An Even Billion

BRAZIL An Even Billion

The No. 1 tycoon of Sao Paulo, of Brazil and probably of all Latin America is Count Francisco Matarazzo Jr., 52. The commercial empire founded by his Italian-born father was already the biggest in Brazil when he inherited it 15 years ago. Since then the count (Italy's Victor Emmanuel bestowed the title in 1917 for charities in Italy) has tripled the empire's possessions. His firm, Industrias Reunidas F. Matarazzo (I.R.F.M.), employs more than 30,000 workers in 367 plants (textiles, foodstuffs, 80-odd other miscellaneous products).

In Sao Paulo, the world's fastest-growing major city, Matarazzo's may well be the world's fastest-growing fortune. But as the strong-minded boss of a closed family enterprise, the count himself is the only man who knows, and he is not inclined to say. His consolidated statement for last year indicated that his firm rolled up a gross profit before taxes of 831,864,738 cruzeiros ($43.4 million). Thanks to Brazil's easygoing tax laws, which take only 17 1/2% of dividend returns, Majority Stockholder Matarazzo's income for the year soared high into the millions even on this somewhat sketchy accounting. Yet the count works day & night pyramiding his holdings ever higher. Last week he announced that beginning Jan. 1 the firm's listed capital will be increased one-third to an even billion cruzeiros--nearly 100 times greater than that of the first family holding company set up by his father in 1911. "And in two years," predicted the count, "it will be time to increase capitalization again."

Matarazzo also announced that he was ready to start building a new, ten-acre plant to make PVC (polyvinyl chloride), basis of such popular modern plastic products as raincoats, upholstering materials, wire insulation. To be built in partnership with B. F. Goodrich Co., the plant will be the first of its kind in South America. Typically, it is a natural outgrowth of another Matarazzo venture--a caustic-soda plant adjoining the site at Sao Caetano do Sul. "It is the Rolls-Royce of products," Count Matarazzo announced with finality.

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