Baron von Bieberstein's purpose seems to have been to secure command of the situation and to obtain additional favours for a company which was formed several years ago to extend one of the existing railway lines from its present terminus in the province of Anatolia to the Persian Gulf. It is suspected also that certain German and Belgian capitalists would be glad to secure a share of the Chester concession, which is very comprehensive and involves a variety of interests.
Although the Turkish ministry was exceedingly anxious to close the arrangement and obtain the credit of promoting such an extensive scheme of internal improvements, they were afraid of Germany — first, on account of the controversy with Greece over Crete, and, second, for fear the kaiser would object to a proposed increase in the Turkish tariff.
This situation was complicated by the fact that the kaiser's sister is the wife of the crown prince and the future king of Greece, and the Turkish administration cannot raise the necessary revenue by advancing duties on imported goods 5 per cent., as is now proposed, without the consent of the five European Powers.
The concession involves the construction of about fifteen hundred miles of track through Armenia, Kurdistan, and Mesopotamia, and the vilayets of Trebizond, Sivas, Van, Diarbekir and Mossoul. The road begins at the port of Snedis, on the Mediterranean, at the mouth of the Orontes River, about sixty miles south of Alexandretta, and about thirty miles from the ancient town of Antioch. From there it runs eastward through Aleppo, Urf a, Diarbekir, Bitlis, and other populous cities to Lake Van and encircles that lake, which is the most important of all the interior bodies of water in Turkey. From Diarbekir, which is to be a junction, one branch of the road will run northwest to the city of Sivas and another southwest to the Persian boundary at Suleimanieh, crossing the valleys of the Euphrates and the Tigris Rivers and bisecting the province of Mesopotamia, which it is proposed to reclaim to agriculture by the reconstruction of the vast systems of irrigation which were used by the ancients, and for some mysterious reason have been allowed to go to waste.
The Turkish government is contemplating the construction of a railroad from Sivas northward to Samsoun and Trebizond, on the Black Sea, and intends to extend the existing railroad from Constantinople to Angora to connect with the tracks of the Chester syndicate at Sivas. The Russian government is determined to control all of the railway lines that touch the Black Sea, and has a treaty with Turkey which prevents any concession being granted to the Chester syndicate or any other except a Russian or Turkish corporation for a railroad into that territory. It is entirely probable, however, that some arrangement might be made for the construction of one and perhaps two lines between Sivas and the Black Sea by the Turkish government.
The Chester concession is for ninety-nine years, the government reserving the right to purchase the whole or any part of the property after a period of sixty years, on the basis of the average gross receipts for the previous five years. The syndicate agrees to complete the first third in five years, the second third in six years, and the entire system in ten years, the total cost being estimated at $100,000,000. The government reserves the right to regulate charges for freight and passengers, and the company agrees to transport mails, soldiers, and military supplies at a certain reduction from the regular rates. The property is to be exempt from taxation for a certain period. All materials are to be admitted free of duty, but the company must employ subjects of Turkey in the operation of the road as far as possible, and "they must wear the fez and such uniforms as the government shall direct." The company is under obligations to give preference to the government in transportation of troops and supplies in time of war, or whenever necessary. The funds for paying the cost of construction are to be raised by an issue of bonds and at least one half of the total must be offered publicly to Turkish subscribers for a period of thirty-one days.