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(1) Calendar Year 1926-35 1935 1935-51 1946 1947 1948 1949 1 950 1951 1 952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1 963 1 964 1965 1 966 1967 1 968 1969 1970 1 971 1972 1973 1974 1975 1976 1977 (2) Direct Taxes FPCo. -62- TABtE 1 FISCAL ASPECTS OF FIRESTONE'S OPERATIONS IN LIBERIA 1926 - 1977 (in millions of U.S. 1 dollars) $0 .150 t 6.306 01 .6503 0.620 .200 29.165 $0 .145 0 .126 0 .119 0 .074 0 .052 $5 .629 22 .372 .985 2 .686 4.895 $5 .149 4 .472 3 .622 6 .074 7 .930 $5 .392 4 .508 4 .659 3 .309 4 .261 $4 .300 32 .700 .400 8 .500 8 .800 $2 .393 1 .406 1 .532 4 .602 2 .188 $0 .567 2, .641 (3) Total Revenue Government $ 2.337 3.212 3.430 3.816 3.872 $12,830 8.852 11.200 11.924 15.298 $17,923 19.416 18.110 24.552 32.369 132.371 35.567 37.331 40.053 42.436 $46,700 48.100 51.800 61.800 66.500 $69,500 78.100 89.800 108.600 125.200 149.800 172.700 (4) (2) as a percentage of (3) 2 105 4 6 4 3 2 1 44 27 27 23 32 29 23 20 25 25 17 13 12 8 10 9 8 5 14 13 3 2 2 4 2 0.4 2 (5) FPCo. Income Tax Rates - - - - - 12 U 25 25 25 25 25 25 35 35 35 35 35 35 45 45 45 45 45 45 45 45 45 45 45 45 50 (6) Estimated Profits (before taxes) FPCo. _ $ 43 4 _ _ $ 15 5 $ 46.9 16.9 11.9 10.7 19.6 $ 20.6 17.9 14.5 17.4 22.7 $ 15.4 12.9 13.3 9.5 9.5 $ 9.6 8.2 5.3 18.9 19.6 $ 5.3 3.1 3.4 10.2 4.9 1.3 $ 5.3
] -63- J Notes: ? : :i (1) Firestone Plantations Company (FPCo.) only; M (2) Amounts prior to 1951 refer to payments other than income sis; taxes; l| (3) In bonds; Including 1400,000 rental in advance (1935-2025); 11 (4) From 1939 till 1951 only; II (5) Total for 1946-1950 (both inclusive). |lj S ources: • $ - National Archives, Ministry of Foreign Affairs, Monrovia. ; ' - Firestone Files, Concession Secretariat, Ministry of Finance, :' Monrovia. j - Annual Report, Department of Planning and Economic Affairs: i 1965/1966; pp. 89-91. '• - Economic Surveys of Liberia, 1969 through 1977. i - Tarr: 1973-1974; pp. 43-56. was $ 10,182 (52). Altogether, the company during the first ten years of its operations in the country may have paid to the Liberian Government an amount of $ 100,000 - $ 150,000. Because of the 1935 payments by Firestone ($ 650,000 in bonds) the payments in the 1935 - 1951 period were limited to the 1 per cent export tax on rubber, documentary stamp fees, the tax on a number of vehicles (if applicable), and the - disputed - consular fees. On the basis of Liberia's rubber exports in this period it is estimated that in this period the export tax raised in the Treasury approximately $ 1 million whereas an amount of $ 200,000 for the other items seems to be a maximum. After the introduction of an Income Tax System in 1951 receipts of the Government from the Firestone Plantations soared, favourably affected by a high rubber price (See Table 1). The total of direct taxes paid by Firestone in the 1951 - 1977 period ranged between $ 105 million and $ 111 million, i.e. an average of some $ 4 million a year. The most difficult years for the Firestone Plantations Company were before .the Second World War but 1939 marked a turning point for the company's shareholders. The high demand for rubber, combined with the cutting off of other sources of supply, in the Far East, induced increased tapping in Liberia, and resulted in rubber exports of some $ 42 million in the years from 1939 - 1945. Assuming that the company's payroll totalled $ 7 million during this war period (53), and estimating other expenses (depreciation etc.) at another $ 7 million in this period - total investments being less than $ 20 million - profits will have amounted to some $ 28,000,000, or a yearly average of $ 4,000,000, which were free of all taxes except the 1 per cent export tax, averaging $ 60,000 a year. The Government's total annual revenue (from all sources) in this period amounted to one fourth or one fifth of Firestone's yearly profits (54).
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VEROFFENTLICHUNGEN AUS DEM UBERSEE-
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i 1 THE OPEN DOOR POLICY OF LIBERIA
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DE.B1CA710N For £IA. Together we s
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Vll CHAPTER 3: (continued) Page The
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ix CHAPTER 9: THE FORESTRY SECTOR P
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Footnotes Annexes Bibliography Inde
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xiii National Iron Ore Company, the
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XV China at the end of the 19th cen
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xvii economically more developed co
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XIX blancs, dans le developpement d
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XXI des Liberiens de toutes les cla
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xxiii DE OPEN DEUR POLITIEK VAN LIB
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XXV deze scheiding tussen kustgebie
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personeel - niet opgewassen was en
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\ I.M.F. i \ INTRUSCO i i j I.T.C.
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xxxi LIST OF FIGURES, MAPS, CHARTS
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TABLES (continued) Page 33 Planned
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XXXV TABLES (continued) 68 Exports
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II century, notably the Open Door P
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IV earth in Liberia. It had been th
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VI Tubman was very well aware of th
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VIII MAP 1
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exporters. It has attracted more th
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XII the more so, since no comprehen
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XIV development of rural Liberia, i
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XVI Firestone's financial contribut
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XVIII officer who had served in Lib
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XX Chapter 11 pays attention to one
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CHAPTER 1 THE PEPPER COAST BEFORE 1
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-3- "Malagueta Coast" or "Pepper Co
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-5- embarrassment towards a (growin
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in honor of the 5th President of th
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Numerous colonists from the U.S.A.
Page 69 and 70: -11- Figure 1
Page 71 and 72: -13- The'vicious circle started wit
Page 73 and 74: -15- the other - to the disadvantag
Page 75 and 76: -17- Of the colonists notably the A
Page 77 and 78: -19- The closing of the Door: The E
Page 79 and 80: -21- Consequently, both tribal peop
Page 81 and 82: The Roye Administration -23- The te
Page 83 and 84: -25- He also wanted the general edu
Page 85 and 86: -27- territory Liberia claimed by E
Page 87 and 88: m -29- The commission created in 18
Page 89 and 90: -31- re-activating the first conces
Page 91 and 92: -33- European. Its expense paid Ly
Page 93 and 94: -35- Treasury and an unfavourable e
Page 95 and 96: -37- their salaries. The resulting
Page 97 and 98: -39- Therefore President Howard of
Page 99 and 100: j -41- :j % One of the recommendati
Page 101 and 102: -43- twentieth century the Presiden
Page 103 and 104: -45- The British and French absence
Page 105 and 106: -47- In December 1923 the first mis
Page 107 and 108: -49- and he proposed the constructi
Page 109 and 110: -51- itself, upon acceptance of the
Page 111 and 112: -53- equal to 4 per cent of the cou
Page 113 and 114: -55- between the U.S.A. and Liberia
Page 115 and 116: -57- Government of Liberia agreed w
Page 117 and 118: -59- The expansion of the governmen
Page 119: -61- Another disagreement arose ove
Page 123 and 124: -65- question had never been adequa
Page 125 and 126: -67- had varied from $ 8 million to
Page 127 and 128: -69- In order to protect the new co
Page 129 and 130: -71- capacity of 55,000 tyres, requ
Page 131 and 132: J -73j :i quantities of dry rubber
Page 133 and 134: -75- The charge of 3.44 cents per p
Page 135 and 136: -77- Finance in the 1970's, but owi
Page 137 and 138: -79- Planting Agreement was in Akro
Page 139 and 140: -81- on the basis of competitive pr
Page 141 and 142: -83- with the 7iresione Plantation
Page 143 and 144: -85- 1. Organization of a national
Page 145 and 146: -87- However, before he could reali
Page 147 and 148: -89- operation of the plantation. T
Page 149 and 150: j -91- i have taxed the portion of
Page 151 and 152: -93- in 1947, but also entrusted hi
Page 153 and 154: -95- company's main interest is no
Page 155 and 156: -97- poration for the period 1963 -
Page 157 and 158: -99- TABLE 4 LIBERIA COMPANY'S DIVI
Page 159 and 160: -101- 6 cents per acre had to be pa
Page 161 and 162: The Port near Greenville -103- Afte
Page 163 and 164: -105- rubber. Little is known of th
Page 165 and 166: -107- the management of the company
Page 167 and 168: j -109- } S taxes or imposts of any
Page 169 and 170: -111- The concession agreement, wit
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-113- concluded with other foreign
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-115- which is owned by a political
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-117- owners of the concession. The
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-119- eleven persons were: Vice-Pre
Page 179 and 180:
-121- tain rights in cooperation wi
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-123- It is significant that despit
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-125- scribed above., providing suc
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-127- materials, the rights of the
Page 187 and 188:
-129- the possibilities offered by
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I -131- sion, and sales to affiliat
Page 191 and 192:
-133- concession area of 100,000 ac
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-135- such payments out of profit,"
Page 195 and 196:
-137- tually all of these companies
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-139- The 1898 concession agreement
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-141- Normann, from England, which
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-143- to the English "Providence Mi
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-145- the company had in previous y
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-147- of "Globex Minerals (inc.)",
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-149- the excess acreage (38) does
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-151- old Tchien and Gbaepo Distric
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-153- only two of them referred to
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-155- not provide for a price of go
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-157- Meanwhile, the exploration ac
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-159- The excessively liberal terms
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-161- a concession for gold, diamon
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-163- difficulties which had to be
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-165- of 50? and which was of direc
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-167- The concessionaire became exe
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-169- These statements of the two s
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-171- Note that until i960 L.M.C.'s
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-173- salaries to ex-patriate perso
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-175- the - increased - capacity of
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-177- '••:] Sales Agreement bet
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-179- On January 3, 1963 a Memorand
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-181- L.M.C. would have acted in co
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-183- area described as the Bea Mou
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-185- Agreement signed by represent
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-187- geologists, economists and la
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CHRONOLOGY SUMMARIZED HISTORY OF L.
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-191- N.I.O.C. dated January 1, 196
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Year 1962 1963 1964 1965 1966 1967
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-195- for further details of the 19
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-197- soon demonstrated by the call
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-199- of 3.2 million long tons in a
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-201- TABLE 10 FINANCIAL OBLIGATION
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-203- achievements were made in spi
Page 263 and 264:
-205- After the change of the name
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-207- to concentrate on the new fin
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-209- one steel factory, in the cou
Page 269 and 270:
-211- The Liberian Government owns
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-213- 1952, legal ownership of abou
Page 273 and 274:
-215- Th is second part of the conc
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-217- one of its sixteen Swedish su
Page 277 and 278:
-219- For these services G.I.M. is
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-221- Prior to 1974 fifty per cent
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-223- depreciation of (capital) equ
Page 283 and 284:
-225- of the revision of the 1960 M
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i -227- 3 prescribing such a review
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-229- But now, having accepted bein
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-231- As a result of this review in
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-233- TABLE 14 FINANCIAL COSTS OF C
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DELIMCO/B.M.C. -235- Long-standing
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-237- equity participation (unlike
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Year 1965 1966 1967 1968 1969 1970
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-241- these funds to B.M.C. in the
Page 301 and 302:
-243- negotiations which were held
Page 303 and 304:
-245- S ources: - "Technical Inform
Page 305 and 306:
-247- Prices of sales to affiliated
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S ource: -249- TABLE 17 INVESTMENTS
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-251- due time a mining concession
Page 311 and 312:
-253- The 1967 concession agreement
Page 313 and 314:
-255- Changes of the concession agr
Page 315 and 316:
-257- Some reasons why the Wologisi
Page 317 and 318:
-259- CHAPTER 9 THE FORESTRY SECTOR
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-261- Surveys of Liberia's Forest P
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-263- (see below) repealed the port
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-265- were authorized to issue perm
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-267- TABLE 18 LIBERIA'S NATIONAL F
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-269- The Forestry Development Auth
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-271- TABLE 19 TIMBER CONCESSIONS G
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-273- TABLE 20 PRODUCTION OF TIMBER
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-275- Souree: - Annual Report, Depa
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-277- Attempts To Establish A Natio
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YEAR 1967 1968 1969 1970 1971 1972
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-281- As a consequence the export v
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-283- December 31, 1977 Liberia lev
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Botanical Name Category 1 Ent, cyli
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-287- these 33 companies; year of s
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-289- were also the principal share
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-291- alleged corruption involving
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-293- It is important to note here
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CHAPTER 10 -295- FISCAL PERFORMANCE
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-297- expenditures in the period pr
Page 357 and 358:
-299- In these years the debt servi
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-301- TABLE 28-A COMPARATIVE STATEM
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-303- the second half of the 1930's
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-305- first to benefit from this U.
Page 365 and 366:
M -307- •' \ •:i TABLE 30 fSS]
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-309- Government Revenues 1941 - 19
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TABLE 31-B MAIN SOURCES OF DOMESTIC
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-313- situation renders the Treasur
Page 373 and 374:
-315- The trend of public expenditu
Page 375 and 376:
-317- •• \ During the 1950 's t
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-319- $ 117 million were due for re
Page 379 and 380:
-321- In 1943 Liberia and the U.S.A
Page 381 and 382:
Sector -323- TABLE 33 PLANNED EXPEN
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Type of Assistance I. Economic Asst
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THE 1963 - 1978 PERIOD Revenue Perf
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Year 1963 1964 1965 1966 1967 1968
Page 389 and 390:
Year 1963 1964 1965 1966 1967 1968
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1963 1964 1965 1966 1967 1968 1969
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-335- of the Ministry of Finance wh
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-337- Development Planning and Expe
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1.1 Agriculture 2.1 Rural Roads 2.2
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-341- The Plan which was approved b
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-343- "Uhile the performance of the
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-345- TABLE 43 PLANNED DEVELOPMENT
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-347- The unenvisaged expenditures
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-349- Under the revised Plan total
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1964 1965 1966 1967 1968 1969 1970
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Note: (1) Preliminary figures. Auth
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-355- Bushrod Island; a new bridge
Page 415 and 416:
-357- TABLE 51 U.H. ASSISTANCE TO L
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-359- happened in a haphazard way.
Page 419 and 420:
-361- The (investment) activities o
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-363- '••] the most organized a
Page 423 and 424:
-365- exploited this situation by s
Page 425 and 426:
-367- all offered staff positions o
Page 427 and 428:
-369- allied to the Tolbert clan bu
Page 429 and 430:
-371- history, secrets and traditio
Page 431 and 432:
-373- At the time of the arrival of
Page 433 and 434:
-375- The very few books which inde
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GOVERNMENT. MISSION. PRIVATE. TRIBA
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-379- TABLE 54 1962 POPULATION AND
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-381- about 19,000 were between 5 a
Page 441 and 442:
-383- Liberia College in 1862. Elem
Page 443 and 444:
-385- mark of 70$. This shocking an
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-387- The 1978 National Education S
Page 447 and 448:
-389- TABLE 58-B SCHOOL ATTENDING P
Page 449 and 450:
-391- TABLE 60 A. NUMBER OF STUDENT
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-393- It seems likely that the rela
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-395- Author's research based on th
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CHAPTER 12 -397- TRANSPORTATION AND
Page 457 and 458:
-399- It thus facilitated the immed
Page 459 and 460:
-401- how many people were employed
Page 461 and 462:
GEOGRAPHICAL DISTRIBUTION OF COUNTY
Page 463 and 464:
-405- in Liberia was owned, finance
Page 465 and 466:
-407- TABLE 65 ABSOLUTE AND RELATIV
Page 467 and 468:
-409- were politically well covered
Page 469 and 470:
-411- railroad which, with the exce
Page 471 and 472:
-413- the concession sector (LAMCO)
Page 473 and 474:
-415- 5 seater twin-engined Cessna
Page 475 and 476:
-417- Besides, this segment of the
Page 477 and 478:
-419- The telecommunication relay s
Page 479 and 480:
-421- with Germany and hence affect
Page 481 and 482:
-423- :: The 1960 - 1979 Period j F
Page 483 and 484:
-425- with Sierra Leone is less tha
Page 485 and 486:
-427- alarming (see Chapter 10), th
Page 487 and 488:
-429- structural changes and the de
Page 489 and 490:
-431- from roughly one third in 197
Page 491 and 492:
-433- by Fouad Khalifa, a Lebanese,
Page 493 and 494:
-435- The Government indebted itsel
Page 495 and 496:
-437- a very large part of G.D.P. i
Page 497 and 498:
-439- to the distribution of power,
Page 499 and 500:
-441- heard. As early as 1830, but
Page 501 and 502:
-U3- was wrongly thought in those d
Page 503 and 504:
-445- 1962. In the 1950's the triba
Page 505 and 506:
-447- Tubman Estate (66). Interesti
Page 507 and 508:
-449- National Legislature, This de
Page 509 and 510:
-451- The creation of state owned c
Page 511 and 512:
-453- respect to foreign concession
Page 513 and 514:
-455- II. The Government of Liberia
Page 515 and 516:
-457- Most notable among these clau
Page 517 and 518:
-459- ADDENDUM On April 12, 1980, a
Page 519:
ISBN 3-88299-040-6 ISSN 0344-4317
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