contractors undertook to acquire the land, execute the works and buildings, and supply all rolling stock and plant,in conformity with Mr. Brunlees's plans, sections, and specifications, for a total sum of £1,745,000. A period of eight years, or to the close of 1867, was allowed by the contract for the completion of the works. The first sod was turned in May, 1860, the rails were laid to Jundiahy early in July, 1866, the line was conditionally accepted, subject to completion during maintenance, in October, 1866, and was finally opened for traffic, with the provisional consent of the Government, on the 16th of February, 1867, thus saving ten months of the contract time. By virtue of a contract between Messrs. Sharpe and the Imperial Government, the contractors received a bonus of £43,750 for the saving of time thus effected, which was repaid to the Government by an addition to the tariffs of about 5 per cent. In addition to the contractsum, the contractors, in virtue of subsequent arrangements, and on account of extra cost of stations, &C., were entitled to receive £72,917, making the total paid to the contractors £1,817,917, exclusive of the Government bonus.
When the line was accepted much remained to be done, which the contractors undertook to execute during their term of maintenance, and when the line was provisionally accepted by the Government, an agreement of a stringent nature was entered into by the Company with the Government, which, owing partly to unprecedented rains and floods in the end of 1867 and the beginning of 1868, was not fulfilled until July, 1868, when the line was finally accepted.
The line has been worked ever since the opening with most satisfactory results, both as regards receipts and working expenses; and had the rate of exchange been at par, the traffic during the half-year ending June 30th, 1869, would have been sufficient to pay the full dividend of 7 per cent. on £2,650,000 without the assistance of the Brazilian Government.
Before proceeding to the special object of the Paper, it is thought that a brief description of the physical characteristics, productions, climate, &c., of the province will be of advantage.
The Province of São Paulo lies immediately south of Rio de Janeiro, between 20° and 26° south latitude. It comprises an area of about 95,000 square miles, thus ranking ninth amongst the Brazilian provinces in extent of territory. The population, about 900,000, is only inferior to that of Rio de Janeiro, Minas Geraes, Bahia, and Pernambuco, whilst in material advantages, affecting the powers and variety of production, and in salubrity of climate, San Paulo is entitled to perhaps the first rank. Situated on the verge of, and not within the tropics, the climate is modified by the elevation of the province. An area of about 90,000 square
