Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-11-26
Trying to Interest American
Capital.
MANY OPPORTUNITIES
MINISTER AND CoNSULS REFER
TO THEM IN REPORTS.
Proposed Public improvements Give
Chances to Contractors Facts
About the Rubber Industry.

Rio Janeiro, attempted mutinies Of militia
officers. new war ships and German col
onization Some of this news Is Interpreted
intellfgently In the United States, but much
Of 1t is misunderstood.
At this time there is in the United States
a number Of Braziians seeking to interest
American capital. The government. whose
policy has been close relations with this
country; has succeeded in removing much
OF the political distrust which once existed.
But 1t cannot be said that the commercial
relations develop rapidly. We send about
the usual quantity of -four. while Brazil
supplies us with coffee and rubber about
as our markets call for them. The call for
rubber increases all the time, due to the
growth of the automobile and electric trac-
ton Industries. Coffee, consumption in the
United States also increases, and Brazil
helps to fill the bigger coffee pot, but what
she seeks more especially now is American
capital In some of her other productive re-
sources.
Consul General Seeger, who is now at
home. recently has taken occasion to call
attention to the opportunities in Brazil,
though he does so very conservatively. But
the first question put to him usually Is
about the revolutions. Now. Brazil Is not
and never has been land of uprisings. 1t
is Portuguese-America and not Spanish
America.
Opportunities for Contractors.
The American minister and the American
consuls in Brazil have been making earnest
reports. urging that contractors in this
country take advantage of the harbor and
other improvements which are being made,
not only at Rio Janeiro, but at various
ports. Thus far they have not received
much response to their invitation. The
American capital which is invested in
Brazil is not, in reality from the United
States Most of it is Canadian capital. 1t
Is a Canadian syndicate that owns the cleo
trio light and the trolley franchises in the
city of San Pau1o, which is one Of the most
modern cities in South America. Recently
they have acquired extensive franchises In
Rio Janeiro and have formed a company
with 5000. geo stock. Two New York bank
II between them they represent more than
$3.50, Goo
Yet when the Yankee capitalist does come
along in Brazil he makes out pretty well.
My recollection is that 1t was Yankee
and not Canadian who dropped down to
Santos from San Paulo one day. Santos is
the greatest coffee port in the world, and
in former years was the dreaded yellow
fever plague spot. A splendid system of
Quays and harbor improvements banished
the yellow fever and the old port began to
lose some of its Portuguese ricturesqueness
and take on a modern appearance. But II
was content with an old-fashioned horse
car line This Yankee rode over the sys-
tenn one morning and then hunted up the
owners. he asked them I0F an opium OH
their property at fair price. 1t was gwen
him, and the same night he took the
steamer for Rio Janeiro. On the day OF his
arrival In Rio he kept himself pretty busy,
which he disposed of his option to a trolley
syndicate at net profit of $4,000. That
was quick money, but there could not have
been quick money II the opportunity had
A German, who went to Rio fourteen or
fifteen years ago as a brewmaster. lately
was in the United States with his family
visiting the st. Louis exposition. He was
taking a vacation. He could afford to do
SO, since his income was somewhere be-
tween $4,000 and $4,000 a year. He has
seen the opportunity of combining the Rio
breweries and had formed them into
trust. He had read something OF these
combinations in the United States and was
one of the first to apply the idea.
A Rubber Expedition.
The rubber expedition up the Amazon
which started fortnight ago has been de-
scribed as q yachting trip of number OF
wealthy gentlemen purely for pleasure One
of them first got an insight into the pos
sibilities Of rubber production when he was
consul at Para and since his retirement
from official position has made fortune;
1t may be that the yachting trip as stated
is for pleasure, though even -blase travel
ers hardly would go up the Amazon with
out more definite purpose
A SUGGESTION mas OeSn- mace tNdt lH0
voyaging party may be seeking to control
the rubber output of the Acre territory un-
der concession from the Brazilian govern
ment. Brazil paid Bolivia an indemnity
of 100000 to forego all claim to that
region 1t is understood that the policy
Of the government is to reimburse itself
for this indemnity out of the revenues OF
Acre and in order to do this it will be
necessary to secure liberal payment from
whatever syndicate obtains the concession
for exploiting the Acre district.
Since rubber already Is subject to an
export tax some remuneration may be had
from that source, but this will be simply
as part of the general revenues of the
nation. No one yet knows the extent Of the
rubber product In that region, but both
Peru and Brazil think that the output will
be great one and that has been one
trouble In arranging the adjustment of their
dispute over the boundary limit This con-
troversy is now in the course of settle
ment by diplomatic agencies.
Much importance is given to the high
grade rubber from Bahia which is known
as manicoba. 1t Is claimed that this rub
Der tree can be reproduced by seeds or by
cuttings and the milk obtained within five
years.
The suggestion is made that the manicoba
tree can be transplanted. to the tropical
possessions Of the United States and the
ruober-growing industry be developed in
cuba seem to be equally as good soil for
the experiment.
Encouragement to Cotton Growing.
While Brazil expects to draw an increas-
ing revenue from Its, rubber territory, the
public men now in control Of the govern
ment do not look on that as the most
inviting field for foreign capital Nor do
they encourage increased investments In
conee plantations. Instead, the policy is to
limit the coffee production SO that profit
abe market can be secured for the product.
But they are giving encouragement to
cotton growing, which is making Roadway
In the big coffee state of San Paulo. They
do not yet consider themselves an i'm
portant factor in the European movement
to become independent of the artificial
manipulations of American cotton specu-
lators, but they have definite Ideas about
increasing the supply for home consumption
and establishing cotton mills.
San Paulo also has enormous timber re-
sources which 1t Is just beginning to de-
yelop. Though Brazil for a long time will
continue to import American flour. and
Argentine wheat, Its agricultural area Is
constantly extending In the southern
states the live stock industry is growing
and the cultivation of the cereals is ex-
panding. But this is in section of the
country thousands of miles distant from the
rubber forests of the Amazon. It is within
the temperate climate, and is part OF that
enormous wheat growing and cattle raising
basin OF South America which includes part
OF Paraguay, Uruguay and Argentina. The
development OF this section is not entirely
dependent on the degree to which the