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P. 271

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                                CHAPTER SEVENTH.


           (1)  Trade Relations of Hindu and other traders of Bahrein with
                 Katif, and their disabilities.
           (2)  Proposed appointment of a Consular officer at Katif.
               273. If there is ono fact more than another to prove the advantages India
                                         lias derived from the British connection
                   Jlittory of the trade.
                                         with the Persian Gulf, it is the blossing of
           free and unrestricted commerce, which Indian merchants have enjoyed with Katif
           for nearly half a century, to ho interrupted only by the extension of Turkish
                                         influence to that quarter. Their' business
            •Seo Mr. Gaskin's report, dated 2nd August 1903—
           Proceeding No. 4 m External a., Jauuary mot, relations with Katif wore first established
           Nos. 3-4.
                                         in the year 180 L by a wealthy Kutchi,
           named Kalungi, who carried on a general trade for twelve years on his own
           behalf as well as other Hindu trading houses. In 18G6 another enterprising
           Hindu named Tolandas Khubchand with a staff of six assistants established a
           house of business, and two years later he took a partner named Sandal bin Kisu
           into the business. This firm appears to have carried on a largo trade till 1876,
           when it had to withdraw from Katif owing to the incurrenco of lioavy losses
           through the bankruptcy of many of their leading native clients brought about
           by the total failure of the Indian pearl market. The large firm of Assanmul
           Aoadrnm & Co. opened a branch office at Katif also in 1SG6 and con­
           tinued to do business tliore for about 18 years, first the agency of Mulchaud
           Jairamdas and latterly under that of Sandal bin Kisu. Messrs. Gangaram
          Tikamdas & Co. in 1SS0 sent three brothers named Tarachand, Darsingii,
          and Toko hand Dwarkndas to conduct business for them, and another capitalist
           named Daraanmal Lalo.hand established himself there till his death 3 years later.
          The former firm, however, kept up its trade there till 1895 when Tckohand
           was mutilated by the notorious pirate Ahmed bin Selman on the high
           sea. Besidos the big firms mentioned, a number of petty Hindu traders
          visited Katif periodically and at one time it is said they numbered about sixty
          persons.
              274.  It has not been possible to ascertain definitely the aggregate amount
          of capital employed by the Hindu firms in the Katif trade, but at one time it
          must have been considerable owing to the fact that, prior to the Turkish occupa­
          tion of the port and for a few years subsequent to that event, they controlled
           the greater portion of the trade which was principally in rico, cotton goods,
          sugar, coffoo, spices, metals, and hardware imported from India via Bahrein,
          and pearls, dates and hides exported to the same country. During the five
          years ending in 1895 their trade with Katif, when about a third of the former
          number of traders of their community shared iu it, the value of the merchandise
           bought and sold by them was between seven and eight lacs of rupeos
          annually, and judging from these figures, the volume of trade carried on
          by them when thoir piospcots were hotter may be considered to have been
          about fifteen lacs of rupeos annually without risks of over-estimation.
              275.  The causes which led to the withdrawal of the Hiudus from Katif date
          from about three or four years after the establishment of a Turkish Custom
           Houso in the port wi«h a system of farming the revenues, which obtains to the
           present day. The farmers of the Customs to meet the exactions of the Turkish
          officials gradually and illegally increased the duty from 1 per cent, to G per
          cent, on the Hindu merchandise, which placed them at a great disadvantage
          in competing with tho more fortunate nativo traders whose local influence
           obtained for them bettor treatment. The unprotected condition of the
           Hindus exposed thorn to tho avarice of tho petty Turkish officials, who at the
           instigation of wealthy Katif merchants in most instances put such obstacles in
           their way, as tho delay of woighment of datos for purposes of ascertaining the
           amount of duty payablo, tho prohibition of donkoys transporting the merchant-
           disc to the boats for shipment, detaining Indiau sailing craft in quarantine for

              '[C967FD]                                                 V
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