The baron’s “concession” is a financial curiosity. It allows him the
sole right to build railways in Persia for the next seventy years; also
street railroads; gives all the land necessary, free of charge, for
double tracks and fifty or sixty yards on each side; all importations of
_material_, etc., free of duty; all the baron’s exports free of duty
also. The baron may appropriate and work all mines (except those of the
precious metals) free of charge, the Shah to have 15 per cent of the
profits. Any private mine may be “gobbled” (the Persian word is
_akbamarish_) by the baron if it has not been worked during five years
previously. The baron has the exclusive privilege of making the most of
all government forests, he giving the Shah 15 per cent of the profits
from the wood sold. After a forest is removed, the baron is to be
preferred before all other purchasers if he wants to buy the land. The
baron alone may dig wells and construct canals, and he is to own all the
land made productive by such works. The baron is empowered to raise
$30,000,000 on the capital stock for working purposes, and the Shah
agrees to pay 7 per cent interest on it; and Persia is wholly
unencumbered with debt. The Shah hands over to the baron the management
of his customs for twenty years, and the baron engages to pay for this
privilege $100,000 a year more than the Shah now receives, so the baron
means to wake up that sleepy Persian commerce. After the fifth year the
baron is to pay the Shah an additional 60 per cent of the profits, if
his head is still a portion of his person then. The baron is to have
first preference in the establishment of a bank. The baron has
preference in establishing gas, road, telegraph, mill, manufacturing,
forge, pavement, and all such enterprises. The Shah is to have 20 per
cent of the profits arising from the railways. Finally, the baron may
sell out whenever he wants to.
It is a good “concession” in its way. It seems to make the Shah say:
“Run Persia at my expense and give me a fifth of the profits.”
One’s first impulse is to envy the baron; but, after all, I do not know.
Some day, if things do not go to suit the Shah, he may say, “There is no
head I admire so much as this baron’s; bring it to me on a plate.”