The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-06-30

MEN TO PROBE
PRICE BOOSTS
Believe Americans Gaining
Huge Profits Between
Grower and Consumer

Rio De Janciro, Brazil, June 80
R)- What causes the high price of
coffee? Brazil believes that the
Americans are gaining huge profits,
and have resolved to find out the
truth. The president of the state Of
Sac Paulo, in an interview, has stat
ed that three or four men are now
in the United States trying to as
certain the amount of profits made
by the American roastcrs. He added
that coffee men in sac PaulO are
convinced that Il marketing group,
somewhere between the Brazilian eA-
porter and the American consumer, IS
securing profits that are large
enough to injure the trade.
Two newspapers in Rio de Janeiro
have recently pointed out that the
profits of Brazilian coffee growers
arc very high, and have advised eau
tion in continuing policy which
might lead to serious financial trou-
Bile for the country.
One of these papers. o formal. says
that "the hostile attitude of the
North American is the result OF
prices which even Brazilians admit
are extortionate.
Coffee growers should be salts
fled with less profits is the orin-
ion of O Brasil, which adds that
Financial returns should be confln-
ed to reasonable amount. Coffee,
at present prices, guarantees big
income. Plantation owners, accord
ing to their published balance snects,
have net profits ranging from 20 to
100 per cent on the money invested.
The American nonbuying movement
to force down the price is perfectly
legitimate"
Producers usually deny the asscr-
.tion that they are gaining 100 per
cent annually on the money invested.
II is pointed out that farm values are
rising rapidly. DR.. Augusta Ramos,
author of a book on coffee and a
former manager of a large planta-
ton, says that the average size cot
fee farm in the Sac Paulo region Is
now giving an annual profit OF $50
000. and that the market value of the
farm would be about Sl50.000. He
claims that the growers are only Sc
curing a reasonable profit and that
they cannot sell at a price below
present quotations.
There are numerous indications
that Brazil expects to hold up the
price of coffee. The new cooperative
defense institute of Sac Paulo mas
been buying on the Santos market
to prevent fall in prices. move
mcnt has just been started by the
state of Sac Paulo to secure coor-
dinated action among the nelghbor-
ing coffee growing states for holding
back entries of coffee at the port Of
Rio de Janeiro, similar to the sys-
tenn used at Santos.
The June number Of Brazilian Bus
mess, the official magazine of the
American Chamber of Commerce for
Brazil, publishes the following state
ment, in an unsigned article, on the
coffee situation:
1--WE believe that moderate coun-
sells will govern the future policy of
Brazil in regard to her great staple
industry. for she would risk too much
by prolonged attempt to circumvent
the fundamental law of supply and
demand. The continued prospect of
reasonably remuncrativc prices is
more important to her than the tenn
rorary advantage to be derived from
the extraordinary prices that have
prevailed for so long. The leaders
in her coffee industry certainly real
lie THIS tact. ana their objective Is
a market with minimum of fluctua-
tons around an average price level
that will assure ample returns to
the growers and yet not result IN
diminished consumption abroad In
this policy thew are in complete ac-
cord with the American coffee trade"
If anyone cuts down trees in Den
mark, he must plant an equal area
of new trees.