Construction Of Tünel

 After signing the contract, Henri Gavand started to establish the company. A company, mainly owned by French capitalists, was established. The next step was to supply capital by issuing bonds. An event occurred in this phase, turned the Gavand’s plans upside down. A war broke out between France and Germany on July 19, 1870 and this made impossible to carry out any financial operations in French markets. It is clear that this situation put Gavand in a very difficult position. Desperate Gavand went to England to establish a company. Meanwhile, he was given extra time because the time for company establishment expired and September 1, 1871 was set as construction start date.

Reliving with the extension, Gavand has established “The Metropolitan Railway of Constantinople from Galata to Pera - Payitaht Demiryolu Şirketi” company in England. The establishment of the company completed in July, 1872. Because he had to start the construction on September 1, 1871, a couple of days before that, he opened a well on a dead end street, entered through Hendek street around Galata Tower. Gavand transferred his concession to the company, due to the articles of incorporation. The capital of the company was 6.250.000 francs, 12.500 
shares, 500 francs each. The company would undertake all expropriation and construction works required to build Tünel. Such operations would be performed under the supervision of an engineer, appointed by Gavand and approved by the company. Before issuing bonds, Tünel company introduced Tünel to the public by giving advertisements in newspapers and gave some examples stating the operation would be very profitable. For example, it was reminded that 40.000 people walk through Yüksekkaldırım daily, because it was the only way between Galata and Beyoğlu, and when only half of them would take Tünel and they pay 30 para per person, the daily income would be 15.000 kurus. In addition, it was emphasized that when the number of passengers increased, the income would also increase. Then, the bonds of Tünel company with rate 5% were issued in London and İstanbul on August 19-20, 1872.
After the supply of capital, the excavation works were accelerated. During such works, many problems regarding expropriation were encountered. After overcoming such problems, Tünel became ready to be put into the service in the end of 1874. First, trial runs were performed in November and December. Meanwhile, the company made Gavand to leave and it became the sole ruler of Tünel.
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