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(d) From the annual dues to be fixed by contract, payable by all banking institutes which may be intrusted with the management of the funds of the emigrants and with their return-passage money.

SEC. 35. The emigration funds shall be under the management of the minister of the interior, who renders account of them in his annual balance.

SEC. 36. The minister is instructed to provide for the proper administration of the deposits, and to insure the safe delivery of money sent back by emigrants by means of the Royal Hungarian Postsparkasse, or a reliable Hungarian bank.

CHAPTER V.-Officials.

SEC. 37. For the fitting treatment of the questions regarding emigration, as well as to aid the minister of the interior in the performance of these duties, a council of emigration is to be organized.

SEC. 38. The minister of the interior is president of this council; in case of his being prevented, the government's secretary (first assistant of the minister) takes his place.

The members of this council consist of: One appointee of the prime minister, one member each from the police and sanitary upper divisions of the ministry of the interior, justice ecclesiastic affairs and public instruction, of commerce, agriculture, and the department of national defense; then of 10 members. named by the minister of the interior, from the chambers of commerce and agricultural societies, or those engaged in agriculture, manufactures, or commerce. The minister of the interior decides as to organization and business order of the council of emigration.

SEC 40. To supervise the operations of this law, as well as for the direct inspection of the entire emigration business, the minister of the interior is authorized to appoint a commissioner of emigration, possessing the rank of a Government official (Staatsbeamter), and assistants, according to need.

SEC. 41. The commissioner of emigration is entitled to be present at the examination of vessels (sec. 32) for transport of emigrants, and even to make an independent examination. He is to report to the minister of the interior any possible deficiency or irregularities which are noticed, and, in special cases, to inform the local authorities.

The masters of vessels for carrying emigrants are obliged, if the commissioner so desires, to furnish a true statement of all conditions of the ship and its route, and to allow him at any time to inspect the ship and examine the ship's papers.

SEC. 42. The commissioner of emigration is the immediate subordinate of the minister of the interior. His compensation, as well as that of those assigned to him as assistants, will be put in the annual budget. Any special services are regulated by the minister of the interior.

CHAPTER VI.-Articles in the penal code.

SEC. 43. Any contractor or contractor's agent who violates the stipulations of sections 12, 13, 14, 23, 24, 26, and 31, or who does not observe the decrees issued by the minister of the interior in accordance with this law in case such action on his part does not include a graver offense, commits a misdemeanor, and is to be punished by imprisonment not exceeding two months, as well as by fine amounting not evceeding K. 600 (about $120).

In case this misdemeanor is committed by the agent, but with knowledge of the contractor, or if the latter has neglected the inspection demanded by the circumstances, the contractor is liable to punishment together with the agent. Every shipmaster also is guilty of a misdemeanor and punished by the same penalty who does not fulfill his duty imposed in section 31 or in the second paragraph of section 33, whether this happens in his own country or abroad.

SEC. 44. Any agent who does not comply with the provisions of sections 13, 19, and 24, as well as those regulations regarding the management of business which may be issued by the minister of the interior under this law, commits a misdemeanor, and is to be punished by imprisonment of not more than one month and also by a fine of not more than K. 400 (about $80).

SEC. 45. Anyone who engages in the transportation of emigrants either as principal or agent without having the license required in sections 7 and 15 is guilty of a misdemeanor, and is to be punished by imprisonment up to two months and a fine up to K. 600 (about $120).

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Letters, circulars, printed matter, and passage tickets sent out by contractors and agents without a license may be seized and confiscated by the proper authorities (in the post-office).

SEC. 46. Anyone who incites to emigration at a public meeting by speeches or by distributing printed matter and pamphlets or by exhibiting these publicly is to be punished with imprisonment of not more than two months and by a fine of not more than K. 600 ($120).

SEC. 47. Anyone is guilty of a misdemeanor and is to be punished by a fine inflicted upon him amounting to K. 200 who publishes, by means of press advertisements regarding emigration, traffic managers and agents who have not the permission of the ministry of the interior.

SEC. 48. Of all misdemeanors against the provisions of this law, in as far as these have not been committed by the press, the criminal court has jurisdiction--original and appellate jurisdiction.

(a) In small and large villages, in towns with regularly designated magistrates, and with independent municipal organizations, the authorities mentioned in section 13 of the article of law XX, of the year 1901, both of the primary and appellate courts.

(b) In the capital and residence town of Budapest, as in the districts of Neupest and Rakospalota, the head of the prefectory of the district shall have original jurisdiction; on appeal the local government of the district or his deputy, with appeal in the third instance to the minister of the interior.

CHAPTER VII.-Final articles.

SEC. 49. For the purpose of founding emigration funds according to section 34, K. 80,000 are appropriated for the year 1903.

SEC. 50. At the moment of this law becoming operative, the article of law XXXVIII, of the year 1881, as well as all decrees relative to emigration, are annulled.

SEC. 51. The minister of the interior is authorized to fix the date when this law is to take effect, as well as with its administration.

Budapest, November 5, of the year 1902.

KOLOMAN SZÉLL.

[Inclosure 2.--Translation.]

Report of reasons for the bill of regulation of emigration.

The Government and authorities, as well as all parties interested therein, and, we may say, public opinion in general, have busied themselves so thoroughly and conscientiously with the question of emigration in the last few years, with its historical development, with investigations and explanations of its reasons and the injurious effect which emigration has upon the interests of the nation and of the land, that it seems almost superfluous to give detailed reasons as to the importance of the emigration question and the necessity for regulating it. It may be sufficient only to point out the unfortunate facts, which prove that in consequence of emigration hundreds of thousands leave their native country and settle in foreign parts without our knowing where and under what conditions they exist.

Emigration has spread especially in two directions-one to the countries across the ocean, principally to North America, and on the continent of Europe, especially to Roumania.

In how great a measure emigration to foreign countries has increased from year to year we are not in a condition to state, as we do not possess any full and reliable statistics. Since 1899 the collecting of regular statistics has been ordered. These statistics, however, are misleading and insufficient because of defective organization. In order to obtain, therefore, any adequate information upon this subject we must depend upon the statistics of foreign countries or upon the reports from German, Dutch, Belgian, and Italian ports, from which ports the emigrants from our country usually set sail. We must rely upon the data of these foreign countries, principally those of the United States of North America, because the emigration from our fatherland sets especially in that direction. These data are contained in the subjoined report, published by the office of central statistics.

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From 1891 to 1897 approximative dates.

Averaging two years.

175 762 937
74 1,751 1,825
58 2,301 2, 359
3,072 3,072

142 1,998 2,140
4,506 4,506 (d)

Besides there have emigrated in the year of 1893 from Wilhelmshaven, 6; in 1891 from Stettin, 6; in 1892, 1; in 1896, 196; in 1897, 204; and in 1898, 163 individuals, citizens by law of Hungary.

4 Dates do not exist.

In this table the statistics of the United States for the years 1899 to 1901 regarding immigration could not be entered, for the reason that in these last years emigrants were not registered according to the place of their birth but according to their racial nationality. These dates are of interest to us in spite of this, for they show the circumstances under which our emigrants are classed according to race. The public official estimates of the United States give the following list of emigrants:

July 1 of the year 1899 to June 30, 1900:

Of Hungarian nationality.

Of Slovakish nationality.

Of Croatian-Slavonian nationality

Of Ruthenian nationality

Total

July 1, 1900, to June 30, 1901:

Hungarian nationality

Slovakish nationality

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13, 777

29, 243

17, 184

2,832

63, 036

13, 311

Croatian-Slavonian nationality

Ruthenian nationality

Total

29, 343

17,938

5,288

65,870.

That those named in the first three sections are legal citizens of Hungary is doubtless true, but how many of the Ruthenians are really Hungarians can not be computed, many having emigrated from Galicia who are of the Ruthenian

race.

It is certain that a great number have emigrated from our country to the United States who are of German nationality. The number can not be stated, however, as they have been registered as "Germans."

As to the number of those who annually emigrate to Roumania and as to how many Hungarian subjects are still resident there, we have not even approximate data to go by. The only means by which to trace them (the making out of passports) could not help us to determine the extent of emigration,. because of the ebb and flow of commercial travel.

The principal causes which first started emigration were doubtless unfavorable economic conditions and the want of work. Its development, however, was undeniably encouraged by inducements from interested outsiders and recently also the greed of suddenly becoming rich and a longing for adventure. In order to discourage this emigration movement the authorities could not fail to step in as soon as they felt that it was spreading. In the beginning they tried to raise obstacles by prohibitory measures, such as the rejection of petitions for passports and by an order forbidding the passing of frontiers. The only consequence of this, however, was that the emigrants, being refused passports, escaped and emigrated without them. In the beginning the negotiations for emigration were principally carried on by agencies of foreign ship companies established in Vienna, which, not being under the control of our native Hungarian authorities, could ply their trade unhindered. To paralyze the effect of these agencies and to bring them under control the licenses for native agencies were planned, and thus the article of Law XXXVIII of the year 1881 in reference to emigration agencies was enacted, by which every negotiation in regard to emigration was made dependent upon a license issued by the minister of the interior.

This law is entirely ineffectual and it has never been enforced at all, and not a single license for negotiating emigration has been granted.

The working of foreign enterprises and agencies has been therefore continued, partly by mail, partly by the interposition of secret agents recruited from districts in the country.

To obviate this interference all printed matter encouraging emigration, which was sent from abroad, was excluded from the mail, and as, in consequence of these measures, printed matter was then sent in sealed letters, care was taken that they be seized at the addressee's and their transmission prevented.

To counteract the working of secret agents the attention of the inhabitants has been frequently called to the unfavorable conditions of certain foreign countries, to the dangers to which emigrants are exposed, and the people have been warned to beware of unscrupulous agents. All these arrangements have, however, proved insufficient and emigration has grown from year to year, and in the year 1901 emigration to the countries across the ocean has increased according to the above-mentioned statistics up to the number of 70,941 souls.

In how far this emigration, truly startling in its proportions, is to be set down to purely economie causes lies outside the compass of this report, which deals with the provisions of the bill to regulate emigration. That outside encouragement is to this day a great factor in the spread of emigration is indubitable; indeed the danger grows greater because the incitement to emigrate is taking on a new form, which we can neither control nor punish.

Up to this time, as we have mentioned, foreign agents, acting in their own interests, have incited our poorer population to emigrate, but now the emigrants themselves are making a propaganda for emigration by describing their condition in foreign countries in letters to their relations, acquaintances, and neighbors at home. They depict their situation in the brightest colors; they also send money home, and thus this sad condition of affairs has arisen that those who emigrated are encouraging their relations and friends to emigrate also.

The material for emigration being won over in this manner, agents stand ready to take advantage of it by rushing forward and pressing upon these willing people tickets already made out for their passage.

Whether or no this is the real cause of the movement, the deplorable fact remains that emigration, instead of diminishing, is spreading in an alarming manner, and its injurious influence is exercised upon our general prosperity and upon our economic life in an ever-increasing measure.

Could our superfluous working hands emigrate temporarily and bring home afterwards the savings from their high wages, this would indeed be no misfortune. In countries of eastern Europe we notice that on the one hand the number of their emigrants sinks into insignificance compared with ours, and on the other that almost without exception such (working) hands only emigrate as find no means of livelihood in their own country. These emigrants send much money home.

That can not be denied. Statistics prove it.

But this is not much of an advantage, because the number of those who send considerable sums is very insignificant when compared to the majority who barely exist or who are even brought to starvation. More than this, the amount which comes back in this way is not an absolute gain, because those who mention this as an advantage forget the counter value, which is to be

deducted from it, i. e., the sum of money required by every emigrant to defray his journey through Europe and his stay in the port from which he sails, his passage money, etc. To this must be added the amount that every emigrant is obliged to bring with him by the immigration laws of the trans-Atlantic countries. If we add to all this the exceedingly great economic loss which occurs by the emigrants, as a rule, squandering the small fortune which they have had at home in order to procure the money for emigration, and if we deduct this real loss from the sum which they may send home afterwards or bring home, the remaining amount is so insignificant that it is a great mistake to assert for this reason that emigration is an advantage. Even were the amount sent home a net profit, without any counter value, the national economical and political interests of the State, the army, and the individual would still be injured by emigration.

It is impossible, for instance, to reduce to a money value the irretrievable loss of so great a number of inhabitants. Those who ought to defend the country emigrate. Finally, what an immense moral loss it is to a country if a considerable portion of the population separates itself entirely from her, and that those who come back again return home preaching political doctrines which threaten the national peace.

Since the first taking charge of Government affairs I have taken an intense interest in the question of emigration, and have even under present circumstances and with such means as have been at my disposal tried to alter and improve matters.

I have ordered the authorities to find out and punish severely all those agents who do business without a license; to prevent the introduction and dissemination of circulars and pamphlets which encourage emigration, and also to enlighten the inhabitants as to the dangers to which emigrants are exposed in trans-Atlantic countries. Furthermore, I have forbidden the collecting of exaggeratedly high fees by district functionaries from those to whom they issue passports; I have ordered an examination into the reasons why emigration appears to be more general in certain provinces than in others, in order, if possible, to present the facts to the governors of such provinces. I have been also anxious to look after the moral and physical welfare of our emigrants, and to this end I am supplying ample funds for the Hungarian Society in New York, which procures employment for emigrants and grants shelter to the destitute. Already in this year's budget I have put down a still larger amount for this purpose in order to satisfy the needs of their souls and to support the schools for their children. I have taken care that priests and teachers with patriotic sentiments be supplied to them, and finally, with no slight burdening of the public exchequer, I have striven to encourage their return to their own country. Quite recently a number of citizens of our country who have been disappointed and ruined in the trans-Atlantic states have been longing for their native land, and I have taken the expenses for their return voyage upon myself, charging the portfolio of the ministry of the interior with them, as the amount put in the general budget of foreign affairs for this object was not sufficient.

Besides I have called the attention of the respective ministers to the extensive progress of emigration and have requested them to make all possible arrangements in their own sphere of action to reduce it if possible. Many notable improvements are to be undertaken by the ministry in the line of agriculture and industry, which will soften the unfavorable conditions that bring about and encourage emigration.

Such arrangements are principally:

The support of industrial establishments and factories; the lawful regulation of the rights of the workingman who is occupied with agriculture or labor of a similar kind; the founding of saving banks for workingmen and servants; the cheap, or even gratuitous, supplying of seeds and fruit trees; the extension of active help toward agricultural improvements in aid of our mountaineers; the doing of relief work for the good of the people, helping them to earn a living by the grant of loans, etc.

All these arrangements have not been sufficient, however, I am sorry to say, and therefore it is absolutely the duty of the Government to make use of all possible means for reducing emigration on the one hand, or else, if emigration be not preventable, to regulate it by law.

For reducing emigration those arrangements prove the most effective which apply to agriculture and industry, and every single member of the Government must endeavor in his own sphere of action to create favorable conditions in this

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