The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-06-25

tent on Rio. having built there the Villa
Isabella tramway with the idea of equip
ping IT electrically.
They have secured roads In Sac Paulo,
and are negotiating for roads in Pernam-
buco. Pernambuco has about $4,000 peo-
pie. 1t is fiat. and car lines could be oper-
ated without much power The street-car
rates are lower. however, than they are
with us. The fares are from liz to 3 cents
a trip. At the same time labor is very
cheap. and most Of the lines are operated at
a profit.
There are telephone companies all over
Brazil. You will not find a town of any
size which has not enc. The most Of them
pay dividends.
Brazil is growing very fast as to railroad
lines. It's railways now have a length OF
about 5000 miles. and there is an equal
amount under survey or in course of con-
struction. The English W some of the best
OF these properties. and they are scheming
TO get hold of others.
At present the government has about 5000
miles of lines, but these are poorly admins
tered and do not pay. l doubt If any bust
ness managed by South American officials
can ever pay. Every official expects to
make a squeeze or percentage out of all the
money which comes through his hands. The
result is that the government roads are bad
ly managed and poorly administered.
The losses have been so great that a law
has been recently passed authorizing the
leasing of the government railroads, and
1t is probable that they will eventually 60
into the hands Of English capitalists. The
most of the railways have been construct
ed under a guarantee from the government
of 8 per cent. or Z per cent. on the capital
invested, and many of them are now work.
ing on that basis.
1T PAYS so PER CENT.
One of the most profitable roads in the
world is that which runs up the mountains
from Santos to Jundiahy. This road has
paid as much as so per cent. dividends, and
for years it paid 10 per cent. semi-annually.
The road was first built with a government
guarantee Of 5 per cent. 1t had a capital
of $4,000, 900. 1t increased this to $1,000, 600,
and it has now made its capital SIS. 0O0, 600.
1t is now paralleling its lines in order to
accommodate the enormous business which
goes over it. 1t is the only connection which
Santos has with the interior, and the enor-
nous coffee shipments which go out from
that port are brought from the plantations
on this railroad. The trade of Santos
ohhouht W $io,ov,VOV q var.
The road shoots out of Santos to the foot
of the mountains. Here the locomotives
are taken off. and the cars are dragged up
the hill by stationary steam engines, which
wind and unwind immense steel wire cables,
to which the cars are attached.
On nearly all of the roads of Brazil there
are first. second and third-class cars. Few
of them have sleepers and the cars. as a
rule. are by no means as good as ours. The
Brazilian Central has a Pullman system
so that you can go from Rio Janeiro to San
Paulo by sleeper.
Most of the trains, however, lave only
day coaches. The charges for baggage are
very heavy. My trunks have usually cost
me more than my railroad ticket. Nothing
but a single handbag is allowed to be taken
into the carriages. The man who brings
more is not allowed to pass through the
gates until he has handed it over to the
express and baggage men. This is very in
convenient. especially as no baggage is
checked which looks at all fragile or which
is not carefully wrapped.
MONEY IN STEAMSHIPS.
I am told that there is a great deal of
money in Brazilian steamships. The line
on which 1 came to Para from Rio was the
AOg0s tAAS AAAC q llODOpOlN
of the coasting trade Of Brazil. 1t has a
large number of ships, which go from port
to port, and which are always loaded with
passengers and freight. Formerly it made
a great deal of money, but since it has
gone into the hands of the government 1t
had steadily lost. It's ships are first-class
steamers of from 1000 to 1900 tons, made
in England and well equipped in every re-
spect. 1 am told that the line will probably
be for sale soon, and If so it would be a
good investment for American capital.
We should have a line of steamships from
New York to Rio de Janeiro and other
ports on the east coast of South America,
1t is along this coast that most of oul
trade with South America is, and this
trade amounts to much more than a hun
dred million dollars a year. Upon nearly
every dollar of 1t we have to pay a percent
age to the European steamships for carry.
ing the goods.
They discriminate against us and work fr
favor of their own countries. This is so ever
with some Of the foreigners who operate
with American capital down here. / heard
of a German house not long ago which doe.
a business of importing. 1t brings in about
eighty-five thousand packages every month
it's capital comes from the United States
but 1T boasts that 1t gets its imports almos
exclusively from Germany.
Indeed, a number of foreign transportation
companies have combined against tn
United States to drive some of the steamer,
on the other side of the Atlantic out of tn,
Brazilian market. They formed a trust las
year and reduced the freight rates on coffe,
to about 10 cents a bag. When they had sue
ceeded and had the field to themselves the,
raised the rate to 80 cents a bag. at which
ii stands at present.
This same combination charges a highe
rate on all shipments of goods from Nev
York to Brazil than 1t does from European
ports TO Brazil. Some Of the commission
merchants of Rio Janeiro find ii more profit
able to ship flour from New York to Rio b.
way of Hamburg, taking it over three thou
sand miles of additional ocean travel, AM
thereby getting a lower freight.
Consul General Seeger says that one o
the leading agricultural houses of Sa
Paulo is forced to buy it's iron of Europe
although the prices offered by America
houses are lower. This is on account O
the heavy freight rates from New Yorl
Flour carried from New York to Rio pay
a freight rate of IS cents per barrel, Will
20 cents a barrel. This system is carrie
> on as to all sorts of importations. TT
Germans and the English fight US in ever
; possible way, and the Germans are by n
means scrupulOus as to the honesty of fhei