The Birmingham age-herald., 1908-10-05
RUBBER INDUSTRY
 SUFFERS GREATLY
Stagnation In Trade Is Injuring
 the Exporters
PRICES ARE MUCH TOO LOW
Cost of Harvesting Rubber Has h. creased Heavily, While the De- mand Has Lessened to an
 Alarming Extent.

mand Has Lessened to an
 Alarming Extent.
 Washington, october 4-0special.)-The | following report concerning the exports of rubber from the Para consular district, and the serious losses sustained from the fall in prices, is furnished by Consul George H. Pickerell of Para:
 Statistics covering the exports of rub Der from this consular district for the year ended June 30. 1908. are now avail able. The interesting part, and the one not shown. Is the effect produced upon this market by the crisis in the United States.
 During the year the United States took 219 375 metric tons less than was taken by Europe and 100000 tons less than the direct American purchases in the previous fiscal year Financial conditions did not permit American importers to buy direct when prices were at their lowest ana they are now and have been for some time getting part of their supplies through Europe The effect of the low prices has been even more startling. It is said that the state of Para alone will suffer loss in revenue for the last fiscal year Of $2, ,0O00 000, and individual houses are now, and will be for some time to come, crip- pied by the tremendous decline Interest rates run from 12 to 24 per cent per an- mum, with a commission added. Of course, the higher percentage is exceptional, al though it is said to be easily obtained and with fairly good securities to back it up. Exports of Para Rubber.
 In connection with the present rubber crisis the merchants and buyers generally are more disposed to look favorably upon newcomers who are desirous of opening up business connections and especially those who are in a position to sell more cheaply. Heretofore it has been difficult to secure attention, as everybody was do- ing well and no one cared to entertain new propositions. Merchants are now more approachable, and this extends to those interested in the development of rubber properties. All realize that some thing must be done to meet present low conditions, and any one that can produce means to that end will be sure of an op- portunity to talk and show his goods.
 Present Conditions.
 Consul General George E. Anderson of Rio de Janeiro furnishes the following concerning the present condition of the rubber industry of Brazil and the out look therefor
 The actual state of the industry in the country is indicated by the fact, related in the annual report of the minister Of finance. that the value of the exports of seringa rubber during the first three months of 1907 was $25 ,943, ,547, while the value of the exports of this variety dur ing the first three months of 1908 was Slo,- 443, ,566, a difference of s9,499,9S1 on that variety in a single quarter. While prices have recovered somewhat from the eX- tremely low level which they reached dur ing the beginning of the year it is gen. erally accepted as an established fact that they will not reach their former level for an indefinite period. This fact is of the most serious import to rubber ex- porters in Brazil, for the expense of gath ering the gum is constantly increasing
 Aside from the general increase in ex- penses, due to the necessity of working country heretofore not included in the range of operations, the price of labor in
 the rubber country has augmented until 1t is impossible for rubber collectors to
 be found at prices which dealers can pay in many of the districts concerned in rub Der work This. state of things is due mostly to the fact that the inauguration and prosecution of industrial undertak- ings like the Para docks, the Madeira and Marmore railway, and various smaller un- dertakings has offered men who formerly collected gum more and better support than the rubber business can afford. There are other conditions which con- tribute to the state of the labor market, and the rubber industry. so that on the | whole rubber is costing more than 1t has | in the past and 1t is likely to cost more in the future. The disposition of the sell ing market to sag at the least possible excuse and the increasing supply of rub Der from plantation sources, render the position of the Brazilian industry pre- carous, and the governmental authorities
 are making every effort possible to induce the people interested in rubber to give their attention to the growing. of other and varied crops
 The tax of % per cent on the official valuation has actually shut off all profit , and represented an actual loss to owners and shippers at times during the year The state governments derive most of their living income from rubber and the result of the situation has been great diff, hculty on the part of the states and the business to live, not to say to prosper. British North Borneo. Consul Lester Maynard of Sandakan, transmits the following information. pre- pared by the manager of the Sapong tate concerning the results of the culti- yation of rubber trees in British North Borneo:
 | The yield of 1s4 pounds of rubber per tree in F months tapping of trees be- | tween and 6la years old Cat the termina- tion of these experiments) is extremely satisfactory. and so is the work of the ] tapping cooly who took on an average 16 cuts to remove 1 inch of bark. Most of this tapping was done with an ordi. nary farriers knife and some with q
 safety tapping knife both simple in- struments devoid of adjusting apparatus. The trees were tapped every alternate day for one year without any rest. ex- cept on such days as rain fell or the worse for this treatment and have yielded 20, ,s49 seeds, as against H. .591 the previous year.
 Seed is harvested at Tenom from Au- gust to November, and, if the weather is favorable, again in January and Feb ruary.
 In connection with the question of seed l might here mention as a matter of in- terest that tree on the Sapong estate lowered when just 20 months old. Wounds from the Wrapping seem to heal much more quickly and evenly than those from half clearinghouse. probably the extra irrigation from the three cuts of the latter prevented the regular heal ing of the wounds.
 There is practically no difference in