The Birmingham age-herald., 1920-01-05
{ Main \ 4900
GOULD PLANS FOR
 DEVELOPING BRAZIL
BY HOLLAND

BY HOLLAND
 New York January {, 1920. (Special).-~ few years before Jay Gould retired from active business he. with others, received a concession from Brazil which was presumed to contain possibilities, if it were properly used. for large gains Very likely if involved some railroad construction although the privileges which it offered were known only to a few. Mir. Gould. however hesitated, not deeming himself in position 10 undertake the important obligations which the ex- ceptance of the concession involved. He had already, in association with General Grant and some others, under taken to construct a railroad line from the northern boundry of Mexico south erly ultimately as far as the city of McM- co, He had caused about one hundred miles or the proposed line to be sur veyed and part of it to be graded No doubt he was lead into this undertaking by the enthusiasm which General Grant | felt whenever he discussed the oppor- tunities which the development of Mexico offered to American capital and enter prise.
 The plan, however. was abandoned. al- though recently some part of the parti- | ally constructed road bed has been util- | ized for proposed new railroad which is to extend southerly into the oil-bcar- ing regions i Mir. Gould was also at that time urged | to look favorably upon the proposed in 1 tercontinental railroad, the promotion of which was earnestly advocated by Hinton Rowan Helper. who in tho days before the civil war; had gained great reputation by reason of book which he wrote and published which was en- 1 titled "The Impending Crisis | MT Gould gave small thought to this proposition believing that it was irnprac- | ticable, going so far as to say that if road of that kind were built it could not get traffic enough 10 pay for the opera | ting expenses CT the interest on tho cost of the construction.
 NOT FAR ENOUGH AHEAD
 Were MT. Gould alive today he would | realize that the criticism which he made some forty years ago of the proposition 1 to build an intercontinental railroad while it may have been sound enough | at that time was a mistaken view Of future possibilities. That intercontinen- tai railroad is undoubtedly to be built and in fact there remain only two or three connecting links in order so to complete it that it will be possible to take sleping car at New York or Chicago and not disembark until Valparaiso. Chifi, or Buenos Aires, Argentina- is reached.
 So too the concession which came ! from Brazil and which has remained. 1 imperative chiefly because MT Gould | decided that he could not accept the opportunities which were offered is pro tably the identical one, at least in Its chief features, which a group of inter national bankers in New York city are | now examining so that they may decide whether or not it be advisable for them to aid in the financing of this conces- sion.
 A BRAZILIAN CONCESSION
 Exactly what the opportunities arc that are offered by this concession is known to the bankers and to those who are interested in the proposition. But 1t undoubtely involves large financing and presumably the cultivation of very ex- tensive tracts of land in Brazil and also the building of railroads for the trans portation of the products of the soil to the seaports.
 The feature of the consideration which is now in progress which is especially gratifying is the interest which Amerf- can bankers are taking in large proposl- tions which come from South America and which before the European war oe- gan would undoubtedly have been taken to London or Paris. There are several of these propositions under considera- tion or about to be considered. One IS a Peruvian concession. to which reference was made in this column the other day All of these show a new and friendly disposition on the part of the South American nations toward the umted States. Of course this in part explalnable by the fact that the present is no time to approach the chief fnanical centers III Europe for the purpose of financing very
 important propositions whereas on the other hand it is favorable time to make approaches of that kind to Amerfcan| capital
 The American bankers however, are not willing to assist in financing pro- positions of this kind unless they are abundantiy fortified with satisractory evidence that the proposition is soou one that it promises excellent pronts, and that it would serve to increase m ternational trade relations between the United states and South America.
 Therefore the bankers are awaiting re norte from competent men who are com d missioned to make investigation do tnat if can he determined whether or not the rropositions may be 2 reasonable one. The bankers are willing to take the say so of the representatives ot Soutu American nations who have come 70 New York with the purpose Of interest ing these bankers n important proposl- tions Yet there seems to be a disposi 1oh to believe that representations wiuch have been made. especially by those wno are concerned in the Peruvian and m the Brazilian concession. will undoubtedly pc Justified by investigation. If they are the probability is strong that there "lli be a heavy investment Of American capital in very large south Amerlcai' l x.onoeitiopS duriflg tlC Vpar ln2N.