The Tucumcari news. [volume] (Tucumcari, N.M.) 1905-1907, 1906-12-01
ROADS DOING WELL
BRAZILIAN LINES GENERALLY IN
GOOD CONDITION.
Fair Dividends Paid Last Year, and
Prospects Are ExcelIent-Amer.
lean Locomotives in Use
on the Best Lines.


Last year was a fairly favorable
one for the railways of Brazil, and
the annual reports just printed show a
healthy condition Of affairs in this
branch OF ommerce. The Great
Western Railway of Brazil company
declared dividends of six per cent.
after making considerable additions
to sinking funds. The Esperito Santo
& Carvellas railway paid two and one
half per cent. dividends after eXpend.
ing considerable sums Tor betterments
and extensions. The Leopoldino rail-
way paid four per cent. and allowed
large sums for sinking funds and the
retirement of bonds. 1t Is probable
hat the earnings indicated by these
dividends, with the allowances for
other purposes, really represent a
very high percentage on the invest.
ments. The government guarantees
the redemption or reversal OF the sew
eral railroads to the government aft
er a lapse of years, and other condi-
tons go to influence the figure pre-
scented to shareholders. Most rail-
roads in Brazil are built and operated
upon concessions with the guaranty
of a certain rate of interest, say six
per cent.
The need of railroad Improvement
in Brazil is being me- with fair sue.
cess at the present time. The line
from Ceara to Baturite, in North Bra
oil apl the Caora -Nipi,n rpa5 in Rio
Grande del Norte, will be completed
this season, and will provide a much
needed communication between the
coast and the isolated regions OF
Ceara.
Work on the reconstruction Of the
railway to Thereza Christina is again
in progress. The Rio Grande & Sac
Paulo railway is building, with the III
innate object of a line north of lat.
rare, where it will form a junction
with the Sorocaba railway, and event
ually onnec with the Santa Maria
extension into Uruguay, forming also
a connection with the railway system
Of Argentina. The proposed railway
from Tocautins to Araguaya has been
surveyed and it is expected to be con.
structed very soon. The line from
Victoria to Diamantina, in Minas
Geraes, is nearing completion. Alto
gether private capital is being given
abundant inducement by well fixed
and defined policies.
Speaking generally, the railroad
situation in Brazil represents improve.
ment and progress. Foreign capital
is invited, and American interests
might find many opportunities for in
vestment in Brazilian companies.
With American investment would nat.
urally come the purchase Of supplies
in the United States.
American rolling stock, American
machinery and American methods Of
management may be very much bet.
ter than those now in use, but so long
as those responsible for them are
more familiar with European goods
and European methods, just so long
will the latter be preferred to the
former. The present policy of the
Brazilian government toward railroad
Investments promise safe returns, and
even though a railroad constructed by
American capital should eventually
become a government road, it is prob
able that the American cast to 1t
given by it's original construction
would lead to the uss of American
machinery and supplies. The perma'
nent trade advantage Of the United
States would be far more advanced
by the continued use of American
railroad supplies than by the actual
ownership of the railway by Amer
lean capital. "
The use of American machinery or
Brazilian railways seems to be con
fined almost altogether to American
locomotives, but In this particulal