San Paulo

The board have also entered into contract with Messrs. Robert Sharpe and Sons, of Hewelsfield-court, Gloucestershire, who have for upwards of twenty three years carried out extensive works on the Cornwall, South Wales, and other railways, for the construction of the line, the purchase of the line, the purchase of all necessary land, the supply of rolling stock and plant, and the maintenance of the permanent way in good condition for twelve months succeeding the opening of the line.

Nor was there likely to arise any difference involving legal proceedings with the contractor, who, though not a rich man, was well skilled in the construction of difficult railways. The directors had every confidence in him.

They had received... a satisfactory letter from Mr. Sharpe, the head of the contracting firm, and another from the superintending engineer, Mr. Fox, announcing that the works were progressing satisfactorily. He would read both of those letters. Mr Sharpe's letter was dated July 5th 1860, and was addressed to Mr. De Castro, who represented the concessionaries. It stated that the writer had had, during the few weeks he had been in the Brazils, a good look around, and that he had no fear of being able to complete the works within the time specified. There had been some difficulty in getting the ex-appropriation law in force, the habit of the Brazilian Government to do nothing in a hurry. The writer further reported that he had purchased an estate close to the line, the buildings on which would be useful for stores and workshops; and he added that he had not experienced that lack of men which might have been expected. The native labourers were more tractable than he had been led to believe, and they came forward in such numbers that he had had to refuse several considering it would not be prudent to put on more than he had at present employed - about 200. Mr. Sharpe also referred to the vast resources of the country and the utter inadequacy of the means of transit from San Paulo, which he had visited, to Santos, and expressed his opinion that the shareholders need have no fear of securing a good dividend. In a postscript he stated that the number of men employed and been increased to 300. There had been no sickness, while he (the writer) enjoyed better health than he had for a long time previous. The great difficulty of the line, the approach to the sierra to Cuba town, he did not look upon as formidable. Mr. Fox's letter was addressed to Mr. Brunlees, the engineer in chief, and was dated 4th July. It expressed great confidence in the skill and energy of Mr. Sharpe, the contractor, and his gratification that Mr. Brunlees was himself going out to form his own opinion of the nature and difficulties of the works, especially the great engineering difficulty of the Sierra.

The chairman admitted, in reply to a question, that they had a weak contractor, and therefore they had advanced him the money for his plant and labourers huts, as appeared in the accounts. It therefore appears that they had made a contract for £1,800,000, or thereabouts, with a weak contractor to whom they are obliged to advance money for plant, and they then make another contract for £100,000 with an engineer to look after the contractor

The energy and activity of the contractors continue unabated and they [the Board] have the full confidence in the capacity of those gentlemen for carrying out in a most efficient manner the works trusted to them.

He [Mr. Fox] was happy to add that hitherto they had had no trouble with anybody, and had ever reason to be satisfied with their engineer, their superintendent-in-chief, and with the contractor.

Soon after the line was open for traffic the sum due to the contractors would have to be ascertained by Mr. Brunlees, half the amount would have to be paid in cash, and the other half at the end of twelve months.

A shareholder expressed an opinion that the cessation of friendly relations which had taken place between the Brazilian Government and the Company was owing to the unsatisfactory way in which the contractors had carried out the work, and which had destroyed the confidence of the government in them. He trusted that Mr. Brunlees would not give certificates of completion unless he was satisfied that the railway had been made in a manner that the Government should accept it.