only practiced regionally by São Paulo, Minas Gerais and Rio de Janeiro, which had signed the Taubaté Agreement. These measures would later result in a period of great prosperity and inflationary control, interrupted with the advent of the First World War. The great influx of foreign capital to Brazil, obtained with the exportation of coffee, and the measures aimed at restricting the expansion of coffee crops adopted in the Taubaté Agreement made it possible to expand the industrial sector during the period. In a industrial census held in 1907, 3,258 companies were counted, which together employed 150,841 factory workers. This census included manufacturing and large industries. However, out of the large factories, 85% were concentrated in São Paulo. The Pena government modernized the Army and Navy through general Hermes da Fonseca and Alexandrino Faria de Alencar, during which Brazil acquired the Minas Geraes-class battleships kickstarting the South American dreadnought race; and encouraged immigration. His motto was "to govern is to populate", later adopted and expanded by president Washington Luís, who declared: "to govern is to populate; but you cannot populate without opening roads, and of all kinds; to govern is, therefore, to build roads". During his term the first wave of Japanese immigrants arrived in Brazil in the ship Kasato Maru disembarking in the Port of Santos in June 1908. The ministries during Pena's presidency were held by young politicians who respected his authority. These young ministers were nicknamed "the kindergarten". Pena even declared, in a letter to Ruy Barbosa, that the function of the ministers was to carry out his thinking: "In the distribution of ministries, I did not worry about politics, because that direction falls to me, according to the good rules of the regime. The ministers will carry out my thought. I make the policy." Pena greatly encouraged the construction of railroads, especially the construction of the and the connection between the São Paulo and Paraná railroads, allowing, for the first time, the connection of Southeast Brazil with the South by train. Pena also modernized Brazilian capitals and ports. During his term the Brazilian National Exposition of 1908 was held in Urca, Rio de Janeiro, featuring pavillions of Brazilian states and Portugal. Due to his departure from the traditional interests of the oligarchies, in the so-called oligarchic Old Republic, Pena faced a crisis at the time of his succession. David Morethson Campista, nominated by Pena to succeed