in 1901, to 81,000 poods (1,464 tons); in 1902, to 55,000 poods (994 tons). Here is a falling off that means the ultimate extinction of this line of imports. The reasons assigned for this decline is the Russian Government's regulation or ruling that all material used in the public works of the Empire must be home made.

Machinery. The total importations of machinery were, in 1899, 11,800,000 poods (213,253 tons); in 1900, 8,700,000 poods (157,229 tons); in 1901, 6,000,000 рoods (108,434 tons); in 1902, 5,600,000 poods (101,205 tons). In the year 1902 3,600,000 poods (65,060 tons) went in for manufacturing and 1,800,000 poods (32,530 tons) for agri cultural purposes; in 1901 the amounts for these purposes were 3,400,000 poods (61,446 tons) and 1,600,000 poods (28,915 tons), respectively. Complicated agricultural machinery still finds a market in Russia. Germany has had a large part of the trade in machinery. In 1902 her share was worth 24,000,000 ruble ($12.360,000). In the order named followed Austria, Hungary, the United States, Sweden, Belgium, and France. In agricultural machinery Germany still leads and is followed by Sweden and Great Britain. Of the imports of machinery for manufactures Great Britain supplies two-thirds and Germany one-third.

An official report to the Austrian Government says that steel is playing a more and more important part in the Baku regions of Russia. During recent years the importations of steel-wire ropes diminished steadily. This was due to the erection of works in that part of Russia. The city of Baku has established two in the last two years. Cable chains for tank steamers are all imported, mostly from Great Britain, which practically controls the market, Austrian works being unable to compete with British producers.

AFFAIRS AT VLADIVOSTOCK.

(From United States Commercial Agent Greener, Vladivostock, Siberia.)

Beet-sugar factory.-Experiments made with local beet-root plants have proved so satisfactory that a company has been formed to start a factory here. The only impediment is the great initial cost, too much for individual enterprise.

Duty on American flour.-Our local merchants find their troubles with the custom-house endless. On July 2 they were notified that all American flour would be subject to duty, and even the American flour now on hand must pay the newly imposed impost. This policy is in line with the method pursued on the closing of Porto Franco in 1901, when our merchants were obliged to make an inventory and pay duty on all foreign goods on hand.

Siberian salmon for European Russia. -The committee on tariff revision in session in St. Petersburg has suggested the reduction of freight rates for salmon sent via Siberia to European Russia. Salmon are abundant in the Lena and Yenisei rivers, and especially so in the Amur. A reasonable reduction in freight would raise the export 55,000,000 pounds annually. This same committee has slightly increased the duty on honey, porter, and beer.

Coal.-N. Makofski, manager of the coal-mining firm Makofski & Co., referred to in a previous report, no longer keeps coal on storage at De Castries Bay. This firm is a lessee of the Government coal mines on Sakhalin Island. Its predecessor, the Sakhalin Mining Company, wound up its affairs in 1900. Since that time, the present firm has expended more than $25,000 on improvements here and at Sakhalin. Opposite Vladivostock it has large houses and much coal ready for the Government steamers.

Westinghouse air brakes.-Soon all the mail trains of the Ussuri Railroad will be supplied with Westinghouse air brakes.

Russian land banks.-The Russian land banks loan money on submortgages of real estate. The banks are under the Ministry of Finance. In the future all loans on city realty must not exceed 40 per cent of the valuation if centrally located, nor 30 per cent if in an outlying district. All appraisements must be made by the sworn agents of the bank, according to a recent notice. In consequence of this order, much work on private buildings in Vladivostock has ceased, because anticipated loans from the Imperial Bank of this city have been ordered stopped. There are two agencies of Russian land banks here. They loan money to owners of real estate on twenty years' time at the low interest of 51⁄2 per cent a year. Several enterprising persons had begun the erection of valuable buildings and had made the usual preliminary application for loans to one or other of the banks on the usual terms on completion of buildings. Meanwhile, they went on with their work by borrowing money from private parties at high rates of interest. Now, having waited. almost a year, they are notified that the Minister of Finance has ordered the land banks to discontinue all loans on mortgages at · Vladivostock. There are several cases where the losses are severe. As a consolation they are told they may rely upon loans if they should build at Dalny.

RICHARD T. GREENER,
Commercial Agent.

VLADIVOSTOCK, SIBERIA, July 3, 1903.

COASTING TRADE OF SIBERIA.

(From United States Commercial Agent Greener, Vladivostock, Siberia.)

The whole coasting trade between Vladivostock and adjoining places contiguous to the Peter the Great Bay is in the hands of the Chinese. There has been much heated discussion how to take this business from alien hands and place it in the hands of Russian subjects, but nothing has resulted thus far.

There are a few Russian sailing schooners and some vessels of the Chinese Eastern Railroad cruising along the coast, but they can

not, it seems, displace the hundreds of Chinese boats which carry the bulk of the local products. It is recommended that a sufficient number of barges be provided for all the ports where the Chinese Eastern Railroad steamers touch. Such barges, like the Chinese junks, should be adapted to shallow water.

They should be suitable for carrying agricultural products and timber. Knowing the schedule time of the steamers, the barges could be loaded up in time to be taken in tow. When cargoes are discharged here the barges could be towed back again. A second suggestion throws light on the limitations in national mercantile marine matters in this Province. Russian subjects are not allowed to settle at will along the coast and establish villages, farms, etc., unless they are employed in the fishing industry. There is an abundance of fish, but of a variety the Russians do not fancy for food, using it almost exclusively for manure. The Russian peasant is not a fish eater and the fisherman's life offers no attraction to him. It is too laborious and dangerous. But the suggestion that they be allowed to settle along the coast, independent of the fishing profession, and that they would soon become mariners and gradually crowd out the Chinese junk men seems to be accepted as a solution of the problem. By Russian law two-thirds of the crews on all Russian vessels must be Russian subjects. All masters, mates, and engineers must be Russians.

Some foreign commercial firms have been for some time using their influence with the marine authorities at St. Petersburg to have this law modified on the Asiatic coast and thus permit the employment of Japanese, Chinese, and Koreans at least from this port to southern ports in Korea, Japan, and China. It is understood, however, that the harbor master is utterly opposed to this plan. RICHARD T. GREENER, Commercial Agent.

VLADIVOSTOCK, SIBERIA, July 3, 1903.

ELECTRIC LIGHTING

WATERWORKS AT

AND
VLADIVOSTOCK.

(From United States Commercial Agent Greener, Vladivostock, Siberia.)

With admirable natural facilities for drainage and numerous natural wells, the water supply of Vladivostock still remains inadequate and bad. The city expends $900 per day for water supply for its inhabitants, an average of three pails per day to each person at 1.5 cents per pail of 3 gallons. The property valuation of Vladivostock is estimated at $6,000,000; hence the city losses $316,210 per year. Insurance naturally is high. Once in a while there is a serious

are, for which the fire department is unprepared to deal effectively. One of the old pattern steam fire engines, long superseded in the United States, would be invaluable here.

The great needs of the place are a suitable reservoir and waterworks and a city electric-light plant, both of which have been discussed, estimates made, and plans drawn, but as yet with no definite outcome. A Russian company, the Neptune, would build the waterworks for $515,000, a slight advance over the city's annual expenditure for water. An English firm made a favorable offer for the electric plant, which was for a time under consideration and is now before the municipal board. A Seattle firm had this same electric offer under consideration but could not see its way clear to accept it. The trouble is the anomalous condition of affairs. Vladivostock, technically, is still a fortress, with a commandant, whose jurisdiction would naturally embrace the entire fortress. But there is also a military governor of the entire seaboard Province, whose official residence is Vladivostock; then there is an admiral of the port, whose official residence, transferred from Nikolaefsk years ago, is also here; and lastly there is the elected mayor of the city, or "appointed," as the present one was, who has a small council to keep in check, or guide, and smaller revenues from city taxpayers to pay the increasing expenses. If the large expenditures of the Imperial Government for army, naval, railroad, and hydrographic purposes were only a part of an imperial supervision looking to the improved municipal, sanitary, and commercial condition of this city, Vladivostock would soon be the rival of St. Petersburg and Moscow, under conditions, too, not possible for those cities. It has a situation unsurpassed, climate never excessively cold or hot, fog never of long duration, a harbor open at all times to the entrance and clearance of vessels, and a population as cosmopolitan as that of London or New York.

RICHARD T. GREENER,
Commercial Agent.

VLADIVOSTOCK, SIBERIA, July 3, 1903.

COMMERCIAL REPRESENTATIVES FOR THE

ORIENT.

(From United States Consul Monaghan, Chemnitz, Germany.)

It is probably not a very difficult task to find German manufacturers who are not enthusiastic about the oriental trade for the reason that they have, at one time or other, suffered losses through being made victims of unscrupulous eastern agents who wheedled them into business transactions by misrepresentations and chicanery. Sometimes, probably, the real blame must be attached to the

manufacturer for having permitted himself to be an easy mark and for not inquiring into the standing and reputation of the man with whom he was to deal. Yet it must be conceded, in view of the past experience of exporters who have done business with the East, that the choice of reliable commercial representatives is by not means an easy undertaking. The necessity of having a trade representative in the Orient can not be questioned. Even in cases where business is done directly with firms, it is said to be advisable to employ a representative at the same time. There are a thousand and one things which require attention and which can not be properly attended to by long-distance correspondence.

In a recent article in the Austro-Hungarian Export Review, the question of the selection of commercial representatives for the Orient is dwelt upon and many valuable suggestions given for the exporter interested in the eastern trade.*

Just what sort of a representative it may be politic for a European firm to engage depends largely upon the nature of the goods in which business is to be done. If a business is to be conducted upon a wholesale plan it is wisest to attempt to engage a "big representative," who has been in the business for a long time and can show unmistakable proof of honesty and business integrity. Generally it is difficult to engage such firms, because very frequently they are already in the service of some prominent competitor who came first upon the field. Then also they are, as a rule, crowded with work, as men with unblemished reputations who are capable of running a large wholesale business in the Orient for a European exporter are rare and can not be picked up every day. But it is said that though these big representatives may be reluctant to undertake any more European business, if they can be prevailed upon to do so. great confidence may be placed in the results. Business may pick up but slowly at first, but there is no need to worry about the execution of contracts.

In case of articles which are to be pushed in the markets upon a small scale, and mainly in the retail trade, the engagement of some smaller representative is said to be advisable. It is especially in such cases that great circumspection is necessary in making a choice. While it may be comparatively easy to choose a reliable agent among the largest firms of the place, this is not the case where smaller firms are under consideration. Many of these have been upon the blacklist for years, yet manage to cover up their tracks so shrewdly that the unsuspecting are easy prey, and even the most circumspect tread on dangerous ground. If great care is taken one

*The term "Orient" is generally used in German papers in a narrow sense, as confined to the immediate East or the Levant, though the points here brought out apply equally well to the far East.