[48] _Bagdad Railway Loan Contract_, March 5, 1903. M. Léon Berger, President of the Ottoman Public Debt Administration, and a French citizen, was one of the signatories of this document. The bonds of the loan were issued in denominations of 500 francs, 408 marks, 20 pounds sterling, 22 pounds Turkish, and 245 Dutch florins, in order to facilitate their sale in the international securities markets. The _Deutsche Bank_ was made fiscal agent for all transactions in connection with the loan, with the single qualification that it was to appoint as its Paris agent the Imperial Ottoman Bank, representing the French interests in the enterprise. The syndicate apparently made a profit of over 2,500,000 francs on the transaction, as the bonds were delivered to the concessionaires, under _Article 35_ of the Convention, valued at 81–1/2% of par but were sold at 86.40. [49] _Articles 35_ and _37_. [50] _Articles 6, 10, 22, 27._ [51] _Cf._ W. A. Dunning, _Reconstruction, Political and Economic, 1865–1877_ (New York, 1907), pp. 145, 227; H. V. Poor, _Manual of the Railroads of the United States_ (New York, 1869), pp. xlvi-xlvii. [52] _Supra_, p. 11. [53] _Articles 13, 24, 25, 33_; _Specifications_, Article 4. [54] _Articles 9_ and _23_. [55] _Infra_, pp. 190–191. [56] _Articles 5, 18, 29, 34._ [57] _Article 29_; _Specifications_, Articles 21, 24, 25, 29, 30. [58] _Articles 15, 26, 45_; _Specifications_, Article 26. [59] _Articles 20_ and _21_. Another sop to Turkish pride was _Article 46_, which required the Company to contribute annually to the Constantinople Poorhouse the sum of £500. [60] _The Times_, March 14, 1903, contained a report of this secret appendix. A denial was issued by the Berlin _National Zeitung_ of March 18, 1903, but the existence of the supplementary agreement was confirmed by Dr. von Gwinner in 1909 (_op. cit._, p. 1092). Djavid Bey, in a memorandum to the author, has stated that the Ottoman Government considered this appendix of the utmost importance. [61] A proviso of the concession of 1903 was that the _Deutsche Bank_ was to float an Ottoman Four Per Cent Loan of March, 1903, to an amount of about $10,000,000. _Parliamentary Papers_, 1920, No. Cmd. 964, pp. 57–58. CHAPTER V PEACEFUL PENETRATION PROGRESSES THE FINANCIERS GET THEIR FIRST PROFITS