No. 530.
Mr. Wallace to Mr. Frelinghuysen.
Legation of
the United States, Constantinople, January 25, 1883.
(Received February 23.)
No. 169.]
Sir: If you will be good enough to refer to my
dispatch to the Department, No. 98, June 9, 1882, it will be seen that a
protest was called for from this legation by a projected regulation of the
storage of petroleum in Smyrna. In the same dispatch, as will also be
observed, a reference is made to a like scheme for operation in
Constantinople. My protest of that date was accordingly drawn to cover the
imposition proposed for both cities. A note from the minister of foreign
affairs received January 10, 1883, informed me that, the necessary
preparations having been made, all ships arriving at Constantinople with
petroleum must land their cargoes in the depots built by certain
concessionaries of the Government at a place designated.
A year or two ago this regulation would not have been of much importance
except to consumers of petroleum, for it was then an American commodity
exclusively. The development of the wells of Russia, however, has created a
competition which is beginning to make itself felt in this market. The
article is vastly inferior; nevertheless, the demand for it grows apace,
making the protecting of the interests of dealers in our product a matter of
greater care.
The Russians bring their stock here in small vessels via the Black Sea; and,
there being a rule which permits the shipper to sell from his ships in
limited quantities, their usage is not to land their cargoes. The advantage
is obvious. The steamers which bring American petroleum must discharge in
bulk, and the dealers pay a storage charge to the owners of the depots.
There are no other depots, and a man cannot have a storehouse of his own.
Into this particular lodgment he must drop his goods, nolens volens. The Government, of course, gets a dividend from the
charges. Its share in Smyrna was to have been 1 per cent.; what it is to be
here has not yet been divulged.
Prior to this new regulation petroleum from America was landed at a depot at
or near the locality now designated for the purpose. The charge was light,
and, admitting the necessity for storage of an article so dangerous outside
the city limits, dealers were satisfied. That you may see how the present
action of the Government is received by merchants generally, I inclose a
communication to me upon the subject. The subscribers, it is to be remarked,
are of several nationalities, and they refer in their paper to an expression
had in the matter from the chamber of commerce of Constantinople. They all
agree that the effect of the order of the Sublime Porte, if it is carried
out, will be to double the tax or charge upon the article fixed by our
treaty.
Under these circumstances, and with a design to protect our interests as
energetically as possible, I sent the Porte a note, of which a copy is
herewith transmitted. I followed the communication in person, and had a long
interview with his highness the minister of foreign affairs. Indulge a hope
that a good effect will be produced. There will at least be a speedy
answer.
Trusting my action will meet approval, I will make haste to inform you of the
imperial decision when it shall have arrived.
Very respectfully,
[Page 830]
[Inclosure 1 in No.
169.—Circular.]
Ministry of Foreign Affairs,
Sublime Porte, January 10,
1883.
The depots of petroleum which the concessionaire, Sami Bey, and his
partners had undertaken to construct on a piece of ground situated
beyond Tchiboukli are now finished.
In future vessels arriving in the port of Constantinople will have to
unload their cargoes of petroleum in the depots.
The prefecture of the town has taken the necessary dispositions to this
effect.
The ministry of foreign affairs begs the legation of the United States of
America to be good enough to inform those of its citizens whom it may
concern, so that they on their part may conform with the measure in
question.
[Inclosure 2 in No. 169.]
Merchants to Mr.
Wallace.
Sir: We, the undersigned, merchants in this
city doing business in petroleum, especially with America, have the
honor to inform you of the following facts:
Several years ago the Ottoman Government, with wise foresight,
established at Pasha Bochtchi a general depot for petroleum, whose
warehousing in the city itself would have been dangerous.
We agreed to pay depot dues and to pay also for a guardian which the
creation of this depot required, but upon condition that these dues
should not exceed the reasonable charges which the prefecture of the
city was to make for the protection of the goods which it took charge
of.
This situation lasted several years without causing much complaint. Some
months ago an influential person of this city, Sami Bey, succeeded in
obtaining from the Ottoman Government the concession to work this
depot.
Thereupon the useful object that the Government had in view in creating
this depot found itself at once changed into a regular speculation, and
the dues to be paid to the contractor of this enterprise are nearly
doubled.
These dues are so excessive that the chamber of commerce of our city, on
being informed of the action of the above-mentioned grantee of the
concession, hastened to write to the prefect of the city to state to
him, in the most categorical manner, that it considered the new mode of
procedure was ruinous to commerce. And, in fact, by the reception of
this new tax, at the actual price of petroleum, the import taxes due in
virtue of the treaties are simply doubled. In this way the Ottoman
Government has in an indirect manner raised the tax of 8 per cent., the
only import duty allowed for American products coming into Turkey.
The Ottoman Government, in according this concession, has openly violated
the treaties which control the commercial relations of Turkey with
foreign countries.
But this is not all. The prefecture of the city, by an abusive
application of the above-mentioned concession, intends to subject
foreign merchants to the payment of the new tax, even if the latter do
not warehouse their merchandise in the new depot, but deliver them
directly on the market. The vessels containing petroleum anchor outside
the harbor at a place chosen by the prefecture of the city, and the
unloading of the merchandise is done in conformity with the prescribed
regulations in force.
On the refusal of the merchants to pay this tax, which nothing justifies,
the administration of the custom-house refuses to allow the merchandise
on board vessels to be unloaded, and exposes them thereby to inevitable
injury and enormous demurrage expenses.
We believe it superfluous, Mr. Minister, to enlarge upon the arbitrary
character of these regulations, or to show how opposed the claim of the
prefect of the city and the administration of the custom-house are to
the treaties.
We therefore confine ourselves to note this fact to your excellency,
persuaded that you will be good enough to intervene and cause to be
respected the diplomatic convention regulating the importation into
Turkey of American products.
We have, &c.,
J. W. WHITTOLL & CO., and others.
[Inclosure 3 in No. 169.]
Mr. Wallace to
Aarifi Pasha.
No. 142.]
Highness: The note
verbale received by this legation from the Sublime Porte
January 10, 1883, informs me that ships arriving in the harbor of
Constantinople with petroleum must land their cargoes in the depots
founded by certain concessionaries of the
[Page 831]
imperial Government at a place designated. This
action, it must he remembered, is decided upon in disregard of the
protest which it was my duty to make against it in a former note, No.
113, addressed to his excellency, Said Pasha, minister of foreign
affairs, and dated June 7. 1882.
The policy of the Sublime Porte, if persisted in, will be decisive of an
intention on its part to justify a series of discriminations conceived
and carried out against American productions and manufactures imported
into the Ottoman Empire under specific treaty regulations.
The four articles of chief importation from the United States are salted
meats, alcohol, petroleum, and cotton goods; and, most extraordinary, of
these the first in the order stated is under absolute interdiction,
while the second and third are yielding duties in excess of the agreed
tariff rates.
To make the inference of purpose on the part of the Sublime Porte more
clear, a movement was very recently enforced in the custom-house at
Smryna to subject certain cotton goods from the United States to a duty
also largely in excess of the existing tariff. Being informed of the
action, and of the pretense given out for it, and that it originated
here, I sent the dragoman of the legation to the president of the
council, in hopes of inducing him to change the order, and so avert the
making it a formal diplomatic question. That official replied that he
did not recognize our tariff. When asked if his reply was official, he
said it was.
Your highness will be good enough to allow me to observe now that this
communication is not merely in protest, but to make definite whether the
Sublime Porte really means to repudiate the treaty between my Government
and that of His imperial Majesty, the Sultan.
I avail, &c.,
