Business Manager of Russian Empire
(Copyright, 1WS, by Frank O. Carpenter.)
T. PETERSBURG, June (Sp
I clal Correspondence of The Bee.)
V.J I t hum had an Interview her
with the greatest man In Russia
If no( the greatest man on earth.
III name Is Serglus Witte, he Is the right
band of the czar, and the business man
agcr of the great Russian empire. lie
handles all told In the neighborhood of a
billion dollars a year, taking It In from a
thousand sources and distributing It with
an even hand to the necessities -of Russia
In Europe and Asia.
He Is one of the world's greatest banker!",
being at the head of the treasury of Rus
la and of the vast government banking
system whose capital runs Into the hun
dreds of millions. He Is ono of the world's
great railroad men, having on enormous
network of state lines In Russia, In cen
tral Asia end In Siberia the longest Una
of the world. From the czar's crown es
tates he collects about $10,000,000 a year,
and from the debts owing him gets a rev
enue of $1G,000,OUO. Jle handles the mines
belonging to tho crown and drngH forth
gold and diver. Iron and coal In tho tens of
millions from the bowels of the earth. If
Is In charge of the tax system and the
customs duties nrd he Is a mighty manu
facturer. Stronger than all he Is the
greatest saloonlKt of the world. He does
an alcohol business which dwarfs that of
tho American Whisky trust, making ami
Selling, ns a government proposition, every
ounce of alcohol consumed by more than
100,(100,000 people.
All this Witle does nbly, honestly nntl for
Ms master, the eznr. He has acquired hi
prominence by his own work, and Is what
would be culled In America a self-made
man. He came from thu southern part of
tho empire, born of parents comparatively
poor. Ho had a fair education and began
life os a clerk In a railroad odlce. This
was at Odessa on the Block sea. He did
bis work well and rose to be manager.
Then ho was advanced to another road
Which ran from Odessa to Moscow and
managed that. His ability here was such
that he was recommended n.galn and again
to the government, and finally became a
government director of railroads. He re
vised tho railroad tariff, reorganized the
routes, rebuilt many of tho lines and
Showed himself to be the ablest railway
man of the empire. He was then put In
charge of the board of public works and
railways, the position now held by Prince
Ililkoff, and a little later on was mado
minister of finances or by far the most Im
portant ofllccr In tho cabinet of tho czar.
This was eleven years ago, and since
then Wltte has almost revolutionized the
flisnelal condition of Russia. He has
pushed Its trade Into all parts of Asia, and
bas reorganized the business at home. He
has completed the Transslberlan rond, has
extended tho roads In Turklstan, has put
Russia on a gold standard and has filled
the treasury, without oppressing the peo
ple. He Is today full of new Ideas for the
Improvement of the empire, and he Is
lowly but surely bettering the country In
commerce and Industry along the lines of
modern development.
It was through the American ambassador
to St. Petersburg that I got access to Mr
Wltte. He received me in the finance de
partment, a great brown building not far
from tho Nevski on Mulka street. Ho Is a
busy man, and 4 o'clock had been fixed for
the appointment.
At Ave minutes before that hour I
stepped from my droschky and was ad
mitted to the department by two stern
look I ng Russians, long-haired and long
bearded, wearing top boots, and liveried
coats which fell almost to the Instep. On
of them helped me oft with my overcoat,
the other took my hat and umbrella, and
both directed me to the top floor. There
was no elevator, and I walked, hearing on
electric bull ringing, announcing, as I sup
posed, my approach. On the third floor I
found more flunkies. In livery, and also a
bright young official In uniform, who spoke
English fluently, although he was a Rus
sian. Ho told me that the minister was
expecting me, and a moment later opened
the door of his excellency's office and asked
me to enter. I did so, and was In ths
prence of the Russian secretary of the
treasury.
Mr. Wltte rose, came toward me and
beld out his hand. He made me welcome
and gave me a seat near his desk and then
at down himself and talked with me
through an interpreter in response to my
questions. I had a good chance to study
blm during the Interview. He Is very Im
pressive, but simple and unostentatious,
lis talks quietly, does not get excited and
apparently has himself well In check. He
Is a big man. He stands 6 feet 1 In his
lockings, and his frame la strong-limbed
and muscular. His forehead Is very high
and full, with brown hair rising from It
and combed straight back without a part.
He has a rich brown beard and brown eyes
rather thoughtful than otherwise. He was
Pressed In a morning suit at the time, but
tn asking for bis slgnture on a photograph
be wrote It on ona representing him In his
eourt dress, which Is covered with medals
and gold laca.
He smoked a cigarette as be talked, and
I noticed beside his chair a ta table with
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tr: -v'f J.''S
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Mil
SERGIUS WITTE, THE "RIGHT HAND OF THE CZAR."
a glass of tea with a lemon floating upon
It, such as the Russians drink everywhere.
My first question was as to tho Ameri
can Invasion. I wanted to know something
os to the chances for American capital and
American goods in the land of the csar.
His excellency said:
"There are plenty of openings here for
foreign capital in the way of manufac
tures. We already have some American
factories, and others could be Introduced
at a profit. Russia Is on the edge of Its
development. We have a vast number of
people ami a very largo country, and the
growth must continue for a long time to
come. As to the profits, they will depend
largely on tho management of the business.
Russia is glad to welcome foreign capital,
and to do anything that will materially im
prove the condition of the country."
"Is capital safe In Russia?" I asked.
"It Is as safo here as anywhere," said
Mr. Wltte. "The only questions are thoso
of management and business ability."
"How about American trade with Russia
can it not be Increased?"
"That is a difficult question," replied the
minister of finance. "Russia and the Unltid
States are of much the same character.
We both have an abundance of raw ma
terial, such as grain, lumber and minerals.
We have petroleum, and so have you. The
result is you do not need what we have to
sell, and there Is not that mutual exchanga
of commodities that forms the basis tt
profitable commerce. Nevertheless many
of your manufactures are In demand here.
This Is especially so with your farming
and other machinery."
"How about the tariff which you have
recently put on American goods. Will It
affoct our trade to any great extent?"
"That tariff was one of the necessities of
the time." replied Mr. Wltte. "It relates
only to certain classes of American goods
and does not touch others. It will probably
lessen the importation of some things, but
other branches of the trade will continue
to prosper. It was a business necessity."
"What is the feeling In Russia toward
the United States?"
"Politically It Is the best possible. Ths
two governments are on the friendliest
terms. Commercially our relations may be
somewhat strained, but that Is the outcome
of conditions which Russia could not con
trol." "What Is Russia doing In Manchuria,
your excellency?" said I.. "It Is charge!
that you are colonising the country and
Intend to hold It"
"That Is not true," replied the minister
of finance. "Wa are doing nothing of the
kind, and It Is the Intention of the Russian
government to refrain from extending Its
rule In that direction. We have a dozen
times asserted that we will give the gov
ernment over to the Chinese just as soon
as we possibly can, and this we expect to
do."
"Your excellency Is considered the most
advanced statesman In Russia. It Is gen
erally conceded that within the past ten
years you have done more than any other
man for your country and people along
broad political lines. I would like to ask
you what you hope for the Russia of the
future."
"The future," replied Mr. Wltte, after
thinking a moment, "the future Is in tho
hands of God and destiny. What it will be
I do not venture to predict, but If we may
Judge what Is to come by the past, this
country will one day be the great country
of the world. This empire Is an autocratic
one, and its condition largely depends on
the Individuality of Its rulers. If those to
come are to possess the great ability of
thoso we have had sinco the time of Peter
the Great I have no fear of the Russia of
the future."
Before leaving I asked Mr. Witte to give
me a message for the American people. He
replied:
"You may say that Russia Is a friend of
the United States. She has always been
so and she Is more so today than ever.
She considers the United States one of her
best friends among the nations. She re
joices In America's prosperity and hopes
that the friendly relations which now ob
tain will be perpetual."
During my stay in the finance depart
ment, at the direction of Mr. Wltte, I was
given Information concerning the Russian
government as a liquor dealer. The move
ment was originated by Alexander III. It
was introduced in several provinces by Mr.
Wltte on the 1st of January, 1895, and It
has now been extended to almost the whole
of Russia In Europe. The government has
taken entire charge of the manufacture and
sale of all alcoholic liquors. It has Its
liquor shops In every city and village, and
It is against the law for any privato person
to make or sell vodka, as the Russian
whisky is called.
This work was begun to protect the peo
ple from the liquor dealers and to Improve
their conditions generally. In the past
there were grog shops scattered over the
empire many of them operated by un
scrupulous people, who sold drinks on
credit and finally got away the lands and
most of the property In their neighborhood.
The business was enormously profitable.
Many Russians had grown rich from it.
They were not only robbing the people, but
they were selling them bad vodka when
Mr. Wltte Issued his decree that It must
be stopped, and that after a time the gov
ernment would manage tho business itself.
Of course there was a great outcry. Had
there been a congress, or any purchasable
commodity, the order would have probably
been remanded, but the government here
Is supreme, and the liquor dealers went
out of business.
Since then great factories have been es
tablished to make the vodka, and the gov
ernment manufactures its own bottles and
coiks. It supplies a better liquor than was
sold In the past and at a lower rate, and
at the same time makes an enormous profit
for the csar.
In 1901 the receipts from this source
amounted to $al.000,000. In 1902 they were
more than $231,000,000, and this year, It Is
estimated, they win be over 1250,000,000. They
will be more than the estimated cost of
the army and navy and ten times as great
as the cost of all the prisons and all the
courts. If the percentage of Increase keeps
up as It has been doing they will In time
' largely support the government There is
some talk of extending the monopoly to
tea, which Is universally drunk in Russia,
and if so the czar will have money to
burn.
I went Into one of the government sa
loons the other day and bought a bottle of
brandy Just to tell you how It Is sold. The
saloon was not far from the American
consulate. I saw tho sign No. 6 over it,
with Russian characters below It, and I
pushed tho double doors open and entered
a room which looked much like a mixture
of bank and drug store. There was a
network In front of the counter and on the
Bhelves at the back were bottles of difter
ent sizes, from little ones as big as a wlna
glass to some holding half a gallon. Tha
bottles were round and white, and they
seemed to be filled with water. They really
contained vodka, or Russian whisky, which,
la as clear as crystal.
Bjhlnd the counter stood a nicely dressed
Russian woman, dealing with her custom
ers through a window In the wire netwoik
like tho teller of a bank. No liquor Is al
lowed to be drunk on tho premises. There
were no chairs nor lounging places, and
one Is expected to leave as soon as he
makes his purchase. I asked as to prices,
and was told that the smallest bottle cost 3
cents, but that a cent would be paid bade
on the return of the bottle. Each bottlo
was tightly corked and waxed with a gov
ernment stamp. The ordinary peasant buys
a bottle, takes It outside and gulps down
the contents. He then returns the bottle
and gets his rebate of 2 kopeks, or 1 cent.
I bought a 12-cent bottle, and for that sum
I got almost a tumblerful of vodka. I
have not opened it yet.
The Russians are great brandy drink
ers, for after all vodka is a species of
brandy. Drinking Is common all over the
empire, and I see many drunken men. I
do not know that they are as bad as tha
English '.n this respect, but they certainly
drink more than the Americans. The above
figures are the profits of the business, and
they give a small idea of the enormous
consumption, which will probably increase
as the people grow richer.
The English are tne greatest drinkers on
earth. They have more than $1,000,000,000
invested In breweries and distilleries, and
their annual consumption of liquors costs
more than $20 for every man, woman and
child in their country. Next to them come
the Germans, and at the bottom of the
great nations come the Americans. Never
theless, our drink bill is a big one. We pro
duce from 100,000,000 to 130,000,000 gallons of
distilled spirits every year, and wo count
our beer by the millions of barrels. Every
one knows that the business Is a most
profitable one, and were it not for licensing
an evil and the creation of an enormous
government service we might copy Russia
and cut down our taxes at least one-half.
The Russian government, however. Is like?
no other on earth. It raises Its revenues In
all sorts of ways. It has both direct and
Indirect taxes and government monopoly's
It has heavy customs duties which bring
It In something like $100,000,000 a year.
There Is a tax on matches which pro
duces more than $18,000,000 and one on sugar
which Is expected to yield $38,000,000 In 1CH3.
Then there are stamp duties and Inheri
tance taxes. If you transfer a piece of real
estate 4 per cent of the value of the prop
erty goes to the government, and If you do
any banking jou trust use government
stampi
The taxes are different In different parts
of the empire. There Is a wagon tax, a tax
levied on the natives of the Caucasus
mountains by which they are freed from
military sen-Ire, and a tax on cattle owned
by tho Tartars, who live in tents. The
tax?s on real estate nre comparatively
light and the customs duties comparatively
heavy. There are a large number of
licenses nnd also certain taxes on Incomes
and on Industrial establishments. A large
part of the revenue, however, comes from
the government monopolies, the czar being
the greatest landowner and the greatest
capitalist of the world.
FRANK O. CARPENTER.
Troublesome Genius
"Do you think a man of genius should
marry?"
"Assuredly not, I've got one around the
house now, and he's a great trouble Ob,
William!"
(No answer).
"You-William!"
(No answer).
"You see, there don't you? After be
dressed tho children this morning, and
made the fire, and brought my coffee, and
ordered the groceries, and worked tha
garden, what do you suppose he did?"
"Dunno. No doubt, he went to bed and
sent for the doctor."
"No, Indeed! He went to the garret,
where he's now engaged writing a silly love
song, or some impossible story. That's
why he can't hear me! Rut wait till I
catch him. He's got the rheumatism and
can't run!" Atlanta Constitution.
