...and the great progress that has been made by the
contractors on the works of the Serra is matter for much
congratulations.
Herepaths Railway
Journal
Feb 15th 1862
p162
In return for the efforts in thus expediting the works the
contractors had asked the company to aid them in obtaining
some corresponding advantage from the Brazilian Government,
and the directors were disposed to do so. What the contractors
asked was that the Government should give them £30,000 a year
for every year they saved in the completion of the contact,
and this application would be backed by the recommendation of
the board, which they had every reason to believe would be
received with favour.
He [The Chairman] was happy to say that the works were
progressing most satisfactorily - that the contractors had
found the contract very favourable to them, and were making a
good deal of money by it.
Notes:
- 7% on capital expended
- If complete by Jan 1868 £2,746,000
- If complete by Jan 1865 £2,317,000
- Saving £ 429,000
- Line was 88 miles
Herepaths Railway
Journal
6th September 1862
Agreement was reached for £30,000 for each year of early
completion but "on going in to the matter carefully the
contractors found that it would not be worth their while to
incur the extra expense, unless they were allowed £25,000 for
each half year saved, or £50,000 for every year saved in the
execution of the works."
Notes:
The Brazilian Government agreed saying that they would pay
for the concession by increasing the tariff by a third for the
first two or three years. Some shareholder expressed concern
that this would discourage traffic.
Mr. G. A. Hillier (secretary) thought it advisable that SPR
also came to an arrangement with Sharpe & Sons for early
completion, as the traffic on the line would make more than
the 7% interest guaranteed by the Brazilian Government.