No. 527.
Mr. Frelinghuysen to Mr. Wallace.
Department
of State,
Washington, January 16,
1883.
No. 42.]
Sir: Referring to previous correspondence upon the
subject, I now transmit a copy of a letter of the 13th instant, addressed to
this Department by Senator J. N. Camden, relative to the exclusive privilege
which it is understood has been conferred upon a Turkish subject to receive
and store petroleum at Turkish ports, and especially at Smyrna. It is
alleged that the charge for this purpose, besides being exorbitant in
itself, will operate as a discrimination against the American in favor of
[Page 823] the Russian petroleum, which
latter is carried thither in small quantities, and is sold from the vessel
on board of which it is transported.
As under the treaty of 1862 the import duty on American petroleum is limited
to 8 per cent, of its value, the duplication of the charge by the measure
proposed naturally excites anxiety and alarm in the exporters of the article
from this country. The case seems to be one for which the treaty was
intended to provide, for the fifth article stipulates that the rate (8 per
cent.) shall be calculated upon the value of the article at the wharf. There is no stipulation, express or implied, that
this charge shall be increased, much less doubled, after the landing of the
article.
It is hoped that you may succeed in impressing upon the Turkish authorities
our views of this question, so that the proposed measure may not be carried
into effect. If, however, a contrary course should be persisted in, it may
be considered our duty to require adequate reparation therefor.
I am, &c.,
[Inclosure in No. 42.]
Mr. Camden to Mr.
Frelinghuysen.
Washington, January 13,
1883. (Received January 13.)
Sir: I have letters forwarded to me from
Missner, Ackerman & Co., of New York, the Standard Oil Company of
New York, and other exporters of American petroleum, from their
correspondents in Constantinople, that by a firman obtained from the
Sultan, granted to Sami Bey, son of Soubhi Pasha, the exclusive
privilege of receiving and storing petroleum at extravagantly high
prices, which operates as a discrimination against American petroleum in
favor of the Russian petroleum, which is brought there in smaller
quantities, and can be sold ex vessel without storage charges. They
claim that this is in violation of treaty stipulations. They desire that
the State Department would call the attention of our minister at
Constantinople to this question, with a view of having it corrected.
I inclose you copy of a letter addressed by C. F. Ackerman to Minister
Wallace.
Their statements are as follows:
“At present the Turkish Government has her own storage rooms at Pasha
Garden, about 15 miles up the Bosphorus, in which they take all the
petroleum from the importers here, at the rate of 20 paras the first month and 5 paras for
succeeding months. The discharging from vessels into boats, landing,
storing, and delivering again, is done by the importer himself, and
costs but very little, as labor is very cheap in this country. By
personal influence, Soubhi Pasha, Zadé Sami Bey (that is, Sami Bey, son
of Soubhi Pasha), has received from the Sultan a firman granting him the
privilege of building petroleum stores very near by the old Government
stores, and charging as foliows: Forty paras for
the first month, 15 paras for the second month,
and 5 paras thereafter; furthermore, for the
discharging from vessels to store and out again, 50 paras per case, such paras to be paid
in advance.
“Sami Bey is not a business man, and has made another contract with two
Asia-Minor Americans, H. A. Hadjean & Co., Samandji and Mundjean,
Sami Bey to have 40 per cent, of the profits. These high expenses will
work against American oil in favor of Russian oil, because the moment
Russian oil arrives here it will be sold ex vessel and not be stored,
but this firman is against the international
treaties, and it is of great importance to American petroleum
that it should be revoked.
“General Wallace stands very high in the favor of the Sultan, but it is
necessary that some instructions should come to him in an official way
from Washington.”
Very respectfully,
C. F. Ackerman to
Mr. Wallace.
Constantinople, December 4,
1882.
Sir: Will you kindly permit me to draw your
attention to the following matter, which in my opinion is an injustice
on the part of the Turkish Government against the trade of the United
States:
My firm is Missner, Ackerman & Co., and is composed of Frederick
Missner, living [Page 824] Staten Island,
N. Y.; Charles F. Ackerraan, living Brooklyn, N. Y.; Charles F. L.
Missner, living Staten Island, N. Y.; the latter, however, at Hamburg,
Germany, in the interest of our firm. All of us are United States
citizens. We are engaged in the export business of petroleum and its
products to all parts of the world, and also largely to the Turkish
possessions. We have at this time, even, a stock here in Constantinople,
stored in the Government stores at Pashaba Ruhé The rates of storage are
there 20 paras per case for the first month and 5
paras per case for every month thereafter.
The discharging from vessel to store and oat again (labor in and out) is
done by the owner of the goods himself and the cost is trifling.
Lately His Majesty the Sultan has granted a firman to Soubhi Pasha Zadé
Sami Bey, granting him the exclusive privilege of erecting buildings
(also at Pashaba Ruhé) for the purpose of storing therein all the
petroleum that arrives here. These stores are now being constructed. It
is made obligatory to store there all the petroleum that is
arriving.
The firman gives Sami Bey the right to charge 40paras for the first, 15paras for the
second, and 5 paras for every succeeding month;
also 50 paras per case for the labor in and out,
such 50 paras to be paid at once when the goods
are stored.
Sami Bey has interested two American firms in this monopoly, named H. A.
Had-jean & Co., and G. A. Samandji and Mundjeau, both of this
place.
The above charges are extravagantly high, and enhance the cost of an
American product materially. Still, if the United States were the only
country where oil is produced it would matter very little; the consumer
would have to pay the extra charges; but by the competition of the road
between Baku, on the Caspian Sea, and Poti, on the Black Sea, there is
serious competition feared here of the Russian oils produced in or near
Baku. The Russian oil would be brought on here in small craft, and be
sold to consumers ex vessel, that competing seriously with the American
oil brought on in larger vessels, with but short lay days to
discharge.
I am informed that this firman is in violation of the treaty, and have
taken, therefore, the liberty to draw your attention to an injustice
towards American citizens. All what they desire is that the Government
stores can be used as heretofore at the old rates.
I am extremely sorry that I cannot have the honor of a personal
interview, being obliged to leave for Syria and Egypt.
My firm is represented here through Mr. A. Seefelder, who, however, is
fully able to give any further information you should desire on this
subject.
You will please excuse the trouble, but the case is important to American
industry; and I remain, &c.,
