning of the production stage of development,
i serious attention is being paid to the matter, and
managers and assistants are sent to the Malay Peninsula
in considerable numbers, to learn the methods em-
ployed and the general conduct of the business. In Java a
Pew Englishmen and some Frenchmen and Belgians are
employed, but the majority of managers and assistants
are Dutchmen. The question of language is not an
easy one for the newcomer, for to be thoroughly effi-
cient he should understand and talk fluently Dutch,
Malay, Sundanese, Javanese, and in some districts
Madoerese. In several districts Sundanese and Javanese

274 THE RUBBER INDUSTRY

only are spoken by the labouring classes, and Malay
is practically unknown. In the planting districts of the
extreme East, such as Bangoewani and other parts of
Besoeki, the majority of the plantation hands are re-
cruited from the island of Madoera, and only understand
their own dialect.

The spacing of trees on estates in Java varies in every
district. On some of the older plantations the trees are
only 7 feet by 7 feet, 8 feet by 8 feet, and 12 feet by
10 feet. In most cases these are being thinned out,
but the process leaves an uneven growth and is unsatis-
factory. Other estates have gone to extremes in the
opposite direction and planted 24 feet by 24 feet, and
24 feet by 30 feet. Again, instances occur of 12 feet
by 36 feet over a considerable area. Probably as an
average 15 feet by 20 feet, giving 149 trees to the acre,
or 20 feet by 20 feet, with 108 trees to the acre, may be
taken as average distances for purposes of calculation.

Many estates have recently erected factories devoted
solely to the preparation of rubber, but until a year ago
the area in bearing was so limited that makeshifts were
employed by adapting a portion of the existing coffee
stores for preparing the latex.

The system followed in the Malay Peninsula has
been adopted generally as the basis for the Java factories;
but in many cases water-power, already applied for pur-
poses of coffee machinery, can also be utilized, and this
will prove a saving in future years. A disadvantage
in Java, however, is the excessive humidity of the
climate, necessitating six to eight weeks for drying
crape of medium thickness. When the larger estates
come into full production, it will be impossible to handle

THE NETHERLANDS EAST INDIES 275

the output by the present method of hanging in sheds,
and machinery for drying by artificial means will be
required. Probably the Passberg Vacuum Dryer will
be brought into general use, unless some more effective
apparatus can be found. The methods of treating the
latex do not differ materially from the description given
in connection with Ceylon and the Malayan industry,
and therefore no repetition is necessary in regard to
Java.

The comparatively small quantity of rubber exported
up to the present has gone principally to Rotterdam or
London. To the latter port the freight charge is 77 shill-
ings per 50 cubic feet, and to the former 72 shillings.
A small quantity is shipped to Singapore and there sold
at the regular rubber auctions, and there are indications
that such shipments may increase in the future. Prices
in Java are governed by London and Liverpool quota-
tions, local sales allowing a deduction equivalent to the
value of freight, insurance and commissions.

CHAPTER XIX

THE NETHERLANDS EAST INDIES: JAVA—

Continued

The labour-supply — Rate of wages— Working hours—Discipline
on plantations — Housing accommodation and food — Sanitary con-
ditions— Opening a rubber plantation — Effects of interplanting
with Robusta coffee — Weeding estates — Tapping — Health of
rubber-trees — Expansion of the rubber industry — Average yield
of trees — Average cost of production at port of shipment —
Expenditure analyzed — Costs after shipment up to date of sale —
Average cost per pound of rubber sold in 1913 — Past exports and
future production — Railways and roads in Java.

THE population of Java is extraordinarily prolific if
the statistics furnished by the Dutch Government
represent the actual state of affairs. The first attempt
at a census of the inhabitants was made in 1815, under
the direction of Sir Stamford Raffles at the time of the
British occupation of the island; the figures then
returned were 4,390,661 for Java and 224,609 for
Madoera, a total of 4,615,270, of whom 4,499,250 were
natives. In 1878 the total had risen to 19,067,829,
including 200,303 Chinese, 29,998 Europeans, and
9,610 Arabs and other Orientals. In 1897 the returns
were 26,125,110 divided as to 51,731 Europeans, 261,107
Chinese, 17,075 Arabs, and 3,238 other foreigners. In
1912, the estimated total number of inhabitants was
given as between 34,000,000 and 35,000,000, an increase,
approximately, of 9,000,000 during the intervening
fifteen years. All indications are that the population

276

(

THE NETHERLANDS EAST INDIES 277

will continue augmenting in the near future. Some
75 per cent, of the natives live by agriculture in one
form or another ; the Chinese and Arabs are nearly all
traders, and of the Europeans 50 per cent, are in civil
or military employment. The religion of the Javanese,
especially in the eastern districts, is nominally Mahome-
danism, but both Buddhism and Brahminism exists;
although professing one or other of these faiths, a
very large proportion of the inhabitants are still be-
lievers in the pagan precepts of their forefathers. In
1912, the number of native Christians was stated to
be between 60,000 and 70,000, but information on this
point is uncertain.

With a population of some 35,000,000 natives it
appears at first sight that no difficulty should be ex-
perienced in Java with regard to the requirements of
labourers for the sugar-cane, tea, tobacco, coffee, rubber,
and cocoa plantations. Such, however, is not the case ;
with rubber estates particularly the number of coolies
available is inadequate in many districts. There is no
doubt that this scarcity of labour for plantation pur-
poses is due in great part to the large area under culti-
vation in the island, the rice-fields extending to 3,000,000
acres, sugar-cane to some 600,000, tobacco 200,000, tea
250,000, and a similar area is under crop with coffee and
rubber combined; native foodstuffs and fruits do not
occupy less than 1,000,000 acres, coconuts 200,000, and
probably not less than 500,000 acres altogether are de-
voted to other products. This means that a combined
demand exists for coolies to cultivate 6,000,000 acres ;
in addition, an annual drain takes place to Sumatra of
some 50,000 labourers, and to Malay of a further 10,000

278 THE RUBBER INDUSTRY

for work on the rubber estates in those countries. It
must also be remembered that the native methods of
cultivating rice-fields and gardens for fruit and food-
stuffs is antiquated and extravagant ; labour-saving
machinery and modern implements are practically un-
known, and the result is waste of energy and time in
many directions.

In the eastern districts a large proportion of the
coolies employed are recruited from the island of
Madoera, close to the province of Soerabaya. This
island is poor in agricultural resources ; but it has a
large population of poverty-stricken inhabitants, of
whom a considerable proportion are willing to go to
work on the plantations of the mainland. They are
weak and sickly on first arrival at the estates, but make
useful labourers after a period of regular rations has
improved their physique.

No system of contract labour is permitted in Java.
The coolies are free to work for any rate of wage they
can obtain, and they take full advantage of this con-
dition, leaving an estate at any time they feel inclined
to do so without the smallest consideration for the in-
convenience occasioned by such action. In order to
check this inclination, estate managers endeavour to
form resident colonies of plantation hands, and to those
who remain permanently a higher wage is granted and
many privileges allowed. On old-established estates
this resident labouring force is a prominent feature ; on
rubber plantations, however, it is only a limited factor,
owing to the comparatively recent date of the industry,
and to its unpopularity compared to other cultivations.
Another reason is that the climate and land best suited

THE NETHERLANDS EAST INDIES 279

for growing Para rubber is situated as a rule in un-
healthy districts and inaccessible localities, where food-
supplies and other necessaries are expensive and not
easy to obtain.

The rate of wages paid to coolies varies in every dis-
trict, and often even on adjoining estates in the same
district. On some tea estates in 1912, the daily pay-
ment was 17 cents for men and 15 cents for women,
while children of twelve to fourteen years of age earned
8 to 10 cents a day. A small present was given at the
end of the month if the output of leaf was particularly
good, but the average payments to men were only at
the rate of 5 guilders per month, and to women and
children in like proportion. These coolies were resi-
dent on the plantations, and appeared perfectly satisfied
with the conditions. At a rubber estate only a few
miles distant the men were receiving 40 and the women
30 cents per day, but the labour force was dissatisfied
and constantly changing. The average daily wage paid
on rubber plantations throughout Java may be taken
as 40 cents for men, 30 for women, and 15 cents for
children for ordinary work; and 45 cents to men and
35 cents to women daily as tappers. There is not any
marked indication of an immediate alteration in these
wage conditions, for it happens nearly always that
when an estate succeeds in obtaining labour for a lower
rate of pay, some neighbouring planter who is short of
hands offers an additional money inducement and the
coolies go to him. There is no cohesion among planters
to check this state of affairs.

The working hours are nominally from 6 a.m. to
4 p.m. with one hour of rest at noon. As a rule, how-.

280 THE RUBBER INDUSTRY

ever, all plantation work is divided into tasks which the
coolie with a little additional application and energy
can finish by 2 p.m. This piecework system is found
to be more satisfactory for the estate and the coolies.

In view of the large number of labourers employed in
agricultural undertakings in Java, the general standard
of discipline is well maintained. Occasional instances
of rioting and insubordination occur on plantations ;
these are sometimes quite unjustified, and as a rule
originate in an imaginary grievance not appreciated by
the manager or his assistants. Every now and then,
however, serious incidents take place and result in the
murder of the superintendent, but such occurrences are
few and far between.

Where the system of resident colonies of labourers
has been established, each family has a house, or part of
a house, allotted to them, or land is given to them on
which they can build for themselves and remain in
possession as long as they continue working on the
estate. In many cases plots of land are also allowed to
them for the cultivation of fruits and vegetables for their
own use. The food is rice, curry-stuffs, fruit, vegetables,
and occasionally pork or poultry, but meat is rarely eaten.
All provisions are purchased at the neighbouring villages.

Health conditions vary greatly in Java. In the high-
lands there is not a great deal of malaria, but dysentery
and smallpox are not infrequent. In the district of
Malang an outbreak of bubonic plague occurred in 1911,
and occasioned some 10,000 deaths, but no European
contracted it. In the low-lying districts malarial fever
is prevalent, and at certain seasons of the year the
regular practice is to administer daily doses of 5 grains
of quinine to every estate coolie.

THE NETHERLANDS EAST INDIES 281

The organization of a rubber plantation in Java differs
in no essential particulars from the description given of
similar work in Malay or Sumatra, except in the matter
of the labour question already alluded to. The pre-
liminary work of felling, burning, and cleaning up can
be contracted for ; but the price shows small difference
whether arranged by such contracts or executed by
daily labour. The Government impose no restrictions
in regard to dwellings for coolies or in regard to hos-
pital accommodation, but it is found by experience that
these factors in estate life require careful and serious
attention in order to make the place popular for labour.
On the rubber plantations in Java it has become an
established custom in many districts to grow catch
crops of Robusta, Quillou, or Uganda coffee for the
first five years after the estate is opened. While catch
crops have been condemned in Malay and Sumatra,
there is a good deal to be said in favour of planting
these varieties of coffee in Java.

Where the catch crops of Robusta, Quillou, or
Uganda coffee, are planted at the same time as rubber
in Java, the effect is less detrimental than might be
expected. The young rubber-trees obtain a fair start
before they are shut in by the growth of the coffee
bushes, and the estate is kept cleaner from weeds than
would be the case if no catch crop was planted. At
the end of the second year the coffee-trees are topped
at 6 feet from the ground, and by this time the rubber
has attained a height of some 12 or 14 feet, so that it
is never excluded from light and air. The danger to
some extent lies in the third and especially the fourth
years, when in order to obtain bigger coffee crops the

282 THE RUBBER INDUSTRY

Dutch planters are apt to prune the rubber heavily to
reduce the shade for the coffee. If the coffee is
eliminated at the end of the fourth year, as has been
done on many estates, no great harm is done to
the rubber beyond a slightly restricted condition of
development. If, however, an attempt is made to
obtain a crop of coffee in the fifth year, the rubber-
trees undoubtedly suffer, and unevenness in their de-
velopment becomes most noticeable. Moreover, the
thick growth of the coffee-bushes interferes seriously
with the supervision of tapping, with the result that
the work is badly done and very costly.

One reason given by planters in Java for growing
coffee together with rubber is that the former serves
to make the estate popular with labourers, for the
reason that they earn better wages at picking coffee than
at any other cultivation in Java. It is easy work, and
a woman with one or two of her children to help her
frequently obtains a wage of i guilder (is. 8d.) a day.

The financial point of view must also be considered.
With a small crop in the second year, another of 10
to 12 hundredweights per acre in the third, and an
even greater yield in the fourth season, with this coffee
selling at its present price of about 50 shillings per
hundredweight, an actual profit of £30 sterling per
acre can be made by the time the rubber-trees are
ready for tapping. In other words, the rubber has
cost nothing, and a clear £30 per acre has been made
over the area cultivated. Moreover, catch crops of
coffee under existing conditions appeal to the managers
of estates, as a percentage of the profits falls to them.

Clean weeding, apart from those estates interplanted
with coffee, is not the general rule in Java. Planters

THE NETHERLANDS EAST INDIES 283

give as a reason that the trees do not suffer if lalang
and other pernicious grasses are kept under; indeed,
they go so far as to say that weeds are beneficial to
prevent wash in heavy rains, and useful in keeping the
ground moist in seasons of drought. In Ceylon and
the Malay Peninsula such theories are rejected, and
other measures, such as draining and forking, are
adopted to remedy the damage caused respectively by
superabundant rainfall and the effects of dry weather.
As a general rule, the somewhat dirty appearance of the
majority of estates in Java is due to careless manage-
ment or lack of funds to employ sufficient labour.

The standard of tapping in Java is far from satis-
factory. It is true that this class of work is only
beginning, but with the example of the damage done
in the Malay Peninsula by careless work a few years
ago, it is inexcusable that the Java planters do not
make greater efforts to teach their coolies how to work
in a more efficient manner. A reason given for this
condition of affairs is that the labour on rubber estates
is seldom permanent, and that as soon as a batch of
men are efficient, they leave for other estates where
they can obtain a higher wage ; or the rice harvest
of their village begins, and they forsake the plantation
and return to their homes. There is a great deal of
truth in both these assertions, and for some years to
come they will be an obstacle to good tapping. A
more serious point, however, is that in view of the
difficulties of retaining good tappers an insufficient
amount of daily labour is required from them, and,
consequently, the cost of the work is far higher than
in Malay, Sumatra, or Ceylon. In fact, on several
estates the daily task is, approximately, one-half of

284 THE RUBBER INDUSTRY

that accomplished in the three countries under similar
conditions of age and growth of trees.

The usual diseases of the Para rubber-tree are present
in Java. Evidence of various forms of canker is seen
on many plantations ; especially is this the case on low-
lying lands near the sea-coast. In the Banjoemas dis-
trict it is prevalent to a marked degree, and considerable
areas have suffered severely on both the Langen and
Banjarsari estates, where the soil is of a cold, clay
character, and very wet. Decay of the cortex on the
tapped surface is also common in these swampy districts,
and is similar to cambium rot in Ceylon. Possibly
better drainage and the application of lime as a top
dressing for the soil may remedy the evil, but it can
be eradicated only at comparatively high cost. On the
laterite soils of the hilly and undulating lands bark
disease is less in evidence ; but it exists, and it requires
constant watching and treatment. Fomes and " Die-
back" are both found, but so far threaten no serious
damage when the trees are taken in hand at an early
stage of infection. White ants are not very numerous,
and do little harm. With the exception of the estates
on the very low-lying wet lands, where canker has a
strong hold, there is no reason why disease should
prove a serious factor in the development of the Java
rubber industry.

There is ample room for the extension of the industry
as far as suitable land is concerned. The general in-
clination in Java, however, is not to attempt any fresh
undertakings until some tangible results are obtained
from the area now under cultivation. A good deal
depends upon the course of coffee prices during the
next few years ; there is no doubt that any great expan-

THE NETHERLANDS EAST INDIES 285

sion of the growth of the Robusta, Quillou, and Uganda
coffees will be accompanied with a corresponding in-
crease in the area under rubber, for the planting of the
latter can be done without cost except for nurseries and
putting out the plants in the fields. The Dutch planter
likes to have two strings to his bow, and many of them
aver that they would always put in coffee and rubber
together and decide later on which crop wrould pay them
best to retain under cultivation.

The Java industry is still in its preliminary stages of
development, and therefore it is impossible to obtain
reliable returns over definite areas on which to base
accurate calculations of averages. Many estates have
thousands of trees in tapping, but for the most part
only begun during the last two years, and too scattered
to give representative results per acre. The following
yields per tree in various districts only serve as an
indication of general conditions :

Altitude.

Estate.

District.

No. of Trees
Tapping.

Average
Yield.

Age.

Feet.

Lb.

Years.

600 to 1,850

Kiara, Pagoeng

Preanger

31,150

•60

4 to 5

800

Tjirandi

49,000

"35

4 6

800

Pasir Oetjing

80,000*

*8o

4 6

200

Batoe Lawan

Banjar

19,437

•70

4 5

Banjasarie

31,000

4 6

100

Langen

Banjoemas

148,000

'53

4 5

50 to 600

Tjipari

32,000

•25

4 5

1,050

Limburg

Malang

60,000

•12

4 5

800

Kalidjeroek

Dj ember

6.OOO

•25

4 6

800

7'00

2OO

Mamboel

I5,ooot

°'35

200

Glen More

Banjoewani

5,ooof

0*40

200

Kaliminger

Banjoemas

15,000

I '00

260

Pasir Waringen

Bantam

24,000

1-25

4 to 5

200

Tjikadoe

••

20,000

1-50

4,, 5

* 120 trees eleven years.

t Tapping only just begun.

286 THE RUBBER INDUSTRY

For young trees these results are fairly satisfactory.
In several of the records tapping had taken place only
for two, three, or four months, and the yield per
year is calculated on the monthly returns. These
estates were planted with 150 trees to the acre, and
on nearly all catch crops of coffee were under cultiva-
tion.

Costs of production f.o.b. Batavia, Soerabaja, or other
Java ports, are comparatively high ; no export duty is
payable on rubber, and no Government requirements
are enacted in regard to accommodation for coolies or
extraordinary expenditure in connection with hospitals
or medical attendance. The books of various plan-
tations show what should be the average cost of pro-
ducing a pound of rubber during the next few years,
and this information itemized gives the following
figures :

Cents per Lb.

1. Tapping and collecting (including 50 per cent.

depreciation on cups and implements) ... 42

2. Curing and preparation (including 20 per cent.

depreciation on factory and machinery) ... 4

3. Transport and shipping 2

4. Management (exclusive of commissions to

managers and assistants) 4

5. Weeding 2

6. Cultivation 3

7. Manuring 3

8. Maintenance of roads and drains 2

9. Depreciation on building other than factory

(20 per cent.) 2

10. Hospital expenses 2

11. Contingencies (including rent and taxes) ... 4

Total 70

THE NETHERLANDS EAST INDIES 287

This sum of 70 cents per pound is equal to is. 2d.
sterling, and represents the minimum average cost
f.o.b. for some years to come. The expenditure for
tapping and collecting is unduly high, but for reasons
already set out it is difficult to see how any substantial
economy is to be effected under this heading in the
immediate future. As the trees increase in yield, the
cost of tapping and collecting will diminish ; but owing
to the labour conditions in Java, the reduction in cost
will not be nearly so marked as in the case of Malay
and Ceylon, where the system of work is better
organized.

The foregoing estimate concerning cost of production
shows that 80 per cent, is for expenditure on labour.
It is clear that in Java the factor of efficient supervision
is of very great importance. Together, management
and labour amount to 58 cents out of a total expenditure
of 70 cents per pound of dry rubber. Therefore it is
evident that on the ability of the manager and his
assistants to control the labour efficiently and econom-
ically depends the failure or success of the plantation.

The charges from port of shipment, Java to London,
Rotterdam, or Amsterdam, differ very slightly from
those in force for Malay and Sumatra. The present
rate of freight to London is 77 shillings per 50 cubic
feet. To Dutch ports the cost of freight is 5 shillings
less per ton, the higher rate for London being on account
of transhipment in Holland. Rubber from Java is
packed in boxes containing 112 pounds, averaging ten to
the 50 cubic feet. Commissions in Europe are similar
to those from Malay and Sumatra. The total charges
are —

288

THE RUBBER INDUSTRY

Pence per Lb.

1. Freight 0-82

2. Brokerage (£ per cent.) 0-125

3. Sale charges, insurance, storage, sundries

(ij per cent.) 0375

4. Merchants' commission (i per cent.) ... 0*25

Total

1-570

These charges are calculated on an average price of
24 pence per pound of rubber.

Adding the cost of production f.o.b. port of shipment
in Java, together with the further costs up to date of
sale in Europe, the actual total cost is —

Pence.

1. Cost of production f.o.b 14-00

2. Freight, insurance, etc 1*57

Total 15-57

As regards past production in Java, the amount shipped
is insignificant so far as Para rubber is concerned. The
official returns classify gutta-percha, Rambong, and
Para under the same heading, but with some difficulty
the two former have been separated. The return of
Para shipments beginning in 1909, were —

EXPORTS AND PRODUCTION, 1909 TO 1913

Year.

Tons.

Acres Bearing.

Remarks.

1909

600

About 20 tons to Singapore

1910

1,000

» 40

1911

1, 600

>i 73

1912

530

10,000

» loo „ „

1913

1,760

40,000

» 150

THE NETHERLANDS EAST INDIES 289

ESTIMATED FUTURE PRODUCTION, 1914 TO 1921

Year.

Tons.

Acres bearing.

1914
19*5

10,650
18,300

158,000
208,000

1916

26,550

230,000

1917

32,300

233,000

1918

38,250

240,000

1919

43.650

240,000

1920

44,500

240,000

1921

46,000

240,000

The above is calculated on the following basis

Age of Trees.

Yield per Acre.

Lb.

4 to 5 years

112

> o

224

, 7

280

, 8

336

» 9

)

392

, 10

448

Taking into consideration that a large proportion of
the younger rubber suffered in past years by inter-
planting with Liberian coffee and from careless cultiva-
tion, from which it is only now recovering, this basis
for calculating future production may be considered a
sound one.

The amount of Rambong (Ficus) rubber exported in
1910 was 228 tons ; but this dropped off to practically
nothing in 1911, for the reason that the high prices of
the previous year induced planters to tap the Ficus
trees heavily, and they had not recovered sufficiently to
19

2go THE RUBBER INDUSTRY

yield any latex worth collecting. The export of gutta-
percha in 1910 was 300 tons, but in 1911 the shipments
dropped to 45 tons, the falling off being due to the same
cause as occurred with the Ficus.

The railway system is being gradually extended
throughout the island, and in the course of a few years
will provide access to all the principal districts ; but the
roads which act as feeders to the various railway lines
leave much to be desired. Except in the vicinity of the
larger towns, the maintenance of all roads and bridges is
neglected. First-class Government roads are metalled ;
but second-class roads have only an earth surface levelled
off, and in wet weather they are impassable for wheeled
traffic. This is especially inconvenient for rubber and
coffee estates, which as a rule are situated at consider-
able distances from the main roads.

CHAPTER XX

A BRIEF REVIEW OF THE ORIENTAL
SITUATION

Past and future production in the Orient — Estimated produc-
tion from 1914 to 1919 — Consumption and production — The
labour question in the Orient — Effects of diseases and pests on
future development — Premium of Amazon Valley rubber over the
plantation product — Average total cost of plantation rubber to
date of sale— The question of the black and white varieties of
Hevea Brasiliensis.

BOTH in the Orient and Brazil the year 1913 was
a momentous epoch in the history of the rubber
industry. Production on the Eastern plantations ex-
ceeded the output of the Amazon Valley by 25 per
cent., and was greater than the total shipments from all
Brazilian ports. This increased yield in the Orient
signifies the parting of the ways between cultivated and
wild rubber, for the Eastern production for 1914 will
surpass by a substantial amount the aggregate wild-
rubber output in all parts of the world. The dominant
factor in the rubber situation from now onwards will be
undoubtedly the returns from plantations, and the
supplies from wild sources will steadily recede into the
background. That production in the Amazon Valley
and the Congo territories should cease altogether is by
no means a corollary of the conditions now in process
of development ; the general indications are that
Brazilian and African wild rubber will continue to come
forward, but the shipments will be smaller in quantity,

291

292 THE RUBBER INDUSTRY

and principally confined to the higher grades. While
this reduced output may retain a premium in value for
some years to come over the Oriental product, for
reasons hereafter explained, its importance as a factor
influencing market prices will decline in direct propor-
tion to the progress of the plantation industry, and the
occasion for its use in the manufacture of rubber goods
will practically become a negligible quantity within the
next decade. It will become a luxury instead of a
necessity.

The subject of the area under cultivation and the
steady increase in production leading up to the existing
conditions of to-day has been dealt with in detail in
the description of the principal centres of the industry
in the East. It is unnecessary, therefore, to recapitulate
more than the returns for 1912 and 1913, to demon-
strate clearly the expansion of the output and the close
relation of the increased quantity to the shrinkage in
the market value. The Oriental shipments for the past
two years are shown in the table on p. 293.

In regard to future production, the yield has been
calculated until 1919 upon the acreage planted in 1912,
and leaving out of account any returns from areas
planted after that date. Under these conditions, the
total acreage on which production is based in 1919 will
comprise trees averaging ten years of age, equal in girth
and height to trees of twenty to twenty-five years
old in the Amazon Valley. Doubtless with increased
development a greater yield will be obtained than at
ten years, but for practical purposes the trees may be
considered as having reached maturity, and the quality
of the latex will show little difference in regard to
density after that period is passed.

REVIEW OF THE ORIENTAL SITUATION 293

O «•• O

O O O

o t^ oo

H S =

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O ""» O O
OOTj- CS^j-

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! H

8 ^.8 8 8 8

Tfo*M> to N r»

~~ o' o" o" o" o" o" o" o~ o" I ~~

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V^CON fOro« r»

*o i

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Sf
v5

6" O"

"c £^ c

"^S-S'S .

294 THE RUBBER INDUSTRY

The estimated production for the next six years is
given in the table on p. 295.

This estimate is drawn up on distinctly conservative
lines, and therefore may be exceeded by the actual pro-
duction in the course of the next few years; on the
other hand, the figures may be above the mark in event
of some great unforeseen disaster to the plantations in
Malaya.

So far as published returns of the consumption of
crude rubber go, they show the amount used by manu-
facturers in 1913 to have been 110,000 tons approxi-
mately. Assuming that 120,000 tons are needed to
meet the demand in 1914, the question of a sufficiency
of the raw material depends on the quantity of wild
rubber brought to market. In 1913 the aggregate of
the supplies from Brazil, Africa, and Central America,
was between 65,000 and 70,000 tons ; the indications are
that this production will be curtailed to a substantial
extent during 1914 and subsequently. This year, how-
ever, in view of present prices, it is reasonable to sup-
pose that a shrinkage of at least 35 per cent, will take
place in the supplfes of wild rubber as compared to
1913 ; if this occurs, the position for 1914 will be —

Plantation rubber 85,000 tons.

Wild rubber (say) 50,000 „

Total supplies ... 135,000 ,,

This leaves a surplus of 15,000 tons to be absorbed over
the amount generally accepted as required for normal
necessities by manufacturers. A revival of commercial
activity in the United States would account for a very
considerable percentage of this surplus ; but the effect
of the over-production in the course of the next twelve

REVIEW OF THE ORIENTAL SITUATION 295

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"^ Q O O O
OO\O-''-<

O
O

Q
O

O" Cf tC O~ co oo~

O*"

O
O
cO

\O M

^T i-T oo" O" ~

8 8

CO O NO vo

O O
ir\ vr»

CO CO i

COCO

tt*

tf o- I tC

I i

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2g6 THE RUBBER INDUSTRY

months will be felt in many directions, and it will prob-
ably be reflected in the price of the raw material.

The cry is often raised that a shortage of labour will
restrict the production of Eastern plantations. There is
nothing in the present situation to justify alarm in this
direction. From time to time complaints are heard
from planters that more coolies are needed ; but such
complaints have been made for many years past, and
yet the industrial development of the countries now
under review has not been checked by any serious
labour difficulties. Taking a broad view of the situa-
tion, it is impossible to foresee any great set-back from
this cause so long as India and China remain open as
recruiting-grounds for plantation hands. An adjustment
of the wage rate may be necessary as time goes on, and
many details in connection with the labour-supply
require careful consideration as the situation develops ;
but the coolies are there in abundance, and must work
or starve, therefore it is only a question of adapting
conditions to fit the case.

The experience for the last ten years of the damage by
diseases and pests to rubber-trees in the Orient, has
demonstrated beyond question that no serious loss
occurs when adequate vigilance is maintained, and the
proper remedies applied to check the spread of the
various plagues which appear from time to time on the
plantations. This opinion is confirmed by the late
Dr. Jacques Huber, after an examination of the prin-
cipal centres of Eastern production, in a report to the
Governor of Para dated November, 1912. Dr. Huber
states that he was greatly impressed by the magnificent
appearance of the trees in all the districts he visited
of Ceylon, Malay, Java, and Sumatra.

REVIEW OF THE ORIENTAL SITUATION 297

That fine hard Para should command a premium of
6d. (and often more) per^pound over the best plantation
descriptions would at first sight appear an anomaly.
It is more striking when the fact is remembered that
the Brazilian rubber often contains 20 per cent, of
moisture, as against i per cent, in the plantation
product. In this connection, the action taken by the
Rubber Growers' Association in the autumn of 1913
was distinctly a step in the right direction. The sug-
gestion to standardize the preparation of latex on the
estates is worthy of all consideration, but it would be
extremely difficult, if not impossible, to bring any such
practice into general use under existing conditions ; on
the other hand, the proposal to grade all rubber before
sale is a practical measure that can be applied with
advantage, and should be supported by all Eastern pro-
ducers. The causes for the lower value of plantation
rubber as against fine hard Para are the following:

Variability. — The practice of treating latex with
acetic and other acids tends to bring about unevenness
in the rubber, for the reason that each estate applies
these coagulants at the discretion of the manager, and
therefore without any fixed standard of quantity. The
fact that on the more important plantations the per-
centage of acid is regulated by competent chemists does
not affect the general result ; moreover, the majority of
producing estates are tapping trees of different ages, and
the latex is mixed in a common receptacle on arrival at
the factory. It is evident that the product of four-year-
old trees requires different treatment from that obtained
from trees ten years of age ; it would be interesting to
know the proportion of plantations making any dis-
tinction in regard to the different classes of latex col-

298 THE RUBBER INDUSTRY

lected during the day's work, and to compare the final
results with the output of estates where no attempt
at such distinction has been made. In the Amazon
Valley the latex is of much more even quality than in
the Orient ; in many extensive districts the variation in
density is barely perceptible ; the trees in tapping are
all of mature age, and the method of coagulating the
latex by immersing in the smoke of the Urucury nut is
a guarantee that no excessive absorption of carbonic
acid can take place. The difference in quality of rubber
from Para is due to the different varieties of the Hevea
Brasiliensis common to different sections of territory, and
not to any variation in methods of preparation.

Another cause for variability in the plantation prod-
uct is the rolling and tearing of the rubber sponge
after coagulation ; in the case of the Brazilian product
no manipulation whatever takes place after the latex is
coagulated, and the excess of moisture saturated with
carbonic acid remains in the rubber and acts as a pre-
servative.

Grading. — No adequate system of grading plantation
rubber has yet been attempted. It is not sufficient to
separate the rubber into four or five classes, as is done
at the present time in the Orient; the finer qualities
should be subjected to classification by experts before
shipment, or by laboratory tests after arrival in London
or Liverpool, as suggested recently by the Rubber
Growers' Association. In the Amazon Valley the
grading is done by experts at the port of shipment, and
the effectiveness of this operation is proved by the
willingness of manufacturers to purchase large consign-
ments of Para rubber on the classification set out in
bills of lading.

REVIEW OF THE ORIENTAL SITUATION 299

Resiliency. — There is no doubt whatever that rubber of
greater resiliency and better nerve is obtained from the
latex of mature trees than from young plantations. It
is a question of opinion as to the age at which trees in the
Orient may be said to reach maturity under the exist-
ing conditions of cultivation ; but on broad lines, based
on average density of latex, the period may be placed
at from eight to ten years from the date of planting.
The advantage enjoyed by the Amazon Valley in this
respect, therefore, is only a passing phase which will be
rectified automatically in a very few years. After the
year 1919 the latex from immature trees in the Orient
will be a negligible factor, for it will never exceed 5 per
cent, of the total production, and probably fall much
below that figure.

Three causes in the last twelve months have con-
tributed to reduce the "all in" costs of rubber. The
first was the fall in value of the raw material, leading
to the reduction of all ad valorem charges and com-
missions; the second was the abolition of the 2\ per
cent, and £ per cent, for draft and allowance to buyers ;
and the third was the revision of the dock and ware-
house charges in London. The combination of these
three factors diminish the costs between shipment and
sale by approximately 2 pence per pound. Under present
conditions the average cost per pound of rubber during
the next quinquennial period should not exceed, for
the countries specified, the figures given in the table on
p. 300. These average costs compare with 28 pence
per pound of rubber for the crop season 1912-13 in
the Amazon Valley.

It is asserted in the Amazon Valley that the
superiority of the Brazilian rubber from the upper

300

THE RUBBER INDUSTRY

rivers is due to the preponderance in those districts of
the variety of Hevea Brasiliensis known locally as the
black Hevea, and that the trees in the vicinity of the
River Tapajoz, whence Mr. Wickham obtained the seed
for the Orient in 1875, are a^ °f tne white variety, pro-
ducing rubber of an inferior quality. It is true that
the product of the lower portion of the Amazon Valley
is distinctly inferior to that shipped from the districts
of the upper rivers, and does not come under the

ESTIMATED COST OF PRODUCTION, 1914-1919

Country.

9-
10.

Malay Peninsula

Ceylon

Southern India

Burmah

Borneo and Sarawak

Java

Sumatra

Dutch Borneo, Celebes, etc

Saigon

New Guinea, Philippines, and other
islands of Oceania ..

Cost per Pound
in Pence.

13*

designation of fine hard Para ; on the other hand, the
difference of soil and the effects of cultivation have
altered many characteristic features of the tree as
regards foliage, development, and production. All in-
dications tend to show that a decided improvement has
taken place in the general condition of the tree in its
present surroundings, and it is not surprising this
should be the case when all the circumstances are
given due consideration. In 1912 an attempt was
made by Dr. Jacques Huber to differentiate between

REVIEW OF THE ORIENTAL SITUATION 301

the trees growing in the Orient and those found in the
vicinity of the River Tapajoz ; but in his report to the
Governor of Para on this subject he states his inability
to afford any accurate definition of the changes that
have occurred without first making a detailed investiga-
tion of the district in the Amazon Valley whence the
seed for the Eastern industry originated.

In one place only is the black Hevea known to exist in
the Orient. On the Pasir Oetjing Estate, near Bandoeng
in Java, some 120 trees, now fourteen years of age, are
to be seen. They were obtained through the assistance
of M. Eugene Poisson in 1889, and forwarded by him
to Paris ; the seeds were there germinated, and the sur-
viving plants were shipped to Java in 1890, and planted
at Pasir Oetjing. The following extract from the
Journal d' Agriculture Tropicale (published in Paris) on
May 31, 1904, in connection with M. Poisson's investi-
gations concerning the black variety of Hevea Brasiliensis,
is most interesting reading :

" Nous les avons encadr£es de deux passages qui s'y
rattachent extraits de 1'excellent Rapport de M. Eugene
Poisson sur sa mission au Bresil, aux Antilles et au
Costa- Rica, public dans le tome X. (1902) des * Nouvelles
Archives des Missions scientifiques.'

" Le premier passage (pp. 7 et 8 du tirage a part) se
rapporte au premier voyage, accompli de FeVrier a
Juillet 1898, 1'autre (pp. 24, 25) au deuxieme voyage
accompli de D^cembre 1898 a Octobre 1899. Ce qui y
est dit incidemment du Mangabeira, confirme l'appr£-
ciation que nous avons donn£e de cet arbre dans le
chapitre correspondant de notre traduction annot£e des
Plantes a caoutchouc de Warburg.

302 THE RUBBER INDUSTRY

" Pour ce qui est de 1'Hevea, on remarquera que
M. Poisson n'ose pas se prononcer sur la question de
savoir s'il s'agit de variety's ou d'especes nettement
de*finies. Le doute ne tardera pas a etre leve", la
maison Godefroy-Lebeuf ayant pu se procurer des
graines des deux Hevea. Grace a son initiative, ils
vont prendre place dans les cultures mdustrielles ainsi
que dans les collections scientifiques. D'ici quelques
anne*es, on les verra fleurir et fructifier ; on pourra
semer les graines recueillies, et on sera de'fmitivement
fixe" sur la Constance et la porte"e taxonomique des
caracteres. Voici les termes exacts de la description
qu'en donne M. Eugene Poisson :

" * Dans les forets avoisinant Para, oil je me suis rendu
et oil j'ai ve*cu pendant plusieurs jours et a diverses
reprises pour assister a la re"colte du caoutchouc, j'ai
appris des Indiens qu'ils distinguaient deux sortes
d'abres qu'ils appellent 1'Hevea blanc et 1'Hevea noir,
en raison de 1'apparence plus foncee de Pe*corce et du
feuillage de 1'un d'eux. II paraitrait que le caoutchouc
noir donne un latex plus estime" que le blanc et que le
melange des deux formerait un produit supe'rieur a celui
qu'on obtiendrait s6pare"ment. Cependant, j'ai la con-
viction qu'on cherche a e"viter la re"colte s£paree de ces
deux latex parce que cela donnerait plus de peine et
entrainerait peut-etre une moins-value pour la sorte
infe"rieure. S'agit-il ici d'especes distinctes ou simple-
ment de variet^s d' Hevea ? C'est un point a £lucider,
qui a e"te aborde" jusqu'alors sans un r^el succes et dont
il sera parle" plus loin.

" ' Les tentatives que j'ai faites pour obtenir des
rameaux n'ont e"te" que peu fructueuses. Les seringueros
sont me"fiants et croiraient agir a leur detriment en

REVIEW OF THE ORIENTAL SITUATION 303

aidant les Europeans a se renseigner sur des pratiques
qu'ils se soucient peu de faire connaitre ; d'autre part,
la difficult^ d'atteindre le sommet d'arbres e'le'ves est
encore un obstacle a vaincre.

" ' J'ai dti me contenter de quelques feuilles tombe'es
de ces arbres, dont la floraison est e'phe'mere et capri-
cieuse, et de les conserver en herbier, en attendant une
nouvelle occasion de retourner dans ces parages afin de
poursuivre ces observations. . . .'

" Et plus loin :

" ' Dans la grande ile de Marajo, ainsi que dans les
autres iles du delta et de la Basse Amazone, y compris
les territoires du Xingu et du Tocantin, les seringueros
reconnaissent, dans les Hevea qu'ils exploitent, deux
sortes d'arbes dont j'avais deja parle dans la premiere
partie de mon rapport de 1898. Je ne puis assurer que
ce sont deux especes ou deux varie"tes, n'ayant pu, au
moment ou je me trouvais au Para, les voir compara-
tivement en fleur et en fruit, mais les organes de vdgeta-
tion sont certainement distincts. II est possible que ce
soit deux races de 1' Hevea brasiliensis; mais, a la simple
vue, elles sont diffe'rencie'es par la couleur de l'e"corce,
par le port de feuillage et la nuance de celui-ci :

" ' i° — Le Branco, ou blanc, a les feuilles d'un vert
clair, et elles sont tombantes, larges et longues par rap-
port a la seconde forme, leur sommet est tres-acumine",
souvent elles sont tachet£es de piqures d'insectes ; les
folioles pendent presque verticalement et le pe"doncule
commun est egalement infle"chi ;

" ' 2° — Le Preto, ou noir, pousse plus vite et plus
droit ; il branche beaucoup plus haut. Sur les jeunes
arbres comme sur les adultes, le port du feuillage est
different du Branco. Le petiole commun est ici plutot

304 THE RUBBER INDUSTRY

relev6 qu'infle'chi, et il forme meme un coude avec les
folioles qui sont encore plus releve"es que lui.

" ' Je n'ai pas remarque" les taches de piqures d'insectes
frequentes sur le Branco, et peut-etre peut-on attribuer
ce fait a une plus grande resistance de 1'epiderme.

"J'ai pris des photographies de ces deux formes
d'Hevea.

" Les seringueros pre"tendent que 1'Hevea noir a un
latex qui coule plus facilement et qu'il est plus riche en
caoutchouc que 1'Hevea blanc. II ne m'a pas &t€
possible de controler ces assertions, faute de latex
suffisant de chacune des deux vari6t£s. Un des avan-
tages de PHevea noir serait de prendre plus facilement
de bouture que le blanc.

" J'ai vu un essai de plantation de boutures du Preto
de i a 2 centimetres de diametre et de 2 metres de long,
et pas une de ces boutures n'a manqu£ a la reprise.
Cependant, je dois dire qu'il m'a paru que les plante
venus de ces boutures n'avaient pas en general la m£me
vigueur que ceux issus de granes.

"J'ai vu, a la locality de Maguary, quelques Hevea
blancs, de 8 ans de plantation et ayant un diametre de
22 centimetres a 25 centimetres sur 9 metres de haut.
Entre Benevides et Benfique, chez un proprietaire
italien, M. Frediana, se trouve une plantation d'Hevea
et d'arbres fruitiers, et personne dans la contr£e ne
semble la connaitre. J'y ai vu, entre autres, 6 Hevea
noirs planted, il y a onze ans et ayant 95 centimetres
a 99 centimetres de circonference, a i metre du sol. Ce
proprietaire a plante en 1896-1898, sur sa concession
pres de 5,000 Hevea. C'est un domaine qui vaudra
dans cinq ou six ans 50 a 60 contos."

INDEX

ACETIC acid, use of, for coagula-
tion, 86, 141, 193, 297

Acheen, Sultan of, 228

Acre, 12, 32, 34, 37, 79, 90, 98,
103, 106, 112

Adam's Peak, 132

Alianca (Amazon Valley), tapping
tests at, 84, 85

Alutgama, 130

Amazon delta, 27 ; estrada system,

29 ; tapping, 29 ; prospective
output, 29 ; labour-supply,

30 ; treatment of trees, 30
islands and lowlands of, 27 ;

abundance of trees, 28 ; poor
quality of trees, 28 ; inhabi-
tants, 28 ; overhead tapping,
32, 67 ; yield, 78
highlands of, 28; plantations,
28 ; crops, 28 ; rubber seed-
lings, difficulties of, 29
Amazon, River, 6, 10, 47, 98
Amazon Steam Navigation Com-
pany, 98
Amazonas, 18, 20, 105, 106, 113,

114
Amsterdam, cost of shipments to

(Sumatra), 257
(Java), 287
Anaemia, 13
Andes, 36

Anglo-Malay Company, 220, 222
Ant, white [termes], (Amazon Val-
ley), 40, 49 ; (Ceylon), 134 ;
(Malay Peninsula), 168 ;
(Sumatra), 237, 252
red (&codoma cephalotes], 40,

49-50, 124
Antwerp, cost of shipments to

(Malay Peninsula), 224
(Sumatra), 257

20 305

Anuradhapura, 132
Aquiry, River, 6
Arabs (Java), 276, 277
Araguaya, River, 6, 23, 102
Asahan, 228, 229, 231, 233, 234,

235. 254

Atmosphere, effect of, on bark ex-
cision (Amazon Valley), 80
(Ceylon), 142
" Avenue planting," 212
Aviadores, 59, 61, 100
Axioma (Amazon Valley), tapping

tests at, 84
Ayer Panas Estate, 222

Balls (pelles). See Pelles
Bandoeng, 261, 262, 265, 301
Bangoewani, 261, 262, 274, 285
Banjar, 261, 262, 285
Banjasari, 262, 284, 285
Banjoemas, 261, 262, 284, 285
Bantam, 261, 262, 285
Barbadoes, 14
Bariguda, 4
Bark disease (Amazon Valley), 40,

4i» 43-8
(Ceylon), 134
(Java), 284
Bark, renewal of, 74, 142, 160,

214

Batak Rabit Estate, 222
Batavia, 261, 262, 286
Bates, " Naturalist on the Amazon,"

Batoe-Bahra, 229, 234
Batoe La wan, 262, 285
Batu Caves Company, 220
Batu Gajah, 179, iSo
Baud, 262
Beans, 62, 63
Belawa, 229

306

THE RUBBER INDUSTRY

Belmont Estate, 219

Benevides, 304

Benfique, 304

Beni, River, 6, 7, 12, 23, 34, 35

Bentong, 179, 180

Benzine, solubility of rubber in, 2

Beri-beri, 12

Bernham Estate (Perak), 219

Besoeki, 261, 263, 264, 274

Bila, River, 229, 230, 233, 235,

253. 254

Blackstone engines, 192
Black water fever, 12
Blankahan Estate, 254
Bolivia, 5, 6, 7, 12, 14, 18, 27, 34,

35,37,54,61,79,98, 103, 112
Bolivians, 13

Booth Steamship Company, 6, 48
Borer (Amazon Valley), 40, 48-9,

66, 69, 124
(Ceylon), 134
Borneo, 185
Boundaries, definition of (Amazon

Valley), 16
Bovis, Mr. A., 265
Brahminism (Java), 277
Brain, Mr. Lewton, 168
Branca (white variety of Hevea

Brasiliensis, 3, 28, 120, 302,

303, 304

Branching, early, 154-5
Brazil, 20, 24, 29, 37, 49, 62, 112
Brazilians, 13, 54, 60, 112, 122
Bridge patent (machines), 192
British Guiana, 54
British North Borneo, nominal
capital of companies exploiting,
185

Bubonic plague, 280
Buddhism (Java), 277
Buitenzorg, 261, 262, 264, 265
Bukit Rajah Company, 182, 194,

219, 220, 222

Bungalows (Ceylon), cost of build-
ing, 135
(Malay Peninsula), 216; cost

of building, 188
(Sumatra), cost of building,

241

(Java), 269
Burgess knife, 124, 214

j Burmah, 185

I Burrs, formation of, 168

Cables (Amazon Valley), 23
Cacao, cultivation of (Amazon
Valley), 7

(Ceylon), 133

(Java), 273
Cachoeira, 36
Calcutta, 54

Caledonia Estate, 219, 222
Cambium rot (Amazon Valley), 40,
41, 43-4, 47-8, 65, 69, 74,
80, 82

(Ceylon), 134, 284
Canker (Amazon Valley), 40, 41

(Ceylon), 134

(Java), 284

Canoes, 22, 24, 29, 31, 99
Canton, 187
"Caoutchouc," 2
Carbolineum Plantarium, use of, for

decay, 46

Carey United Company, 220
Castilloa elastica, 3, 5, 34, 35, 71-2,

79, 102, 103, 112, 120, 126, 164,
264, 265

Cataracts, 22, 36

Catch crops (Ceylon), 140

(Malay Peninsula), 212, 213
(Sumatra), 236, 252-254

Sava), 265, 281-2
y, 3, 5, 27, 34, 35, 72, 79,

80, 102, 103, 112, I2O

Ceara, 5, 14, 32, 35, 52, 53, 54, 76,
121, 164, 264, 265

Cedar, red, 7

Ceylon : growth of trees in, 73 ; no
direct taxation in, 108 ; proposed
school of tropical agriculture, 129;
separated from Madras Presi-
dency, 129; agricultural industry
of, 129 ; sap disease in coffee
plantations of, 129 ; cultivation
of cinchona and tea in, 130; of
rice, cacao, and coconuts in, 133 ;
Government Department of
Agriculture, 146 ; Government
Medical Officers, 161 ; nominal
capital of companies exploiting,
185

INDEX

307

Chaffee and Haskins, 2
Changkat Salak Estate, 219, 222
Children as labourers (Amazon

Valley), 57-8, 122
(Ceylon), 138, 141, 161
(Malay Peninsula), 204
(Java), 282

Chinese (Malay Peninsula), 167,
i/o, 173. 182, I95> 206, 207,
208, 209, 212, 215
(Sumatra), 231, 249, 250, 251
(Java), 276, 277

Cicely Company, 182, 219, 220, 222
Cinchona, 130 ; collection of bark,

Clay, use of, as check to borer, 49

Cleaning, cost of, on new planta-
tions (Sumatra), 241
(Java), 269

Cleanliness : importance of, in pre-
venting tree disease, 48 ; lack of,
arrests development, 74 ; not
practised by collectors, 75, 93 ;
attention given to, in East, 124 ;
none in Brazil, 124; dependent
on supervision, 210

Climate (Amazon Valley), 10, 92,

(Java), 274
Coagulation (Amazon Valley),

method of, 91-4, 125
(Orient), method of, 124
(Ceylon), 141 ; experiments to

produce, by smoking process,

143
(Malay Peninsula), process,

192-3

(Sumatra), process, 246
Coast (beri-beri), 179
"Coast advances" (Ceylon), 136
Coast-town hospital, 179
Coca, 273
Coconuts (Ceylon), 133

(Malay Peninsula), 173
(Java), 273, 276

Coffee, decadence of industry (Cey-
lon), 129, 130
(Malay Peninsula), 166, 167,

177

Coffee, Liberian (Sumatra), 254,
257

| Coffee, Quillou (Java), 281, 285 I
Robusta (Malay Peninsula),
212

(Sumatra), 229, 236-7,

238, 252

(Java), 265, 277, 281, 285
Uganda (Java), 281, 285
Collection (Ceylon) : working costs
of, 137 estimated future, 139
(Malay Peninsula), proportion-
ate cost of, to pound of rub-
ber, 126 ; working costs of,
189, 221 ; estimated future,
223
(Sumatra), working costs of,

242 ; estimated future, 256
(Java), working costs of, 271,

272, 286

Collectors (Amazon Valley): poverty
of, 28 ; lack of supervision over,
29 ; allotment of cstradas to, 31 ;
rule as to overhead tapping, 32 ;
employment of, 38 ; careless use
of machadinho by, 48 ; their free-
dom from restraint, 55 ; temporary
partners with owners, 56, 75,
122 ; supervision of their work
entrusted to fiscales, 57 ; cheated
by regatones, 58 ; accustomed to
supply working implements, 65 ;
description of their work, 66;
careless as to cleanliness, 75 ;
hardships of, 75-76 ; precarious
position of, 88 ; monthly require-
ments of, analyzed, 89 ; compared
with Oriental tappers, 91 ; hard-
ships of, in coagulating-shed, 92 ;
practice as to delivery of rubber,
96; cost of clothing, etc., 1 08
Colombia, 6, 27, 34
Colombians, 13

Colombo, 130, 138, 141 ; charges
per pound from, to London, 139;
exports from, in 1913, 164 ; esti-
mated, for 1914-1919, 165 ; price
of rubber in, compared with Lon-
don, 191
Colombo Commercial Company,

137

Colonization, difficulties of (Amazon
Valley), 9

308

THE RUBBER INDUSTRY

Congo, 291

Consolidated Malay Company, 220

Consular fees (Amazon Valley), 101

Cordillera, 8

Costa, da, records of, kept at Santa

Maria Estate, 86, 88
Credit. See Truck system
Creping machines, 137, 141, 192,

194
Crime (Amazon Valley), 58

(Sumatra), 253

(Java), 280

Crossley and Co., 137
Crossley engines, 192
Culloden Estate (Ceylon), 145
Cultivation (Ceylon), working costs
of, 137, estimated future,

139

(Malay Peninsula), working
expenses of, 189, 221, esti-
mated future, 223

(Sumatra), working expenses
of, 242, estimated future,
256

(Java), working expenses of,

271, 286

Curing (Ceylon), estimated future
expenses of, 139; convenience
of present process, 143

(Malay Peninsula), working
expenses of, 189, 221, esti-
mated future, 223

(Sumatra), working expenses
of, 242, estimated future,
256

(Java), working expenses of,

271, 286
Currency, Brazilian, 24-5

Damansara Company, 220

Deli, 228, 229, 232, 234, 235

Devon Estate, 208

Diarrhoea, 210

" Die-back," 168, 284

Diesel engines, 192

Dindings, 174

Discipline (Amazon Valley), 31,

(Ceylon), 162
: (Sumatra), 253
(Java), 280

Diseases, 40 et seq.
Djember, 261, 262, 285
Dock dues (Amazon Valley), 100
Doranakandy, 136, 146
Drainage (Amazon Valley), as
remedy for bark disease, 41,

(Ceylon), cost of, on new planta-
tions, 135

(Malay Peninsula), cost of, on
new plantations, 188 ; work-
ing costs of, 189, 221, esti-
mated future, 223
(Sumatra), cost of, on new
plantations, 241 ; working
expenses of, 242, estimated
future, 256

(Java), 263; cost of, on new
plantations, 269 ; working
costs of, 271, 286
Dry season (Amazon Valley), 99,

121

Dryers, mechanical, 194; vacuum,
137, 141, 194, 275 ; artificial, 194
Dysentery, 12, 210, 230, 280

Ecuador, 6, 27, 34

Ecuadorians, 13

Education (Amazon Valley), lack

of, amongst children, 58
(Malay Peninsula), public

schools, 217
Entre fina, 3, 5, 101, 102, 103,

112

Estrada system, 29
Export duty (Amazon Valley, 18-
19, 101, 105, 106, 107, 109,
114, 115, 116,128
(Malay Peninsula), 107, 170,
221 ; proportionate cost of
to pound of rubber, 126
(Java), none on rubber ship-
ments, 266, 286

Factory (Ceylon), cost of building,

I35» 137

(Malay Peninsula), 191, 192 ;
cost of building, 188

(Sumatra), 246; cost of build-
ing, 241

(Java), 269

INDEX

309

Farinha. See Mandioca
Federated Malay Company, 220
Federated Malay States, growth of
trees in, 73 ; cost of planting
trees in, 166 ; export duties, 170,
176; rubber acreage, 172; fixed
charges for agricultural lands,
T75 » general revenue, 176 ; rain-
fall in, 178-80 ; nominal capital
of rubber- producing companies,
185
Federated Selangor Company, 182,

220

Felling and lopping (Ceylon), cost
of, on new plantations, 135,
140
(Malay Peninsula), 187 ; cost

of, on new plantations, 188
(Sumatra), cost of, on new

plantations, 241
(Java), 281 ; cost of, on new

plantations, 269
Ficus-trees, 231, 264, 265, 289,

290
"Fine hard Pard," 3, 4, 5, 34,

101, 102, 103, 112, 297, 300
Fi scales, 57
Flies, 12
Fluoric acid, use of, for coagulation,

193

Fames, 168, 237, 284
Forest land (Ceylon), cost of, 135
(Malay Peninsula), cost of

felling and weeding, 187
Formic acid, use of, for coagulation,

193

Fraca, 4, 5, 28, 101, 102, 103, 120
Fracafina, 4

Freight rates (Amazon Valley), 99,
100, 101, 109, 127

(Ceylon), 139

(Malay Peninsula), 127, 194

(Sumatra), 243, 257

(Java), 275, 287
Freudweiler, Mr., 246
Fungus (Ceylon), 134

Galle, 130

Galvez, Colonel, 37

Gardens, 30

Gedong Estate, 219, 222

Glen More, 262, 285

Godefroy-Lebeuf, Mr., 265

Golconda Company, 220

Golden Hope Company, 220

Goma, 3

Goodyear, Charles, 2

Gouge, 42, 69, 77, 80-8, 124; bent,

42, 65, 67, 214
Grading (Amazon Valley), 100, 101,

102, 298

Grand Central Company, 136
Guapore, River, 6, 23
Guiana Mountains, II
Guttapercha, 290

Hai Kee Estate, 222
Hamburg, cost of shipments to, 224
Henaratgoda, "No. 2" tree, 73,
146-8, 150, 154, 155, 158 ; Cey-
lon Government gardens at, 86,

133, H6, 147, 158
Herring-bone system of tapping :

full, 42, 65, 67, 77, 80, 82, 86,

87, 123, 141 ; half, 42, 82
Heve. See Hevea
Hevea Brasilitnsis, 3, 28, 40, 164,

167, 235, 264, 265, 298, 303.

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