No. 574.
Mr. Wallace to Mr. Frelinghuysen.
Constantinople, October 15, 1883. (Received November 6.)
Sir: I have the honor to report that the commission appointed for the petroleum concession is yet in existence, but making slow progress.
As to the result of its labors nothing can be yet said with certainty. From present appearances, however, I am looking forward to a compromise. We have covered the expenses of the concessionaire with 30 paras the case, and shown that at that rate he will derive a profit of 8 per cent. The commission will probably fix the dues of 55 or 60 paras the casa, and to this, accepting your latest instructions, I will consent, upon condition that all petroleum from whatever quarter shall be required [Page 888] to pay storage at the same rate, whether actually stored or not. My object in this will be to cut off the Russian advantage in selling from the decks of their ships, the effect of which, if continued, will be to handicap our product to an almost prohibitory degree.
I beg to add that I have explained this point to Mr. Heap, to whom the business will fall during my absence on leave, and requested him to conclude a compromise, if possible, upon the terms and conditions stated.
Very respectfully, &c.,