There was an idea that, as Konia is a most promising field for the production of exports, the Smyrna lines competed so eagerly for the concession to extend there that the Porte was enabled to make terms with the Anatolian Railway Company (to which I have alluded) for the extension to Baghdad, which strategically is of great importance. It was said that the strong competition placed the Government in the position of the man in the Eastern story who went to the bazaar to sell an old camel, and a young cat of rare beauty. The cat was shown off sitting on the camel, and was desired by many purchasers; but there was no bid for the camel. The competition for the cat ran high, and then the owner announced that the one could not be sold without the other, on which the camel was bought with the cat. But as a matter of fact there was no opening for competition for the Konia branch. The Anatolian Railway had preferential rights for what is called the southern or loop line, which I have mentioned as passing through Konia, and rejoining the main or northern line at Diarbekr. They also have preferential rights of extension to Baghdad, and they mean to carry the line there.
The Smyrna Aidin railway has lately had a considerable improvement in its traffic, from the barley of Asia Minor being in increased demand in addition to its wheat. This means that the material for the beer as well as the bread of the masses elsewhere is found to be abundant and cheap there, and the extension of railway communication in those regions will most probably increase the supply and demand. The same trade in barley has lately sprung up in Southern Persia and Turkish Arabia, and for some time past, while the low price of wheat discouraged the existing wheat trade there, it has been found profitable to export barley from the Gulf ports. Barley is the cheapest grain in Persia, where it is grown for home consumption only, being the universal food for horses. Owing to want of care with the seed, and the close vicinity of crops, the wheat was often so mixed with barley as to reduce the price considerably, and the question of mixture and reduction was always a very stormy one. When I was at Ahwaz, on the Karun, in 1890, I saw a machine at work separating the grains, and the Arab owners waiting to take away the unsaleable barley, the wheat being bought for export by a European firm there which owned the machine. The Arab sellers probably now move to the other side of the machine to carry away the unsaleable wheat, the barley being bought for export owing to the turn of trade.
The German group that has obtained the Persian road concession has also taken up the old project of an extension of the Tehran tramways to the villages on the slopes of the Shimran range, all within a distance of ten miles from the town. The Court, the city notables, and the foreign legations, with everyone who desires to be fashionable, and can afford the change, reside there during the warm months—June, July, August and September. The whole place may be described as the summer suburb of the capital, and there is great going to and fro.
I have already mentioned the Russian road now under construction from the Caspian Sea base to Kasvin, with the object of enabling Russian trade to command more thoroughly the Tehran market. The total distance from the coast to the capital is two hundred miles. There is an old-established caravan track over easy country, from Kasvin to Hamadan in the south—west, distant about one hundred and fifty miles. It has lately been announced that the Russian Road Company has obtained a concession to convert this track into a cart-road in continuation of that from Resht. It is seen that with improved communication Russian trade may be made to compete successfully at Hamadan, which is only about fifty miles further from the Caspian Sea base than Tehran, and there will also be the advantage of a return trade in cotton from Central Persia, as Armenian merchants now export it to Russia from as far South as Isfahan and Yezd. The German road from Baghdad to Tehran will be met at Hamadan.
Kermanshah and Hamadan, through which the German road will pass, are both busy centres of trade in districts rich in corn, wool, and wine. They are also meeting-points of the great and ever-flowing streams of pilgrims to Kerbela viâ Baghdad, said to number annually about one hundred thousand. This has been a popular pilgrim route, as well as trade route, for centuries, and with greater facilities on an improved road the traffic is certain to increase.
It is said that the alignment of the Russian road from Resht is to be made in view of a railway in the future. The same will probably be done in the Hamadan extension, and it is believed that the German road will be similarly planned. All this would mean that behind the concessions are further promises for the time when railway construction comes. Looking into the dim distance, the eye of faith and hope may see the fulfilment of railway communication from India to Europe by a connection between the Quetta or Indus Valley line and Kermanshah.
This brings us to the agreement of 1890 between Persia and Russia to shut out railways till the end of the century. This agreement, when made known, was regarded as proof of a somewhat barbarian policy on the part of Russia, unwilling or unable herself to assist in opening up Persia and improving the condition of the country. But there is some reason for the idea that the Shah himself was ready to meet the Russian request, so as to keep back the railway which he feared would soon connect his capital with the Caucasus. There was much railway talk in Persia in 1890, and Russia knew that it would take quite ten years to complete her railway system up to the Northern frontiers of Persia and Afghanistan. The railway now being made from Tiflis to Alexandropol and Kars will probably send out a line down the fertile valley of the Aras to Julfa, ready for extension across the Persian frontier to Tabriz, and a branch may be pushed forward from Doshakh, or Keribent, on the Trans-Caspian railway, to Sarakhs, where Russia, Persia, and Afghanistan meet, to facilitate trade with Herat as well as Meshed. In the meanwhile also the cart-roads, ready for railway purposes if wanted, from the Caspian Sea base to Kasvin, Tehran, and Hamadan, will be completed.
Russia insisted on regarding the opening of the Karun to the navigation of the world as a diplomatic victory for England, and a distinct concession to British commerce, which is predominant in the South. She therefore thought out well what to get from the Shah in return, to favour her commercial policy in the North, and the ten years' prohibition of railways was the result. Russia desires commercial predominance in Persia just as England does, and she will use all the influence which her dominating close neighbourhood gives to obtain the utmost favour and facilities for her trade.
While Russia and England were thus engaged in strong commercial rivalry, Germany unexpectedly made her appearance in the Western region of Central Persia, where their competition meets. Nor has Persia been idle in trading enterprise; her merchants are not only aiming at getting more exclusively into their own hands the interior commerce of the country, but they have established direct relations with firms in foreign countries, and now work in active competition with the European houses which in old days had almost all the export and import trade in their own hands. The introduction of the Imperial Bank of Persia has given an impetus to this new spirit of native enterprise by affording facilities which before were not available on the same favourable terms. The Nasiri Company, a mercantile corporation of Persians, was formed in 1889 to trade on the Karun, and it commenced operations with two small steamers. Later, a third steamer was added, and they are now negotiating for the purchase of a fourth. They have a horse tramway, about one and a half miles long, to facilitate the necessary transhipment of cargo between the upper and lower streams, where the Ahwaz Rapids break the river navigation. This trading corporation has strong support, and the Persian Government is earnest in giving it every assistance, so that it may develop into an effectual agency for the revival of the prosperity which made the Karun Valley in old times what the Nile Valley is now.
Messrs. Lynch Brothers also run a large steamer on the Lower Karun in connection with a 'stern-wheeler' (Nile boat pattern) on the upper stream, and between them and the Nasiri Company a regular and quick communication is maintained between Bombay and Shuster. One of the articles of import at the latter place is American kerosene-oil for lamp purposes, to take the place of the Shuster crude petroleum, said to have been used there for centuries. This petroleum contains an unusual amount of benzine, and being highly explosive in lamps, the Shuster people, who can afford to pay for the safer substance, have taken to American oil. The Shuster petroleum-springs belong to a family of Syuds in the town, and did not fall within the field of the Persian Mines Corporation. These oil-springs may yet become the object of practical operations should the Nasiri Company develop the resources of the Karun Valley.