October 2, 1936. I have been making tentative approaches to the government as to what its reactions would be to the railroad company’s initiative. I was not at all happy with the response. I feel that their policy is to strengthen the power of the state in every way, at the cost of individual freedom of enterprise. It is going to be difficult to obtain foreign exchange licenses for purchases of railroad supplies…
December 9, 1936. Thórdur and I discussed the railroad today. He is rather pessimistic about the idea, but is objective. He is careful by nature so this is understandable. Despite his tendency to discourage, he nevertheless proposes workable solutions. Kristján supports me wholeheartedly…
February 15, 1937. It distresses me how some Icelandic newspapers deprecate the regime in Germany under the swastika, often out of ignorance. Left-wing propaganda depicts the situation there as simply vile and cruel. The English present a different view. I have been reading the English newspapers that were sent to Elizabeth, and these generally report the Germans in a positive light, even considering them a model nation. The English do not consider it shameful to do justice to their political opponents. The number of people who believe in the one-sided fanatical writings of the communists is dwindling, of course. The Germans have been friendly to us Icelanders for a long time, devoting themselves to Icelandic studies and writing numerous books about the country and its nation. “Diverse our passions…”
March 20, 1937. The German Consul-General summoned me for a meeting today. Enquiries have come through from Germany about me and my company. The Consul is a pleasant and polite official. I told him of my plans and answered his questions. He said he would try to be of assistance to me…
April 14, 1937. I have now drawn up a schedule for the best procedure to carry forward the railroad business. The first section of track will be very short, only going from the harbor to Öskjuhlíd. We will also begin construction of the main railroad station. When this is ready, a locomotive and freight wagons will be shipped to Iceland. We shall be able to utilize these wagons later, for further construction works on the railroad. To begin with, the largest gravel quarry will be at Öskjuhlíd; then we shall head bit by bit east, pressing on until we reach Akureyri. I shall go north this summer to do some surveying.
May 6, 1937. Have just had a meeting with the consul. He has put together an extremely clever proposal for how the German industrialists can participate in our railroad business. A limited company called Isländische Bahn AG will be established in Germany. It will own the trains and lease them out to the Iceland Railroad Company. This way the Germans can invest funds in the project without incurring outlay of foreign currency. In return, the railroad company will purchase steel for the tracks from Germany. We both feel that this arrangement could be very practical for both parties…
June 24, 1937. Today we were surveying the Vatnsskard Pass. Kristján knows this area very well, and is of great assistance to me. The road from Bólstadarhlíd in Svartárdalur no longer snakes round in countless corners and bends, as it did the last time I traveled here. The new motor road follows the slopes mostly straight, after a turn by the river. It seems to me that the railroad should go somewhat below the road in a lengthy cutting to limit the gradient. There is a wonderful view from the bridge, into Svartárdalur Valley with mountains on all sides…
June 25, 1937. There will be an important railroad station at Varmahlíd. The inhabitants here welcome me with open arms. Chatting with a farmer, I reminisced about my trip round this region in the year of my high school graduation, and I asked him about the ferryman at the western lagoon who gave me the brennivín. The farmer told me he was known as Jón Ferryman and that he had drowned in the estuary in 1914. Probably drowned himself deliberately…
June 26, 1937. Carried on into Blönduhlíd. There will be no problems with the railroad here provided it is a suitable distance from the river…
August 5, 1937. Have decided to postpone my trip abroad until next summer…
What is this supposed to mean, dragging me out of the house like a common criminal?” Matthías snarled at Halldór when Egill brought him into the office.
“I think, sir, that you haven’t been completely honest with us,” Halldór replied calmly.
“In what respect?”
“We have a witness who states that you were at Birkihlíd on the evening Jacob Junior was murdered.”
“I have not concealed that fact. I do not recall having been asked where I was that evening or whether I had visited Birkihlíd. If you had asked or if I had thought that was of importance to you, I would of course have mentioned it.”