The Sun.
London, England, 1864-10-24 00:00:00

BAHIA AND SAN FRANCISCO.

The report of the directors states that Mr. W.
Clay, the company's secretary, left England for B ia
in May and returned in August last. The directors
had every reason to believe that Mr Clay's mission
to Bahia had been of great benefit to the company,
by the introduction of a more economical and better
system in the administration and working of the
railway. The traffic during the last six months
had fallen short of what was expected; this was
. .

principally due to the sugar crop of 1863 having
been exeeedingly light. In the six months ending
30th of June the number of train miles run had
been 31,231, and the number of passengers carried,
23,179. The receipts amounted to £11,651, the
expenditure to £27,026, and the deficiency to
£15.375. The revenue account showed that the
disbursements of the company, including the ad
interim dividend, and incomestaX £1,208, paid
during the last six months, had been £77,734, and
the receipts £74,701, including £63,000 from the
Imperial Brazilian Government, leaving a balance
of £3,033 to be charged to the debit of the present
half•year ending 31st of December next. The rep•

ceipts and expenditure of the current half-year
could not be known, and the accounts could not be
finally made up in England until April, 1865. The
dividend for the whole year would be declared at
the ordinary general meeting in April next. A
final settlement of all accounts and claims had been
made with the contractor. The report of Mr Clay
the secretary, stated that as the prosperity of all
railway companies depended upon economy in ex.
pcnditnre on the one hand, and increasing income
on the other, he lost no time in addressing himself
to those two great questions. He found after his
arrival in Bahia, that there were many more
officers and servants than the working of such a
line required, and there had since been a very con-
siderable reduction in the number of employes.
As to stores, he saw enough to convince him
that there was much extravagance and profusion
in their use and distribution, and he made such
arrangements as he trusted would lead to
great saving under this head. All rolling stock
and skilled workmen had to be imported from Eng-
land, and taking into consideration the injurious
effects of the climate upon machinery, and the in•
ability of English workmen to perform the full
amount of labour, it became obvious that the rolling
stock would always be an expensive item in the
working of the line, and would require constant and
careful supervision. The permanent way also he
feared would for some years be more than ordinarily
expensive. He felt confident, however, both as to
the rolling stock and the maintenance of way, they
had in Mr Thompson, their principal resident engi-
neer, a practical and efficient officer, who would
meet the difficulties with energy and skill. The
line started from the capital city of Bahia, which
contained about 180,000 inhabitants, and it termi-
nated at Alagoinhas, a town of about 7,000 inhabi-
tants, but it traversed a country at present contain-
ing a very sparse population, and it therefore ap-
peared tc him that four of the 15 stations on the
line might for the present be closed at once with
advantage and saving of expense, and it was done.
The people resident on and near the railway had
not yet acquired the habit of travelling. The entire
route of the railway was absolutely without hotel
or other accommodation for passengers, and until
this want was supplied the passenger traffic must
be very limited. The staple produce of the country
was sugar and tobacco, and he was informed that
those articles were now being cultiva:ed to a much
greater extent than formerly. On the whole he was
inclined to believe that with energy, skill, and
attention on the part of the officials, they might ex-
pect a progressive increase of traffic both in passen-
gers and goods. He believed the alterations and
suggestions he had made would have t 1 -.e (Met of
reducing the working expenses £B,OOO or £lO,OOO
per annum. The expenditure on capital account
appeared from the balance sheet to have been
£1,727,827,