The New York herald., 1870-07-25
Railroad Subsidies and COnstruc-
tiOn in the Empire.
Powers Of the Emperor in the
Government.
Arrival Of MADAME Lynch at Rio
Janeirc.
General News from All Parts of
the Empire.

The Pornam5uco Railroad-Other Railroa ds-
Tho Goverauent's eve-
lnents-ConcessOns--The Powers OF tho Em.
peror-COrpus Christ-Strnnge Proceeding.
RIO JANEIRo, June "a, 1870.
In the Chamber OF Deputies, after O somewhat hot
Nght the Minister of Agriculture has won tue VIC
tory In the Pernamtuco Railroad Company's cause
and guarantee OF five per cent profit has been con-
ceded upon f4s5, 900 OF uncovered capital The
guaranteed capital Will now amount 10 Gl, $4,000, or
more than double the 1rst estimates OF the cost OF
the line. On the last G43j 900 the company has nor
yet got the provincial guarantee OF two per cent,
as II has 81, 900, but win In all probability
now 90 In for 1t in the provincial Legislature. The
battle fierce in the Chamber OF Deputies, tor
there was strong opposition, but the bill was voted
by IS to D. The matter has oeen battling for many
years. Al first the company received decided no;
then o Minister or State said he would
recommend 1t to the Legislature II COM
mission of engineers would report that the money
had really been expended ana finally, after Ave
years, 1t has been gran.el Undoubtedly the oppo-
neh9Of the company had good case for the orlgi-
nal guarantee or fS00, 00o had been raised to
e. ami although the shareholders had given
the money honestly enough, large sums had been
Bquandere unnecessarily, and strong accusations
had been made OF systematic cheating during the
tors and OF cgoes OF rails and other requisites hav
ing been paid for 10 more than double the quantity
actua y shipped But the fact Is II Is recognized
that Brazil must borrow heavily to improve her
ports and internal communications, and the ques
tions between the government and the railroad com.
panies have had an injurious effect upon the Eng.
lish money market as regards Brazilian elterprls es,
30 that 1t has been considered matter OF policy TO
yield to the outside clamor. There still exist how
ever. questions with the same company regard to
connecting the depot at PernambucO with the port,
and In regard TO putting more rolling stock
upon the road. In both cases the government
argues that 1t fs the duty OF the Company
10 do them while the company refuses to do so unless
the government VIII give guarantee Of interest on
the cost Of doing; for It sdys. the company being
guaranteed per cent interest 1t is Of no conse
Quence to 1t whether the traflc be more or less,
while to the government and the province 1t Is ad
vantageous to increase the traIlc as to diminish
the amount paid ON the guarantee and to accommo-
date the public. The traffic however, Is so develop.
ing that were there sufficient rolling stock placed
hpon the line the net income would In two or three
Gears reach the seven per cent.
With the other two railroads formed by English
companies there are also pending questions. That
with the Bahia company is on the question Of
whether the company or the government should bear
the loss caused by the working expenses exceeding
s]he receipts. The company claims that the guaran-
tee means that tho company should receive seven
Der cent interest," matter what the loss on working
khe line; the government maintains that when 1t pays
seven per the capital 1t has fulfilled its con-
tract. In regard to the San Paulo. railroad the
question at issue Is whether certain items Of ex-
penditure shall be Included in the guaranteed capi.
tal These matters have been lingering on some for
anJn mon lociOn
being sent to London, chiefly from the inability Of
che previous Minister OF Agriculture to agree to any
thing whether proposed by his agents or the com.
panies. However, the present Minister has engaged
10 settle all pending points Off hand and as he has
already showed himself TO be man OF decision and
energy 1t will probably be effected.
The government has declared that 1t intends to
borrow largely to obtain means for completing Its
lines Of communication already surveyed, and for
carrying out others. In accordance with that de-
termination, the Minister Of Agriculture, upon the
2Oth introduced into the Chamber OF Deputies bill
TO authorize the government to borrow the SUN OF
3l760O. 600 ga, 900. 000l)0O) to complete the
Dom Pedro Segundo railroad to the Rio dai
Velhas, and to Gu ry branch southwaru along the
Parahyba river to the town OF Cachoer san Pau o..
Gsthe province OF San Paulo has already granted q
guaranteed concession for a line from Cachoera TO
the San PaEo railroad. there Will be, when the pro-
posed line. arc finished. railroad communication
from Rio TO Sanios; passing through the rich dis
trlcts OF Rio Janeiro ana Sas pauo; and the great
trunks OF internal communication, the Dom Pedro
railroad and the San Francisco river, r!l be Joined
Xbou, ~. o head Of navigation Of the Sa@ francisco
BY lis trbutar, the Velhls. The %orS TX on M tse pom
to require eight years. When 0nlso.,. he pVhi letro
will have cost about 69oo0 ooo,o ,oo) or
ana the length wiz be 800 kilometres. Tho no. re-
OF the Dom Pedro la year rose 24S0 540 0co,
thereby paying seven and onc-sXth per cent Oh the
cost. The Minister announces that the revenue will
be used to pay the interest and sinking Of the loans
borrowed FOR It.
The completion OF the Dom Pedro Railroad to the
Vchas will Involve also the joining OF the greaf
strctcn of navigabe liver above the falls Of Dom
Alfonso with port. There are three projects for
this beet one is TO make railroad around the
broken warer and have the port OF outlet for the
San Francisco products the lower part OF tie San
Francisco. The other two are respectively the pro
longing of the Bahia and the Pernambrco railways
to the river at points above the falls. owing to the
Door region the Bahia line would have to go through
Il ts not likely II will be extended for many years,
but either the Pernanbuco the Falls line VIII be
undertaken In a year two. perhaps both. In the
southern provinces the great road through Parana
to Matto Crosse is surveying but Will at first be only
a cart road, with gradients and curves. such as Will
1T IL for railroad hereafter. There Is also port
proposed at Torres. to avoid the dangerous Rio
Grande or else railroad from Porto Alegre TO
Laguna, in Santa Catnarina
4 CONCESSION has been granted TO Two Brazilian
engineers Andre Rebousas ana Ramundo Belfort
RoxO for the construction Of a dock ct MaTanham
ana for the completion OF the dry dock. BQtE are e
have c,ear dcpIh OF five metres. or aoOut 1917 feet
and the channels t 1 redgcd to the same depth
After twelve years the government may redeem by
giving ma, ona bonds sufficient TO pay eight per CENT
concession Is also about To be granted for dock
mt Bahia probably on the same terms, and no doubt
there viii be small shower OF concessions for ports,
for the Minister OF Agriculture is-thcy say here OF
hinl-as '.gO alead rs Yankee aud con:essiOnees
often make good hi hy selling the nract to some
company Another concession on the point OF grant
ing is Tor tramroai lines through the streets not
occupied by the two American suburb lines, a
specialty o which will be the adoption OF gauge
not over thr feet, with narrow cars, to permit tho
very narrow streets OF the old city to be navigate
on the 20th the Chamber of Deputies was cn-
liyene.l by set to between the Minister OF Marine
and the ex.Minster Of Justice, Conseinero Jose
Martiniano Alencar. Ills eX-Eycellency went out OF
the Ministry last January but declared In his organ,
On the 10Th Of July that he would continue to sup
port the Cabinet. At that time he was running iol
SenatOr for Ceard. However two months ago his
Majesty did not select Sr. Aencar from the list
of names elected, and tie ex.Miiister's opinions
an regard to matters have gradually changed lpte
come distinguished for its attacks upon the En-
perors personal government, which, ~ says Is Sc
"A