Mr. Leishman to Mr.
Hay.
Legation of the United States,
Constantinople, June 10,
1902.
No. 210.]
Sir: I have delayed answering your dispatch No.
143, of April 25, in regard to the New York Life Insurance Company
matter, hoping to be able to give you some definite information, but
unfortunately the matter is still in abeyance, with comparatively little
hope of an immediate settlement.
The letters of Messrs. Whittall & Co., managers for Turkey for the
New York Life Insurance Company, are apt to create an erroneous
impression, as they rather lead one to believe that an intentional
discrimination exists against American insurance companies, and
especially against the New York Life. This is not the case, as the
trouble is general, and other foreign companies suffer equally; but
although the matter has been repeatedly brought to the attention to the
Ottoman Government during the past few years, a number of the
ambassadors going to the extent of making a sort of joint
representation, nothing ever came of it, and as far as I can see, the
case is practically being left to us to push; but as I have failed to
discover the slightest indication on the part of the Ottoman Government
to discriminate particularly against American insurance companies, I
have not felt warranted in taking any stronger measures than those
indicated in copy of correspondence herewith inclosed, followed up, of
course, with frequent personal representations when visiting the grand
vizier or minister for foreign affairs, which will be continued on same
lines unless instructed by you to the contrary. As intimated to Messrs.
Whittall & Co., I believe it is a matter that should be followed up
in a regular business way by the life insurance companies with what
assistance the legations can properly extend, rather than one calling
for diplomatic action.
[Page 1031]
Although a natural tendency may exist to protect Ottoman companies, the
results of my investigations rather lead me to believe that the trouble
arises principally from a well-intentioned effort on the part of the
Ottoman Government to properly protect their citizens on the same lines
adopted by other European countries; but the laws have only been
partially and not very wisely framed, owing to imperfect knowledge of
insurance matters.
Owing to the peculiar manner of conducting affairs in this country,
little or no difficulty is experienced by insurance companies in
conducting their business in large cities like Constantinople, Smyrna,
etc., the trouble commencing generally when they attempt to prosecute
their business in the interior; but whether this comes from the fact
that unusual liberties are granted in Constantinople and several other
large seaboard cities (where even the natives are exempted from certain
taxes that are exacted in the interior), coupled with the fact that the
agents in these places are of a superior class and generally foreigners,
while the subagents throughout the country are generally natives, some
of whom may have practiced frauds in time past, or whether it arises
from the fact that the Ottoman Government feels that it can enforce its
laws in the interior with less friction and less interference on the
part of the embassies and the legations, both officially and
officiously, I am unable to state; but I rather hold to the opinion that
the trouble arises principally from the fact that conflicting and
inoperative measures have been adopted which are difficult to
correct.
According to the Ottoman law of 1303 (1887) in regard to foreign
anonymous companies carrying on business in the Turkish Empire such
companies must—
- I.
- Submit to the imperial department of commerce and public works
a certified copy and translation of the statutes of the company,
so that the Imperial Government, before granting permission to
such companies to carry on business, may be sure that the
company has nothing against public order and morality.
- II.
- Such companies must elect domicile in Turkey and have a
responsible agent, so that if they should have any disputes with
Ottoman subjects, the latter may nave the opportunity to bring
action against such companies in the mixed Ottoman
tribunals.
- III.
- In the case of insurance companies, however, the department of
commerce and public works seems to demand—I think the condition
is put down verbally—that insurance companies over and above the
said two conditions deposit in Turkey, stocks, cash, or other
value, or be guaranteed by an institution like the Ottoman Bank,
so that if there should be any action against the companies, and
in case such companies be condemned to pay any sums to Ottoman
subjects, the courts and Ottoman authorities may be in a
position to execute such judgments. This they call the “fonds de
garantie,” and they argue that in France, Germany, Switzerland,
etc., no foreign company is allowed to carry on insurance work
without such “fonds de garantie,” or before the company has
acquired real property of some value. This third condition is
not in the law. A comparatively small investment in real estate
or bonds would no doubt satisfy the Ottoman Government, and I
feel quite satisfied that with a little patience, coupled with
determined efforts and a liberal spirit on the part of the
insurance companies, the difficulty can be adjusted.
I am informed that the agents of the foreign insurance companies [Page 1032] are contemplating taking
joint action, and further, that one of the foreign companies (l’Union de
Paris) even went so far as to agree to the third condition, not yet
embodied in the law, but were immediately confronted with other
conditions to which they were not willing to agree, and from the best
information I can obtain the department of commerce and public works,
which has charge of insurance matters, is still floundering around
trying to frame a new law to cover conditions of which they evidently
have a very imperfect knowledge.
In one of Messrs. Whittall’s letters they express the opinion that the
trouble arises from an effort to protect the Ottoman Insurance Company.
There may be some slight foundations for this suspicion owing to the
fact that the lawyer who drew up the papers for the Ottoman company has
frequently been consulted by the Government; but the company itself is
rather a small affair and deals principally in fire insurance, and
consequently I am not inclined to credit them with any great amount of
influence.
I will continue to do everything in my power to further the interests of
the New York Life Insurance Company, but under present condition I do
not deem it advisable to press the matter too hard or too far.
Trusting above will furnish you with all the information desired, I have,
etc.,
[Inclosure 1.]
Mr. Leishman to
the Minister for Foreign
Affairs.
United States Legation,
Constantinople, January 31, 1902.
No. 71.]
Excellency: I respectfully beg leave to
call your excellency’s attention to the fact that despite the
several protests made by this legation against the restraint placed
upon American insurance companies, and the obstacles and troubles
thrown in their way in order to prevent them from prosecuting their
business throughout the Ottoman Empire in accordance with their
rights and privileges guaranteed by the treaties, the trouble
continues to exist as evidenced by the complaint lodged by the New
York Life Insurance Company, copy of which is herewith attached, and
I venture to hope that your excellency will cause the necessary
steps to be taken to promptly correct the trouble recited.
The New York Life Insurance Company is one of the largest and most
responsible and reliable institutions of the kind in the world,
amply able to comply with any reasonable regulation introduced by
any foreign government for the protection of the interests of its
citizens, and have even been admitted in both Germany and
Switzerland, where the laws governing insurance companies are
unusually severe; and if there exists any formality to which they
have not complied, I would be pleased to be advised in order that
they may be notified to comply with any proper rules and regulations
that may exist; and as the delay in correcting above-mentioned
trouble is causing severe loss and prestige to an American
instituton of high standing and merit, I trust your excellency will
cause such action to be taken as will immediately remedy the
existing trouble.
I take this occasion, etc.,
[Inclosure 2.]
Mr. Leishman to
Messrs. Whittall & Co.
United States Legation,
Constantinople, April 3, 1902.
Gentlemen: Replying to your letter of April
1, without being more fully informed as to the exact status of your
case it would be impossible for me to take any action [Page 1033] other than what has
already been taken, and I am at somewhat of a loss to understand the
mention you make in your letter of an interview which you state Mr.
Chirinian had with me, for although I advised you that I would be
pleased to accord an interview to the gentleman mentioned or one of
your firm, I have never had the pleasure of meeting any of your
representatives.
As advised in my previous note, unless you can clearly show that
American insurence companies are being officially discriminated
against or that the insurance laws in force in the Ottoman Empire
are unjust and improper, it would be difficult for the legation to
interfere; and if the latter is the only cause of complaint, I would
strongly recommend that the New York Life Insurance Company take the
matter up in the name careful and thorough manner which they pursued
when correcting the trouble which formerly existed in Germany and
Switzerland, in which they were assisted by the United States
Government, which finally resulted in their being reestablished in
these countries on a basis which was entirely satisfactory to all
parties concerned.
Yours, very truly,
[Inclosure 3.]
Messrs. Whittall &
Co. to Mr. Leishman.
Constantinople, April 14, 1902.
Sir: With reference to the conversation
which our Mr. William Whittall and Mr. Chirinian had with your
excellency a few days ago, we have now the honor to state, as
already mentioned in our letter of the 1st of April, that the New
York Life is prepared to conform to the laws of this country
respecting insurance companies, and on the 6th of September, 1900,
we deposited with the Ottoman Government an application for
registration. This application was signed by the direction-general
for Europe of the New York Life, and it was accompanied by a copy of
the statutes of the company duly legalized at your legation, and the
company also accepted legal domicile in Turkey.
The requirements of the law of the year 1303 (1887) were thus duly
complied with, hut notwithstanding all the efforts we have made, and
despite the representations made from time to time by the legation
of the United States, the Ottoman Government will not grant us the
authorization.
We repeat, the Ottoman Government has no right under the
capitulations to interfere in any way with the operations of the New
York Life in any part of Turkey, but although we are entitled to
this freedom in our business, we have, nevertheless, as mentioned
above, in order to be agreeable to the Government, consented to
abide by the laws of the country, and the required documents were
signed eighteen months ago, but instead of granting the permit the
persecution of our agents and the obstruction is on the
increase.
In accordance with the promise expressed by your excellency we
venture to hope that the legation will now be able to take up the
question with energy and support the application we have made to the
Government and induce them to grant us the authorization without
further delay.
We should mention that the New York Life is being discriminated
against, inasmuch as the Ottoman Insurance Company meets with no
obstacles in its operations.
We have no doubt the New York Life would send one of its officers
here to carry through the negotiations as your excellency suggested,
if it were necessary, but we do not consider that the question has
reached such a stage. We are of opinion that at the present moment
the legation alone is able to clear up the situation and prepare the
way for the final settlement of the question.
We solicit your excellency’s active intervention in this matter in
order to put an end to a state of affairs which is seriously
detrimental to American interests in general and to the New York
Life in particular.
We have, etc.,
J. W. Whittall & Co.
[Inclosure 4.]
Messrs. Whittall &
Co. to Mr. Leishman.
Constantinople, May
23, 1902.
Sir: With reference to the letter we had
the honor of addressing your excellency on the 14th of April
respecting the obstruction of the Turkish Government toward [Page 1034] the New York Life
Insurance Company, we now take the liberty of inquiring whether, in
conformity with the promise expressed, your excellency has been able
to take the necessary steps for obtaining an early cessation of the
illegal actions of the Ottoman Government.
We consider the matter is of such great importance as to warrant us
urging upon your excellency on behalf of our principals, the New
York Life Insurance Company, to use every means at your excellency’s
disposal to bring about a solution of the question as early as
possible, inasmuch as the difficulties are increasing and are
causing very serious prejudice to the company’s business in
Turkey.
We shall be glad to learn what result your excellency’s
representations have had, and, needless to say, we are at your
excellency’s disposal for any information that might be
required.
We have, etc.,
J. W. Whittall & Co.
[Inclosure 5.]
Mr. Leishman to
the minister for foreign
affairs.
United States Legation,
Constantinople, May
14, 1902.
No. 107.]
Excellency: Referring to the legation’s
note No. 71, of January 31 last, in regard to the New York Life
Insurance Company, I beg to inclose herewith a copy of a letter from
Messrs. J. W. Whittall & Co., agents in Turkey for said company,
in which they claim to have complied with all the rules and
regulations in force; and consequently I trust that your excellency
will cause the necessary orders to be issued at once permitting them
to conduct their business throughout the Ottoman Empire without
further molestation.
I take, etc.,
[Inclosure 6.]
Extract from a note sent by Mr. Leishman to the
minister for foreign affairs concerning the New York Life
Insurance Company.
United States Legation,
Constantinople, May
24, 1902.
No. 115.]
Another matter which is causing considerable trouble and loss of
business to important American interests is the difficulties thrown
in the way of the New York Life Insurance Company in the prosecution
of their legitimate business throughout the Ottoman Empire. The
standing and financial responsibility of this company is undoubted,
as it is recognized the world over as being one of the largest and
most reputable institutions of the kind existing; but
notwithstanding the report furnished you from Messrs. Whittall &
Co., managers for Turkey for the New York Life Insurance Company,
stating that they have offered to comply with all the conditions of
the existing Ottoman insurance laws, their agents throughout the
country continue to meet with annoyance and petty obstruction, and I
must ask that the trouble be promptly remedied.
[Inclosure 7.]
Mr. Leishman to
Messrs. Whittall & Co.
United States Legation,
Constantinople, May
28, 1902.
Gentlemen: Replying to your letter of May
23, I beg to state that in accordance with our understanding I
presented a copy of the paper which you sent me to the Porte,
coupled with the request that the matter be at once investigated and
that the difficulties and obstacles which have been thrown in the
way of foreign insurance companies be removed.
It seems to me that outside of the general difficulty of getting
anything settled, owing to the present manner of conducting affairs
and the consequent congestion of all business, the greatest trouble
seems to lie in the effort of the Ottoman Government [Page 1035] to frame an insurance law for the
protection of the interests of their subjects somewhat on the line
adopted by other European nations, without having properly
considered the problem or the difference in existing conditions,
rather than with an idea of discriminating against the New York Life
Insurance Company, as the trouble seems to be general, although you
may be experiencing more difficulties than others owing to greater
activity on the part of your agents. As no evidence has been
submitted that would show any special discrimination against
American interests, I can only continue to bring what pressure and
influence I can properly bring to bear to assist you in your efforts
to secure a fair and equitable adjustment of the present
difficulties, and as you have already evidenced your willingness to
comply with the Ottoman insurance laws, I have so informed the
minister of foreign affairs and insisted on proper authority being
given you to prosecute your business throughout the Ottoman Empire
without further let or hindrance, and will be only too happy to do
anything further in my power to assist the New York Life Insurance
Company in its efforts to secure a fair and prompt settlement of the
existing troubles.
I am, etc.,
[Inclosure 8.]
Messrs. Whittall &
Co. to Mr. Leishman.
Constantinople, June 5, 1902.
Sir: We have the honor to acknowledge the
receipt of your excellency’s dispatch of the 28th ultimo, and beg to
tender our thanks for the further steps your excellency has taken to
remove the obstruction we are exposed to.
We have deemed it expedient, now that the Ottoman Government is more
or less occupied with the question, to protest formally against
their action, and we have accordingly served a protest, as per
inclosed copy, through the consulate of the United States, and we
beg your excellency will give this protest any support that may be
necessary.
We take due note of your excellency’s remarks respecting the apparent
difficulty of the Ottoman Government to frame an insurance law, but
we take the liberty of pointing out to your excellency that that
fact does not, in our humble opinion, justify the action of the
Ottoman Government in violating its treaties and causing serious
prejudice to American interests, for we respectfully maintain that
under the capitulations the Ottoman Government has no right to
interfere in our business as they have done.
The regulations which the Ottoman Government framed in the year 1887
(1303) respecting joint-stock companies were not, as your excellency
is doubtless aware, accepted by the foreign powers, inasmuch as they
were based on a principle which constituted an encroachment on the
liberties of commerce.
The Ottoman Government should frame these regulations in such a shape
as to make them admissible by the powers, but pending the solution
of this question the Government should be requested to respect its
treaties, and no doubt a satisfactory modus operandi could be
arranged until the regulations are framed and accepted by the
powers.
Unless some arrangement of this nature is made or the Government can
be made to desist from the present measures of persecution, there
will be no change in the situation for years to come, and the
troubles will become even more acute, for, as your excellency
correctly remarks, the congestion of all business is such as to make
it difficult, it might be said impossible, to get anything
settled.
We trust your excellency will continue to adopt energetic measures to
obtain for the New York Life Insurance Company that freedom in its
operations in Turkey tc which it is unquestionably entitled by
treaty.
We have, etc.,
J. W. Whittall & Co.
[Inclosure 9.]
Mr. Leishman to
Messrs. Whittall & Co.
United States Legation,
Constantinople, June 10, 1902.
Gentlemen: I beg to acknowledge receipt of
your communication of June 5, inclosing copy of the protest which
you have served upon the Ottoman Government [Page 1036] through the consulate-general, which had
previously been submitted to me by Mr. Sehmavonian, and to which I
had suggested making some slight alteration in order to emphasize
the willingness which you had already evidenced to comply with the
Ottoman insurance laws now in force; but Mr. Sehmavonian explained
to me that your lawyer had purposely left the matter a little
vague.
I note your remark that you do not consider that the trouble arising
from the Ottoman Government’s effort to frame a proper insurance law
justifying the action of which you complain, and am quite of the
same opinion. Under existing circumstances, with which you are fully
acquainted, it is rather difficult to move very rapidly, and the
fact that no special discrimination exists against American
companies prevents taking measures which might otherwise be resorted
to; and while the fact which you state in regard to the European
powers never having accepted the Ottoman insurance laws of 1887
(1303) is an open secret, and some of them were going so far as to
file a protest, nothing further was done and the matter has been
allowed to rest.
With the assurance that I will always hold myself in readiness to
render you any assistance in my power to aid you in securing a
satisfactory adjustment of the present difficulty, and with the hope
that your protest may have a beneficial result, I am, etc.,
