Evening star., 1944-04-07
Letters to The Star
Amazonian Impressions Prompt
Words of Caution
To the Editor of The Star:

Recently there appeared in the En-
gineering News-Record a description of
the Ford rubber plantation near San
tarem, Para. Brazil. That article does
not deal with generalities but with facts.
AS far as the present production of rub
Der on the Ford plantation is concerned,
it is small-about 500 tons for l943-
and the development was commenced
in 1929. This is not the issue; what is
OF interest is that at present the 1000
acres containing 3,500,000 trees-later to
be thinned to only ,750,0 Ca good Bra
lillian tree gives about 10 pounds of
latex per annum)- has been developed
into pleasant community in the midst
OF the terrible, unhealthy Amazonian
Jungle about which so many weird and
mostly untrue tales have been written.
Here the Ford money has built
community of 5000 people who live un-
der conditions far superior, in many
respects, to those of the laboring classes
OF similar category in this country.
AT hrst 1t might seem that these peo-
pie lack much that We have, but to
understand the matter properly it must
be realized that much that we need is
Superfiuous and useless in climate like
that OF Amazonia The wages, from our
standpoint, are ridiculously low but the
main sources of individual expense and
"unpredictable expenses" are taken care
OF by the company. Free housing,
disqualification, medical care, nursing,
light, water, dentistry and schooling are
given. Food, clothing, household sup
plies and other staple necessities are
sold at cost by the company 1t is true
that as yet not penny of direct profit
Nf t1,a rrI-
organization has invested some So. 900 900
there since 1929, but that is relatively
small amount for the results accom-
pilshed. This money, to great extent,
represents direct wages. the workmen
taxing the natural raw materials of the
locality and utilizing them for their
needs in housing and civic improve-
ments. 1t shows what good can be
wrought by money properly applied.
In contrast is the mild expose. in the
News-Record article, of the wasteful ex-
penditure without much cash result. The
Ford rate of nay for rubber tapping
seems low-about IS cents day-whiIe
the "hurrah boys" offered the eouiya-
lent OF $2.65 cents day. Some of the
Ford workers left to gather wild rubber,
but they soon returned to the planta-
ton disguised. They found that they
were only paid for go per cent of the
latex gathered, and that the hardships
were not compensated and that the ex-
penses that they had to meet from their
wages lett them practically in debt.
hence, they found themselves infinitely
better OH working for the Ford interests
than Tor the 'hurrah boys" All this
makes one do some thinking about the
constantly reiterated claim that the
american workman is paid more and
tnere1ore Is better of than any one else
In the world. 1t also raises the question
as 10 whether or not we are not fooling
ourselves to some extent when we are
leo 10 oelleve that our industry has the
world at its feet. Annually we are
plagued with tornadoes, floods. forest
nres, extremes OF heat and cold, heavy
SHOWS, ETC., which all lay a burden of
charges against our production and
winch must be charged up to it. Sea-
Sonal climatic changes cause workers
much annual expense for different kinds
OF clothing, and our homes and factories
are expensive because we have to heat
tnem ana air condition them. This also
aods TO the cost Of production. Senator
Ia1t evidently recognized these factors
Wnen, In a recent magazine article. he
mentioned that while we could produce
many things cheaply, due to skill and
plant facilities, he doubted If we could
produce as cheaply as some other people
coulo, once they were industralized and
possessed plants approaching ours. As
ne remarked, the South Americans the
natives Of Africa, the people of India
ana the people Of Southern China can
use machinery and modern methods
TOO, II they are placed in position to
90 SO, and it costs them much less to
1--we, merely due to climatic conditions
II for no other reason.
40 not wish to appear pessimistic
but facts are facts and we are not loo
per cent sold on general national
prosperity after this war unless we cease
to engage in foreign trade, build a wall
OF tariff around the country, devise some
method by which we create a constantly
rising cycle of needs within this country
and live by taking in each others wash
ing at constantly rising prices Too few
remember the generally believed theory
current in 1923 or thereabouts that we
never could have a depression in this
country. All we needed was q general
demand for more and more and still
more. '---
we recall that once a Brazilian cloth
mill owner complained to us that he
mad huge stock on hand and feared
that he would go bankrupt If he sold
IL at the market because he would only
realize 20 per cent profit. I asked him
what he regarded as profit and he told
me that he figured on about 100 per
cent. This is cited to show what oppor-
tunltles exist in growing countries for
the profitable investment in plant bv
those who have the capital, and it is
not hard to imagine flight of capital
from this country to those still in a
relative state of undevelopment.
Another illustration may be found in
the statement made by an official of the
national Brazilian company formed to
develop the Rio Doce Valley in the State
OF Mlnas Gerais. This man said that
the government-held preferred stock
could pay dividend of IS per cent
which, by Brazilian Standards was not
an excessive rate.
Perhaps people do not realize it but
much OF our foreign market was lost.
durlng the last war, because conditions
forced certain nations to begin to pro-
ouce Tor themselves. This war is forc-
ing the same sort of DEVELOPMENT at a
greater rate and again we may find our
previous markets in certain lines miss
ing when peace RETURNS