The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-06-06
TOBACCO IN TURKEY.
The Natives Live on Cigar.
cites, Coffee and Olives.
GIGANTIC NICOTINE MONOPOLY.
scenes In the Factories-People of All
Nationaiities Work in Them-smug-
Cling Is Great Industry.

Russo-Turkish war and with q heavy in
deinnity TO Russia, awarded by the con-
gress of Berlin, its revenues decreased by
the detachment of several important
provinces, its fertile fields devastated and
Its populous villages destroyed, the Otto
man empire has had rough road to
travel to arrive at financial stability. 1t is
only owing TO the remarkable fertility of
the soil and to wise management of its
resources that now, after fifteen years
nave elapsed, the country can be said to
| De In falr way towards re-establishing its
credit. English, German and French
capitalists, with plenty of means at their
command and a quick insight into the
possibilities of regenerated Turkey, have
undertaken large financial and industrial
enterprises.
In the granting of concessions or virtual
monopolies the Turkish government finds
convenient method for the introduction
of foreign inventive skill, for the develop
ment of the hidden resources of the coun-
try, and for the obtaining of sure annual
income. One of the most lucrative monopo-
lies, both to the government and to the
capitalists. that has been granted of recent
years is that for the manufacture of to-
bacco, commonly known as the tobacco
Reggie. The enormous quantities of to-
bacco consumed by the men and women
of this empire render the cultivation and
manufacture of that article one of the most
important of the native industries
In the good days of old each man might
be the raiser and manufacturer of the TO-
bacco consumed by himself without the
interference of any iniquitous monopolist.
| But in 1873 this glorious state of affairs
| came to an end, and the days of the s'ban-
derolle" were upon the land. Foreign
| bondholders demanded positive assurance
| from the government that the interest on
| their bonds would be regularly met. In
| compliance with this request tax was i'm
| posed on tobacco. whose manufacture and
sale had hitherto been free. This tax took
| the form of stamp, called the "bande-
role, which was sold only to authorized
factories. From this tax and the fifty
cents per oke-equal to two and three
fourths pounds-charged upon all tobacco
exported, the bondholders derived an an
Dual income of about $675, 900.
Increasing years brought increasing dis
satisfaction. 1t became evident that the
tobacco industry would yield a much
larger revenue if better system of collec-
ton could be enforced. L. 1874 company
of English, German and French fia.snciers.
with capital of two million Turkish
| pounds-equal to abe1 $500 .ooc
| agreed, in virtue of concession Tor 49,
| sole right to manufacture tobacco for
native consumption, to pay the govern
ment T. 9750,000, and a percent
| age of the profits besides. A conces-
sion at such price may seem rather dearly
| bought, but consideration of the rights
Oh asy, oI .wrsx, ADn&& h
cannot but be profitable. 1t includes the
sole right of issuing licenses for the sale of
tobacco, worth from $1.50 to $3.50, accord
ing to the importance of the district, the
revenues derived from the rs per cent. tax
on imported cigars, from the 100 per cent.
tax on imported snuff, that from the tax
on tobacco grown in the province of Bag
dad, that from the export tax on tobacco
sent from Turkey to tributary provinces,
Egypt included, and, besides, the exclusive
right to sell tobacco to the consumers in
Turkey. In other words, the Turkish gov
eminent has coded to this company all the
revenues which would correspond to the
receipts of the internal revenue service of
the United States, as well as all customs
duties arising from the import of tobacco.
The advantages to the government were
that it was afforded a surer and much
larger income than previously derived
from the tobacco industry and was re-
lieved Of the task of collecting a new and
odious tax.
In spite of its large acquisitions, the
path of the Reggie has not been without
obstacles. Difficulties were encountered
on all sides. The company had to provide
itself, on very short notice, with large
stock of tobacco, purchased in a market
over which its control was not yet estab-
lished, il had TO contend with a coalition
of sellers who, actuated by animosity, laid
down singularly unfavorable conditions,
both as regards quality and price; tenn
porary arrangements for manufacture had
to be made pending the establishment of
its permanent factories; an utterly made
quate police force found it impossible to
cope with the organized bands of snug
glers, and, moreover, consumers had taken
care to lay In large supplies at the last
moment. These difficulties were in
measure anticipated, although their exact
nature had not been clearly foreseen. A
totally Unforeseen contingence was the
withdrawal of Egypt from the agreement.
Prior to the establishment of the Reggie
the Turkish tobacco monopoly extended To
Egypt, which country imported annually
about 100000 okes equal to 100000
poundsland as each oke paid an export duty
of about 80 cents, the revenue from that
source was expected to amount to 10000
Turkish pounds-equaI TO about $3.50, 900.
Instead Of realizing that amount, however,
the Egyptian branch of the business
brought them an income of only $1,000
Turkish pounds, due to the opening of the
EGYPTIAN market to tobacco from all coun-
tries. This necessitated a temporary ar
rangement by which the Reggie was enabled
to borrow 10000 Turkish pounds without
interest and were relieved of ESQ, 900 of the
sum they had previously agreed to pay TO
the government.
The first annual report disclosed very
discouraging situation. Losses to the
amount of f1S7.000 appeared upon the
books of the company. The second years
report was more encouraging. Though
the illicit traffic of the smugglers was not
vet broken up, by judicious and economi-
cal management the company was enabled
to carry on the second years business
with q reduced loss of 1885, 900. Affairs
went along quite smoothly during the
third year, so that the report presented in
November, 1887, showed loss of only
$4,000. A reorganization of the manage
ment occurred at this time, and with it came
change in the balance sheet. The turn
ing point in the history of the Reggie oc-
CURED in the year 1913, when, instead Of
being forced TO chronicle loss the COM
pany found itself f105, 600 to the good. The
next year, 80, showed still brighter con-
dition of affairs, when profit OF 4lsl, 900
was realized on sales amounting 70 tl,-
cd, COO IL now became evident that the
company had weatheYed the storm and
had made its way into smooth water. Its
organization was everywhere consolidated
- 4 4 I'll. - f@aArv En&