Mr. Leishman to Mr.
Hay.
Legation of the United States,
Constantinople, August 26,
1902.
No. 258.]Sir: I beg to inclose herewith copy of recent
correspondence with Messrs. Whittall & Co., managers for Turkey of
the New York Life Insurance, which is self-explanatory.
For your further information I might add that no possible doubt can exist
about the fact that many things are tolerated in the large cities,
especially in the capital, that are positively prohibited throughout the
country, as the citizens of the large capitals are even relieved of
certain taxes and enjoy exemption from military service.
There is no law or even a good reason that I know of for the condition of
affairs, but it exists nevertheless. The Department is no doubt aware
that Ottoman subjects generally are not permitted to move from place to
place without a special permit, as the present government seems to
object to free travel and intercourse, and this is particularly the case
with Armenians, from whose ranks the subagents are generally recruited
on account of their superior business qualities, but this is,
unfortunately, a class that continues to rest under suspicion of
plotting against Turkish rule, and it is quite within the range of
probabilities that this may be the immediate cause of existing
troubles.
I have, etc.,
[Inclosure 1.]
Messrs. Whittall &
Co. to Mr. Leishman.
Constantinople, August 8, 1902.
Sir: We have the honor to acknowledge the
receipt of your excellency’s letters of the 22d and 24th ultimo, and
to express our thanks for the steps your excellency took with regard
to the seizure of a packet of policies. We have not yet heard from
our agent whether he has obtained possession of the documents.
We venture to hope that your excellency has been equally successful
in respect to the representations which the legation would doubtless
make to the Ottoman Government regarding the imprisonment of our
agent at Kirtchovo.
With regard to the remark made in your dispatch of the 24th ultimo
that the “general question must necessarily rest largely in the
hands of the insurance companies who must prosecute the matter
before the proper officials,” we beg to state that we have taken
such measures as were necessary. We have complied with the required
formalities, and we have done all in our power to arrive at a
solution of the uestion, but we can obtain no response of any nature
from the Ottoman Government,
[Page 1038]
and we appear to have arrived at a deadlock
which only energetic diplomatic action can remove.
Your excellency is aware that a demand for a concession or
registration was duly made to the Ottoman Government by the New York
Life Insurance Company, notwithstanding the fact that in virtue of
the “capitulations” it is unnecessary for an insurance company to
obtain permission from the Ottoman Government to do business in
Turkey. In this contention we are not only supported by legal
authorities, but this is also the view taken by other foreign
missions. And were it otherwise, why does the Ottomen Government
tolerate the 40 or 50 insurance companies which are established in
its capital and many other cities of the Empire? Were an attempt
make by the Turks to close the offices of the many English or other
companies in those cities, we are convinced the British, or other
Government, would not tolerate such a step.
If, therefore, we have a legitimate right to operate in these
principal cities, there can t>e no restriction to our carrying
our operations into the provinces.
It has been stated that the trouble arises principally from a
well-intentioned effort on the part of the Ottoman Government to
protect its subjects, but apart from the recognized and indisputable
fact that all this trouble originated from a desire to protect and
promote the interests of the Ottoman Insurance Company, anyone
conversant with the politics of Turkey will confirm us in our
assertion that the subsequent course adopted by the government is
but the accomplishment of a deliberate policy of oppression and
persecution to oppose any western enterprise—and there are numerous
instances, doubtless within the knowledge of your excellency, in
support of this fact.
If the Government had any good intentions in the matter they have had
numerous opportunities of showing their sincerity by affording
facilities for a settlement of the question rather than taking every
available opportunity for practicing their persecution and
oppression, such as imprisonment of agents, violation of postal
correspondence, seizure of documents, and interference in
operations.
As far as we can see we have no further means at our disposal of
prosecuting the matter ourselves, inasmuch as no attention appears
to be paid to the communications we make to the Government, and it
is our conviction and that of our legal advisers, that only a firm
pressure on the part of the American Government will induce the
Turks to change their attitude and desist from their arbitrary
procedure.
If your excellency can suggest any course that the New York Life
should adopt we are certain they will take any steps that may be
indicated, for, while maintaining the principle of liberty, the
company has repeatedly expressed its willingness to conform to any
reasonable regulations.
It should be borne in mind, however, that it is not possible for us
to negotiate direct with the Ottoman Government in the same way as
the company did in Switzerland or Prussia, inasmuch as transactions
with the Ottoman Government are so different from European methods,
and in questions of this nature only diplomatic intervention is
efficacious.
We understand this matter has recently been discussed by the Turkish
departments, and it is rumored that, apparently as a results of the
impotence shown by the foreign missions in the protection of their
subjects and companies, more stringent measures are to be taken to
prohibit any insurance business in the province.
We would respectfully suggest that your excellency should bring the
matter to the notice of the Sultan, pointing out to His Majesty the
prejudice that is being caused to American interests and
solicitating a cessation of these persecutive measures; for, unless
His Majesty can be induced to give whatever instructions may be
necessary, the Sublime Porte and other departments of state will
continue to treat our diplomatic representations with the same
contempt as they have done during the past two and a half years.
Trusting your excellency will protect American interests by taking
energetic action in this important matter,
We have, etc.,
J. W. Whittall & Co.
[Inclosure 2.]
Mr. Whittall &
Co. to Mr. Leishman.
Constantinople, August 13, 1902.
Sir: With reference to the letter we had
the honor of addressing your excellency on the 8th instant we now
beg to forward you copy of a letter we have received from one of our
traveling agents, from which your excellency will observe that our
[Page 1039]
prediction that the
Government contemplated renewing with greater energy their
persecution is confirmed.
Our agent draws our attention to the very insolent way in which the
mutessarif of Kutahia notified him that he would not be allowed to
transact any business.
We feel sure your excellency will not allow a respectable and
important American company like the New York Life to be gratuitously
aspersed and interfered with in this manner, and we claim, on behalf
of our principals, the protection and intervention of your
excellency to repress these arbitrary and illegitimate interferences
in our business.
We claim that liberty of action to which the New York Life is
indisputably entitled in the Turkish Empire and which for nearly
twenty years the company enjoyed.
We can not believe that the United States Government will allow
American interests to be thus prejudiced without justification, and
we hope your excellency will immediately adopt urgent and energetic
measures to suppress this intolerable and degrading state of
affairs.
We await to hear what action your excellency has taken in the matter
in order that we should acquaint our principals, the New York Life
Insurance Company.
We have, etc.,
J. W. Whittall & Co.
[Inclosure 3.]
Mr. Leishman to
Messrs. Whittall & Co.
Legation of the United States,
Constantinople, August 25, 1902.
Gentlemen: Referring to your communications
of August 8 and 13, as the package of policies seized at Tchorum
have since been surrendered to your agent, no further reply on this
point is necessary.
In regard to the general question, I can only again refer you to my
previous communication on this subject, and to add that the legation
does not feel warranted in pursuing a more aggressive course in the
absence of any evidence showing that special discrimination exists
against American insurance companies.
I am not prepared to dispute the statement which you make in regard
to the forty or fifty foreign insurance companies being tolerated to
prosecute their business in the large capitals, but this fact would
not necessarily guarantee any right to operate throughout the
provinces, as it is hardly necessary to call the attention of old
and experienced residents like the Whittall family to the fact that
many things are tolerated in the large cities in the Ottoman Empire
that are absolutely forbidden and denied in the provinces.
If other foreign missions view the matter as indicated in your letter
of August 8, it would seem to me wise were the other foreign
insurance companies to petition their ambassadors to address
energetic notes to the Sublime Porte, with a view of forcing a
settlement of the troublesome question, having little doubt about
the willingness of my Government to authorize me to send in an
identic note. But under present conditions I do not feel warranted
in attempting to force matters, although I shall continue to use
every effort to secure the proper recognition of American insurance
companies and insist upon their being granted the same rights and
privileges accorded similar institutions of other nations.
If this line of action is contrary to your ideas I would suggest that
you report the matter to your principals, the New York Life
Insurance Company, who can, if they so desire, take the matter up
direct with the Department of State at Washington.
I am, etc.,
