Mr. Leishman to Mr. Hay.

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.,

John G. A. Leishman.
[Inclosure 1.]

Messrs. Whittall & Co. to Mr. Leishman.

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.

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.

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.,

John G. A. Leishman.