The Paulista Railway was the first railroad to be constructed entirely of Brazilian capital. Its tracks begin at Jundiahy, although its trains are run into the city of São Paulo. The proposition for this railroad was first offered to British capital, but they turned down what proved to be a veritable gold mine. The first work on this line was begun in 1870, and its tracks have been gradually extended until now it operates about seven hundred miles of road, about one-third of which is standard and the balance metre gauge. It reaches to Bebedouroa and Pontat, with branches to Jahu and other points. By the original contract the government guaranteed seven per cent. on the investment required, but this guarantee was later released by the company in return for some other favours. It has the right to raise tariffs in order to keep the investment on a seven per cent. basis, but the present high freight rates yield returns far in excess of that. One part of the concession of this road is a privileged zone of nearly twenty miles on each side, within which district it has the exclusive right of both passenger and freight traffic. It reaches up into the _terra roxa_, the red earth where the blood-red soil dyes everything its own colour. This is the coffee land, the great freight producer for this line. In one year, 1906, this line carried nearly ten million bags of coffee, each bag weighing about one hundred and thirty-two pounds, besides all the other miscellaneous freight. The Mogyana Railway is another narrow gauge railroad which starts at Campinas, and runs in a northerly direction up through the coffee country. It was started shortly after the Paulista Railway, and upon practically the same guaranty of the investment, and the same rights to exclusive territory. Branches have been built for feeders, and the main line has been extended, until now this company has a mileage of more than eight hundred miles. The road was evidently built by the kilometre, and the contractors got in as many kilometres between given points as possible. Beautiful curves abound everywhere, and it would be difficult to find a straight half-mile of track between Campinas and Riberão Preto, a distance of about two hundred miles. The line is well built and is now being ballasted. A few sections have been straightened out, but it contains dozens of unnecessary and nerve-racking curves. This railway is also a great freight producer, especially for coffee. It has paid dividends of twelve per cent. for several years, and could probably have paid more except for charter restrictions. The furthermost point now reached by this railroad is Araguary, in the state of Minas Geraes. From Araguary this company has in contemplation the extension of its line to Goyaz, in the state of Goyaz. For the good of the country it is to be hoped that this project will be carried out in the near future.