The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1900-04-09
THE RUBBER INDUSTRY
HEAVY INVESTMENTS MADE IN
BRAZIL
The Valley of the Amazon is Still Open
to More Cultivation-Rubber Produce
insufficient.
Consul Kennedy of Para, writes:


THE valley of the Amazon still re-
mains almost uneXplored. What has
been done, has been accomplished in a
great measure, by Europeans. l can
but repeat my advice to progressive
Americans to enter this field. We now
control a good portion of the imports
both of Manaos and Para, and supply
large quantities of machinery; but we
should do much more, for the trade Of
northern Brazil is growing all the time.
Para has doubled its population IN
the last four years, and Manaos has
increased it's commerce 100 per cent
within half that time.
"A Belgian French syndicate is di-
recting it's attention to the upper ANA
zon. It's name is Compton Colonial
Francais,' the main offices being in Pa
ris with branch office at Para. Another
is to be established at Manaos.
The first transaction of the syndicate
was the purchase of the rubber estates
known as Casa do Javary,' comprising
twenty-one rubber fields beginning at
the mouth of the Ttequary River. 1 am
informed that the price paid was 5000
COntos, or 100000 milreis, which at
present exchange is about 1920 900. A
cash payment was made of e75,000
$685. 000). The company is capitalized
at $2,000,000. l am also informed that
the managers have made an offer of
$4,000 for rubber districts on the Ituy
River, an affiuent of the Javary, ex-
tending for Is miles on both banks of
| the river, but the proposal has been re-
! fused.
| Advance agents of a London syndi-
| cate with a capital of G10,000000 ($4S,
go, 000) are also examining the rubber
| fields, and others, representing Euro
| pean interests, are to be seen all along
| the upper Amazon. The United States
is as much interested in the rubber in
| dustry as any of those countries, and
American. capital is generally eager for
| safe investment with liberal returns;
and I can not see why so little attention
is given to the possibilities of the ANA
| ION Valley. If European capitalists are
| allowed to control this business, it will
! be detrimental to our interests. The
| demand for rubber is constantly grow
! ing, while the production is hardly
| equaling that of past years. After a
| while, those who have not fOreseen the
necessity of securing the raw material
may find themselves at the mercy OF
| the owners of the rubber fields.
"Manaos, 1000 miles up the Amazon,
has a population conservatively esti-
mated at between 10000 and 5O,OOO and
| is the depot for all the rubber gathered
| in the upper valley Para firms have
branch houses here. The city lacks,
! however, two essential elements of
osperity-banking facilities and tele-
graphic communication with the outside
world, There is a cable between Para
and Manaos, but the Amazon current is
so strong that the cable is not in work
| ing order one month in the year. Trees
and other distractions break it fire.
quently, and it is constantly undergoing
repairs. Both Government and mer-
chants are anxious to establish good
Geographic service. 1t will be an eXpen-
sive work, but no doubt will pay, with
| the Government subsidy. The present
cable company receives quite a large
subsidy. The new line has been started
and about $50 miles have already been
! finished
There is not a single bank in Manaos,
and long credits are attended with great
! inconvenience. At present, money is
scarce there. Para banks make a spe-
cialty of loans.
Rubber is a leading source of State
revenue and pays heavy taxes.
| The concessionnaire of the Rio Ma
| deira Railroad has sold out a Manaos
| firm, which is to raise the capital in six
| months. There is some doubt as to
whether the money can be raised. The
! Manaos State government is so anxious
| for this Improvement that, although
! the road will be in Matte Crosse terri
tory it will give liberal subsidy to the
! firm undertaking the work, offering
! $4,000 for first payment. This road,
which will facilitate the exit of the Boil
ivian production of rubber, will be an
important undertaking. The failure of
| previous Attempts to build it seems to
be due to the exclusive employment by
the contractors of foreign workingmen,
who canot stand the climate. If the
contractor would engage natives to do
the unskilled labor, he would succeed.
The men who actually superintend the
work are not particularly subject to
| fevers, and with a little care in import
ing proper food the enterprise can be
successfully accomplished. 1t is certain
that the road will be finished by some
| one-I hope by an American company.
/ II Will be remuneratiNan