The annexed gives the length, receipts, and expenses of the railways in 1867. The receipts and expenses of the S. Paulo Railway include only nine and a half months:—
| Name. | Kilos. | Receipts. | Expenses. |
|---|---|---|---|
| D. Pedro II | 197.4 | 2,523:796$781 | 1,117:034$992 |
| S. Paulo | 139.0 | 1,236:423 702 | 305:140 286 |
| Pernambuco | 124.9 | 599:331 445 | 414:772 537 |
| Bahia | 123.5 | 263:323 292 | 517:870 760 |
| Gantagallo | 49.1 | 709:222 555 | 365:830 300 |
| Mauá | 17.5 | 297:595 347 | 172:297 628 |
| Total | 651.6 | 5,599:693 122 | 2,892:955 503 |
These figures leave a balance of 2,706:737$610 over the cost of working.
D. PEDRO II. RAILWAY.
With the Macacos branch the length of this railway is 203 kilometres, 56.6 kilometres having been added during last year in its prolongations towards the station of Entre Rios. Failing to come to an agreement with the Companhia Mineira for the extension to Porto Novo da Cunha, an offer was made by the Companhia Uniao e Industria to construct a cart road to that point, the final offer of this Company being to make it gratuitously if certain favours were conceded to it. However, its offers were declined, as a cart road was judged incompatible with the requirements of the railway. Under these circumstances, as the state of the finances did not permit the contracting for the extension, orders were issued to give it a commencement by administration; and at the present time the works of the first miles are tolerably advanced.
A proposition to construct and work the fourth section has been received from capitalists and planters of the district it would serve, and it is now awaiting solution.
The competition between the railway and the Uniao e Industria road being prejudicial to both, the directory of this road has proposed bases for a compromise as under:—The Uniao e Industria road company to give up all its traffic between its station of Posse and Rio, receiving as compensation certain advantages, the principal one being the duration of its contract for twelve years, and the receipt of 120 rs. on every arroba transported on the railway between Entre Rios and Rio, which, it is estimated, would give the company 324:000$ annually, and transfer traffic of 2,700,000 arrobas, or 1,000:000$ annually, to the railway. In order to facilitate this transaction the company proposes to lease the railway for twelve years and pay a dividend of four per cent. to the Government. It also proposes to make any extension determined on, that to Porto Novo to be finished in five years, the Government to furnish the money, and the company to receive no compensation for its trouble except what would arise from the 120 reis the arroba upon the traffic over the line from Entre Rios and Rio. On the completion of the Porto Novo branch, the company would receive 2,000:000$ out of the profits over the four per cent. dividend as indemnity for any loss, rights or advantages secured to it by the contract of October 29, 1864, and it would then commence the construction of the railway through the valley of the Parahybano towards the Serra of Mantiqueira, using for this purpose four-fifths of the net revenue received from the railway, one-fifth remaining for the company, this continuing until the end of the twelve years, and the company binding itself to make, at its own cost, the branch from Juiz de Fora to the railway station of Uba. If, however, the Government judge it better to construct a system of macadamised cart roads, centering at Entre Rios, the company will then pay six per cent. on the railway, and will construct within four years, twenty leagues of road to Porto Novo da Cunha, and on to Barra do Pomba, and will, within six years, macadamise the Serraria road as far as Mar de Hespanha, the road from the Parahybuna station to Flores, and that from the Uba station to Juiz de Fora; making also, during the last six years of the contract, the road to Barbacena, following as much as possible the trace drawn for a railway, and prolonging it to S. Joao de El Rei. Besides, the company will settle 2,000 families of colonists along the road from Uba to Juiz de Fora, and on that between Juiz de Fora, Barbacena, and S. Joao de El Rei. The company also binds itself to keep in order all the cart roads in construction, transporting freight and passengers on them at the rates provided for the Uniao e Industria road; and, in addition, to deliver up to the Government, at the end of the twelve years, the railway and roads in good condition.
Three proposals have been made for the prolonging of the railway to the waterside; that of the engineers, Senhors Bulhoes and Passos, proposes to bring the line to the Praia da Gambôa, and there construct large warehouses and furnish all facilities for shipping and landing goods; that of Senhor F. B. Jansen Lima and others proposes to pass by a tunnel through the Livramento Hill to the Praia da Saude; that of Senhor Feliciano José Henrique proposes to connect the Santa Anna station with the principal parts of the city wherein goods are now stored.
The capital employed in the railway having been 27,525:957$816 upon the 31st of December last, its net income of 1,422:434$402 during the last year represents a dividend of 5.16 per cent. upon its cost, which percentage should, when the Entre Rios traffic assumes a normal condition, rise to six per cent. in view of the greater number of stations now open, and if the Uniao e Industria freights pass over the line there can be no doubt that the percentage will exceed seven per cent. per annum.
The following table shows the progress of the railway since its commencement. The Macacos branch is excluded, it not existing in the first years:—