New-York tribune., 1910-02-27
FOR BETTERCOFFEE
STUDY MARKET HERE.
Brazilian Planters Pore Hay
TO Eliminate Middlemen.

The possibilities Of an international sell
ing scheme &c dispose of the big Brazilian
coffee crop without middlemen through
government agents in foreign lands. which.
n is predicted will result in better coffee
g. lower cost TO Americans and Europeans.
sre being investigated here by Colonel Gull
herne r da Silva, who is studying condi-
tions in the United States for certain
wealthy Brazilian coffee planters
He believes that the success OF this plan
IN the United States which has been not
shle in Europe VIII no. only benefit Amer
leans. who consume about 20 per cent of
the Brazilian crop, but also free most of
the planters from intolerable financial de-
pendence on the commission merchants,
which has resulted in the mortgag ging OF
many plantations.
Subsidies to planters and expenses OF
r-,,ropean agents are being paid by the
states Of Sac Paulo and SIinas Geraes from
exnort duties on coffee which were levied
e-e+ when the ''vaiorization plan
tried hv the government q few years ago.
en5 which have been available for this
rr-rose since that plan was abandoned
Several agents in Europe have been very
s,,ccessr,l in getting higher prices there
than were obtained in Rio de Janeiro by
either special brokers Of the planters or the
ordinary commission merchants In ex-
rlaining the situation yesterday Colonel da
Silva said.
..-rbe majority OF the planters have been
eft the mercy Of the commission merchants
cn account of their lack OF capital, which
IS advanced against the crop. or part Of
i- bv these commission houses. Often the
sum received for q crop has not compen-
Sated the planter for his work. and II is
well known that very few planters have
been able TO pay off the mortgages on their
Plantations. This is not surprising, as the
majority of the commission merchants have
70 borrow at a high rate OF interest the
money they advance to the planters Great
IS the anxiety TO see the coffee coming into
the market; there is a nervous rush TO dis
pose Of the crop to those who have cash:
those who have ready money are usually
the foreign buyers. who buy at low prices
and control the market without regard for
the producers
GOVERNMENTS TAKE Up PLAN
Consumers abroad do not benefit in the
least from the oppression OF the planter,
as experience has shown and Brazilians
realize that the country is not compensated
sufficiently for its chief product. The qnes-
ton OF eliminating spectators and getting
into close touch with the consumer or re
taller abroad has become an issue and the
governments OF the coffee producing states
sre seriously absorbed in its solution They
believe that if the planter deals with the
foreign, consumer more directly the con-
SINNER will get better coffee at a more reas-
enable price and the planter will have
an opportunity to produce better grades OF
coffee and also get a higher price for his
product.
In The state Of Sac Paulo the government
has taken into its own hands the propaga-
ton: an export duty coffee of hFe francs
q bag is charged: from money so collected
large subsidies are paid to planters; faVors
are granted 10 firms abroad fer services
rendered and a number Of agents are active
in Europe creating demand for Brazilian
coffee with results that encourage All 10
renewed work and expenditures
The government Of Minas Geraes is fol-
lowing 2 different course. Many co-opera-
rive agricultural societies have been formed;
these societies have sent abroad their own
agents to whom they consign their PROD
lcts: the results have been aSIoaishlngiE
beneficial 70 the planters thus organized
The large expenses OF the societies are paid
br the state from export duties on coffee
q three francs a bag.
The most popular newspaper in Brazil
% Patz' which is the unofficial rnouthpiece
Of the federal government, has taken very
active part IN furThering the work of the
state governments: It now urges the estab-
Ii.hr1eut of an agricultural bank with a
capital Of $1,000 900, 20 help the organized
planters TO send abroad all their product,
and thus eliminate the market OF Rio de
Janeiro. which has not brought as high
prices as have the markets abroad.
RESULTS ATTAINED IN EUPOPE.
Tn an article published recently by %
Pafz' are given the results Of sales Of
coffee in Europe by agents Of four CO.
operative societies, and of sales IN Rio by
special brokers of the societies, ard Of sales
IN Rio by their regular commission mer-
chants Taking as q basis one arrooa,
equaning thirty-three pounds, the returns
in Brazilian currency (reis, $50 were:
c,o-oue-ative Society of Rio Branco-
Sold n Europe ----------- 9s:7to
Sold IN Rio by brokers -------- 4Sola
Sold in Rio by commission merchants dSoSo
fet-- Of