The History of the Nederlandsche Cocaïne Fabriek and its
Transcription
The History of the Nederlandsche Cocaïne Fabriek and its
331 The History of the Nederlandsche Cocaïne Fabriek and its Successors as Manufacturers of Narcotic Drugs, analysed from an International Perspective VOLUME 2 PART II ESTIMATES AND MODELS 332 ISBN Volume 1 978-0-9872751-2-7 Volume 2 978-0-9872751-3-4 333 CHAPTER 15 ESTIMATES OF THE MANUFACTURING COST OF COCAINE HYDROCHLORIDE FROM VARIOUS RAW MATERIALS DURING THE PERIOD 1902-1912. 15.1 Introduction In this chapter estimates are made of the cost of manufacturing cocaine hydrochloride from three different raw materials: Java coca, Huanuco (Peru) coca and crude cocaine during the period 1902-1912. These costs are compared with the prices at which the cocaine was sold and the difference between selling price and manufacturing cost (including selling expenses and administration cost) representing the profit margin (operating income) is calculated. In the USA imports of cocaine and its raw materials were subject to substantial duties. The result was that selling prices and production cost of cocaine were quite different in the USA and in Europe, where no duties were payable.1 This led to differences in profitability depending on where the cocaine was produced and sold, and which raw material was used. In this chapter for each raw material annual profit margins are estimated for both the USA and Europe. Comparison of these profit margins provides a good understanding of the economic reasons for the relative preferences for the raw materials and how the situation changed over the period. The estimates comprise two distinct components: the factory costs i.e. the costs of making the cocaine, including overheads, and the raw material cost. The estimates of the factory costs are based on cost incurred by NCF when processing of Java coca during the period 1910-1914 as calculated in chapter 18. These NCF costs are also used as a starting point to estimate manufacturing cost for cocaine made from the alternative raw materials: Huanuco coca and crude cocaine from Peru. Yield factors used to calculate output of cocaine from the various raw materials are those established in chapter 17. All estimates are deemed to be constant over the period and valid for all cocaine manufacturers. The raw material costs are subject to considerable variations over time and estimates thereof are made on an annual basis. For Java coca and crude cocaine good price information is available. For Huanuco coca, for the years 1905-1914, the annual prices are estimated in an indirect way on the basis of government statistics on the value of the total imports of coca leaf into the USA. Although the bulk of the cocaine was produced in Germany, the word “Europe” is used throughout this chapter to describe the situation with respect to the duty. 1 334 15.2 Cost Estimates Fixed and Variable Cost excluding Raw Material Cost The basis for the cost calculations are the NCF figures used in Table 18.16 for the period 1910-1914. These figures are considered as a good approximation and deemed valid for the total period 1902-1913. The costs are modified for the various raw materials as described below and are entered in Table 15.1. For Java coca: The yield is set at the average estimated in Table 17.7 of 10.9 kg per ton leaf. The average total alkaloid content over the period was 1.55%.2 The amounts for Fixed Cost as appearing in Table 18.16 are used unchanged. The amount for depreciation is assumed to relate for 50% to the extraction facility and for the rest to the synthesis and purification equipment. For Huanuco (Peru) coca: The yield is assumed equal to the estimate in Table 17.7 of 6.0 kg per tonne. Because of the lower yield per tonne of leaf compared to Java coca, the capacity of the extraction facility is greater by a factor 10.9/6 which leads to a (10.9/6)0.6 = 1.43 times greater depreciation cost for the extraction facility.3 For the other equipment depreciation is set at 50% of that of the NCF because equipment for cocaine synthesis is not required. Labour cost and cost of chemicals, solvents and energy (CS&E cost) in the extraction department are estimated higher than with Java coca because of the larger volume of leaf that has to be processed, but labour costs for the other operations are lower because most cocaine is made by direct extraction rather than via ecgonine as is the case with Java coca. Cost for chemicals, solvents and energy for “synthesis” are therefor set at nil For Crude cocaine: The yield is assumed to be 100% on the basis of the assay which determined the price. Substantially smaller labour cost and CS&E cost are required for processing crude cocaine in comparison to processing Java coca. 2 The average of alkaloid content of Java coca processed by Merck during the period 1906-1918 was 1.544%. A. Hirschmüller, ‘E. Merck und das Kokain’ Gesnerus 52 (1995) 121, Table 3 (calc. HHB). 3 The formula for the approximate capital cost in relation to the capacity of the equipment installed c2 /c1 = k0.6 is a general one for the chemical industry. (c2 /c1 represents the approximate ratio of the capital costs of two factories when k is the ratio of the production capacities). F.C. Vilbrandt, Chemical Engineering Plant Design, 3rd Ed. (New York 1949) 449. 335 Table 15.1 Manufacturing Cost Cocaine HCl (500 kg p.a.) excluding Raw Material Cost NCF 1910-1914 Java Coca Yield 10.9 kg/t Output 500 kg p.a. Huanuco Coca Yield 6.0 kg/t Output 500 kg p.a. Crude Cocaine Yield 1.00 kg/kg Output 500 kg p.a. Cost NLG/p.a. Number of Employees Cost NLG/kg Number of Employees Cost NLG/kg Number of Employees Cost NLG/kg [1] [2] [3] [4] [5] [6] [7] Fixed Cost Labour extraction synthesis and purification engineering laboratory and clerk 15,629 31 Director + Staff Administration Depreciation 5,429 1,100 4,692 11 2 9 11 2 9 11 2 4 Total Fixed Cost 26,850 54 48 21 5 3 7 9 3 0 0 3 0 Total Cost of Chemicals, Solvents & Energy 15 12 3 Total Cost excl. Raw Materials 69 60 24 6 5 2 4 17 26 9 2 1 2 14 4 0 1 0 1 2 Variable Cost Chemicals, Solvents & Energy extraction purification synthesis Sources and Notes [1] Table 18.16 Column ‘1910-1914’, Fixed Costs [2] Table 18.3 Column ‘1910-1914’, Number of Employees [3] [3] = [1] / 500 (Fixed cost per kg) [4] [4] = [3] – 3 (No processing via ecgonine) [5] [5] = 14/17 * [3] (Proportionally reduced) [6] No leaf extraction, no processing via ecgonine [7] Estimates by the author Raw Material Cost Java Coca: From the year 1905 onwards good statistical information is available on the prices at which Java coca was sold in Amsterdam.4 For the years 1902-1905 the price is based on a publication of 1908.5 Huanuco Coca (ex Peru): Information on the price of coca leaf imported into the USA is available for the period 1906-1912 from the statistics by the US Department of Commerce.6 Estimates of the price of Huanuco coca, the variety of coca from Peru preferentially used for the manufacture of cocaine, are made on the basis of the US import 4 P. Brusse, Jaarverslag voor kinabast en Coca (Annual Report on Cinchona bark and Coca) (1910-1933), Library Royal Tropical Institute (KIT) Amsterdam. 5 G. van der Sleen, ‘Over Java-Coca’, De Indische Mercuur, (1908) February 25, 127. 6 United States Department of Commerce, Foreign Commerce and Navigation of the United States, an annual publication (1892/93- ). 336 statistics.7 For the years 1902-1905 estimates of the Huanuco import price were made using wholesale prices compiled by Spillane from data published in a trade journal.8 Crude Cocaine: For the years 1902-1913 information on prices of crude cocaine ex Peru is available from Gehe’s Handelsbericht.9 Calculation of the Cost of Huanuco Coca The calculation of the price of Huanuco coca is somewhat complex. For the years 1905/061913/14 the total value of the US coca imports and the total weight thereof is known from the FC&N statistics. We know furthermore (estimates of) quantities and prices of the other coca varieties imported into the USA: Java coca and Trujillo coca. From that information the price of Huanuco coca (x3) can be calculated by solving a set of algebraic equations. These equations are the following: The total value of the US imports of coca leaf is C = ax1 + bx2 + cx3 in which a, b and c are the quantities of imported coca from Java, Trujillo and Huanuco respectively, and x1, x2 and x3 are the respective prices. From the FC&N statistics we know C and (a + b + c) An estimate of a is contained in Table 16 column [21] and x1 is known from Table JCL 5 (Brusse) An estimate of b is contained in Table 17.8 columns [1] + [3], and we know that x2 = 2/3 x3 (approximately, Spillane) Substitution yields c = (a + b + c) - a - b and C = ax1 + (2/3 b + c) x3 hence x3 = (C - ax1) / (2/3 b + c) The calculations also require conversions of some data available for calendar years into (approximate) amounts pertaining to US fiscal years (July-June). This is done by averaging sets of two subsequent years. The calculations are shown in the following table 15.2. 7 Ibidem. J. F. Spillane, Cocaine: From Medical Marvel to Modern Menace in the United States, 1884-1920 (Baltimore 2000) 54. 9 Gehe & Co., Dresden, Handelsbericht (1877 - 1914). 8 Sources [1] [2] [3] [4] [5] [6] [7] TOTAL Weighted Average 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 Calendar Year 950 0 0 0 161 82 162 90 110 284 61 metric tonnes [3] Java 672 60 60 60 60 60 60 82 82 82 66 metric tonnes [4] Trujillo Import USA 1905/06 1906/07 1907/08 1908/09 1909/10 1910/11 1911/12 1912/13 1913/14 Fiscal Year Table JCL 5 (Part IV) column [9] [2] = 2 * 1.55 * [1] Table 16.9 column [10] Table 17.8 (column [1] + column [3]) Table PCL 2 (part IV) column [4] [6] = average column [2] subsequent years in US¢/lb [7] = average column [3] subsequent years in lb Figures in blue are calculated / estimated by the author 89 80 72 58 86 123 121 67 60 47 NL cents per kg [2] NL cents per unit [1] 28.6 25.9 23.2 18.6 27.6 39.6 39.1 21.6 19.5 15.1 Java Java Coca Prices [8] [9] [10] [11] [12] [13] [14] [15] 15.3 18.4 14.0 12.0 11.5 13.9 19.1 17.1 11.8 12.8 US cents per lb [5] Total USA 2,027 0 0 177 268 269 278 220 434 380 lb 000 [7] Java a 1,343 132 132 132 132 132 157 181 181 163 lb 000 [8] Trujillo b 7,532 2,518 1,383 323 701 307 792 778 561 169 lb 000 [9] Huanuco c Coca Import USA Quantities [8] = average column [4] subsequent years in lb [9] = [10] - [7] - [8] Table PCL 2 (part IV) column [2] Table PCL 2 (part IV) column [3] [12] = [6] * [7] * 10 [13] = [11] - [12] [14] = [9] + [8] * 2 / 3 [15] = [13] / [14] / 10 14.5 15.4 13.9 11.8 13.0 19.0 22.2 17.1 11.6 9.8 US cents per lb [6] Java Coca Prices Table 15.2 Calculation of the of Cost Huanuco Coca in the USA (1905/06-1912/13) 10,902 2,650 1,516 633 1,101 709 1,227 1,180 1,176 712 lb 000 [10] Total a+b+c 1,670,941 488,545 212,424 76,109 128,881 98,454 234,162 201,950 139,035 91,381 USD [11] Total 293,990 0 0 20,946 34,942 51,034 61,727 37,785 50,401 37,153 USD [12] Java 1,376,951 488,545 212,424 55,163 93,939 47,420 172,435 164,165 88,634 54,228 USD [13] Total less Java Coca Import USA Values (Before Duty) 8,428 2,606 1,472 412 789 395 897 899 681 277 lb 000 [14] Huanuco Equ. 2/3*b+c Quantity 16.3 18.7 14.4 13.4 11.9 12.0 19.2 18.3 13.0 19.6 US cent / lb [15] Huanuco Calculated Price 337 Table 15.2 Calculation of the Cost of Huanuco coca ,USA 1905/06 -1913/14 (Before Duty) 338 Table 15.3 The Cost of Huanuco coca, USA 1902-1914, by Calendar Year, Before and After Duty Fiscal Year 1901/02 1902/03 1903/04 1904/05 1905/06 1906/07 1907/08 1908/09 1909/10 1910/11 1911/12 1912/13 1913/14 Huanuco Coca Before Duty US cents/lb [1] 17.5 15.0 15.0 16.5 18.7 14.4 13.4 11.9 12.0 19.2 18.3 13.0 19.6 Calendar Year 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 Huanuco Import Coca Duty Before Duty US cents/lb US cents/lb [2] [3] 16.3 15.0 15.8 17.6 16.6 13.9 12.7 12.0 15.6 18.7 15.6 16.3 Huanuco Coca After Duty US cents/lb [4] 0 0 0 0 0 0 0 0 5 5 5 5 16.3 15.0 15.8 17.6 16.6 13.9 12.7 12.0 20.6 23.7 20.6 21.3 Sources and Notes: [1] 1901/02 to 1904/05: Spillane wholesale prices /2 (the average for the period 1906-1914), thereafter Table 15.2 column [15] [2] Averages column [1] for subsequent years [3] Table 15.4 (below) [4] = [2] + [3] 15.3 Margin on the Sales of Cocaine HCl Using the information compiled in Tables 15.1 and 15.2 together with data on selling prices of cocaine HCl in Europe (Germany) and in the USA, manufacturing costs and margins on the sales could be calculated for both the US and for European conditions. The results are shown in Tables 15.5 to 15.7 for all three raw materials, Crude cocaine, Peru (Huanuco) coca and Java coca, for both Europe and the USA. Under Sources and Notes the calculations and the provenance of the data are briefly explained. As far as required all input for Table 15.5 is recalculated for calendar years and expressed in NLG per kg cocaine HCl. Most of the calculations are straightforward; somewhat complex are those on the duty included in the raw material prices for the USA. The US import duties on cocaine (including crude cocaine) came into force in 1896.10 During the fiscal year 1909/10 the system was changed by the US Government; thereafter duties were also levied on coca leaf and the duty on cocaine was changed from 25% ad valorem to USD 1.50 per oz. The tariff was changed again in 1913/14 and in 1922. 10 P. Gootenberg, ‘Reluctance or resistance? Constructing cocaine (prohibitions) in Peru, 1910-50’, Chapter 3 in: P. Gootenberg, editor, Cocaine: Global Histories (London 1999) 50. 339 The duties are specified in the following Table: Table 15.4 Duty on US Imports of Cocaine and Coca Leaf DUTY On Cocaine On Coca Leaf 1896-1909 1910-1913 1914-1922 from 1923 25% ad valorem USD 1.50 per oz USD 2.00 per oz USD 2.60 per oz nil 5¢ per lb 10¢ per lb 10¢ per lb Source: FC&N Statistics The margins on the sales on cocaine HCl in Europe and the USA appearing in Tables 15.5 to 15.7 are presented in Chapter 5 as Tables 5.7 to 5.11 and depicted as graphs. They show clearly why manufacturers developed a preference for Java coca and why Huanuco coca was an economically viable raw material only in the USA. Table 15.5 Margin on the Sales of Cocaine made from Crude Cocaine Europe and USA 1902-1912 Table 15.5 MARGIN ON THE SALES OF COCAINE - EUROPE and USA Yield : 100% on assay Raw Material Year 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 EU Price Crude Coc NLG/kg [1] 197 201 195 174 189 127 122 142 161 166 139 CRUDE COCAINE EU Cost EU Price Cocaine HCl Cocaine HCl NLG/kg NLG/kg [2] [3] 221 225 219 198 213 151 146 166 185 190 163 Cocaine Cost = Raw Material Cost + NLG 24 EU Margin Cocaine HCl NLG/kg [4] 338 295 256 249 230 183 146 162 162 177 148 Sources and Notes [1] Table PCC 5, column [5] (per kg 100%) [2] [2] = [1] + 24 [3] Tables COC 4-5 column [5] [4] [4] = [3] - [2] 117 70 37 51 17 32 1 -3 -23 -13 -15 US Price Crude Coc NLG/kg [5] 246 251 243 218 236 159 152 177 293 298 271 [5] [6] [7] [8] US Cost Cocaine HCl NLG/kg [6] 270 275 267 242 260 183 176 201 317 322 295 US Price Cocaine HCl NLG/kg [7] 364 356 307 312 259 220 189 368 299 329 285 1902-1909: [5] = [1] * 1.25 1910-1912: [5] = [1] + 132 [6] = [5] + 24 Table COC 3, column [4] [8] = [7] - [6] US Margin Cocaine HCl NLG/kg [8] 94 81 40 70 -1 37 13 167 -18 7 -10 340 Table 15.6 Margin on the Sales of Cocaine made from Huanuco Coca Europe and USA 1902-1912 Table 15.6 MARGIN ON THE SALES OF COCAINE - EUROPE and USA Yield: 6 kg per ton of leaf Raw Material HUANUCO COCA LEAF EU Price Calendar Year Huanuco US¢/lb [1] 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 16.3 15.0 15.8 17.6 16.6 13.9 12.7 12.0 15.6 18.7 15.6 EU Cost EU Price Cocaine HCl Cocaine HCl NLG/kg NLG/kg [2] [3] 209 197 204 221 212 187 176 170 203 231 203 338 295 256 249 230 183 146 162 162 177 148 Cocaine Cost = Raw Material Cost + NLG 60 EU Margin US Price US Cost US Price US Margin Cocaine HCl NLG/kg [4] Huanuco US¢/lb [5] Cocaine HCl NLG/kg [6] Cocaine HCl NLG/kg [7] Cocaine HCl NLG/kg [8] 129 98 52 28 18 -4 -29 -8 -40 -54 -55 Sources and Notes [1] 1902-1905 Huanuco wholesale prices / 2 1906-1912 Table 15.3 column [2] [2] [2] = [1] * 10 * 2.49 / 0.4536 / 6 + 60 [3] Tables COC 4-5 column [5] [4] [4] = [3] - [2] 16.3 15.0 15.8 17.6 16.6 13.9 12.7 12.0 20.6 23.7 20.6 [5] [6] [7] [8] 209 197 204 221 212 187 176 170 248 277 249 364 356 307 312 259 220 189 368 299 329 285 155 159 103 91 47 33 13 198 51 52 36 1902-1909: [5] = [1] 1910-1912: [5] = [1] + 5 [6] = [5] * 10 * 2.49 / 0.4536 / 6 + 60 Table COC 3, column [4] [8] = [7] - [6] Table 15.7 Margin on the Sales of Cocaine made from Java Coca Europe and USA 1902-1912 Table 15.6 MARGIN ON THE SALES OF COCAINE - EUROPE and USA Yield: 10.9 kg per ton of leaf Raw Material Year 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 EU Price Java NLc/unit [1] 16.7 16.7 16.7 28.6 25.9 23.2 18.6 27.6 39.6 39.1 21.6 JAVA COCA LEAF EU Cost EU Price Cocaine HCl Cocaine HCl NLG/kg NLG/kg [2] [3] 116 116 116 150 143 135 122 147 182 180 130 338 295 256 249 230 183 146 162 162 177 148 Cocaine Cost = Raw Material Cost + NLG 69 EU Margin Cocaine HCl NLG/kg [4] 222 179 140 99 87 48 24 15 -19 -3 18 Sources and Notes [1] Price per ½ kg per % total alkaloid 1902-04: van der Sleen (1908), from 1905 onwards: Table JCL 5, column [9] [2] [3] = [1] / 10.9 * 31 + 69 (1.55% total alkaloid) [3] Tables COC 4-5 column [5] [4] [5] = [4] - [3] US Price Java Coca NLc/unit [5] 16.7 16.7 16.7 28.6 25.9 23.2 18.6 27.6 52.1 51.6 34.1 [5] [6] [7] [8] US Cost Cocaine HCl NLG/kg [6] 116 116 116 150 143 135 122 147 217 216 166 US Price Cocaine HCl NLG/kg [7] 364 356 307 312 259 220 189 368 299 329 285 1902-1909: [5] = [1] 1910-1912: [5] = [1] + 12.5 [6] =[5] / 10.9 * 30 + 69 Table COC 3, column [4] [8] = [7] - [6] US Margin Cocaine HCl NLG/kg [8] 248 240 191 162 116 85 67 221 82 113 119 341 15.4 Summary and Conclusions From 1900 cocaine prices in Europe declined steadily to about half of the original value in 1908, and stayed at that low level until the outbreak of World War I. Sales volume did not increase until the end of the period and profit margins on cocaine dwindled to virtually nonexistent (cf. chapter 5). Over the period Java coca became the raw material of choice replacing crude cocaine and coca leaf from Peru. In the USA the situation was somewhat different because of import duties imposed on cocaine and its raw materials, the level of which was increased in 1910. In this chapter annual cocaine prices were compared with estimates of the manufacturing costs which varied with the raw material price, and the profit margins on sales were calculated. The calculations were made for all three raw materials and for Europe and the USA. The results show clearly that Java coca was the most economical raw material, although even for Java coca the margin on sales had virtually disappeared after1907. Graphs of the profit margins for the various raw materials plotted against time are presented in chapter 5. The cost of Huanuco coca was estimated from the total value of US imports of coca leaf, total weight of the US imports and imports of Java coca into the USA. The mathematical model used for the calculations was too complex to allow for a numerical estimate of the accuracy of the Huanuco figures, but the accuracy is considered to be quite high because the uncertainty is mainly in variables affecting the end result in a limited way. LIST OF LETTER-SYMBOLS USED IN CHAPTER 15 C Total cost of coca leaf imported into the USA a b c Quantity of Java coca imported into the USA Quantity of Trujillo coca imported into the USA Quantity of Huanuco coca imported into the USA x1 x2 x3 Price of the Java coca Price of the Trujillo coca Price of the Huanuco coca 342 343 CHAPTER 16 ESTIMATES OF COCAINE MANUFACTURED WORLDWIDE (1892-1930) PART I EXPORTS AND IMPORTS OF PERUVIAN COCA LEAF 16.1 Introduction Statistics on cocaine manufactured worldwide and estimates thereof For a good insight of the functioning of the industry that manufactured and supplied cocaine worldwide it is key to know, at least approximately, the quantities that were produced annually. However, quantitative information on the production of cocaine for the period from ca 1890 to 1920 is scarce. Detailed information on quantities of cocaine manufactured is only available for Merck Darmstadt.1 The cocaine consumption worldwide for the year 1910 has been estimated at 13,000–15,000 kg.2 Musto has made an estimate of annual quantities of the ‘cocaine equivalent’ of exported raw materials for cocaine (coca leaf and crude cocaine) during the early 20th century.3 That ‘cocaine equivalent’ is loosely defined by Musto, but it represents roughly the amount of total coca alkaloids contained in the raw materials exported. It is possible to estimate how much cocaine was produced worldwide on the basis of the quantities of the principal raw materials, coca leaf and crude cocaine from Peru and coca leaf from Java, that were used in the manufacture. Quantitative information on the trade in these raw materials is available from export and import statistics. Deduction of the amounts of coca leaf used for beverages and for chewing from the trade statistics results in the quantities which were used for the manufacture of cocaine. Combining this quantitative information with yield factors, i.e. estimates of how much cocaine will have been produced from each of the raw materials, leads to estimates of quantities of cocaine manufactured. In chapter 17 such estimate is presented for the amounts of cocaine produced from the raw materials exported during the period 1892-1930. In preparation for the estimates of chapter 17 a critical review of the exports and imports of Peruvian coca is presented in this chapter. The total quantities of coca exported from Peru annually are quite well documented; the knowledge of how much went to the main ultimate destinations (the USA, Germany and “Other Countries”) is less certain and less complete. In this chapter all data are critically reviewed and anomalies showing up when comparing statistics from various sources are analyzed. Mathematical methods have been developed to arrive at improved estimates of exports to the USA and Chile. The accuracy of the estimated values is evaluated. A. Hirschmüller, ‘E. Merck und das Kokain’,Gesnerus 52 (1995) 116-132. W.G. van Wettum, Note on the forthcoming Geneva Conference, dated 13 December 1923. Nationaal Archief, The Hague, Access No 2.05.21, Item 1466, p4. 3 D.F. Musto, ‘International Traffic in Coca through the early 20th Century’, Drug and Alcohol Dependenc 49 [2] (1998) 145-156. 1 2 344 Statistics on cocaine by League of Nations bodies A first systematic attempt to collect quantitative information on the production of cocaine and other drugs of dependence was made after the end of the First World War by the then newly formed League of Nations which became responsible for the implementation of the International Opium Convention of The Hague of 1912. The League established the Opium Advisory Committee (OAC) as the main body to deal with drug matters.4 The OAC requested quantitative information from signatories to the Hague Convention on production, consumption, imports, exports and stocks of the opium, morphine, heroin, cocaine and coca leaf.5 The data obtained have been published by the League of Nations; it is notable that not all countries involved submitted all requested information.6 For the years 1925-1928 similar data were collected by the Permanent Central Opium Board (PCOB), another body of the League of Nations.7 These data are more complete than the ones for 1920-1923 but do not cover all manufacturing countries. For the years from 1929 onwards the PCOB published annually its “Statistics”, covering opium and other dangerous drugs. In these publications the PCOB summarized the extensive data it had received from Governments worldwide. The “Statistics” contain a wealth of detailed quantitative information on the production and consumption of dangerous drugs and of their raw materials, by country.8 General notes on the trade in coca leaf during the period 1890-1930 The world-wide trade in coca leaf during the period 1890 to 1930 was complex, with Peru and Java (Dutch East Indies) as the main exporting countries, and many importing countries, among which the USA and Germany were the most important. Not all coca leaf was shipped directly from the producing country to the country where it was utilized; Java coca was mainly shipped to the Netherlands where it was traded and forwarded to its final destinations. 4 A full list of abbreviations and letter symbols is provided the end of this chapter. William B. McAllister, Drug Diplomacy in the Twentieth Century (London 2000) 47. 6 Société des Nations, Deuxième Conférenence de l’Opium, Partie I, Tableaux Statistiques 1920-1923, O.D.C.1. (C.656.M.234.1924.XI) Geneva 1924, 46-50. 7 Permanent Central Opium Board, Advisory committee on traffic in opium and other dangerous drugs. Report on the 13th Session, Geneva 1930, Annex 3, Document C.121.M.39.1930.XI (Geneva 1930). 8 Permanent Central Opium Board, Report to the Council on the Work of the Central Board and on the Statistics for the Year 1929, Geneva, XI. Series Opium and Other Dangerous Drugs C.629.M.250.1930.XI. (1930) and subsequent annual publications in the same series. The OAC and PCOB data on production of cocaine during the period 1920-1939 are included in Table COC 2 (Part IV, Source Data). 5 345 A simplified schematic representation of the world-wide coca trade around 1910 is provided with table 16.1 below. Table 16.1 Table representing the Worldwide Trade in Coca Leaf around 1910 Exporting Countries Importing Countries PERU JAVA NETHERLANDS BOLIVIA xxx xx xx 0 Germany x x xxx x Netherlands 0 xxx n/a 0 x x x x x 0 0 xxx USA Other European South American Sources: Government and Trade Statistics Relative Quantities: xxx Large, xx Average, x Small, 0 Negligible and n/a Not Applicable The table shows that Peru coca went mainly to the USA while Java coca was traded to a large extent via the Netherlands with Germany as its final destination. Coca from Bolivia was primarily exported to other South American countries (Argentina and Chile) for chewing. For a complete quantitative picture of the trade one would need such a table for each year showing the exact amounts of coca leaf shipped to and received by every country involved (two numbers in each cell of the table). For the years from 1929 onwards such tables have been compiled and published by the international narcotics control organizations (PCOB/INCB). Even these tables are not fully internally reconcilable as a result of the incompleteness of the data submitted by the participating countries and the fact that some of the product shipped towards the end of the year did not reach its destination before the following year. For the years before 1929 such detailed information is not available. For the estimates we have used import and export statistics published by government departments of Peru, the Dutch East Indies and the USA and data on German imports contained in trade publications. This information is not comprehensive; generally only totals of exports and imports are published, and not all years are covered. 346 Musto’s publication is an extensive “compilation of data on international traffic in coca through the early 20th century” which comprises the export of coca leaf from Peru, Java, Bolivia and Formosa, and crude cocaine from Peru.9 For the USA, Spillane has made estimates of coca leaf imported into the USA for the years until 1906.10 The following table 13.2 provides an index for this statistical information. Table 16.2 Statistical Information on the Export and Import of Coca Leaf Contained in the tables of the PCL and JCL series (Part IV, Source Data) Country Statistics (Source) Period Covered Table PERU Export Peru Coca (Musto) 1890-1933 PCL 1 PERU Export Peru Coca by Destination (Korte Berichten, Walger, de Jong) 1911-1913 Table 16.3 PERU Export Peru Coca to the USA (Gootenberg, Bües, Pilli) 1910-1933 PCL 4 USA Import (Peru+Java) Coca (Foreign Commerce & Navigation) 1905/06-1917/18 1918-1933 PCL 2 USA Import Peru Coca New York (Spillane) 1891/92-1904/05 PCL 3 USA Import (Peru+Java) Coca (New York) (Reens, Walger, de Jong) 1905/06-1915/16 PCL 4 GERMANY Import Peru Coca (Hamburg) (Gehe Handelsbericht, Reens etc.) 1890-1913 PCL 5-7 JAVA Export Java Coca by Destination (Statistics Dutch East Indies) 1908-1938 JCL 3 NETHERLANDS Export Java Coca by Destination (Coca Producers Association) 1922-1932 JCL 4 As the first step in our attempt to estimate how much coca leaf exported from Peru was used for the production of cocaine all available statistics on the trade in Peruvian coca leaf are brought together to establish how much Peruvian coca leaf went to the USA, Germany and “Other Countries“.11 The quantities which were imported into Other Countries (as a total) are 9 D.F. Musto, ‘International Traffic in Coca through the early 20th Century’, Drug and Alcohol Dependence 49 [2] (1998) 145-156. 10 Joseph F. Spillane, Modern Drug, Modern Menace: the legal use and distribution of cocaine in the United States, 1880-1920. Dissertation Carnegie Mellon University (1994). Statistical information that was found during the research on this subject has been summarized in a series of tables PCL (Peru Coca Leaf) and JCL (Java Coca Leaf) which appear in Part IV, Source Data, of this dissertation. 11 Before 1900 small quantities of coca leaf from Bolivia went to Germany; they are included in the data reported by Gehe under imports Hamburg. They were mainly used for tonics and other preparations. 347 calculated as the difference between the quantities exported from Peru and the quantities imported into the USA and Germany. Thereafter ballpark estimates are made of which percentage of the exports to Other Countries went to specific destinations e.g. to Chile for chewing. These quantities and also those used for the manufacture of coca containing beverages such as Coca-Cola have to be excluded from the total of coca leaf exported from Peru to arrive at the quantities that were used for the manufacture of cocaine. The principle on which these calculations are based is that over time the quantities exported are equal to the sum of the quantities imported. However, the published data relate to years of exports and years of imports respectively and it is well possible, and even likely, that not all coca leaf arrived in the same year as it was exported. A method that accounts for the effects of goods in transit at year end was developed. That method is described in detail in Appendix 2. Other countries where coca leaf was cultivated were Bolivia, Ceylon and Formosa. Bolivian coca was exported mainly to Argentine and Chile for chewing purposes. Gootenberg mentions that in 1885 22 t went to France for Vin Mariani and that during the 1890s Bolivia supplied less than 10% of Europe’s leaf imports.12 In the 1920s exports to maximum of 40 t p.a of Bolivian coca went to France for beverages. Soininen notes that for 1906-1907 exports from Bolivia to Europe became erratic and negligible and were largely confined to France13. From “Handelsberichten” we learn that in 1912, of the 300 t leaf exported, 295 t went to Argentina and 4 t to Germany.14 League of Nations statistics for 1921-1923 show that virtually all Bolivian exports totalling ca 350 t p.a. went to Argentina and Chile.15 From the above information it is concluded that coca exports from Bolivia during the period 1892-1930 were not used to an appreciable extent as a raw material for the manufacture of cocaine. Ceylon exported an average of 24 t coca p.a. during 1906-1912 and the production ceased thereafter.16 This small quantity has been disregarded for our calculations. Exports from Formosa were exclusively to Japan. During the period 1926-1930 these amounted to an average of 118 t p.a.17 The relatively small quantities are not included in the initial calculations but are taken into account in Chapter 17. Note on the accuracy of the values calculated in this chapter. The accuracy of the trade data used as input is variable. Some of the data are estimates themselves and are of unknown precision. This lack of precision, together with the problems resulting from goods in transit at year end, make that some of the results of the calculations appearing in this chapter are numbers which are not significant up to the last digit. Because the results of the initial calculations are often used for further calculations it is not well possible to round off the figures before presenting the final figures. Rounding off the figures in an early stage would interfere with the arithmetical integrity and make checking of the figures impossible. An unavoidable consequence is that some of the figures presented in this chapter suggest a greater accuracy than justified. The accuracy of the final figures is discussed when these figures are presented. 12 Paul Gootenberg, Andean Cocaine, the making of a global drug (North Carolina, 2008) 115. Soininen. Jyri, Industrial Geographies of Cocaine, Master’s Thesis Geography, University of Helsinki (2008), 167. 14 Handelsberichten (Serial), Ministerie van Landbouw, Nijverheid en Handel, The Hague, (1914) 1065. Library Royal Tropical Institute, Amsterdam. 15 League of Nations, Deuxième Conférence de l’Opium, (Geneva 1924) C.656.M.234.1924.XI, p 42. 16 Handelsberichten (1916) 689. 17 Musto, ‘International Traffic in Coca’ (1998) 154. 13 348 16.2 Discussion of the Statistics on the Trade in Coca Leaf 18 In this section the provenance of the statistics and their merits are discussed. Table PCL 1: Export coca leaf from Peru. Musto has compiled excellent statistics on the total annual exports of coca leaf from Peru.19 His main source is the statistics published by the Peruvian Customs. For the years before 1907 Musto has included in his compilation also data from other sources. He shows his selection out of the multiple data in a separate table. In our table PCL 1 Musto’s selection is presented, together with data from Gehe and data from secondary sources. The data from the secondary sources are largely identical with or close to Musto’s. A set of data, headed “Musto’s Selection Augmented”, Figure 16.1, representing the author’s choice out of the available statistics is included as column [10] in table PCL 1. The figures of column [10] are used for table 16.4 in this chapter. Figure 16.1 Graph of the Export of Coca Leaf from Peru 1890-1933 Based on “Musto’s Selection Augmented”. Export of Coca Leaf from Peru 1,600 1,400 Tonnes 1,200 1,000 800 600 400 200 1890 1892 1894 1896 1898 1900 1902 1904 1906 1908 1910 1912 1914 1916 1918 1920 1922 1924 1926 1928 1930 1932 0 Source: Table PCL 1, Column [10] For the period 1911 to 1913 data have been published on exports of coca leaf from Peru by country of destination. The data are summarized in table 16.3 below. Similar data for other periods are not available. 18 19 All Tables from the PCL and JCL series are included in Part IV, Source Data. Musto, ‘International Traffic in Coca’ (1998) 145-156. 349 Table 16.3 Export Peru Coca Leaf by Destination 1911-1913 (tonnes) Country of Destination 1911 [1] 1912 [2] 1913 [3] USA Germany UK France Chile Other 456 67 25 55 149 16 424 76 64 26 175 5 144 50 14 9 175 1 Total 768 770 393 Sources: [1] Export 1911 to Chile, Die Coca 71, Export to European counties, de Jong, Teysmannia (1912) 674 [2] and [3] Handelsberichten, The Hague (1914) 327 The totals for 1912 and 1913 in the above table (ex Handelsberichten, The Hague) are equal to those reported by Musto for exports Peru (Table PCL 1).20 The quantities included in the above table for exports to the USA are identical to those presented by Reens as imports into New York (Ref. column [11] of Table PCL 4). We assume that all these data refer to exports from Peru to the USA as a whole. Reens has sourced the data from a report by the CocaSyndicate. The exports from Peru to Chile during 1911-1913 are surprisingly large; such large exports to Chile are not mentioned for any other period in the literature. Walger comments that Chile’s coca requirements were largely supplied by Bolivia but that in 1898 20 metric tonnes came from Peru.21 The data for US imports appearing for the years 1910-1933 in column [8] of table PCL 4 are considerably larger than the export data from Peru to the USA column [14] of that table and in the above table 16.3. This indicates that during the period additional quantities of coca leaf were imported from other countries (Java). This subject is discussed further later in this chapter. 20 Handelsberichten (1914) 327. T. Walger, Die Coca: Ihre Geschichte, geographische Verbreitung und wirtschaftliche Bedeutung, Dissertation University of Giessen (Berlin 1917) 71. 21 350 Table PCL 2: Import coca leaf into the USA - 1 (1900-1933) FC&N data; comparison with Spillane's graphs (digitalized) Note: Import statistics for the USA do not distinguish between the countries of origin of the coca leaf. The data represent total imports; for practical purposes this means until ca 1910 imports from Peru only and thereafter the sum of imports from Peru and imports from Java Compiled in this table are data on the imports of coca leaf into the USA sourced from Foreign Commerce and Navigation of the United States (FC&N), an annual publication by the US Department of Commerce. Up to volume 1917/18 FC&N covers fiscal years and from 1918 onwards calendar years. Quantities of coca leaf imported are reported from 1905/06 onwards, the USD values of the imports are included from 1900/01 but appear realistic from 1902/03 onwards only. Duty rates and amounts of duty paid are also included. We consider the FC&N data on US imports as authoritative. FC&N data on coca leaf imports into the USA are compared with those obtained from Spillane’s graphs, which graphs are discussed in detail in the next section on Table PCL 3. The calculated ratio (column [9]) of the data from FC&N and from Spillane shows that there is good agreement between these data for the fiscal years 1905/06 to 1917/18 if we assume that the category of the x-axis of Spillane’s graphs is fiscal years e.g. 1906 is 1905/06 etc. The minor differences from the ratio 1.00 are the result of the plotting and digitizing of the data. For the calendar years from 1919 onwards the data from FC&N and from Spillane are not in good agreement (column [9]). The source of Spillane’s data for the years after 1918 is not known. Spillane’s data for these years are disregarded here.22 The values mentioned by Spillane for imports USA 1892-1905 refer presumably to the fiscal years 1891/92 to 1904/05. These values are estimates derived from information on imports of coca leaf into the port of New York. These estimates are discussed in the section on table 13.2. Table PCL 3: Import coca leaf into the USA - 2 (1892-1931) Spillane's graphs (digitized) Spillane in both his dissertation and his book presents statistics on importation of cocaine and coca leaf into the USA in graphical form only.23,24 These graphs were digitized by the author to enable comparison with the FC&N figures. The results of the digitizing are reported in table PCL 3 in thousands of pounds (lbs 000) and in metric tonnes (kg 000); for imports into New York in columns [2] and [3] and for imports into the USA total in columns [5] and [6]. For the period 1891/92 to 1915/16 Spillane estimated the weight of the annual quantities of coca leaf imported into New York from the number of bales that were imported multiplied by their average weight.25 These estimates appear in columns [2] and [3] of table PCL 3. When Spillane compared his estimates of coca imports into New York with the FC&N data for the imports into the USA total for the period 1904/05 to 1915/16 he found that the ratio of imports into the USA (total 6,695 metric tonnes) and imports into New York 22 Remarkably, Spillane refers to Commerce Department reports on coca leaf and cocaine for the import statistics but does not mention specifically the publication Foreign Commerce and Trade of the United States as his source, neither in his dissertation of 1994 nor in his book Cocaine published in 2000. 23 J.F. Spillane, Modern Drug, Modern Menace: The legal use and distribution of Cocaine in the United States, 1880-1920, Dissertation Carnegie Mellon University (1994), figures 3.3 and 3.5, pages 163, 172. 24 J. F. Spillane, Cocaine: From Medical Marvel to Modern Menace in the United States (Baltimore 2000), figures 3.5 and 3.7, pages 61, 64. 25 The data were sourced by Spillane from the weekly trade publication Oil, Paint and Drug Reporter. 351 (total 3,297 metric tonnes) was 2.03 (calculations HHB).26 That ratio was for Spillane the justification for estimating the imports of coca leaf into the USA as two times imports New York also for the years prior to 1904/05, which is an extrapolation.27 The ratios of the imports USA/NY calculated for the period 1891/92-1903/04 appearing in column [7] are very close to 2.00 for each year; this is according to expectation because the imports USA total were calculated in that way by Spillane. Spillane considers the ratio 2.00 as a conservative estimate for the years before 1904/05. His rationale is that it had been reported that in 1897 the value of coca leaf imports plus cocaine imports into New York was half of that compared with at all other ports.28 That seems a weak argument for Spillane’s claim of “that coca imports through New York represented one third to a half of the entire United States consumption” [for the years before 1904/05]. 1897 is only one year out of the period 1891/92 to 1903/04 and the value referred to is the value of “coca and cocaine imports”, while the ratio is applied by Spillane to coca leaf imports only. Soininen mentions that Spillane in a private communication from 2004 had stated that New Orleans was the number two port [for entry of coca leaf] into the United States.29 The proportion of coca leaf imported into New York and New Orleans will have been different for the years before and after 1904/05. Imports of coca leaf through the port of New Orleans will have included those for Mallinckrodt (St. Louis) and as a result of that these imports will have been larger after 1904/05 indicating a factor below 2.00 for the ratio USA/NY for the years before 1904/05.30 Table PCL 4: Import coca leaf into the USA – 3 Summary table imports by fiscal and by calendar year (1892-1933) Table PCL 4 provides a summary of imports into the USA by fiscal and by calendar year. In this table FC&N data (in lbs) are converted into metric tonnes which are presented together with data from other sources. Data for fiscal years are converted into approximate values for calendar years by calculating the averages of consecutive fiscal years. The figures in the table show that for the fiscal years from 1905/06 to 1917/18 there is good agreement on the data as reported by various the sources. 26 We note that although the average ratio USA/NY for the period 1904/05 to 1915/16 is close to 2, the ratios for individual years as calculated in column [7] show a considerable variation around that number. 27 Spillane, Cocaine, 61. Note: Spillane regards also imports for the year 1904/05 as published in FC&N. However, the author could find imports (as weights) in FC&N only for the years from 1905/06 onwards, not for the year 1904/05 for which year only the dollar value is mentioned. But Spillane’s position is supported by Reens and by de Jong (Ref. Table 13.3) who mention virtually identical weights for 1905/06 imports. 28 Spillane, Cocaine, 60 mentions to a report by T.D. Crothers (no reference provided). 29 J. Soininen, Industrial Geographies of Cocaine, Thesis University of Helsinki (2008), 127. 30 A leaflet titled ‘Mallinckrodt’, published by “Tyco, Healthcare, Mallinckrodt”, undated, mentions in the section “Mallinckrodt’s St. Louis Plant” that morphine and codeine were the first medicinal narcotics manufactured by the company in 1898. Cocaine manufacture commenced within a few years thereafter. As Mallinckrodt had become a major US cocaine manufacturer already in 1904 (Cf. Spillane, Cocaine, 65-66) this will have resulted in increased imports of coca leaf into New Orleans (for supply to St Louis) at the time. 352 Figure 16.2 Graph of the Imports of Coca Leaf into the United States during the Calendar Years 1906-1933. 1932 1930 1928 1926 1924 1922 1920 1918 1916 1914 1912 1910 1908 1,000 900 800 700 600 500 400 300 200 100 0 1906 Tonnes Imports Coca leaf into the USA Calendar Years 1906-1933 Source: Table PCL 4, Column [8] The data on the importation of coca leaf into the USA (columns [4], [5] and [6] of PCL 4) taken from publications by Reens, Walger and de Jong are identical for the years from 1905/06 to 1910/11; for each year they are consistently 1.7% lower than the FC&N data and refer to imports into New York rather than to the USA as a whole. Reens and Walger refer to a report by the “cocasyndicaat” as the source of the data; de Jong does not provide a reference for his source.31 Spillane has argued that imports into New York represent on average only about 50% of the total imports into the USA during this period. From the above we conclude that the data presented by Reens, Walger and de Jong were ultimately sourced from FC&N via the report by the “cocasyndicaat” and that the authors of that report had assumed that all imports into the USA came in through the port of New York. Furthermore it appears that the authors of that report have applied a slightly incorrect factor for the conversion of lbs into metric tonnes. The data for 1925-1933 reported by the US Treasury Department (column [12]) are mostly in good agreement with those from FC&N (column [8]). Data on quantities of Coca leaf exported from Peru to the USA during the period 19101933 were taken from Gootenberg who refers to publication by Bües and Pilli as the source.32 31 E. Reens, La Coca de Java. Monographie historique, botanique et pharmacologique. Dissertation University of Paris (Lons-le-Saunier 1919) 18. T. Walger, Die Coca: Ihre Geschichte, geographische Verbreitung und wirtschaftliche Bedeutung, Dissertation University of Giessen (Berlin 1917) 69. A.W.K. de Jong, Chapter ‘Coca’ in: H.C. Prinsen Geerligs, editor, K.W. Van Gorkom’s Oost-Indische Cultures 2nd Ed [3] (Amsterdam 1919) 299. Anonymous, Verslag van de Commissie tot oprichting van het cocasyndicaat, (Batavia 1912). 32 Paul Gootenberg, Andean Cocaine, the making of a global drug (North Carolina, 2008) 158 (Table 4.1) and 333. For 1910-1923: Bües, La coca en al Peru and for 1925-1942: Pilli, Coca Industry. 353 Table PCL 5: Import coca leaf into Hamburg (1890-1913)33 Statistics on imports of Peru coca leaf into Hamburg are compiled in tables PCL 5-7. For the period 1890-1903 the amounts are calculated from the number of bales imported as reported by Gehe34. The weight of one bale Peruvian coca is usually between 120 and 135 pounds35. This corresponds with an average weight of 58 kg per bale. This average weight was used to calculate the quantity of imported coca leaf (column [5]). For the period 1904-1913 data on exports of Peru coca to Hamburg were found in Korte Berichten vor Landbouw, Nijverheid en Handel (The Hague).36 Data on imports of Peruvian coca leaf into Hamburg over the same period have been included in publications by Reens, Walger and de Jong.37 All these data have been included in table PCL 6. They are very similar for these four sources except for Reens’ data for 1905 and 1906, which are assumed to be erroneous. The amounts included in column [5] are those selected by the author. The imports reported for Germany for the period 1905-1908 are very high in comparison with those for the years before and thereafter. Tables JCL 3 and 4: Export of coca leaf from Java. Import statistics for the USA do not distinguish between the countries of origin of the coca leaf. The FC&N data represent the total imports. Statistical information on the export of coca leaf from Java to the USA contained in tables JCL 3 and 4 is used in this chapter to calculate the quantities of coca leaf imported into the USA from Peru by deducting the amounts imported from Java from the total imports. From 1908 onwards statistics on the exports of coca leaf from Java (including Madoera) by country of destination have been published by the Department of Finance of the Dutch East Indies.38 These statistics have been compiled by the author in table JCL 3. The table shows that except for direct exports to the USA and Japan most of the coca leaf went to the Netherlands from where it was largely re-exported. Data on the break-up of the re-exports of Java coca from the Netherlands over countries of destination are available from 1922 onwards. These data reported by the Coca Producers Association are included in Table JCL 4 showing that during the period 1922-1932 the largest part by far of the exports went to Germany.39 33 In publications on the trade in Peruvian coca leaf it is are tacitly assumed that imports into the port of Hamburg are equal to imports into Germany as a whole. 34 Gehe & Co., Dresden, Handelsbericht 1893-1904. 35 Spillane, Cocaine, Table 3.3 page 53. 36 Korte Berichten voor Landbouw, Nijverheid en Handel (Batavia. Dutch East Indies), (1911) 157. 37 For references see ‘Sources and Notes’ of Table PCL 6 (Part III). 38 Statistiek van Den Handel en de In-en Uitvoerrechten (Statistics Dutch East Indies), Deel IIa (Java en Madoera) Weltevreden 1874-1923, Library Royal Tropical Institute (KIT) Amsterdam. 39 Coca-Producenten Vereniging (Coca Producers Association), Annual Reports 1926, 1927 and 1932, Nationaal Archief, The Hague, Access No. 2.20.04 Item 1643. 354 16.3 Bringing it All Together For the calendar years 1892-1930 statistical information on the exports and imports of coca leaf contained in tables PCL 1 to 5, tables JCL 3 and 4, and in table 16.3 are brought together in tables 16.4 and 16.5 in the way as depicted in figure 16.3 below. (The numbers in square brackets refer to the columns of the respective tables). Figure 16.3 The Trade in Coca Leaf – Sources of Statistical Information Table PCL 3 Import NY / USA Spillane 1891/92-1931 Table PCL 2 Import USA FC & N 1905/06-1933 Spillane 1900/01-1931 [5] Table PCL 4 [6] [2] Import USA Spillane 1892-1904 FC&N 1905-1933 Export Peru to USA 1910-1933 [9],[13],[14] Table PCL 1 Export Peru 1890-1933 Tables 16.4 - 16.8 [11] Export Peru Import USA Import Germany Import Other European Countries Table PCL 5 [5] Import Germany 1890-1913 [1], [2],[3] [4] [3] Table 16.3 Tables JCL 3 and 4 Table 16.9 Export Peru 1911 - 1913 Export Java 1915-1930 Export Peru Import USA Import Germany Import Other European Countries REVISED 355 Table 16.4 Coca Leaf from Peru – Export and Import 1892-1930 (tonnes) – Part 1 Calendar Year of Export/ Import Export Peru Total P [1] Import USA total Until 1904: Spillane for k = 2.00 From 1905: FC & N U [2] Export Peru to USA Until 1909: U*=U From 1910: Bües/Pilli Export Peru to Chile, Germany and Other Europe Export Peru to Chile Import Germany (Hamburg) Export Peru to Other Europe (k = 2.00) U* [3] P-U* [4] C [5] G [6] O = P-U*-C-G [7] 1892 1893 1894 388 391 372 209 224 182 209 224 182 179 167 190 123 100 85 57 66 104 AVG 1892-1894 384 205 205 179 103 76 1895 1896 n/a n/a 297 407 297 407 n/a n/a 152 290 n/a n/a 1897 1898 1899 1900 1901 1902 1903 494 407 312 566 610 933 1,026 328 188 323 516 673 855 761 328 188 323 516 673 855 761 166 219 -11 50 -63 78 265 106 77 125 107 203 108 116 60 122 -136 -57 -266 -31 149 AVG 1897-1903 621 521 521 101 120 -20 1904 911 735 735 176 n/a n/a 1905 1906 1907 1908 1909 1910 1,490 1,211 654 404 496 496 1,027 945 487 393 410 439 1,027 945 487 393 410 277 463 266 167 11 86 219 619 578 355 237 47 20 -156 -312 -188 -226 39 199 AVG 1904-1910 809 634 611 198 309 -107 1911 1912 1913 768 770 393 546 534 428 456 424 144 312 346 249 149 175 175 67 76 50 96 95 24 AVG 1911-1913 644 503 341 302 166 64 72 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 478 393 266 307 167 386 453 88 124 190 170 217 204 143 150 101 192 399 453 359 384 611 361 288 47 67 157 59 72 132 130 96 55 90 330 274 99 153 135 176 198 10 44 94 0 42 61 84 56 52 68 148 119 167 154 32 210 255 78 80 96 170 175 143 59 94 49 124 AVG 1914-1930 237 221 110 127 20 356 The following data and considerations were used as input for the calculations in Table 16.4: Column [1] Exports of coca leaf from Peru as the yearly totals taken from the column [11] “Musto’s selection augmented” of table PCL 1. Column [2] Coca leaf imports into the USA for the calendar years 1892-1904 are taken from table PCL 4, column [9]. For the years from 1905 the data are taken from table PCL 4, column [13] Column [3] Until 1909 all USA coca leaf imports are assumed to be from Peru. For years from 1910 exports from Peru to the USA are those from Bües/Pilli ( table PCL 4, column [14]) Column [4] [4] = [1] – [3] Column [5] The years 1911-1913 are the only for which the amounts exported from Peru to all destinations (USA, Chile, Germany and Other) are known. They are taken from table 16.3 Column [6] Imports of Peru coca into the port of Hamburg for the period 1892-1903 are taken from table PCL 5, column [3] and for the period 1904-1913 from table PCL 6 column [5]. These amounts are considered to be the total quantities imported into Germany. Column [7] [7] = [4] – [5] – [6] With respect to the calculations we note: Column [3] For the years 1892 to1904 the imports of coca leaf into the USA are calculated as 2.00 times the import into the port of New York as estimated by Spillane. All the coca imported during this period is assumed to be all of Peruvian origin. For the period 1905-1909 the FC&N import statistics are used. For the period 1910-1930 imports of Peru coca leaf into the USA are known from Bües and Pilli. Column [7] Except for the period 1911-1913, these are calculated amounts. They are the quantities of Peru coca leaf that were exported to “Other Countries” i.e. countries for which no imports statistics are available to us. Averages of the various statistics are calculated over periods representing series of consecutive years for which these statistics are complete. 16.4 Evaluation of the Results of Table 16.4 - The period 1897-1903 The most striking feature of table 16.4 is the strongly negative numbers appearing column [7] for exports to Other Countries during the periods 1897-1903 and 1905-1910. The effect of goods shipped in one year and arriving in the next may result occasionally in a relatively small negative number when the imports into Germany and the USA are deducted from the exports Peru. However, these numbers should not be strongly negative for individual years and their average over a series of consecutive years should be not less than a quite small negative number. For the periods 1897-1903 and 1905-1910, the strongly negative numbers for consecutive years in column [7] indicate that some of the figures used as input for the calculations must be erroneous. A method to investigate the compatibility of trade data contained in time series was developed by the author; that is the GIT-method described in detail in Appendix 2. We will consider the two periods separately in an attempt to find explanations. The assumption that the export statistics for Peru and the import statistics for Germany are correct leads to the conclusion that the values in column [7] of Table 16.4 are so strongly negative because the imports into the USA appearing in column [5] are too large. 357 The values in column [2] for the years 1892-1904 are sourced from Spillane who had calculated them on the basis of the assumption that imports into the USA as a whole were twice as large as the coca imports into New York. Earlier in this chapter we have reasoned that Spillane’s arguments for the use of a factor 2.00 outside the period 1904/05-1915/16 are weak; it is likely that the ratio USA/NY (the factor k) was below 2.00 for the earlier years. Use of a smaller factor will have the effect that the US imports as calculated become smaller, and consequently the figures appearing in column [9] will be less negative. A method was developed for estimating the maximum value of the factor k, which, when applied to the US imports into New York, results in positive values for the quantities of Peruvian coca leaf supplied to Other Countries. That method is an application of the GITmethod of Appendix 3. A parameter used in the calculations is the average quantity of coca leaf in transit at year end as a fraction (p) of the total quantity exported during that year. That fraction (p) is equal to the average shipping time expressed in years.40 Assuming that Peru coca leaf was shipped to the USA and to Europe by sea using the Panama railroad to cross the isthmus, the average shipping time (transit time) is estimated at 5.2 weeks (p = 0.10).41 We applied this method for the period 1897-1903 to the data of table 16.4 for export Peru (E), import Hamburg (G) and import New York (NY) using a series of factors (k) from 2.00 downwards. We found strongly negative values for coca leaf in transit for k = 2.00 and that using the factor 1.60 still shows a negative value for goods in transit at the end of year 1901. However, if the factor 1.38 was used all values for coca in transit at year end became zero or positive (Table and Graph 16.5, below). 40 Alternatively the shipping time can be expressed in weeks (w), in which case p = w/52. This estimate is based on current shipping times (via the Panama Canal) from Peru (Callao) to New York and to Hamburg (www.searates.com) multiplied by a factor 2, adding one week for the transfer of the goods by rail over the isthmus. As a comparison, in 1855 a cargo of ice was sent from Boston to Aspinwall (now Colon) in Panama from where it was transported by the Panama Railway to Panama (the town) in a total of 30 days (New York Times Archives, November 6, 1855). Shipping times reported for 1887 are Aspinwall – New York ca 1 week and Hamburg – New York ca 2 weeks (New York Times, as quoted by www.theshipslist.com). 41 358 Table 16.5 Quantities of Peru Coca Leaf in Transit (tonnes) at Year End 1896-1903 as a function of k (p =0.10) k Year 1896 1897 1898 1899 1900 1901 1902 1903 2.00 1.80 1.60 1.38 1.20 1.00 45 49 41 -96 -158 -424 -454 -305 45 49 41 -63 -74 -272 -217 8 45 49 41 -31 10 -121 19 103 45 49 41 5 57 0 93 103 45 49 41 31 57 60 93 103 45 49 41 31 57 61 93 103 k = Ratio Import Coca USA / New York p = Fraction of the total quantity of coca exported during a year in transit at year end Figure 16.4 Graph of Peru Coca Leaf in Transit at Year End 1896-1903 S end of the year (kg 000) Quantity of Peru Coca Leaf in Transit at Year End 1896-1903 for p = 0.10 200 100 0 -100 1896 1897 1898 1899 1900 1901 1902 1903 -200 -300 -400 -500 k=2.00 k=1.80 k=1.60 k=1.38 k=1.20 From the table and graph we see that the factor 1.38 is the maximum value for the ratio imports USA/ New York to yield positive figures for coca leaf in transit at year end for all years. We have used the value k = 1.38 for further calculations; the results are shown in table 16.6 (below) for the period 1897-1903. The average imports into the USA for 1897-1903 amount to 359 metric tonnes (t) per annum and the average imports into Other Countries to 133 t per annum, a figure in line with that for the previous period. 359 Table 16.6 Trade in Peru Coca Leaf 1897-1903 (tonnes) Goods in Transit and Delivered (Shipping Time: 5.2 weeks) (p = 0.10) Year 1896 1897 1898 1899 1900 1901 1902 1903 Peru Export P 450 494 407 312 566 610 933 1,026 Germany New York USA Import Import Import G NY U = k*NY 106 77 125 107 203 108 116 164 94 162 258 336 428 381 k 1.38 P-G-U T T* w 5.2 S avg 161 200 -36 103 -57 235 385 45 206 407 371 474 417 651 1,036 45 206 250 5 107 -0 234 478 45 49 41 31 57 61 93 103 227 130 223 356 464 590 525 Other Countries Delivered D Goods in Transit at Year End S end 157 209 0 51 0 141 375 45 49 41 5 57 -0 93 103 Table 16.6 is an application of the GIT-method (Appendix 2) T = Quantity of coca in transit at year end assuming that no coca is delivered during the period T* = Auxiliary variable equal to T minus the quantities delivered during the period D = Quantity of coca delivered S end = Quantity of coca in transit at the end of a period The value k = 1.38 was established by making the quantity in Goods in Transit zero, which occurred at year end 1901. As a consequence this ratio is valid for the period 1897-1901. For the years 1902 and 1903 the value for k is undetermined. However, on the basis of a k-value of 1.49, calculated from Spillane’s graphs for the year 1904/05 (Table PCL 3, column [7]), it is considered justified to apply the k-value of 1.38 for total period 1897-1903. Table 16.6 was also run for p = 0.05, 0.10, 0.15 and 0.20 to find the values for k for which Send for 1901 is 0. The resulting values for k and D average are contained in the following table: Table 16.7 The factor k and D avg as a function of the average transit time w (in weeks) p 0.05 0.10 0.15 0.20 w 2.6 5.2 7.8 10.4 k 1.28 1.38 1.46 1.50 D avg 163 133 106 94 k = Ratio Import Coca USA / New York p = Fraction of the total quantity of coca exported during a year in transit at year end w = p expressed in weeks (w = 52p) D avg = Quantity of coca delivered The figures of the table provide insight in the accuracy of the method. No information is available on actual shipping times of coca from Peru at the time but based on other relevant shipping times discussed above, the author is of the opinion that p = 0.10 is a reasonable 360 estimate of the average transit time and that a range for p from 0.05 to 0.15 represents a fair guess of the confidence interval. 16.5 Table 16.8 and its Evaluation Table 16.8 is the continuation of Table 16.4. The quantities of the total imports of coca leaf into the USA for the period 1892-1904 are calculated (column [10]) from the imports into New York (Spillane) by applying the factor k = 1.38, as derived in the previous section. Assuming that during the period all coca imported into the USA originated from Peru, the quantities of Peru coca exported to Chile, Germany and other “European countries” were calculated (column [13]) and deducting the exports to Germany and Chile resulted in the total of the quantities of coca exported to “Other European countries (column [14]). The calculated figures for exports to “Other Europe” for the period 1897-1903 are now in line with the values for the previous period and the strong negative values of Table 16.4 have disappeared. For the period 1904-1909 the values in column [14] for export to “Other Europe” remained strongly negative, unchanged from column [7] in Table 16.4. That problem is dealt with in subsequent sections. With Table 16.8 it is attempted to split the total US imports of coca over the countries of origin of the leaf. For the period 1892-1909 it is assumed in the first instance that all coca came from Peru. Towards the end of that period that will have changed, however. Merck Darmstadt began to use Java coca as its main raw material for cocaine manufacture in 1907.42 Around that time Merck started cocaine manufacture in the USA and it is reasonable to assume that Java coca became the raw material also there. Statistics on the export from Java are available for the years from 1908. Because Java coca was not shipped from Java to the USA until 1916, it will have been imported from the Netherlands until that time. For the period 1910-1915 these quantities are calculated (in blue, column [11]) as the differences between total coca imports into the USA and imports from Peru. From 1916 onwards the figures in column [11] (in black) represent the sum of export statistics of Java coca from Java and the Netherlands to the USA (until 1922 incomplete for the Netherlands). Deducting the exports of coca from Peru and from Java from the US total coca imports results in the values contained in column [12], representing coca leaf imports into the USA from countries other than Peru and Java (total). We see that for 1918-1921 these quantities are in the order of 60 t p.a. These quantities could represent Java coca imports and because the average of column [12] for the period 1914-1930 is only 16 t coca leaf p.a, it is concluded that it is sufficiently accurate to continue making the estimates assuming that coca imports into the USA comprised Peru and Java coca only. 42 A. Hirschmüller, ‘E. Merck und das Kokain’, Gesnerus 52 (1995) 120. 361 Table 16.8 Coca Leaf from Peru – Export and Import 1892-1930 (tonnes) – Part 2 Calendar Year of Export/ Import Import New York Estimates Spillane NY [8] Import USA total Until 1904: Spillane for k = 1.38 From 1905: FC & N U [9] Export Peru to USA Until 1909: U*=U From 1910: Bües/Pilli Export Java coca to USA Netherlands plus Java (incomplete) Import USA from Other Countries Export Peru to Chile, Germany and Other Europe (k = 1.38) Export Peru to Other Europe (k = 1.38) U* [10] J [11] U-U*-J [12] P-U* [13] O = P-U*-G-C [14] 1892 1893 1894 104 112 91 144 155 126 144 155 126 0 0 0 0 0 0 244 236 246 122 136 161 AVG 1892-1894 103 142 142 0 0 242 139 1895 1896 149 203 205 281 205 281 0 0 n/a n/a n/a n/a 1897 1898 1899 1900 1901 1902 1903 164 94 162 258 336 428 381 227 130 223 356 464 590 525 227 130 223 356 464 590 525 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 267 277 89 210 146 343 501 161 180 -36 103 -57 84 73 AVG 1897-1903 260 359 359 0 0 262 73 1904 368 507 507 0 0 404 n/a 1,027 945 487 393 410 439 1,027 945 487 393 410 277 0 0 0 0 0 162 0 0 0 0 0 0 463 266 167 11 86 219 -156 -312 -188 -226 39 199 AVG 1904-1910 601 578 231 -79 1911 1912 1913 546 534 428 456 424 144 90 110 284 0 0 0 312 346 249 96 95 24 AVG 1911-1913 503 341 161 0 302 72 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 399 453 359 384 611 361 288 47 67 157 59 72 132 130 96 55 90 330 274 99 153 135 176 198 10 44 94 0 42 61 84 56 52 68 69 179 273 235 408 125 11 0 32 60 0 31 74 44 43 11 24 0 0 -13 -4 68 60 79 37 -9 3 59 -1 -3 2 -3 -8 -2 148 119 167 154 32 210 255 78 80 96 170 175 143 59 94 49 124 69 179 260 231 476 185 90 37 23 63 59 30 71 46 40 3 22 AVG 1914-1930 221 110 95 16 127 111 1905 1906 1907 1908 1909 1910 362 The following data and considerations were used as input for the calculations in Table 16.5: Column [8] Imports of coca leaf into New York are those by Spillane. Calculated from Table PCL 4, column [9] / 2. Column [9] 1892-1904: [8] * 1.38 For the years 1905-1930 the data are taken from table PCL 4, column [13] Column [10] Until 1909 all USA coca leaf imports are assumed to be from Peru; hence [10] = [11]. For the years from 1910 exports from Peru to the USA are those reported by Bües/Pilli, (Table PCL 4, column [14]) Column [11] Until 1909 imports of Java coca into the USA are assumed to be nil. From 1910 to 1915: [11] = [9] – [10]. From 1916-1930 total exports from Java are calculated as the sum of exports from Java and exports from the Netherlands. Note: Data on coca exports from the Netherlands are not available for the years 1916-1921. Column [12] [12] = [9] – [10] – [11] Column [13] [13] = [1] (Table 16.4) – [10] Column [14] [14] = [13] – [5] (Table 16.4) – [6] (Table 16.4) The reported large importations of Peruvian coca into Germany The imports of coca leaf reported for Germany for the period 1905-1908 (table 16.4 column [6], are more than three times as large as those for the previous period and fall back very sharply thereafter. The statistics available for this period originate from a single secondary source.43 It is a reputable source and the figures are repeated in various other publications but the primary source of the information is unknown.44 For the period 1890-1903 imports of Peruvian coca into Hamburg are reported annually (in bales) in Gehe’s Handelsbericht, but for the years 1904-1909 these statistics are discontinued.45 Total coca exports from Peru over the period 1904-1907 as appearing in Musto’s Table 6 do not show an appreciable increase over those of the previous period, and US imports for 1904-1907 are somewhat higher than earlier.46 These two statistics combined with the large German imports result in the large negative values appearing in column [7] of Table 16.4 indicating serious incompatibilities of the trade statistics. Assuming that the FC&N data for the US imports are correct, the error must be either in the data for the imports Germany or the exports Peru, or both. In search for an explanation, looking again at the export statistics Peru it was found that Musto, in his table 2, has included two entirely different figures for the export of coca leaf during 1906. One, sourced from the Peruvian Departemento de estadistica general de aduanas is 1,211 mt, while the other, from the Great Britain Foreign Office (marked “total”) amounts to 3,224 mt. 43 Korte Berichten voor Landbouw, Nijverheid en Handel (Departement van Landbouw, Nijverheid en Handel, Batavia, Dutch East Indies) No 12 (1911) 157. 44 Table PCL 6. 45 In Gehe’ Handelsbericht (1907) 26 it is mentioned that in 1906 large quantities of South American coca were exported and that in Europe and North America considerable stocks accumulated, resulting in a price decline of one-third, but specific countries and numerical data are not included. 46 Musto, ‘International Traffic in Coca’ (1998) 150. Cf. Table PCL 1, column [2]. 363 Musto includes only the lower figure from the Peruvian customs department in his summary table 6.47 To evaluate the scenario if the large export of ca 3,200 mt from Peru could solve the problem of the large negative values, the GIT-method was applied to the data for 1905-1910 from Table 13.4 but using the value of 3,224 mt for exports Peru during 1906. It was found that a shipping time of 18 weeks (4 months) is the minimum for 1907 in order to achieve that goods in transfer (GIT) at year end 1908 (the critical year) becomes ≥ 0. This average shipping time of 18 weeks for 1907 is very much larger than the 5.2 weeks which were estimated for the period 1897-1903. The US led construction of the Panama Canal which started in 1904 will have seriously impaired transport of commercial cargo by the Panama Railroad via the isthmus, especially during the relocations of the railroad of 1907, and must therefore have extended the shipping time of coca leaf from Peru to the USA and Europe considerably, but a three months increase seems excessive. Another consequence of the large imports into Germany of ca 1,800 mt for the four years 1905-1908 is that this quantity would have to be sold during that period and there are no indications in trade publications or elsewhere in the literature that the market for Peruvian coca leaf in Germany or Other European Countries had expanded to such extent. Only for 1906 are there reports of large quantities of Peru coca reaching Europe, which remained largely unsold.48 From the above considerations it is concluded that the scenario under which the large GBFO export figure for 1906 provides the explanation of reported large German 47 Included in our table PLC 1 are the exports of coca leaf from Peru for 1905 and 1906 reported by Walger, Die Coca (1917), who refers to the Journal of the Ceylon Agricultural Society 13 (1912) 398 as the source. These quantities are different from those appearing in Musto’s publication. All these quantities are included in the following table: Coca Leaf Export Peru 1905-1906 Source 1905 1906 3,284,563 0.4536 1,489,878 1,490 7,107,290 0.4536 3,223,867 3,224 Musto's Table 2 GBFO Conversion Factor GBFO Rounded lbs lbs>kg kg kg 000 Peru Customs kg Musto's Table 6 Rounded Conversion Factor kg kg 000 lbs>kg 1,489,598 1,490 0 1,210,652 1,211 n/a Walger (Ceylon) Conversion Factor at 1 lb = 0.400000 kg lbs>kg kg 1,315,825 0.400609 1,313,825 2,842,916 0.400000 n/a 1,210,652 When looking at Walger’s figures we noted that the ratio GBFO / Walger (both in kg) was similar for 1905 and 1906. Further calculations showed that the ratio Walger (kg) and GBFO (lbs) for 1906 is exactly 0.400000 and for 1905 0.400609. Calculating the weight in kg for 1905 from the weight in lbs sourced from the GBFO using the conversion factor 0.400000, we found a figure differing by only one digit from Walger’s (see table 13.6, above); a printing error (a 5 instead of a 3) must have occurred in the Ceylonese publication. It appears that someone has used the entirely wrong factor of 0.400000 to convert the weight in lbs reported by the GBFO into kg and that Walger’s figures are ultimately from the same source as Musto’s. 48 Ref. footnote [37]. 364 imports over the period 1905-1908 is not tenable. No fact-based explanation can be provided for the provenance of these large figures.49 16.6 The Remaining Scenario The remaining scenario is that the export figure Peru for 1906 of 1,211 mt reported by the Peruvian Customs is correct, and to assume that the actual average annual German imports during 1905-1908 were in fact much smaller than the ones reported and were in line with those of the years before and thereafter. As mentioned in Section 16.5, the source of the challenged data is a secondary and the primary source of the data is not known. Although unsatisfactory, for the subsequent calculations we have disregarded the reported German import figures and have estimated these imports in an alternative way. Table 16.9 and the Regression Line The next step in evaluating the scenario was to prepare Table 16.9 as the sequential of Tables 16.4 and 16.8. To facilitate understanding of the calculations involved the following flow chart was prepared (Figure 16.5). The chart provides the definitions of the letter symbols used and formulas that follow from the flowchart. The black lines represent flows of Peru coca, the green lines flows of Java coca. Figure 16.5 Flow Chart of the Trade in Peru Coca FLOW CHART OF THE TRADE IN PERU COCA EXPORT JAVA COCA USA TOTAL Deduct J Net Imports Peru Coca (approximately) USA U*= U - J J U U* G COCA LEAF EXPORT PERU GERMANY P O C OTHER EUROPEAN COUNTRIES CHILE Letter Symbols for the flows P U U* J G O 49 Total Export Peru Total Import Coca USA Export Peru Coca to USA Total Export Java Coca USA (Java + Netherlands) Import Peru Coca Germany Import Peru Coca Other European Countries Formulas following from the flowchart U = U*+ J (approx.) P = U*+ G + O + C Note: "Deduct J(ava)" is used to arrive at net imports Peru coca USA A pure speculative explanation is that the amounts refer to exports to a South American country (Chile) by a German trader, which has confused the statisticians. 365 Data used as input for Table 16.9 were the values for P-U* calculated from P, the total exports of coca from Peru and U*, the exports from Peru to the USA. Because Java coca is the main other coca imported into the USA, U* is on average approximately equal to U-J (Section 16.5). The values for P-U* represent the total export of Peru coca to Chile, Germany and Other European Countries (C + G + O). The (few) data available for the export to Chile (C) were used to calculate values for P-U*-C representing the sum of exports of Peru coca to Germany and Other European Countries (G + O). The values for P, P-U* and P-U*-C were plotted against time for the period 1892-1930 as shown in the graph below (Figure 16.6) Figure 16.6 Graph of Peru Coca Export & Import 1892-1930 No 1 Peru Coca Export & Import 1892-1930 1,600 1,400 Tonnes 1,200 1,000 800 600 400 200 1892 1894 1896 1898 1900 1902 1904 1906 1908 1910 1912 1914 1916 1918 1920 1922 1924 1926 1928 1930 0 P Export Peru Total P - U* P - U* - C The line for P-U* (the brown line) represents the total of the exports of Peru coca to all countries outside the USA, which is equal to G+O+C. The line for P-U* shows a trend of a gradual reduction of the values over time, with periods of substantial deviations superimposed thereupon. That the deviations occurred over distinct periods and not as random fluctuations for individual years indicates common causes. Data for the export of Peru coca to Chile are available only for the years 1898 and 1911-1913. Plotting the calculated values of P-U*-C (the green triangles) for these years shows that for the period 1911-1913 these values are roughly in line with the trend of P-U*. To investigate this phenomenon further the regression-line for P-U* versus time (the yellow line in Figure 16.7) was determined using the values for P-U* with the exception of the values for 1902-1906 and 1908-1910, which were omitted, because of the large deviations from the trend and the values for 1898 and 1911-1913, for which the P-U*-C values were substituted.50 This resulted in the graph below (Figure 16.7) 50 Excel Data Analysis Regression function (Least Squares method) was used. 366 Figure 16.7 Graph of Peru Coca Export & Import 1892-1930 No 2 P = Export Peru Total P - U* P - U*- C 1930 1928 1926 1924 1922 1920 1918 1916 1914 1912 1910 1908 1906 1904 1902 1900 1898 1896 1894 1,600 1,400 1,200 1,000 800 600 400 200 0 1892 Tonnes Peru Coca Export & Import 1892-1930 and Regression Line Regression On the basis of the graph it is postulated that over the period 1892-1930 there is an approximately linear relationship between the values for P-U*-C = G + O and time. This assumption implies that, except for the periods 1902-1906 and 1911-1913, exports of Peru coca to Chile were negligible and that exports of coca to Chile for the period 1902-1906 can be calculated as the difference between P-U* and the regression line value. The gradual decrease of G + O over the period represents the replacement of Peru coca by cheaper Java coca as a raw material for cocaine manufacture in Europe. For the years 1908-1910 and 1918 the P-U* values are substantially below the regression line. For the period 1911-1913 we have argued (vide supra) that this is caused by substantial quantities of Java coca which were imported into the USA from the Netherlands. For the years 1908-1910 we assume the same which provides an explanation for the low values for P-U*. The explanation is that the values for U* were too high as a result of the original assumption that the import of Java coca into the USA was zero during these years. For Table 16.9 the imports of Java coca into the USA for 1908-1910 were calculated as the difference between the regression line values and the values for P-U*.51 51 The low figure for 1918 is considered to be an anomaly probably related to delays in shipment as a result of the First World War. 367 Table 16.9 Coca Leaf from Peru – Export and Import 1892-1930 (tonnes) – Part 3 Calendar Year of Export/ Import 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 Averages Export Peru to Chile, Germany and Other Europe (k = 1.38) P-U* [15] Export Peru to Germany and Other Europe P-U*-C [16] 244 236 246 267 277 89 210 146 343 501 404 463 266 167 11 86 219 312 346 249 148 119 167 154 32 210 255 78 80 96 170 175 143 59 94 49 124 P-U* Data Selected for Regression Calculation Regression Line a = -3.521 b = 6,890 Difference Regression Line and P-U* Export Peru to Chile, (Estimates in blue) Export Java coca to the USA (Estimates in blue) P-U* or P-U*-C [17] R [18] (P-U*)-R [19] C [20] J*= U-U* [21] 244 236 246 257 267 257 89 210 146 167 163 171 74 163 171 74 148 119 167 154 32 210 255 78 80 96 170 175 143 59 94 49 124 228 224 221 217 214 210 207 203 200 196 193 189 186 182 179 175 172 168 165 161 158 154 151 147 144 140 137 133 130 126 123 119 116 112 109 105 102 98 95 16 12 25 57 71 -114 10 -50 150 311 218 281 87 -8 -161 -82 54 151 188 95 -3 -28 23 14 -105 77 125 -48 -43 -23 54 63 34 -46 -8 -49 29 0 0 0 0 0 0 20 0 0 0 150 311 218 281 87 0 0 0 0 149 175 175 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 161 82 162 90 110 284 69 179 260 231 476 185 90 37 23 63 59 30 71 46 40 3 22 C J* Import Peru Coca Germany and Other Europe Best Estimate G+O [22] 244 236 246 217 214 267 257 89 210 146 193 189 186 182 179 167 172 168 165 163 171 74 148 119 167 154 32 210 255 78 80 96 170 175 143 59 94 49 124 G+O 1892-1894 242 0 0 242 1897-1903 262 69 0 193 1904-1910 231 84 58 174 1911-1913 302 166 161 136 1914-1930 127 0 111 127 368 The following data were used as input for the calculations in Table 16.9: Column [15] [15] = [1] Table 16.4 – [10] Table 16.8 Column [16] [16] = [15] - [5] Table 16.4 Only if [5] Table 16.4 > 0, otherwise [16] = 0 Column [17] Data selected for the regression calculation on the basis of visual inspection of Figure 16.6 (Ref. text above) Column [18] The regression line corresponding with the data in column [17] was calculated with the Intercept and Slope functions in Excel. Column [19] [19] = [17] – [18] Column [20] 1902-1908: Differences with regression line interpreted as exports from Peru to Chile. Column [21] 1908-1909: Differences with regression line interpreted as exports Java coca to the USA 1910-1915: [21] = [11] Table 16.8 Column [22] Equal to [17] except for the years 1895-1896, 1902-1906 and 1908-1910 where regression line values (column [18]) are used. Summarizing the average values of the key parameters by period results in the following table: Table 16.10 Peru Coca Export and Import 1892-1930 Summary of the Average Quantities by Period (tonnes per annum)) Period Export Peru Total P [1] Import Coca USA Total U [2] Export Java coca to USA J [3] Export Export to Peru coca Rest of the to USA World U* P - U* [4] [5] Export Peru to Chile C [6] Export Peru To Europe G+O [7] Import Germany G [8] Import Other Europe O [9] 1892-1894 384 142 0 142 242 0 242 103 139 1897-1903 621 359 0 359 262 69 193 120 71 1904-1910 809 601 58 578 231 84 174 n/a n/a 1911-1913 644 503 161 341 302 166 136 64 72 1914-1930 237 221 95 110 127 0 127 n/a n/a 287 282 TOTAL 1892-1930 Sources: Columns [1] and [8]: Table 16.4; Columns [2] and [4]: Table 16.8; Columns [3], [5], [6] and [7]: Table 16.9; Column [9]: [9] = [7] - [8]; n/a = not available The values in column [8] and [9] suggest that the amounts of Peru coca imported into Germany over the years 1892-1930 are roughly equal to the amounts imported into Other European Countries. Values of G and O for 1904-1910 and 1914-1930 are therefore estimated at 50% of G+O each, i.e. 87 respectively 64 t p.a. 369 On the Accuracy of the Values in Table 16.10. The way how the values are presented i.e. non-rounded, suggest a greater accuracy than justified for some of the values. Several of the figures have been obtained by using approximate methods such as the GIT-method for estimating the factor k and the regression line for estimating values for the imports into Germany plus Other European Countries. The use of such approximate methods may result in systematic errors. However, in the opinion of the author the assumptions on which the methods are based are realistic and thereby the likelihood of large systematic errors occurring is small. An assessment by the author of the accuracy of the values in Table 16.10 by column is the following: [1] Export Peru: Mainly government statistics, accuracy should be reasonably good. [2] Import USA total: 1892-1904, ex Spillane, applying factor k =1.38, accuracy somewhat uncertain; 1905-1930, FN&C data, good. [3] Export Java coca to the USA: 1908-1909, from regression line; 1910-1915, difference U and U*(Bües/Pilli); 1916-1930 Java and Dutch statistics, incomplete. Overall accuracy should be reasonable. [4] Export Peru coca to the USA: 1892-1909, based on Spillane ;1910-1930, Bües/Pilli the latter appear to be realistic. [5] Difference of [1] and [4]. [6] Export Peru to Chile: 1911-1913, Handelsberichten, 1902-1906, from regression line. The accuracy should be reasonable. [7] Difference of [5] and [6]. [8] and [9] End results of the calculations. Ballpark estimates. The uncertainty could not be estimated but is believed to be in the order of 20%. 16.7 Summary and Conclusion Statistics on exports and imports of Peru coca leaf were compiled and critically reviewed by comparing the data from various sources using the principle that, measured over longer periods, total imports must equal total imports. The analysis resulted in a search for explanations of a number of anomalies and the development of mathematical methods (the GIT-method and the application of a regression line) to explain the anomalies and to make estimates of exports/imports of which no data were available. The figures in Table 16.10 are the end result of our attempt to extract the maximum amount of information from published statistics on the trade in Peru coca with respect to the quantities that went to the various destinations during the period ca 1890-1930. The methods used generate approximate values of the desired numbers. It is considered unlikely that this has resulted in large systematic errors. A guesstimate of the accuracy of the averages by period is ±20%. The results of Chapter 16 are used in Chapter 17 as the basis for the estimates of the manufacture of cocaine worldwide. 370 LIST OF LETTER-SYMBOLS USED IN CHAPTER 16 I The index i attached to any letter symbol means that the value refers to year i. GIT Method (Appendix 3) GIT k p w T T* D S So Sn S end Goods In Transit Ratio Import Coca leaf USA / New York Fraction of the total quantity of coca exported during a year in transit at year end Fraction of the total quantity of coca exported during a year in transit at year end expressed in weeks (w = 52p) Quantity of coca in transit at year end assuming that no coca is delivered during the period Auxiliary variable equal to T minus the quantities delivered during the period Quantity of coca delivered Quantity of coca in transit at end of a year Quantity of coca in transit at the beginning of a period Quantity of coca in transit at end of year n Quantity of coca in transit at end of a period Flowchart and Export/Import Tables P U J U* NY G O C Total Export Peru Coca from Peru Total Import Coca USA Import Java Coca USA Import Peru Coca USA Total Import Coca New York Import Peru Coca Germany Import Peru Coca Other European Countries Import Peru Coca Chile Statistical Avg Std Average Standard Deviation Rel Std Var Std Avg df R Relative Standard Deviation Variance Standard Deviation of the Average Degrees of Freedom Regression coefficient 371 CHAPTER 17 ESTIMATES OF COCAINE MANUFACTURED WORLDWIDE (1892-1930) PART II TRADE IN CRUDE COCAINE – COCA LEAF FOR BEVERAGES – THE ESTIMATES Chapter 17 is the continuation of Chapter 16 in which the exports and imports of cocaine raw materials are critically reviewed with the ultimate objective to make estimates of the quantities of cocaine manufactured from these raw materials. Chapter 16 deals mainly with coca leaf from Peru, while in Chapter 17 exports and imports of crude cocaine and coca leaf from Java are reviewed and estimates are made of coca leaf used for beverages. The actual estimates of cocaine manufactured worldwide is the subject of the last two sections of this chapter. This chapter is to be read in conjunction with the relevant Tables PCL, PCC and JCL of Part IV, Source Data.1 17.1 Discussion of the Statistics on the Trade in Crude Cocaine from Peru Table PCC 1: Export crude cocaine from Peru A comprehensive compilation of the total annual exports of Crude Cocaine from Peru has been published by Musto.2 Musto’s data are mainly sourced from statistics published by the Peruvian customs department. A summary of the data is included as “Musto’s Selection” as column [2] in Table PCC 1 (Part IV) together with data from other sources. Column [8] of Table PCC 1, headed “Musto’s Selection Augmented”, represents the author’s choice from all data. The main difference between the figures in column [8] and those in column [2] is that in column [8] for 1903-1904 Walger’s data are used and that for 1893-1894 and 1908 / 1930 additional data are included. Figure 17.1 Graph of the Export of Crude Cocaine from Peru 1888-1933 “Musto’s Selection Augmented” Export Crude Cocaine from Peru 1888-1933 12,000 10,000 kg 8,000 6,000 4,000 2,000 1932 1930 1928 1926 1924 1922 1920 1918 1916 1914 1912 1910 1908 1906 1904 1902 1900 1898 1896 1894 1892 1890 1888 0 Source: Table PCC 1, column [8] 1 2 A list of abbreviations and letter symbols is included at the end of this chapter. D.F. Musto, ‘International Traffic in Coca’, Drug and Alcohol Dependence 49 [2] (1998) 145-156. 372 The graph shows the rapid growth of the exports of crude cocaine from Peru from the late 1880s to 1901 followed by a steady decline and becoming unimportant after 1918. Exports by Country of Destination For the periods 1903-1906 and 1911-1913 a break-up of the exports of crude cocaine from Peru by country of destination is available. The data are included in the following table: Table 17.1 Export of Crude Cocaine from Peru by Country of Destination for the Periods 1903-1906 and 1911-1913 (kg) Year of Export 1903 1904 1905 1906 Average 1903-1906 kg percent 1911 1912 1913 Average 1911-1913 kg percent Export Peru to Germany Export Peru to the UK Export Peru to the USA Export Peru to France Export Peru to Other Countries [5] Export Peru Total [1] [2] [3] [4] 6,770 6,156 6,313 5,184 553 959 330 424 58 284 134 0 414 128 0 305 5 0 1 1 7,800 7,527 6,778 5,914 6,106 87 567 8 119 2 212 3 2 0 7,005 100 5,073 2,729 2,449 68 94 694 261 118 124 0 0 0 0 3 0 5,402 2,944 3,267 3,417 88 285 7 168 4 0 0 1 0 3,871 100 [6] Sources: 1903-1906 Korte Berichten voor Landbouw, Nijverheid en Handel (Batavia) 1911, 157. de Jong, Teysmannia 1912, 674, referring to an unspecified report by 1911 the Ministerie van Landbouw, Nijverheid en Handel (the Hague) 1912-1913 Handelsberichten, Ministerie van Landbouw, Nijverheid en Handel (The Hague) 1914, 326. Germany was the largest consumer of crude cocaine by far. The UK occupied the second place and the USA imported modest quantities. The USA used coca leaf rather than crude cocaine as the principal raw material for cocaine manufacture because until 1910 the import duty on coca leaf was nil while all cocaine imports including crude attracted duty at a rate of 25% ad valorem. The duty rates favoured the use of coca leaf as raw material for cocaine manufacture in the USA also after 1910. There was only one US cocaine manufacturer, Powers-Weightman-Rosengarten, using crude cocaine as the raw material.3 3 Spillane, Cocaine: From Medical Marvel to Modern Menace in the United States (Baltimore 2000) 63. 373 Table PCC 4: Import crude cocaine into Germany. Statistics on imports of crude cocaine are available for Germany only and cover a limited period. For the years 1895-1913 import statistics appear in Handelsbericht, a (bi-)annual publication by the well-known firm Gehe & Co.4 These statistics refer to supplies to Hamburg’s crude cocaine market. It is tacitly assumed in all publications on the subject that all cocaine imports into Germany went through Hamburg but no direct statements to that effect were encountered. The imports of Crude Cocaine into Hamburg are compiled in Table PCC 4 (Part IV). Next to the data from Gehe, three largely identical sets of statistics from secondary sources are included. For the same years the latter amounts are substantially higher than those reported by Gehe. The source for the data (mentioned by Walger) is a publication by the “CocaSyndicate” of 1912.5 Notes on the data published by Gehe: For the period 1897-1901 the data published in earlier issues of Gehe’s Handelsbericht are substantially smaller than those appearing for the same years in later issues. The latter seem to be corrections of the earlier but are not identified as such. For the period 1903-1906 Gehe presents its crude cocaine import statistics Hamburg in small tables including an entry Goods in Transit (“unter Contract weitergehend”). For the years before 1903 and after 1907 goods in transit are not mentioned. The principal data on the export of Peruvian crude cocaine and the import thereof in Germany are shown in Table 17.2 4 Gehe & Co., Dresden, Handelsbericht 1896-1914. T. Walger, Die Coca: Ihre Geschichte, geographische Verbreitung und wirtschaftlische Bedeutung, Dissertation Berlin 1917, 70, referring to Verslag van de Commissie tot Oprichting van het Coca Syndicaat, Batavia 1912. . 5 374 Table 17.2 Crude Cocaine Export Peru and Import Germany (kg) Year of Export/ Import 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 Export Peru Musto's Selection Augmented [1] Import into Hamburg Gehe [2] Import into Hamburg Walger [3] Export Peru to Germany [4] 4,550 2,357 4,716 2,382 4,200 4,346 4,500 7,745 10,688 8,268 7,800 7,527 6,778 5,914 6,057 5,175 5,266 5,524 5,434 2,944 3,267 979 1,353 1,576 1,896 2,967 596 1,637 157 778 192 967 621 1,048 980 625 236 20 246 420 918 2,407 1,067 3,280 4,210 4,595 5,817 5,642 6,443 6,178 5,230 5,143 4,132 3,835 3,717 3,980 2,502 2,405 6,770 6,156 6,313 5,184 6,201 4,552 4,977 4,944 3,980 5,073 2,729 2,449 Sources and Notes Column [1] Taken from Table PCC 1, column [8] [2] Taken from Table PCC 4, column [1] T. Walger, Die Coca: Ihre Geschichte, geographische Verbreitung und wirtschaftlische Bedeutung 1917, 70. [3] Source: Verslag van de Commissie tot Oprichting van het Coca Syndicaat , Batavia 1912 [4] 1903-1906 Korte Berichten voor Landbouw, Nijverheid en Handel (Batavia) 1911, 157. de Jong, Teysmannia 1912, 674, referring to an unspecified report by 1911 the Ministerie van Landbouw, Nijverheid en Handel (the Hague) 1912-1913 Handelsberichten, Ministerie van Landbouw, Nijverheid en Handel (The Hague) 1914, 326. 375 Averages of the data contained in Table 17.2 were calculated by the relevant periods and appear together with the percentages of the total exports from Peru in Table 17.3 Table 17.3 Crude Cocaine Trade - Export Peru and Import Germany Annual Averages by Period Period Export Peru Total kg Import Germany (Gehe) Import Germany (Walger) kg % kg % Export Peru to Germany kg % 1897-1902 6,625 3,563 54 -- -- -- -- 1903-1906 7,005 5,873 84 -- -- 6,106 87 1907-1910 5,506 4,207 76 5,169 94 -- -- 1911-1913 3,882 3,151 81 -- -- 3,417 88 Source: Table 17.2 The differences between the data from the various sources are quite large and no explanation is available for this, but the general picture is that for the years 1903-1913 Germany imported 80-90% of the total exports of crude cocaine from Peru while the UK, the USA and France shared the remaining ca 15%. For the earlier period 1897-1902 Germany’s share of crude cocaine exports was reportedly only 54%. This figure would imply that the other manufacturing countries imported ca 3000 kg p.a. at the time. This seems improbable; no other countries can be identified with a demand for such a large quantity. The USA imported during 1901-1903 an average of ca 2,000 kg cocaine HCl plus crude cocaine but that was largely cocaine HCl (ref Table 17.4). From 1896 making cocaine HCl from crude was a less economic option for the USA anyhow, because of the import duty imposed on crude from that date (Chapter 5). For want of more firm data, we assume for further calculations that, as was the case during later periods, as well as during the period 1892-1902, 87% of the crude cocaine went to Germany, 2% to the USA and 11% to Other Countries (ref. Table 17.1). Table PCC 2: Import of cocaine into the USA-1 The official import statistics for the USA do not distinguish between crude cocaine and (pure) cocaine salts; the annually published data refer to the total weight and value of these products. Consequently, data on the importation of crude cocaine alone are not available from the statistics. The reason for evaluating the official import statistics was to compare the data with import statistics presented in the form of graphs by Spillane and for comparison with the imports of crude cocaine into New York mentioned for the period 1907/08 to 1910/11 in three European publications. 376 FC&N data: comparison with Spillane’s graphs (digitalized). Compiled in table PCC 2 are data on the imports of cocaine into the USA sourced from Foreign Commerce and Navigation of the United States (FC&N), an annual publication by the US Department of Commerce.6 Up to 1917/18 FC&N covers fiscal years and from 1918 onwards calendar years. Quantities of cocaine imported are reported from 1907/08 onwards; the USD values of the imports are included from 1900/01. Duty rates and amounts of duty paid are also included. We consider the FC&N data on US imports as authoritative. Crude cocaine and (pure) cocaine salts attracted the same rate of duty. Until 1910 the name of the product category (“articles”) was “cocaine” (duty: 25% ad valorem), which was then changed into “cocaine, ecgonine and salts of” (duty: $1.50/oz) and in 1914 into “cocaine, ecgonine and salts and derivatives of same” (duty: $2.00/oz). Also included in Table PCC 2 are (estimates of) imports of cocaine (crude plus pure salts) appearing in publications by Joseph Spillane.7 Spillane, in both his dissertation and his book, presents statistics on the importation of cocaine and coca leaf into the USA in graphical form only. These graphs were digitized by the author to enable comparison of Spillane’s data with the FC&N figures. For the evaluation of Spillane’s data we distinguish three periods. These are: 1891/92 to 1899/00 (Spillane’s graph years 1892 to 1900) FC&N data are not available for this period. Spillane bases his estimates of cocaine imported during these years on the number of cases of cocaine arriving in New York City as reported weekly in the trade journal Oil, Paint & Drug Reporter. The weight of the product in the cases was reported only occasionally and varied considerably from case to case, the reason why Spillane qualifies his estimates of the average weight of cocaine per case as “problematic”. However, he has used such “averages” for the calculation of the quantities of cocaine imported into New York, which quantities he multiplied by a factor 2 to obtain his estimates of the annual quantities imported into the USA as a whole.8 These quantities must be considered as ballpark estimates only. 1900/01 to 1906/07 (Spillane’s graph years 1901 to 1907) For these years FC&N reports the value of the imports in US dollars but not the weight. Spillane has estimated the weight of these imports using unspecified price information. Approximate values of the prices used by Spillane are calculated in column [4] of Table PCC 2; these values represent on average ca 60% of the then prevailing wholesale prices of cocaine hydrochloride in the USA (Table COC 4). The prices used by Spillane appear to be a reasonable assumption as an import duty of 25% was levied and some of the imported cocaine will have been (cheaper) crude. 1907/08 to 1917/18 (Spillane’s graph years 1908 to 1918) For these years FC&N reports both the value of the imports in US dollars and the weights, allowing for a direct comparison with Spillane’s data. This comparison is made in column [10] of Table PCC 2 by calculating the ratio between Spillane’s figures and those from FC&N. For most years in the period the ratio is close to 1.0, indicating that the values used 6 Department of Commerce, United States of America, Foreign Commerce and Navigation of the United States, Government Printing Office , Washington, an annual publication from 1890 onwards. 7 J. F. Spillane, Modern Drug, Modern Menace: The legal use and distribution of Cocaine in the United States, 1880-1920, Dissertation Carnegie Mellon University (1994), figures 3.3 and 3.5, pages 163, 172 and J. F. Spillane, Cocaine: From Medical Marvel to Modern Menace in the United States (Baltimore 2000), figures 3.5 and 3.7, pages 61, 64. 8 For comments on the use of the factor 2 in the estimates ref. Chapter 16. 377 by Spillane for his graphs will have been taken from the FC&N publication.9 An exception is Spillane’s value for the 1909/10 import according to his graph amounting to ca 173,000 oz, which is very large in comparison to the FN&C value of ca 55,000 oz. Further analysis showed that Spillane’s large value must be considered erroneous.10 Table PCC 3: Import cocaine into the USA-2 Table of Imports by Fiscal and by Calendar Year. The import statistics FC&N and Spillane from Table PCC 1 for the fiscal years 1900/01 to 1917/18 (in oz) are repeated in Table PCC 2 and converted into kilograms. Also included in Table PCC 2 are three very similar sets of statistics titled “Imports of crude cocaine into New York” obtained from secondary sources (Reens, Walger and de Jong).11 When comparing the FC&N data with those from the secondary sources for the period 1907/08 to 1911/12 it was found that those from the secondary sources are derived from the FC&N data but with errors. The conversion factor used was incorrect and the figure for 1909/10 is incorrect.12 Because the data from the secondary sources are essentially the same as the FC&N data, the quantities refer to the total of crude cocaine plus pure cocaine salts rather than to crude cocaine alone and they represent imports into the USA as a whole rather than just into New York. The data from the secondary sources should therefore be disregarded. For the sake of comparison with other data, the data for the period 1900/01 to 1917/18 were converted into approximate values for calendar years by calculating the averages of subsequent fiscal years. Added were the FN&N data for the period 1918 to 1930. The best values for the imports of crude plus pure cocaine together with the available export data for crude are presented with Table 17.4. 9 Spillane refers to the (US) Commerce Department as the source of his data but he does not mention the FN&C publication specifically. The category used for the x-axis of Spillane’s graphs appears to be fiscal years e.g. 1908 is 1907/08 etc. 10 A closer look at the FC&N publication for 1909/10 revealed that Spillane’s large value probably was arrived at by mistakenly adding the value for the Cochineal import of 150,811 lbs, appearing in the FC&N table just below the import of 24,928 oz Cocaine to that figure resulting in an amount of ca 176,000 (oz). 11 E. Reens, ‘Java Coca’, dissertation University of Paris (Lons-le-Saunier 1919), Chapter 5 in S.B. Karch A History of Cocaine. The Mystery of Java Coca and the Kew Plant (London 2003) 72. T. Walger, Die Coca: Ihre Geschichte, geographische Verbreitung und wirtschaftlische Bedeutung, Dissertation University of Giessen (Berlin 1917) 70 and A.W.K. de Jong, Chapter ‘Coca’ in: H.C. Prinsen Geerligs, editor, K.W. Van Gorkom’s Oost-Indische Cultures 2nd Ed [3] (Amsterdam 1919) 299, all referring to: Verslag van de Commissie tot Oprichting van het Coca Syndicaat, Batavia 1912. 12 Except for the year 1909/10, all data from the secondary sources were exactly equal to the FC&N data, in ounces, multiplied by the factor 0.030. For the year 1909/10 the import of 889 kg appearing in the secondary sources is equal to 29,632 oz, imported during the first part of the period (FC&N) multiplied by 0.030. It is concluded that the data from the secondary sources were calculated from the FC&N data by using a wrong conversion factor (1 oz = 30.00 gram instead of 28.35 gram) and omitting a quantity of 24,948 oz imported during the second part of the period 1909/10. 378 Table 17.4 Imports Cocaine into the USA and Exports of Crude Cocaine to the USA Approximate Quantities by Calendar Year (kg) Calendar Year of Import Import USA Crude + Pure Cocaine 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924-1931 2,041 2,268 1,503 510 142 439 422 511 1,231 831 86 81 99 49 63 335 397 521 352 245 200 213 3 0 Export Peru to USA Crude Cocaine 58 284 134 0 261 118 124 Sources: Tables PCC 3 and 17.1 The values for imports USA 1901-1907 are calculated from Spillane's data; those for 1908-1931 are from FN&C data The export data are taken from Table 17.1 For the period 1903-1906 the difference between imports and exports represent the imports of cocaine hydrochloride (from Germany). When comparing the import and export values for the period 1911 to 1913 we note that the exports are considerably higher than the imports. Spillane provides the general comment that “… although there is no hard evidence, the existence of an import duty would likely have encouraged underreporting on the part of manufacturers and importers.”13 The US imports diminished strongly from 1903, probably the result of Merck commencing production in the USA. After 1909 we see a further reduction of cocaine imports after the increase of the import duty to USD 1.50/oz. (NLG 132/kg). From 1923 onwards no imports of cocaine were allowed into the USA (Section 19.3). 13 Spillane, Cocaine (2000) 65. 379 17.2 Coca Leaf used for Beverages Substantial quantities of coca leaf from Peru were used as an ingredient in beverages such as Coca-Cola and Vin Mariani. Export and import statistics for the period do not provide information on the utilisation of the coca leaf. In this chapter the quantities of coca leaf used in the USA for Coca-Cola have been estimated on the basis of production figures for CocaCola syrup and considerations pertaining to the effects of emerging narcotics control measures. The main variety of coca leaf used for beverages came from the Truxillo region of Peru. It is the most ‘flavourful’.14 Java coca was not used for this purpose.15 To make an estimate of the quantity of cocaine produced worldwide from Peruvian coca leaf on the basis of export statistics it is necessary to know, at least approximately, how much of the leaf was used in the production of coca-containing beverages such as Coca-Cola and Vin Mariani, and in the many imitation colas and coca wines. There is no specific information available on how much coca leaf was exported or imported for use in these beverages. Therefore, the problem was approached from the other end i.e. by estimating the quantities of Peruvian coca leaf that were used for making the beverages. For Coca-Cola it was possible to make such estimate on the basis of data available of the quantities of Coca-Cola syrup (concentrate) sold. For the use of coca leaf in other beverages it was necessary to make a number of assumptions to arrive at the estimates. As a result the uncertainty of the estimates of coca used for beverages is rather large. The first step for making the estimates was to look at the European and the US markets separately. Europe In chapter 16 it was calculated by deducting USA imports from the total exports of coca leaf from Peru that over the period 1892-1930 the quantities imported into Europe gradually diminished from ca 240 to ca 130 tonnes of coca p.a. Information on quantities of coca leaf used for beverages (coca teas, coca wines) in Europe is sparse. During the late 1800’s in the order of 23 % of the coca leaf imported into Hamburg was of the Truxillo variety, the variety which was mainly used for beverages.16 Around 1910 that percentage was in the order of 80 %. Peru coca was also exported to France; a quantity of 55 tonnes is reported for 1911, which was presumably used for Vin Mariani.17 From this information it is concluded that during the period 1892-1930 the quantities of imported Peruvian coca leaf used for beverages gradually increased from 20 to 100 %. Peru coca had become too expensive a raw material for making cocaine in Europe (cf. Figure 5.8). The estimated percentages appear in column [6] of Table 17.8. Because of the uncertainties attached to these estimates, a large variance is allocated to the figures used for the calculation of the confidence interval of the cocaine manufactured in Section 17.5. H.L. Schlesinger, ‘Topics in the Chemistry of Cocaine’, Bulletin on Narcotics 37 [1] (1985) 64. Paul Gootenberg, ‘Secret Ingredients: The Politics of Coca in US-Peruvian Relations, 1915-65’, Journal of Latin American Studies 36 (2004) 237. 15 De Jong, ‘Coca’, 298. 16 Table PCL 7 (Part IV). 17 A.W.K. de Jong, ‘Het Cocavraagstuk’, Teysmannia (1912) 674. 14 380 U S A - Coca-Cola In the USA, Vin Mariani and other coca wines were popular tonics already in the 1880s. Coca-Cola was an alcohol free version of the coca wines, invented in 1886 by John Pemberton; it was promoted on the basis of the therapeutic properties of the coca it contained. From 1890 Coca-Cola was skilfully marketed by Asa Candler and the sales experienced strong growth. Up to 1904 one of the ingredients of Coca-Cola was coca leaf extract and as a result the beverage contained cocaine but from 1904 onwards the product was made with a ‘de-cocainized’ extract of coca leaf and consequently the Coca-Cola did not contained any cocaine but retained its specific coca flavour.18 The actual formula for Coca-Cola was surrounded with much secrecy but it is most likely that until 1904 the product was made in accordance with the original Pemberton formula which required that 4 oz of “F.E. Coco” (Fluid Extract of Coca) was utilized for the manufacture of 5 US gallons of the syrup.19 Published data of quantities of Coca-Cola syrup (a concentrate) sold/manufactured during the period 1892 -1939 are compiled in Table 17.5.20 Paul Gootenberg, ‘Secret Ingredients: The Politics of Coca in US-Peruvian Relations, 1915-65’, Journal of Latin American Studies 36 (2004) 233-265. 19 Mark Pendergrast, For God, Country and Coca-Cola (New York 2000) 456-460, Appendix 1, ‘The Sacred Formula’. 20 Ibidem, 53, 54, 59, 67, 104, 128 and Andrew Young and Daniel Levy. Explicit Evidence on an Implicit Contract MPRA Paper No. 926 (2006) <http://mpra.ub.uni-muenchen.de/926/>, 27. 18 381 Table 17.5 Coca-Cola Syrup Sold 1892-1939 Year Syrup Sales G in US Gallons 000 log G 1892 1893 1894 1895 1899 1900 1904 1905 1910 35.4 48.4 64.3 76.2 280 519 1,100 1,500 5,506 1.549 1.685 1.808 1.882 2.447 2.715 3.041 3.176 3.741 1910 1916 1917 1918 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 5,506 10,000 12,000 10,000 23,226 25,705 26,323 25,101 20,552 19,377 24,101 27,482 34,798 40,653 44,023 50,910 3.741 4.000 4.079 4.000 4.366 4.410 4.420 4.400 4.313 4.287 4.382 4.439 4.542 4.609 4.644 4.707 regression slope R squared 0.1235 0.993 = 32.9% 0.0282 0.914 = 6.7% Sources for data on syrup sales: 1892-99, 1904-05, 1916-18, Pendergrast, Coca-Cola , 59,67,104,128 1900 and 1910, Spillane, Cocaine , 76 (at USD 1.00 per US Gallon) 1918-1939, Young and Levy, Explicit Evidence, Table 1, 27 The logarithms of the volumes of Coca-Cola syrup sales appearing in Table 17.5 were plotted against time and a linear relationship with excellent correlation (R2 = 0.993) was found for the period 1892-1910, and a second linear relationship with a high degree of correlation (R2 = 0.914) was found for the period 1910-1939. 382 Figure 17.2 Coca-Cola Syrup Sales 1892-1939 Regression Line of the Logarithm Coca-Cola Syrup Sales 1892-1939 Regression 5.000 Log US Gallons 000 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 0.500 Regression 1937 1934 1931 1928 1925 1922 1919 1916 1913 1910 1907 1904 1901 1898 1895 1892 0.000 Actual Figure 17.3 Coca-Cola Syrup Sales 1892-1939 Regression versus Actual Coca-Cola Syrup Sales 1892-1939 60000 US Gallons 000 50000 40000 30000 20000 10000 Regression 1937 1934 1931 1928 1925 1922 1919 1916 1913 1910 1907 1904 1901 1898 1895 1892 0 Actual The graphs show that the sales of coca-cola increased exponentially over the periods. The break-point for 1910, when the increase in sales suddenly reduced from 33% to 7 % per annum, coincided with the court case of 1911 against the Coca-Cola Company on the alleged harmfulness of the caffeine the drink contained. Although Coca-Cola eventually won the 383 case, the publicity around it caused an immediate change in advertising policy, the Company refraining from targeting children under the age of twelve thereafter.21 Table 17.6 Estimate of Quantities of Coca Leaf used for Coca-Cola In Table 17.6 annual quantities of syrup manufactured were calculated on the basis of the regression lines and in column [7], using the ratio coca leaf to syrup as per the Pemberton formula (24 kg coca leaf per 1000 US gallons), the average annual coca leaf requirements were computed for the five periods identified in Chapter 16.22 From the figures obtained it was obvious that the ratio coca leaf to syrup must have been considerably reduced over time as the calculated requirements for the years after 1915 became larger than the total of Peruvian coca imported into the USA. From a number of years after 1930 data were found on quantities of syrup actually manufactured and on annual quantities of coca leaf specifically imported into the USA for “non-medicinal” use (i.e. for Coca Cola).23 From these data it follows that the amount of coca leaf used in Cola-Cola was reduced to a fraction (ca 10%) of the original.24 How fast the reduction took place is not exactly known but a sliding scale was developed assuming that the reduction took place gradually from 1904. The sliding scale, appearing in column [8], starts at 100% in 1904 and that the percentage comes down to 20% for the period 1915-1930, in line with the actual figures of 16% in 1931 and 10% over the period 1936-1939. Using the sliding scale the quantities of coca leaf used for Coca-Cola by period were estimated in column [9]; they are used as input in Table 17.8. 21 Pendergrast, Coca-Cola, 119. 800 fl oz (ca 24 litres) Fluid Extract of Coca was required for 1000 US gallons of syrup. 24 litres of Fluid Extract of Coca (USP 1880) is made from 24 kg coca leaf. Ref: British Pharmaceutical Codex 1911, which refers to the USP. www.ibiblio.org/herbmed/eclectic/kings/erythroxylon.html. 23 These figures are shown in pink in Table 17.6. 24 In 1931 98,487 kg de-cocainized coca leaf was imported into the USA for the manufacture of non-narcotic flavouring extracts (Coca-Cola). In that year 25.1 million gallons of Coca-Cola syrup was sold. Hence ca 3.92 kg coca leaf was used for 1000 gallons of syrup. This equates to ca one sixth, 17%, of the original amount. During the years 1936-1939 the use of coca leaf was reduced further to ca 10% of the original amount. See: Paul Gootenberg, The rise and demise of Coca and Cocaine as licit global 'Commodity Chains', 1860-1960 Preliminary conference paper Stanford University Stony Brook (2001); US Department of Treasury, Traffic in Opium and Other Danger Drugs in the year 1960 (Washington D.C. 1960) Table 10 and Andrew Young and Daniel Levy. Explicit Evidence on an Implicit Contract MPRA Paper No. 926 (2006) <http://mpra.ub.unimuenchen.de/926/>, 27. 22 384 Table 17.6 Coca-Cola Syrup Sold and Estimate of Coca Leaf used for Coca-Cola Year 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 Notes [1] [2] [3] [4] [6] G US Gallons 000 [1] 35.4 48.4 64.3 76.2 log G log G regression G regresssion Period [2] [3] [4] [5] 1.549 1.685 1.808 1.882 1.555 1.679 1.802 1.926 2.049 2.173 2.296 2.420 2.543 2.667 2.790 2.914 3.037 3.161 3.284 3.408 3.532 3.655 3.779 3.807 3.835 3.863 3.891 3.920 3.948 3.976 4.004 4.032 4.061 4.089 4.117 4.145 4.174 4.202 4.230 4.258 4.286 4.315 4.343 4.371 4.399 4.427 4.456 4.484 4.512 4.540 4.569 4.597 280 519 2.447 2.715 1,100 1,500 3.041 3.176 5,506 3.741 10,000 12,000 10,000 4.000 4.079 4.000 23,226 25,705 26,323 25,101 20,552 19,377 24,101 27,482 34,798 40,653 44,023 50,910 4.366 4.410 4.420 4.400 4.313 4.287 4.382 4.439 4.542 4.609 4.644 4.707 Table 17.5, first column [2] = log [1] [3] = 0.1235*[year] - 232.15 until 1909 [3] = 0.0282*[year] - 50.09 from 1910 [4] = [3]^10 averages of [4] over [5] 36 48 63 84 112 149 198 263 349 464 617 820 1,090 1,449 1,925 2,558 3,400 4,519 6,006 6,409 6,839 7,298 7,788 8,311 8,869 9,464 10,099 10,777 11,500 12,272 13,096 13,975 14,913 15,914 16,982 18,122 19,338 20,636 22,021 23,500 25,077 26,760 28,556 30,473 32,518 34,701 37,030 39,515 [7] [8] [9] [10] Average G US Gallons 000 [6] Coca Leaf Coca Leaf "Pemberton" percent of tonnes "Pemberton" [7] [8] Coca Leaf utilised tonnes [9] regression slope [10] 0.1235 1892-1896 69 2 100 2 1897-1903 409 10 100 10 1904-1910 2,992 72 70 50 1911-1913 6,849 164 50 82 1915-1930 13,769 330 602 20 16.4 66 98.5 835 976 1,057 1,222 8.3 9.0 10.2 11.5 69.5 88.2 107.6 140.7 [7] = 0.024 x [6] Estimated sliding scale until 1930 [8] = [9]/[7]*100 from 1931 [9] =[7]*[8]/100 until 1930 actual from 1931 Table 17.5, third column 0.0282 figues in pink represent quantities coca leaf specifically imported for Coca-Cola 385 Coca Leaf used for beverages other than Coca-Cola Vin Mariani and Coca-Cola were imitated by a large number of small producers. Spillane mentions that about twenty brands of coca wine and ten different coca soft drinks were available in the US market in the 1890s but these numbers declined in the 1900s.25 For this estimate it has been assumed that until 1894 the quantity of coca leaf used in these imitations was ca 10 tonnes p.a. and for the period 1897-1903 ca 20 tonnes p.a. From 1905 onwards increasing controls of cocaine containing products by the Federal and State governments in the USA resulted in the disappearance of a large number of these products from the market and a gradual elimination of cocaine from the remaining ones.26 In view of these developments, the average annual quantities of coca leaf used for these beverages have been set for the period 1904-1910 at 10 tonnes and at zero thereafter. De-cocainized Coca Leaf From 1904, Coca-Cola was made using leaf that was “de-cocainized” by Schaefer Alkaloid Works.27 The cocaine extracted by the ‘de-cocainizing’ process was sold by Schaefer as the pharmaceutical product. The yield was ca 0.4%.28 A consequence of selling the cocaine HCl produced by the de-cocainizing process is that for the calculation of the quantities of cocaine produced from exported Peru coca leaf only one third of the quantity coca leaf used for CocaCola has to be deducted from the export from Peru to arrive at the net quantity of coca leaf used for cocaine manufacture. The reason for this is that the normal yield of manufacturing cocaine from Peru coca is 0.6% and the 0.4% yield obtained when using the de-cocainizing process is 0.2% or one third less. 17.3 Estimate of Cocaine Manufactured Worldwide Introduction In this chapter the amounts of cocaine manufactured world-wide from raw material exported during the period 1890-1930 are estimated from statistics on the exports of the main raw materials viz. coca leaf and crude cocaine from Peru and coca leaf from the former Dutch East Indies (Java). The method used for making the estimate was to multiply the exported quantities with yield factors, practical average yields of pure cocaine hydrochloride (cocaine HCl) that were achieved by manufacturers worldwide over the period. Because a part of the coca leaf exported from Peru was exported to Chile for chewing and another part was used for beverages such as Coca-Cola, it was necessary to deduct these quantities of coca leaf from the total coca leaf exports, to arrive at the net amounts of coca leaf used for the manufacture of cocaine. 25 Spillane, Cocaine, 75-85. The Pure Food and Drugs Act of 1906 was instrumental in achieving this. Dale Gieringer, ‘Centennial of an Unnatural Disaster’, Liberty 20[6] (2006), www.libertybound.com/archive/2006_06/gieringer-centennial.html; Spillane, Cocaine, 125-137. 27 Pendergrast, For God, Country and Coca-Cola, 88. 28 P. Gootenberg, Secets ingredients, J. Lat. Am. Studies Vol 36 (2004) 248. Calculation HHB: 0.42% and 0.36%. 26 386 The model, the formula used for the calculation Q, the annual quantities of cocaine HCl produced, is Q = a(x1 - B - C) + bx2 + cx3 in which formula a, b and c represent the yield factors for the three raw materials Peru coca, Crude cocaine and Java coca, and x1, x2 and x3 are the respective quantities of the raw materials exported. B is the quantity of Peru coca used for beverages and C is the amount of Peru coca exported to Chile (for chewing). The yield factors and the quantities of coca used for beverages are estimated on the basis of data available from various publications and a number of suppositions. As a consequence the estimates of cocaine manufactured are approximations, which have an amount of uncertainty connected to them. Ballpark estimates of these uncertainties are made which are presented together with the estimates of cocaine manufactured as the confidence interval. In summary, the estimates of cocaine produced are approximations. However, the values obtained are considered adequate for our purpose. During the period 1890-1930 manufacture of cocaine took place primarily in Germany and to a lesser extent in the USA. Cocaine was traded almost exclusively in the form of cocaine hydrochloride (cocaine HCl). With the notable exception of those for Merck Darmstadt and some for Mallinckrodt (USA), no data on the quantities of cocaine produced at factory scale have been published.29 Peruvian export statistics do not specify the destination of the raw materials shipped and import statistics on the raw materials from Peru pertain largely to the ports of Hamburg and New York. Java coca was shipped mainly to the Netherlands from where a large part was re-exported, predominantly to Germany. It is reasoned in Section 17.2 that in Europe the fraction of imported Peruvian coca leaf which was used for beverages gradually increased from 20% in the 1890s to 100% in 1930. Using export and import statistics of the raw materials as the basic input for making estimates of cocaine manufactured has the consequence that the calculated amounts refer to the time that the raw materials were imported rather than to the time that the cocaine was actually produced. The manufacture of the cocaine will have been completed at a time considerably later, say 6-12 months, after the date of shipment of the raw material. This effect will have been exacerbated when raw materials were bought and shipped in quantities additional to the production requirements at the time. For example because of the political situation (e.g. war), the building of stocks at trading houses (Java coca in the Netherlands) or the availability of the raw material at relatively low prices. Purchasing practices will have had the effect that the calculated amounts of cocaine that could be produced from the raw materials exported annually fluctuated more strongly than the annual amounts that were actually produced. Over time, the averages of both would be the same and the average of the amounts that can be produced from the imported raw materials over a number of consecutive years provides a good estimate of the average quantity actually produced. Musto’s Estimate of Cocaine in Raw Materials Exported An estimate of cocaine contained in raw materials exported during late 19th and early 20th century has been made by Musto. Musto (1998) has compiled excellent, well documented statistics of exports of coca leaf and crude cocaine from Peru, and coca leaf from Java, A. Hirschmüller, ‘E. Merck und das Kokain’, Gesnerus 52 (1995) 116-132. and J. Spilane, Cocaine, 62. 29 387 Bolivia and Formosa over a period for which such data are not easily available. His objective was to provide a record of the crop that was legally produced at the time.30 From the annual amounts exported, Musto calculated what he called ‘the cocaine equivalent’ of the raw materials by multiplying the exported quantities by the cocaine content of the various raw materials. These cocaine contents were set by Musto as follows: Coca leaf from Peru, Bolivia and Formosa Coca leaf from Java Crude cocaine from Peru 1.0% 1.5% 100% Musto added up ‘the cocaine equivalent’ of the various raw materials to arrive at what he called the ‘Export Totals’ for each year. The calculated ‘cocaine equivalents’ are used in Musto’s publication as an estimate of cocaine actually produced from the raw materials. This is, however, too broad an approximation. The reasons for this statement are contained in the following three points: The values for the cocaine content of the various raw materials used by Musto result in an estimate of the total coca alkaloids contained in the raw materials, rather than an estimate of the quantities of pure cocaine hydrochloride (the common product of trade) that can be produced from these raw materials. Realistic estimates of the quantities of pure cocaine HCl that can be produced from the raw materials can be made by using the following approximate yield factors: Java coca Peru coca Bolivia coca Formosa coca Crude cocaine ca 1.0 % ca 0.6 % ca 0.5 % ca 0.7 % ca 85 % 31 32 The yield factors for Java coca, Peru coca and crude cocaine are discussed in detail later in this chapter; The exports of coca leaf from Bolivia went largely to neighbouring South American countries (Chile and Argentina) for consumption by local coca chewers. Small exports to Europe went almost exclusively to France, most likely for use in making Vin Mariani.33, 34 Inclusion of the exports from Bolivia in the ‘Export Totals’ as done by Musto results in a serious over-estimate of cocaine produced; Musto, ‘International Traffic in Coca’, 145. E.R. Squibb, ‘Hydrochlorate of cocaine’ The Pharmaceutical Journal (1885) July 18, 67-69. 32 HHB estimate from data in: Permanent Central Opium Board, Annual Reports to the Council on the Work of the Board and Statistics 1929-1938. 33 T. Walger, ‘Coca: Its history, geographic distribution and economic significance’, Dissertation University of Giessen (Berlin 1917). Chapter 7 in S.B. Karch, A History of Cocaine. The Mystery of Java Coca and the Kew Plant (London 2003) 154. 34 A.W.K. de Jong, Chapter ‘Coca’ in: H.C. Prinsen Geerligs, editor, K.W. Van Gorkom’s Oost-Indische Cultures Volume 3 (2nd Ed. Amsterdam 1919) 298-299. 30 31 388 That coca leaf used for making beverages is not taken into account. Considerable quantities of leaf were used for that purpose in the USA and in Europe. The quantities would have to be deducted from the South American exports to arrive at a net quantity of coca leaf used for the manufacture of cocaine hydrochloride. The three factors above make that the actual amounts of cocaine produced from the raw materials were substantially smaller than Musto’s ‘Export Totals’. The Current Estimate - Raw Materials Exported For cocaine made from Peruvian raw materials the estimate is to a large extent based on the export statistics compiled by Musto.35 In tables PCL 1 and PCC 1 of Part IV Musto’s statistics for coca leaf from Peru and crude cocaine from Peru are shown next to data from other sources. For both PCL and PCC selections are made by the author from all data; these selections are shown in the columns “Musto’s Selection Augmented” of the tables. The available data on export statistics of Java coca are summarised in table JCL 2 (Part IV). The column “Author’s Selection” of JCL 2 is for the years 1892-1905 based on quantities of coca leaf sold in consignment by the Koloniale Bank and for the years from 1908 onwards on statistics published by Department of Agriculture, Industry and Trade of the Dutch East Indies.36 In the current estimate, for exports from Peru the columns “Musto’s Selection Augmented” of tables PCL 1 and PCC 1 are used. For exports from Java the values appearing in the column “Author’s Selection” of JCL 2 are augmented with estimates of the exports by the plantation “Soekamadjoe” to the NCF for the years 1900-1904. Statistics from Bolivia are not included in the current estimate. The reason is that Bolivian exports were almost exclusively to neighbouring countries for chewing. Statistics for Formosa are not included because they pertain to the years 1926-1930 only and represent on average for the period 1914-1930 less than 200 kg p.a.37 Statistics on coca leaf exports from Ceylon show that, between 1906 and 1911, these amounted to an average quantity of 33 tonnes p.a.38 Being only small and pertaining to a brief period these statistics have not been included in the current estimate. Yield Factors The yield factors required for the calculations in this chapter are the average yields realised by the collective of all cocaine manufacturers world-wide under factory conditions over a long period. Only for Merck Darmstadt, yields from Peru crude and from Java coca achieved under factory conditions are known for a series of consecutive years. For Mallinckrodt (USA) yields from Peru coca are available for a few years but no quantities are mentioned. For the rest of the cocaine manufacturers the yields have been estimated from miscellaneous information such as incidental reports on yields, assay figures and general information on yields of the various process steps involved. The yields reported by Merck and Mallinckrodt are the best information available. These yields have been arbitrarily given a weight of 50% for the estimates of the yield factors. The other 50% is made up by the average of the yields derived from all other information. The differences between the yields by 35 Musto, ‘International Traffic in Coca’ 145-156. Koloniale Bank, ‘Jaarverslagen’ (Annual Reports) (1892-1905). Nationaal Archief, Access No. 2.20.04, Items 4-7. Statistiek van Den Handel en de In-en Uitvoerrechten (Statistics Dutch East Indies), Deel IIa (Java en Madoera) Weltevreden 1874-1923. 37 Based on statistics by Musto, ‘International Traffic in Coca’, 154. 38 E. Reens, Java Coca, dissertation University of Paris (Lons-le-Saunier 1919), Chapter 5 in S.B. Karch A History of Cocaine. The Mystery of Java Coca and the Kew Plant (London 2003) 72. 36 389 Merck/Mallinckrodt and the average yields calculated from other information are used for the calculation of ballpark estimates of the variance of the estimates of the cocaine manufactured. A problem that is encountered often in estimating the yield factors is that in publications the word “cocaine” can mean (pure) cocaine hydrochloride, crude cocaine (of variable quality) or cocaine base (isolated or as measured by assay). This is confusing and it is quite often not possible to deduct from the context with certainty the exact meaning attached to the word. As a result some arbitrary decisions are made. The results of the yield estimates described above are summarized in Table 17.7. Justification of the individual yields used as input for the calculations is provided in the notes that follow the table. Table 17.7 Estimates of practical Cocaine Yields from Peru Coca Leaf, Peru Crude Cocaine and Java Coca Leaf (kg Cocaine HCl per tonne of leaf or kg crude) Note [1] [2] [3] [4] [5] [6] [7} Peru Coca Leaf Source Spillane (Sch #1) de Jong Tromp de Haas Gootenberg Mortimer Spillane (Sch #2) Yield ex Peru Coca 7.0 6.4 5.5 5.4 5.0 5.0 Average 5.72 Mallinckrodt 6.25 Total average a Standard Deviation Relative Std % 6.0 0.61 10 Peru Crude Cocaine Yield ex Source Peru Crude Note [8] [9] [10] [11] [12] [13] de Jong van Wettum Reens Tromp de Haas Mortimer 0.92 0.88 0.87 0.77 0.69 Note [14] [15] [16] [17] Java Coca Leaf Source de Jong van Wettum Gootenberg NCF (HHB) Yield ex Java Coca 12 10 10 10.5 Average 0.825 Merck 0.864 Total average b 0.845 Total average c 10.9 Standard Deviation Relative Std % 0.065 8 Standard Deviation Relative Std % 0.71 6 [18] Average 10.63 Merck 11.26 Notes on the calculations: a. Total averages are calculated as the average of the yields achieved by the leading manufacturer (Mallickrodt, Merck) and the average of yield information contained in publications from various sources b. The Standard Deviations are calculated from the list of values comprising the yields mentioned as the various sources and the yield achieved by the leading manufacturer repeated as many times as there are "various sources", each arbitrarily counted as an independend piece of information. The average degrees of freedom (df) is 9. Notes to Table 17.7 Peru Coca Leaf (PCL) [1] and [6] Spillane, Cocaine (2000), 61-62. Spillane mentions two “schools of thought “. School #1 reports an average yield of 1 lb of cocaine from 116 lbs of coca leaf. That must have been to crude cocaine. At 80.62% yield from crude to cocaine HCl, 116 lbs of leaf corresponds with a yield of 6.95 kg cocaine HCl per tonne leaf. School #2 reports an average yield of 1 lb of cocaine from ca 200 lbs of coca leaf. This must have been to cocaine HCl. This corresponds with a yield of 5.0 kg cocaine HCl per tonne leaf. [2] de Jong, Teysmannia (1911) 310 and (1912) 673 In 1911 de Jong wrote that the alkaloid content of Peru coca was ca 50 % of that of Java coca. On the basis of 1.6 % alkaloid content of Java coca, 50 % equates to an alkaloid content of 0.8 % in Peru coca. Multiplied by a yield of 80 % (Mallinckrodt), that figure of 0.8 % results in a yield to cocaine HCl of 6.4 kg per metric tonne of Peru coca leaf (HHB calculation). This is an acceptable figure. In his publication of 1912 de Jong mentions, without any justification, a yield of 1.0% from Peru coca. Even if this were the yield to crude cocaine, it is unacceptably high. [3] Tromp de Haas, Teysmannia (1903) 302-303 Tromp de Haas mentions Peru leaf containing 0.5 % crystallisable cocaine for export to Europe in general and containing 0.6 % for export to Germany. Interpreting this as yields to cocaine HCl, the average yield is 5.5 kg per tonne leaf. 390 [4] Gootenberg, Coca and Cocaine (2002) 9 Gootenberg mentions that in 1901 Peru produced 10,700 kg crude cocaine from 160 metric tonnes of coca leaf (reported by German consuls). The 160 tonnes is obviously an error caused by the omission of a 0. The revised amount is 1,600 tonnes. The crude cocaine yield is 0.67 %. Equivalent yield 6.7 x 80 % = 5.4 kg cocaine HCl per tonne of leaf (HHB). [5] Mortimer, History of Coca (1901) 311 Mortimer reports on assay figures of 24 lots of Peru coca by Parke, Davies & Co. Average content 0.627% (base). Equivalent yield 6.27 x 80% = 5.0 kg cocaine HCl per tonne leaf. [7] Mallinckrodt, ex Spillane, Cocaine (2000), 62 Records kept from 1905 to 1909 show that an average of 129 lbs of coca leaf was used for 1 lb of (crude) cocaine, yielding 1 lb x 80.62% = 0.8062 lb cocaine HCl. This is equivalent to a yield of 6.25 kg cocaine HCl per tonne leaf. This is the best information available on the yield achieved from Peru Coca Leaf under factory conditions. Peru Crude Cocaine (PCC) [8] de Jong, Coca (1948) 869 Yield from Peru crude to cocaine HCl: 78-89%, plus secondary alkaloids. Assuming an additional 10% over the direct yield from the secondary alkaloids, the total yield is 1.1 x 83.5% = 92% [9] van Wettum, Note (13 December 1923) [5] 5 Yield from Peru crude to cocaine HCl: 85-90%; total average yield is 88% [10] Reens, La Coca de Java (2003) 76 Yield from Peru crude to cocaine HCl: 78-80%; total average yield is 79% x 1.1 = 87% [11] Tromp de Haas, Teysmannia (1903) 302 Tromp de Haas mentions crude cocaine from Peru containing 70% of crystallisable cocaine. Total yield is 70% x 1.1 = 77 %. [12] Mortimer, History of Coca (1901) Mortimer reports yields of 50-75 %; total yield is 62.5% x 1.1 = 69 % [13] Merck, ex Hirschmueller, Gesnerus (1915) 121 During the period 1886-1914 Merck processed 39,413 kg Crude Cocaine obtaining 34,043 kg cocaine HCl, representing a yield of 86.32 %. This is the best information available on the yield achieved from Peru Crude Cocaine under factory conditions. Java Coca Leaf (JCL) [14] de Jong, Teysmannia (1910) 203 De Jong estimates that 500 kg Java coca with an average alkaloid content of 1.5 % results in 6 kg pure cocaine (HCl). This is equivalent with a yield of 12 kg cocaine HCl per tonne Java coca leaf. [15] van Wettum, Note (13 December 1923) [5] 7 Van Wettum mentions an estimated yield of 1 % (10 kg per tonne) cocaine (HCl) from Java coca obtained by Japanese manufacturers. [16] Gootenberg, Cocaine (1999) 50 Gootenberg mentions 1 million kg Java coca equaling 10 metric tonnes of cocaine (HCl). [17] NCF (HHB) The author’s estimate of the yield achieved by NCF calculated on the basis of estimated yields of the five process steps involved is 1.57 % assay x 67% = 10.5 kg cocaine HCL per tonne of Java coca leaf [18] Merck, ex Hirschmueller, Gesnerus (1995) 120 During the period 1906-1918 Merck extracted 2,972 tonnes of Java coca leaf to obtain 33,473 kg cocaine HCl, representing a yield of 11.26 kg cocaine HCl per tonne leaf. This is the best information available on the yield achieved from Java Coca Leaf under factory conditions. Peru coca leaf used for Beverages The average annual amounts of coca leaf used for beverages during each of the periods are calculated in the following table 17.8. The figures appearing in column [1] are the amounts of coca leaf used for Coca-Cola (CC) (Table 17.6, column [9]). As stated earlier, from 1904 onwards the coca leaf used for Coca-Cola was de-cocainized and the cocaine extracted during the process was sold as the pharmaceutical product. The yield was ca. 4 kg cocaine HCl per tonne of leaf, two-thirds of the yield of the yield of 6 kg per tonne obtained by other 391 manufacturers. The net effect is that for the calculation of the quantity of cocaine produced from Peru coca, from 1904 onwards, coca leaf used for Coca-Cola should be counted as onethird i.e. CC* = CC/3. That is net amount appears in column [2]. The quantities of coca estimated for use in the USA in beverages other than CocaCola, appear in column [3]. The rationale for these quantities is provided in the Section 17.2, Coca Leaf used for beverages other than Coca-Cola (above). The quantities of coca leaf used in beverages in Europe of column [6] are calculated from total imports Europe, multiplied by a sliding scale of fractions as established for the various periods. The basis for the sliding scale is set out in the Section 17.2, Europe (above). Table 17.8 Peru Coca to Beverages – Annual Averages by Period (tonnes) Period 1892-1896 1897-1903 1904-1910 1911-1913 1914-1930 Notes [1] [2] [3] Total to Coca-Cola CC [1] 2 10 50 82 66 Net to Coca-Cola CC* [2] USA to Other Beverages [3] 2 10 17 27 22 10 20 10 0 0 Table 17.6 column [9] 1892-1903 [3] = [2] 1904-1930 [3] = [2] / 3 Ref. text [4] [5] [6] [7] Europe Import t [4] 242 193 174 136 127 Europe to Beverages % [5] Europe to Beverages t [6] Total Net to Beverages B [7] 20 40 60 80 100 48 77 104 109 127 60 107 128 136 149 Ref. Table 16.9 Sliding scale, ref. text [6] = [4] * [5] % [7] = [2] + [3] + [6] Estimates of Cocaine Manufactured World-wide from Raw Materials Exported during the Period 1892-1930 To achieve optimal accuracy, averages of cocaine manufactured are calculated using the periods identified in Chapter 16. The estimates are made using three spreadsheets: Tables 17.9, 17.10 and 17.11. These tables are mutually dependent. In Table 17.9 yield factors for Peru Coca are calculated. The yield factors represent kg of cocaine HCl manufactured from 1 tonne of Peru coca exported. If all exported Peru coca was processed to cocaine HCl, the yield would be 6.0 kg. Because some of the exported Peru coca went to Chile for chewing and part was used for beverages, the yield factors are less than 6 kg/t and differ for each period. They are computed in Table 17.9 and are used in Table 17.11 to calculate the quantities of cocaine manufactured from the amounts of Peru coca exported annually. Yields used for calculation of cocaine manufactured from the other raw materials are those derived in Table 17.7; they are for crude cocaine from Peru 84.5% and for Java coca leaf 10.9 kg cocaine HCl per tonne of leaf. The averages of crude cocaine exported from Peru and of coca leaf exported from Java are calculated by period in Table 17.11 from the annual data; the averages are used in Table 17.9. In Table 17.9 amounts of cocaine HCl manufactured in Germany, in the USA and in Other European countries are estimated by period. These estimates are less accurate than the estimates of the quantities manufactured from the various raw materials. They provide however valuable insight in the structure of the cocaine market worldwide. The estimates by country are included in Chapters 3, 5 and 7. 392 Figure 17.4 Cocaine HCl manufactured from Raw Materials Exported to various Countries (Annual Averages) Cocaine Manufacture by Country Annual Averages by Period kg Cocaine HCl p.a. 20,000 15,000 10,000 5,000 0 1892-1896 Germany 1897-1903 USA 1904-1910 Other Europe 1911-1913 Japan 1914-1930 x3 x2 (x1-B-C)/ x1*6 Java coca to the USA Java coca to Germany Java coca to NCF Java coca to Other Europe Java coca to Japan TOTAL EXPORT JAVA COCA LEAF JAVA COCA LEAF (JCL) Peru crude to the USA Peru crude to Germany Peru crude to Other Europe TOTAL EXPORT PERU CRUDE COCAINE PERU CRUDE COCAINE (PCC) Yield Factor Peru Coca tonnes tonnes tonnes tonnes tonnes tonnes kg kg kg kg kg per tonne tonnes B TOTAL PERU COCA TO COCAINE tonnes tonnes tonnes tonnes Peru coca to beverages USA Peru coca to beverages Germany Peru coca to beverages Other Europe TOTAL PERU COCA TO BEVERAGES x1-B-C tonnes tonnes tonnes tonnes tonnes Peru coca to the USA Peru coca to Germany Peru coca to Other Europe EXPORT PERU COCA (EXCL CHILE) EXPORT PERU COCA TO CHILE tonnes Units TOTAL EXPORT PERU COCA PERU COCA LEAF (PCL) RAW MATERIALS C x1-C x1 Symbol 0 61 0 0 0 61 82 3,573 452 4,107 5.099 342 12 24 24 60 0 148 108 146 402 402 1892-1896 0 50 7 0 0 57 136 5,909 747 6,792 4.300 445 30 39 38 107 69 359 120 73 552 621 1897-1903 58 143 30 10 0 241 121 5,251 664 6,036 4.405 594 27 52 52 131 84 551 87 87 725 809 1904-1910 161 772 46 70 0 1,049 168 3,417 286 3,871 3.186 342 27 55 54 136 166 342 64 72 478 644 1911-1913 111 488 76 30 172 877 100 790 88 978 2.228 88 22 64 63 149 0 110 64 63 237 237 1914-1930 [17] [18] [19] [20] [21] [22] [13] [14] [15] [16] [12] [11] [7] [8] [9] [10] [6] [2] [3] [4] [5] [1] Row 393 Table 17.9 Estimate of Cocaine HCl manufactured from Raw Materials Exported during the Period 1892-1930 – Part 1 394 Sources and Notes to Table 17.9 General comment: The available data on the trade in coca leaf and crude cocaine pertain either to imports or to exports. No cases were encountered where both statistics were published allowing for a direct comparison. For our purposes it has been assumed that averages for exports and imports to and from pairs of countries for longer periods are the same. Hence, we have used both import and export statistics in the tables for the same year, knowing that calculations with the figures may show rather large fluctuations in the results by year but that the fluctuations become much smaller when averages over longer periods are considered. The following data were used as input for the calculations in Table 17.9 (Averages by period): Row [1] Rows [2]-[4] Row [6] Rows [7]-[9] Row [11] Row [12] Row [16] Rows [13]-[15] Row [17] Row [18] Row [19] Row [20] Row [21] Row [22] Total exports of coca leaf from Peru, taken from Table 17.11 column [1]. Export Peru coca to various countries, taken from Table 16.9 with the following adjustments: for the period 1892-1896: All countries, column [4]( = 1892-1894)*402/384. 402/384 is the ratio average total exports Peru coca 1892-1896 and 1892-1894. The average of 402 for 1892-1896 is calculated after inclusion of estimates for the missing figures for 1895 and 1896 obtained by interpolation. for the periods 1904-1910 and 1914-1930: Germany and Other Countries, column [7]/2. Rationale for the 50/50 split of the imports Europe (column [7]) over Germany and Other Countries is the approx. 50/50 ratio of the total Peru coca imports into Germany and Other Countries over the period 1892-1930 as shown in Table 16.10 columns [8] and [9] and accompanying note.. Export Peru coca to Chile, taken from Table 16.9 column [20] Peru coca to beverages by country, taken from Table 17.8 with the following comments: USA: Columns [2] + [3] Germany and Other Europe: Column [6]/2 each. Rationale for the broad 50/50 split of the imports Europe (column [6]) over Germany and Other Countries (France) is that France imported regularly quantities in the order of 50 t coca leaf for the manufacture of Vin Mariani and Germany was the country where coca teas were popular. Hamburg was a major port of entry for coca in Europe and some of the imported coca could have been re-exported. (See also Section 17.2). The difference between Lines [5] and [10] The yield factor for Peru coca is the estimated yield of kg cocaine HCl from 1 tonne of coca leaf exported. It is calculated from Rows [11]/[1]*6. The yield is 6 kg/t if all coca is used for cocaine manufacture. [11]/[1] is the ratio coca to cocaine and total coca exported. The calculated yield factors are used for the calculations in Table 17.11. Total exports of crude cocaine from Peru, taken from Table 17.11, column [3]. Exports of rude cocaine from Peru by country are calculated as follows: For the period 1892-1910: Export crude cocaine to various countries, was calculated from the total export from Peru (Line [16]) by multiplication with the average percentages of 87% to Germany, 11% to Europe and 2% to the USA. The percentages are based on the figures appearing in Table 17.1 For the period 1911-1913: The data from Table 17.1 For the period 1914-1930: 100 kg for USA, estimated from 168 kg p.a. 1911-1913 (Table 17.1) and 0 kg p.a. after 1923 (no imports allowed) For Germany and Other Countries: Total export of 978 kg p.a. less 100 kg p.a. USA, split in a 9:1 ratio (unchanged). to USA: Table 16.8, column [10] to Germany: by difference [18] = [22]-[17]-[19]-[20]-[21] to NCF: Table 18.16, rounded averages to Other Countries: ballpark estimates by the author to Japan: Table JCL 3, column [5] average Total exports of Java coca, taken from Table 17.10, column [5]. TOTAL WORLD MANUFACTURE COCAINE Q [23] to [25] [26] [27] [28] [29] Cocaine HCl manufactured from Peru coca Cocaine HCl manufactured from Peru crude Cocaine HCl manufactured from Java coca Cocaine HCl manufactured from Formosa coca a(x1-B-C) bx2 cx3 kg kg kg kg kg kg kg kg kg kg kg per tonne percent kg per tonne Units 6,185 2,050 3,470 665 0 6,185 887 4,187 1,111 0 6.0 84.5 10.9 1892-1896 Table 17.7 Yields, Total Averages Sum of USA Net Raw Materials (Table 17.9) * respective yields Sum of Germany Net Raw Materials (Table 17.9) * respective yields Sum of Other Europe Net Raw Materials (Table 17.9) * respective yields Sum of Japan Net Raw Materials (Table 17.9) * respective yields Sources and Notes TOTAL WORLD MANUFACTURE COCAINE Cocaine HCl manufactured in the USA Cocaine HCl manufactured in Germany Cocaine HCl manufactured in Other Europe Cocaine HCl manufactured in Japan Yield Peru coca Yield Peru crude Yield Java coca TOTAL ALL RAW MATERIALS RAW MATERIALS Q a b c Symbol 9,031 2,670 5,739 621 0 9,031 2,089 6,024 918 0 6.0 84.5 10.9 1897-1903 [31] [32] [33] [34] 11,291 3,564 5,100 2,627 0 11,291 3,878 6,206 1,207 0 6.0 84.5 10.9 1904-1910 11,157 528 826 9,559 243 11,157 1,822 5,987 1,230 2,118 6.0 84.5 10.9 1914-1930 Total Peru Coca * PCL yield Total Peru Crude * PCC yield Total Java Coca * JCL yield Total Formosa coca * 7.0 16,757 2,052 3,271 11,434 0 16,757 3,787 11,356 1,614 0 6.0 84.5 10.9 1911-1913 [35] [31] [32] [33] [34] [30] [26] [27] [28] [29] [23] [24] [25] Row 395 Table 17.10 Estimate of Cocaine HCl manufactured from Raw Materials Exported during the Period 1892-1930 – Part 2 396 Table 17.11 Estimate of Cocaine HCl manufactured worldwide from Raw Materials Exported during the Period 1892-1930 – Part 3 Year of Coca Leaf Export from Peru Export tonnes [1] 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 388 391 372 410 450 494 407 312 566 610 933 1,026 911 1,490 1,211 654 404 496 496 768 770 393 478 393 266 307 167 386 453 88 124 190 170 217 204 143 150 101 192 Cocaine HCl Production from Peru Coca kg [2] 1,978 1,994 1,897 2,091 2,295 2,124 1,750 1,341 2,434 2,623 4,011 4,411 4,013 6,564 5,335 2,881 1,780 2,185 2,185 2,447 2,453 1,252 1,065 876 593 684 372 860 1,009 196 276 423 379 483 454 319 334 225 428 Period 1892-1896 1897-1903 1904-1910 1911-1913 1914-1930 Crude Cocaine Export from Peru kg [3] 4,550 2,357 4,716 4,540 4,370 4,200 4,346 4,500 7,745 10,688 8,268 7,800 7,527 6,788 5,914 6,057 5,175 5,266 5,524 5,402 2,944 3,267 979 1,353 1,576 1,896 2,967 596 1,637 157 778 192 967 621 1,048 980 625 236 20 Cocaine HCl Production from Peru Crude kg [4] 3,845 1,992 3,985 3,836 3,693 3,549 3,672 3,803 6,545 9,031 6,986 6,591 6,360 5,736 4,997 5,118 4,373 4,450 4,668 4,565 2,488 2,761 827 1,143 1,332 1,602 2,507 504 1,383 133 657 162 817 525 886 828 528 199 17 Coca Leaf Export from Java tonnes [5] 51 52 47 80 76 81 77 49 30 70 72 77 77 67 122 200 417 373 430 741 1,075 1,332 1,353 1,089 408 273 662 994 1,677 1,137 1,269 907 1,118 997 1,020 678 385 585 354 Cocaine HCl Production from Java Coca kg [6] 556 567 512 872 828 883 839 534 327 763 785 839 839 730 1,330 2,180 4,545 4,066 4,687 8,077 11,718 14,519 14,748 11,870 4,447 2,976 7,216 10,835 18,279 12,393 13,832 9,886 12,186 10,867 11,118 7,390 4,197 6,377 3,859 Cocaine HCl Production from Formosa Coca kg [7] 0 0 0 0 0 0 0 0 0 0 0 0 350 483 903 1,148 1,253 A V E R A G E S 402 621 809 644 237 2,051 2,671 3,563 2,051 528 4,107 6,792 6,036 3,871 978 3,470 5,740 5,100 3,271 827 61 65 241 1,049 877 667 710 2,625 11,438 9,557 Sources and Notes [1] [2] [3] [4] [5] [6] [7] [8] Table PCL 1 incl. interpolations 1895-96 [2] = [1] * PCL yield factor Table PCL 1 incl. interpolations 1895-96 [4] = [3] * 0.845 (yield factor) Table JCL 2 column [13] [6] = [5] * 10.9 (yield factor) [7] = Table 8 (Musto, l.c) * 7.0 [8] = [2] + [4] + [6] + [7] Period 1892-1896 1897-1903 1904-1910 1911-1913 1914-1930 PCL yield factor 5.099 4.300 4.405 3.186 2.228 243 Cocaine HCl Production Total Year of kg [8] Export 6,379 4,552 6,394 6,799 6,816 6,556 6,262 5,678 9,305 12,417 11,783 11,842 11,213 13,030 11,662 10,179 10,698 10,701 11,540 15,089 16,659 18,532 16,640 13,889 6,372 5,262 10,095 12,198 20,672 12,722 14,766 10,472 13,382 11,875 12,808 9,020 5,962 7,949 5,556 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 Total Period 6,188 9,120 11,289 16,760 11,155 1892-1896 1897-1903 1904-1910 1911-1913 1914-1930 397 Figure 17.5, the graph corresponding to Table 17.11, shows clearly distinct periods of various manufacturing levels and a shift in raw materials used from those of Peruvian origin to Java coca. Figure 17.5 Estimate of Cocaine HCl Manufactured from Raw Materials Exported during the Period 1892-1930 Cocaine manufactured from Raw Materials Exported during the Period 1892-1930 kg Cocaine HCl 25,000 20,000 15,000 10,000 5,000 From Peru Coca From Peru Crude From Java Coca 1930 1928 1926 1924 1922 1920 1918 1916 1914 1912 1910 1908 1906 1904 1902 1900 1898 1896 1894 1892 0 From Formosa Coca From the graph we identify the following periods: 1892-1899 1900-1910 1911-1915 1916-1920 1921-1930 a period of more or less constant export equivalent to ca 6 t cocaine p.a. a higher quite stable export level representing ca 12 t cocaine p.a. increased exports from Java pushing the level to over 16 t p.a. a strong decline followed by a recovery after World War I a gradual decline from 14 to 6 t p.a., the effect of international narcotics control. An important point is that the annual amounts calculated in Table 17.11 represent the quantities of cocaine HCl which have been be manufactured from the raw materials exported during a particular year. The actual manufacture of the cocaine from these raw materials took place at a later point in time. Over long periods the average quantities in raw materials exported will have been equal to the quantities manufactured. Over shorter periods with a reasonably constant production level, the quantities exported will mimic the quantities manufactured in a particular year reasonably accurately. However, under less stable market conditions the difference between the quantities of cocaine exported in the raw materials and the quantities of cocaine actually manufactured can be quite large. The latter was the case during the periods around World War I and during the 1920s. Building stocks of considerable size occurred under the then prevailing conditions. The result was that during these periods the exports represent substantially larger quantities of cocaine than were manufactured during those years. To get a feeling of the quantities of cocaine actually manufactured during the years represented by the x-axis of the graph, one has to imagine somewhat reduced maxima and a corresponding increase of the low values during later years. 398 17.4 Estimate of the Accuracy of the Estimates. The uncertainty of the estimates follows from the accuracy of the model used to calculate the estimates and from the accuracy of the inputs. The model, the formula used for the calculation Q, the annual quantity of cocaine HCl produced, introduced in section 17.3, is: Q = a(x1-B-C) + bx2 + cx3 The model is correct if we assume that all raw materials exported from Peru and Java were used for either cocaine manufacture or in beverages and that no appreciable quantities of the raw materials from other sources were used. The accuracy of the input is the main issue under consideration here. It is assumed that the exported amounts (x1, x2 and x3) when measured as averages over the periods used in this chapter are approximately correct i.e. that they are not subject to major systematic errors. The quantities x1 and x2 (raw materials from Peru) used for the calculations are mainly sourced from Musto’s publication of 1998.39 Musto’s figures for Peruvian coca and crude cocaine are principally based on publications by the Peruvian Customs Office (Superintendencia general de aduanas and other government offices 1890-1902, Departemento de estadistica general de aduanas 1904-1931). For years that more than one statistic is available (for coca leaf), there is reasonable agreement except for the year 1906. Musto’s selection out of these statistics is in Table PCL 1 column [7] (Part IV) augmented with data sourced from Gehe’s Handelsbericht. These augmented figures are used as input for Table 17.5. For Java coca, the exported quantities x3 are sourced from publications by the Dutch East Indies Customs Department (Dienst der in- en uitvoerrechten 1908-1921, Centraal kantoor voor de statistiek 1923-1936). For exports of Java coca for the years before 1908 these figures are augmented with statistics from the Koloniale Bank and other sources (Part IV Table JCL 2) and exports to the NCF (1900-1904). These augmented figures are used as input for Table 17.5. To estimate the uncertainty in the calculated values of Q, the variance of Q as a function of the variances of the variables x1, x2 and x3, a, b, and c, and B and C is derived using the following formula for the variance of a general function (f): 2 f Var (i) Var (f ) i in which equation i represent the individual variables.40 The variance calculations pertain to the averages of Q over the periods as used in this chapter. The average values for x1, x2 and x3 measured over the periods are considered approximately correct, hence Var(xi) is assumed to be 0. Therefore, the uncertainty of Q is a function of the other variables viz. the uncertainty of the yields a, b and c, the uncertainty in the quantities B, the quantity of Peruvian coca used for beverages, and in C, the quantity exported to Chile.41 It is assumed that the inputs are approximately normally distributed around their respective averages. 39 Musto, ‘International Traffic in Coca’ (1998). Harri Lapplainen, www.cis.hut.fi/harri/ijcnn98/node8.html. 41 “Best current practice is to speak in terms of uncertainty”. John S. Denker, Item 21, “A discussion of how to report measurement uncertainties”, Section 2.2 www.av8n.com/physics/uncertainty.htm. 40 399 Applying the equation for the variance to the formula for Q we find: Var(Q) = (x1-B-C)2Var(a) + x22Var(b) + x33Var(c) + a2[Var(B) + Var(C)] and Q2 RelVar(Q) = a2(x1-B-C)2 RelVar(a) + b2x22 RelVar(b) + c2x33 RelVar(c) + a2B2 RelVar(B) + a2C2 RelVar(C) A spreadsheet was constructed to calculate RelVar(Q) by period from the values appearing in Table 17.10, rows [31] to [33]. The relative standard deviations of a, b and c estimated in Table 17.7 at 10, 8 and 6% respectively were used. Variances for B and C cannot be directly estimated. The spreadsheet was run for a series of combinations of values for RelStd(B) and RelStd(C) (equal to the square roots of the corresponding relative variances). The spreadsheet shows next to RelVar(Q): RelStd(Q) in per cent, the 90% confidence interval in per cent (= RelStd(Q)*1.833 at df=9) and in kg cocaine HCl, rounded to the nearest 10 kg. The spreadsheet also shows the values for Q rounded to the nearest 100 kg. Table 17.12, below, displays the spreadsheet run for RelStd(B) = 30% and RelStd(C) = 20%, representing the authors choice of a realistic pair of values for these parameters. Table 17.12 Estimate of 90% Confidence Intervals of Cocaine Manufactured, by Period RelStd(B) = 30% and RelStd'(C) = 20% Relative Variance of Q 1892-1896 1897-1903 1904-1910 1911-1913 1914-1930 0.0035 0.0040 0.0030 0.0024 0.0033 Relative Std Deviation of Q in % 5.9 6.3 5.5 4.9 5.7 90% Confidence Interval in % ± 11 12 10 9 10 6,200 9,000 11,300 16,800 11,200 700 1,000 1,100 1,500 1,200 Q rounded (kg) 90% Confidence Interval in kg ± (rounded) The spreadsheet was also run for other pairs of RelStd(B) and RelStd(C) to investigate the effect of the values for the confidence interval. The results are presented with the following table: 400 Table 17.13 90% Confidence Intervals (in %) of Cocaine Manufactured as a function of the Relative Standard Deviation (RelStd) of B and C RelStd(C) in % RelStd (B) in % 0 0 10 11 9 8 10 20 20 20 20 20 20 0 10 20 30 40 50 10 10 11 11 11 12 11 11 11 12 12 13 9 9 10 10 11 11 9 9 9 9 9 10 10 10 10 11 11 12 1892-1896 1897-1903 1904-1910 1911-1913 1914-1930 The table shows that the effect of RelStd(B) and RelStd(C) on the confidence interval is quite small. For both RelStd(B) and RelStd(C) equal to zero, the confidence interval represents the effect of the variances in a, b and c only. An increase of RelStd(C) to 20% makes hardly any difference and the effect of increasing RelStd(B) to the large value of 50% is only minor. This implies that any errors in the estimates of B and C will not have resulted in significant errors in the estimates of total cocaine manufactured worldwide during the period 1892-1930. 17.5 Summary and Conclusions An estimate was made of the quantities of cocaine hydrochloride manufactured worldwide from the raw materials coca leaf and crude cocaine from Peru and coca leaf from Java exported during the period 1892-1930. The graph of the annual quantities manufactured from exported raw materials (Figure 17.5) shows distinct periods: a stable level of exports equivalent to ca 6 t p.a. before 1900, increasing to ca. 12 t p.a. thereafter, peaking at ca. 18 t in 1913 and falling off sharply during the War. After the War exports recovered initially but gradually declined to 6 t in 1930 as a result of international narcotics control. The graph also shows clearly a shift in the use of crude cocaine and coca leaf from Peru as the principal raw materials to the use of coca leaf from Java, which began in 1906 and became pronounced from 1908. The estimates are based on the export statistics from Peru and from Java combined with estimates of the yield factors for the various raw materials and estimates of coca leaf used for beverages. These estimates have a certain amounts of uncertainty attached to them which were quantified. The uncertainty of the estimates of the cocaine manufactured worldwide by period was calculated from the variances. The 90% confidence interval of the estimates does not fluctuate much over the periods, averaging ca 10%. In summary, the estimates of cocaine manufactured worldwide are approximations. However, the values obtained are considered sufficiently precise for our purpose. In making the estimates of quantities of cocaine manufactured worldwide estimates of amounts produced in the USA, Germany, in Other European Countries and in Japan were part of the calculations. The uncertainty of these estimates has not been analysed but is believed to be in the order of 20%. 401 LIST OF LETTER-SYMBOLS USED IN CHAPTER 17 Coca-Cola G Volume of Coca-Cola syrup sold (US gallons) R Regression coefficient Estimates of Cocaine HCl produced Q Quantity of Cocaine HCl produced (kg) B C Quantity of Peru coca leaf used for beverages (tonnes) Quantity of Peru coca leaf exported to Chile (tonnes) CC CC* Total Quantity of Peru coca leaf used for Coca-Cola (tonnes) Net Quantity of Peru coca leaf used for beverages (tonnes) a b c Yield factor for Peru coca leaf (kg cocaine HCl per tonne leaf) Yield factor for Peru Crude (kg cocaine HCl per kg crude) Yield factor for Java coca leaf (kg cocaine HCl per tonne leaf) x1 x2 x3 Quantity of Peru coca exported (tonnes) Quantity of Crude Cocaine exported (kg) Quantity of Java coca exported (tonnes) Statistical Std Rel Std Var Rel Var df Standard Deviation Relative Standard Deviation Variance Relative Variance Degrees of Freedom 402 403 CHAPTER 18 ESTIMATES OF QUANTITIES OF COCAINE HYDROCHLORIDE SOLD BY THE NCF DURING THE PERIOD 1902-1930 AND PRICES THEREOF. 18.1 Introduction Sales volume and selling prices are important parameters for judging the functioning of a bulk pharmaceutical company such as NCF and its position in the market. For the period 1902-1930 there is only limited information available on quantities of cocaine manufactured and sold by NCF and of the prices thereof. In this chapter a method is developed to make estimates of these parameters on the basis of financial information available for the company. The method is an approximate one because the estimated values of sales volume (V) and price (P) are the outcome of calculations that use as input cost factors several of which are estimates themselves. The calculations take the form of solving an equation which is a function of both V and P. If P is known the equation can be solved for V and vice versa. For the practical application of the method average values of the volume V or the price P are calculated for six distinct periods covering the years 1902-1930. Despite the approximate character of the estimates, the values for V and P obtained are appropriately accurate for showing the position of NCF in the market over time. Annual average sales volume and price of cocaine achieved by NCF, by period together with the various cost factors, provide us with a better understanding of NCF’s position in the market during the various periods. The compilation and analysis of the data that were used for the estimates are helpful in gaining insight in the cost structure of the company. The periods for which estimates of V and P are made together with key characteristics of the periods are: 1902-1908 Establishment of the business. Production of cocaine in a small factory in Amsterdam. Marketing arrangement with the German cocaine convention. Good profitability until 1906; 1909 Year of change-over to the new production facilities. No dividend was paid 1910-1914 Production in the new factory outside Amsterdam. Difficult market conditions. Substantially lower earnings; 1915-1920 World War I and its aftermath. Expansion of the business. Excellent profitability; 1921-1924 Return of the competition. Marginal financial performance. Narcotics control issues begin to play a role; 1925-1930 NCF participates in the new Convention of cocaine manufacturers. Control measures resulting from the Geneva Convention of 1925 affecting the industry. Large profits towards the end of the period. 404 The basis for making of the estimates. Accounting principles define the arithmetical relationships between the various elements of the annual Profit & Loss Account (income statement) of a commercial enterprise. In the following the method of variable costing is used whereby as a first step in the calculation of the profit the contribution margin, the difference between sales revenue and variable production cost, is determined.1 Until 1921 NCF manufactured and sold a single product, cocaine hydrochloride.2 Therefore, during the period 1902-1920, annual sales / production volume V, the price P and the variable production cost (C) of cocaine hydrochloride determined the contribution margin (T).3 In formula form: Contribution Margin = V*(P – C) = T The variable production cost C comprise the cost of the raw material, coca leaf from Java, and the cost of chemicals, solvents and energy. The cost of factory labour and overheads are considered to be constant during each period and are therefore included in the fixed costs (F). Other fixed costs are the cost of the technical director and staff, administration costs (Koloniale Bank), selling cost and depreciation. For the total fixed cost the symbol F is used. Gross Profit is equal to the contribution margin less the fixed cost. To arrive at the Net Profit other costs such as interest, taxes and sundry items have to be deducted from the gross profit. However, during the periods under consideration NCF was not subject to income tax, and the amount of net interest and sundry items was quite small.4 As a result for NCF net profit was approximately equal to gross profit. Hence: Gross Profit = Net Profit W = V*(P-C) - F At NCF the annual net profit (W) was distributed over dividends (D), profit sharing (PS), bonuses (B) and retained earnings (R). Hence W = V*(P-C) – F = D + PS + B + R This equation can be solved for V or P if all other elements are known. 1 See e.g C.L. Moore and R.K. Jeadicke, Managerial Accounting (4th Ed. Cincinnati 1976) 381-409. During the period 1921-1930 NCF manufactured a second product, Ethocaine. The effect thereof on the calculations for V and P are discussed in the section on Ethocaine in this chapter. 3 When measured over an extended period, averages of sales volume and production volume become equal. 4 Early in 1901 NCF had a NLG 50,000 debt with the Koloniale Bank and it was expected that this debt would be repaid by the end of the year. Koloniale Bank, Notulen Commissarissen Vergaderingen (Minutes of Board Meetings) 21 January 1902, Nationaal Archief, The Hague, Access No. 2.20.04, Items 13-19. All expansions of the manufacturing facilities were financed from profit generated by the company. Koloniale Bank, ‘Rapport inzake N.V. Nederlandsche Cocaine Fabriek’ (1945) November 26, Nationaal Archief, The Hague, Access No. 2.20.04 Item 928. In the 1930s NCF received a few thousand guilders of interest income annually. Nederlandsche Cocaine Fabriek, ‘Notulenboek, Commissaris vergaderingen 23 February 1934 - 15 May 1950’. (Minutes of Board Meetings 23 February 1934 - 15 May 1950). Minutes from the Meetings of 24 February 1934, 6 July 1936 and 14 May 1937. 2 405 In the following sections of this chapter all the elements of the above equation are dealt with separately and estimates of the various costs are made. In the final section the equation is solved for V or P for the various periods, using the costs as estimated 18.2 Net Profit. Dividends, profit sharing, bonuses and retained earnings. All dividends paid to NCF shareholders over the years 1902-1943 have been included in a report on the NCF of 1945 as a percentage of the nominal share capital.5 The actual amounts paid as dividends were calculated therefrom by the author and appear in Table FIN 1 of Part III, Source Data. They are used in this section for further calculations. In the original Memorandum of Association of the NCF and subsequent amendments it is specified how the annual profit was distributed over dividends, amounts paid to the holders of profit sharing notes (until 1910) and as bonuses to Board members and Directors (from 1910). From the Articles of Association we know that in 1906 a Reserve Fund was established, funded from profit. Distribution of profit 1902 – 1905 The Memorandum of Association (“Acte van Oprichting”) of the Company dated 14 March 1900 specifies that: of the annual profit (W) 75% will be paid as dividend (D) to shareholders and 25% is paid to the holders of the profit-sharing notes (PS).6 In formula form: Dividend Profit Sharing D = 0.75 W and W = 4D/3 PS = 0.25 W and PS = D/3 Distribution of profit 1906-1909 According to a change in the Articles of Association (“Statuten”) of the company dated 29 May 1906 the rules for the distribution of profit changed into:7 From the annual profit W 15% is allocated to a Reserve Fund until the amount accumulated in the Fund reaches NLG 50,000; The remaining amount (0.85 W) is distributed as follows: 75% is paid as dividend D to shareholders and 25% is paid to the holders of the profit-sharing notes; Once the amount in the Reserve Fund reaches NLG 50,000 the total amount W is distributed as specified for the period 1902-1905. In formula form: Dividend = 0.75 x 0.85 W = 0.6375 W and W = 1.5686 D Profit Sharing PS = 0.25 x 0.85 W = 0.2125 W and PS = D/3 Once the amount in the Fund has reached NLG 50,000 the formulas revert to Dividend D = 0.75 W and W = 4D/3 Profit Sharing PS = 0.25 W and PS = D/3 5 D Koloniale Bank, Rapport inzake N.V. Nederlandsche Cocaine Fabriek (1945). Nederlandsche Staatscourant: ‘Naamloze Vennootschap: Nederlandsche Cocaine-fabriek, te Amsterdam’ (No. 222) (1900) June 1. 7 Bijvoegsel, Nederlandsche Staatscourant (1906) Juni 19, No. 338. 6 406 Distribution of profit 1910-1930 According to a change in the Articles of Association (“Statuten”) of the Company dated 27 December 1910, Clause 15, the distribution of profit from that date was as follows: 8 From the annual profit an amount as will be determined by the Board is deducted for depreciation.9 Of the remaining profit W, 15% is allocated to a Reserve Fund until the amount accumulated in the Fund reaches NLG 50,000; Of the then remaining amount (0.85 W) NLG 1,944 (6% of the share capital) is set aside as the first portion of dividend payable to shareholders; 90% of the then remaining amount (0.85 W – 1,944) is the second portion of dividend for shareholders and 10% goes to Directors and Board members as a bonus (B;. Once the amount in the Reserve Fund reaches NLG 50,000 the total amount W is distributed as specified above. Expressed as mathematical formulas: Dividend D = 1,944 + 0.90 (0.85 W – 1,944) = 0.765 W + 194.40 Bonus B = 0.10 (0.85 W – 1,944) = 0.085 W – 194.40 D + B = 0.85 W To calculate W and B from D: W = (D – 194.40)/0.765 B = 0.85 W – D = D/9 – 216 Once the amount in the Fund has reached NLG 50,000 the formulas revert to D = 0.90 W + 194.40 and W = (D – 194.40)/0.90 B = 0.10 W – 194.40 and B = D/9 – 216 The above formulas are used to calculate the annual amounts for gross profit, profit sharing, bonuses and the contributions to the reserve fund, from the amounts of dividend paid. These amounts are shown in Table 15.1 together with the averages calculated for the periods as defined. Also the amounts accumulated in the reserve fund are calculated and they appear in the table. In 1910 the amount accumulated in the reserve fund was utilized when the nominal capital of the NCF was increased from NLG 12,000 to NLG 32,400. Accumulation of the reserve fund recommenced at the end of 1910 and reached the statutory maximum in 1917. No information is available on the utilization of this amount. 8 Bijvoegsel, Nederlandsche Staatscourant (1911) January 21, No. 110. The Articles of Association of 1910 specify that an amount for depreciation will be deducted from the annual profit to arrive at the amount of Profit for Distribution (W). This must be interpreted as a clarification of the administrative procedure, rather than a fundamental change from method used prior to that date. Also before 1910 the cost of depreciation of assets must have been taken into account in one way or another. Accounting rules were not strict in those days and that could have taken the form of writing off the value of fixed assets in an accelerated way. Therefore we consider annual profit W as calculated form D, PS/B and R, both before and after 1910, as representing net profit after depreciation. 9 407 Table 18.1 NCF Distribution of Net Profit1902-1930 Dividend, Profit-sharing, Bonuses and Reserve Fund (NLG) Average Average Average Average Average Notes Profit Sharing PS [2] Reserve Fund R [3] Reserve Fund Cumulative [4] Net Profit W [5] Year Dividend D [1] 1902 1903 1904 1905 1906 1907 1908 24,000 36,000 43,200 27,000 9,600 6,600 16,800 8,000 12,000 14,400 9,000 3,200 2,200 5,600 0 0 0 0 2,259 1,553 3,953 1902-1908 23,314 7,771 1,109 1909 0 0 0 Year Dividend D Bonuses B Reserve Fund R 1910 1911 1912 1913 1914 16,200 24,300 11,664 0 6,480 1,584 2,484 1,080 0 504 3,138 4,727 2,249 0 1,232 1910-1914 11,729 1,130 2,269 Year Dividend D Bonuses B Reserve Fund R 1915 1916 1917 1918 1919 1920 42,120 90,720 94,284 97,200 97,200 113,400 4,464 9,864 10,260 10,584 10,584 12,384 8,221 17,750 12,683 0 0 0 1915-1920 89,154 9,690 6,442 Year Dividend D Bonuses B 1921 1922 1923 1924 11,340 16,200 16,200 16,200 1,044 1,584 1,584 1,584 1921-1924 14,985 1,449 Year Dividend D Bonuses B 1925 1926 1927 1928 1929 1930 48,600 81,000 48,600 162,000 40,500 48,600 5,184 8,784 5,184 17,784 4,284 5,184 53,784 89,784 53,784 179,784 44,784 53,784 71,550 7,734 79,284 1925-1930 0 0 0 0 2,259 3,812 7,765 32,000 48,000 57,600 36,000 15,059 10,353 26,353 32,195 7,765 Reserve Fund Cumulative 3,138 7,865 10,114 10,114 11,346 0 Net Profit W 20,922 31,511 14,993 0 8,216 15,128 Reserve Fund Cumulative 19,567 37,317 50,000 50,000 50,000 50,000 Net Profit W 54,805 118,334 117,227 107,784 107,784 125,784 105,286 Net Profit W See note [3] and [4] The figures in Blue are calculated by the author [1] Part IV, Source Data, FIN 1 [2],[3],[4] Ref. Preceeding text [5] [5] = [1]+[2]+[3] [3] and [4] No information is available regarding the utilisation of the NLG 50,000 accumulated in the Reserve Fund at year end 1920.. 12,384 17,784 17,784 17,784 16,434 Net Profit W 408 18.3 Fixed Cost. Factory Labour and Overheads Within each period we have considered the number of people employed as factory labour and in supervisory and service positions as constant. The reason is that the annual production volume was approximately constant within the periods. To estimate the costs of factory labour and overheads two cost factors have to be considered. These factors are: the number of people involved and their wages. The number of people employed varied over the different periods that the (V,P)-estimates pertain to. These periods are: 1902 - 1908 1910 - 1917 1918 - 1930 Small scale production at the Schinkelkade, Amsterdam. Output less than 500 kg cocaine p.a. Production in the new factory at the Duivendrechtsekade. Single extraction battery, single shift. Maximum capacity ca 750 kg p.a. From 1918, the second extraction battery was operational. Expansion design capacity to 1,500 kg cocaine HCl p.a.10 Ethocaine production. Estimates of the factory capacity and direct and indirect labour required for the various operations and supervision are based on the experience of the author when employed at the NCF as chief chemist and factory manager in the 1960s. The estimates for the period 19211930 are supported by statements by NCF to a government body over the years 1938-1940 when a comparable output (but mainly as opiates) was achieved.11 The estimates also tie in with the number of people involved in the extraction of poppy straw at NCF during 19431944.12 The estimated number of people employed in each function in each period, together with the estimated labour cost, appears in Table 15.3. The estimates of the labour cost at NCF are based on information on average weekly wages paid for industrial labour in the Netherlands. This information is available from the literature for certain years during the period 1900-1930.13 These data are included in Table 15.2 together with the average weekly industrial wages calculated for the periods under consideration. A cost factor was established for the various periods on the basis of these weekly averages using the factor 1.00 for the base period 1902-1908. Cf. Section 8.3 ‘Operating and Expanding the NCF Factory’ and E.D. van Walree, W.G. van Wettum and J.B.M. Coebergh,’ Report on the International conference on the restriction of manufacture of narcotic drugs’, London, 9 December (1930) Nationaal Archief, The Hague, Access No. 2.05.21 Item 1468, 12. 11 ‘NCF Opgave van Bedrijfsgegevens’ (Annual Statements on the Business) to the Bedrijfsgroep Chemische Industrie (Section Chemical Industry) over 1938-1940, VNCI-Archief, SHCL Maastricht, EAN 1057, Box 27). Total number of employees NCF as at 1st January 1939 was 27 versus 26 during the period 1921-1930 in this estimate. 12 Nederlandsche Cocaine Fabriek, ‘Finale Afrekening betreffende de verwerking van papaverbolkaf’ (Final Statement of Account on the extraction of poppy straw) dated 19 March 1945, Nationaal Archief, The Hague, Access No 2.06.076.07 Item 389. 13 F. Groot, Roomsen, rechtzinnigen en nieuwlichters, Dissertation University of Amsterdam (1992) Appendix IX, Ref. Van der Spek, Een Eeuw Lonen en Prijzen (1870-1970) 82. 10 409 Table 18.2 Industrial Wages paid in the Netherlands 1900-1930 Year NLG per week [1] 1900 1907 1914 1920 1923 1926 1930 9.75 10.00 12.00 29.00 26.75 26.00 27.50 Period NLG per week [2] NLG per annum [3] Cost Factor [4] 1902-1908 1910-1914 1915-1920 1921-1924 1925-1930 10.00 11.00 22.00 27.00 27.00 520 572 1,144 1,404 1,404 1.00 1.10 2.20 2.70 2.70 1943-1944 37.50 1,950 3.75 Sources 1900-1930 1943-1944 Notes [2] [3] [4] F. Groot, Roomsen, rechtzinnigen en nieuwlichters , Dissertation Univ. of Amsterdam (1992) Appendix IX, Ref. Van der Spek, Een Eeuw Lonen en Prijzen (1870-1970) 82. Nederlandsche Cocaine Fabriek, Finale Afrekening (Final Statement) 19 March 1945 Total wages for 6 direct labour NLG 11,701 / 6 = NLG 1,950 p.a. = NLG 37.50 per week The figures in Blue are calculated by the author Averages 1900-1930 are calculated from column [1] For 1943-1944 see NCF (1945) [3] = [2] * 52 [4] = [2] / 10 For the category supervisory, laboratory and other employees the estimates for the wages are calculated from actual wages paid at NCF during 1943-1944 applying the cost factors appearing in the table to arrive at those paid during the various period.14 Following NCF’s cost calculations for 1943-1944, in table 18.3 an amount equal to 20% of the total labour costs was added for general factory expenses.15 All calculations for the estimate of Labour Cost at NCF are presented with the following Table 18.3 Nederlandsche Cocaine Fabriek, ‘Finale Afrekening’ (1945) page 1. For the period 1902-1908 Supervisor (Weidema) NLG 7,693 / 3.75 = NLG 2,051 and Chief Engineer (Brunner) NLG 4,237 / 3.75 = NLG 1,130. 15 Ibidem, page 2. 14 9 1 1 1 1 4 13 20% Sub-Total Supervisory and Laboratory Chief Chemist Chief Engineer Laboratory Clerk Sub-Total Total Labour General Factory Expenses TOTAL COST 2,000 1,200 800 800 520 520 520 11,376 1,896 9,480 4,800 2,000 1,200 800 800 4,680 2,080 1,560 1,040 20% 17 5 1 1 2 1 12 6 4 2 2,200 1,320 880 880 572 572 572 15,629 2,605 13,024 6,160 2,200 1,320 1,760 880 6,864 3,432 2,288 1,144 Wages Total NLG p.a. The figures in blue are estimated / calculated by the author 4 3 2 Direct Labour Extraction Conversion Engineering Number of Employees Wages Each NLG p.a. Wages Total NLG p.a. Wages Each NLG p.a. Number of Employees 1.10 1.00 Cost Factor Duivendrechtsche kade 1910-1914 Schinkelkade 1902-1908 Period 20% 17 5 1 1 2 1 12 6 4 2 4,400 2,640 1,760 1,760 1,144 1,144 1,144 Wages Each NLG p.a. 2.20 31,258 5,210 26,048 12,320 4,400 2,640 3,520 1,760 13,728 6,864 4,576 2,288 Wages Total NLG p.a. Duivendrechtsche kade 1915-1920 Number of Employees TABLE 18.3 ESTIMATE OF NUMBER OF EMPLOYEES AND LABOUR COST AT NCF (1902-1930) 20% 26 7 1 1 3 2 19 10 6 3 Number of Employees 5,400 3,240 2,160 2,160 1,404 1,404 1,404 Wages Each NLG p.a. 2.70 55,339 9,223 46,116 19,440 5,400 3,240 6,480 4,320 26,676 14,040 8,424 4,212 Wages Total NLG p.a. Duivendrechtsche kade 1921-1930 410 Table 18.3 Estimates of Number of Factory Employees and Labour Costs at NCF (1902-1930) 411 Technical Director and Staff. Administration Cost. The salary of Dr Kramers in 1943-1944 was NLG 13,173 p.a.16 For the estimates it is assumed that Dr Kramers had one assistant for secretarial duties and sales activities, who was earning a wage of NLG 2,250 in 1943-1944. Overhead cost, amounting to 20% of the income of Dr Kramers plus assistant was added to obtain the total cost.17 The Koloniale Bank charged NCF for administrative cost. The amounts charged during the years 1921-1944 are known.18 For the years prior to 1921 the administrative costs were calculated using the factors for labour costs specified in Table 15.2 above. The amounts are included in the table below. Table 18.4. Cost Technical Director and Staff, Overheads and Administration (NLG p.a.) Period Cost factor [1] Dr. Kramers Salary [2] 1902-1908 1910-1914 1915-1920 1921-1924 1925-1930 1943-1944 1.00 1.10 2.20 2.70 2.70 3.75 3,513 3,864 7,728 9,485 9,485 13,173 Notes Assistant Wages [3] Overhead Cost (20%) [4] 600 660 1,320 1,620 1,620 2,250 823 905 1,810 2,221 2,221 3,085 Total [2]+[3]+[4]= [5] Admin Cost (KB) [6] 4,935 5,429 10,858 13,325 13,325 18,508 1,000 1,100 2,200 2,550 2,400 2,400 The figures in Blue are estimated / calculated by the author [1] Ref. Table 18.3 [2] Basis 1943-44 x cost factor / 3.75. Ref.Part IV, Source Data, FIN 3 [3] Basis 1943-44 x cost factor / 3.75 [4] [4] = ([2] + [3]) x 20% [5] [5] = [2] +[3]+ [4] [6] Koloniale Bank, Report on the NCF (1945) Appendix 1 Depreciation From the Minutes of Board meetings of NCF in the 1930s we learn that assets were depreciated as soon as possible, sometimes even before the year the assets were actually acquired.19 At NCF over the period from 1900-1939 a total of NLG 590,000 was invested in land, buildings and equipment, and the assets were fully depreciated by 1939.20 Over the same period NCF paid an amount of NLG 1,502,000 as dividend to shareholders. Hence, average depreciation amounted to 40% of dividend paid. Because good profits resulted in good dividends we have assumed for the calculations that for each year the amount of depreciation was proportional to dividend paid. 16 Ibidem, page 1. Ibidem, page 2. 18 Koloniale Bank,’ Rapport inzake N.V. Nederlandsche Cocaine Fabriek ‘(1945). Appendix 1. 19 Nederlandsche Cocaine Fabriek, ‘Minutes of Board Meetings 1934 -1950’, Minutes of the Meetings of 24 February 1934, 6 July 1936 and 14 May 1937. 20 Ibidem, Minutes of the Meeting of 8 October 1940. 17 412 18.4 Variable Cost - Coca Leaf Supplies The cost of coca is the main component of the variable manufacturing cost of cocaine hydrochloride. NCF’s major coca supplier was Soekamadjoe. The conditions of supply were governed by a series of contracts between the companies, the principal conditions of which are summarised in the following table. Prices for Java coca leaf were commonly quoted either as Dutch (NL) cents per half kg (irrespective of the alkaloid content) or as NL cents per half kg per % of total alkaloid present in the leaf (according to assay). The latter price quotation was indicated as the price per “Unit” (the price in NL cents of half a kg of coca leaf at 1% total alkaloid content). The letter p will be used in this text to represent the Unit Cost. Table 18.5 Soekamadjoe Supply Contracts with NCF Contract Period Contract Price Terms Freight cts/hkg Total cts/hkg Unit Cost cts/hkg 1900-1909 1910-1913 1914-1916 1917-1919 1920-1922 1923-1927 20 NL cts per half kg 20 NL cts per half kg 20 NL cts per half kg 20 NL cts per half kg 20 NL cts per unit ca NL 29.50 cts per unit c.i.f. c.i.f. c.i.f. c.i.f. f.o.b. c.i.f. --2.32 -2.50 -- 20.00 20.00 22.32 20.00 --- 20/A 20/A 22.32/A 20/A 20+2.50/A ca 29.50 A= c.i.f. = f.o.b. = the total alkaloid content in % cost, insurance and freight are included in the price the coca is supplied free on board Source: Soekamadjoe, Jaarverslagen (Annual Reports) 1909-1927, National Archief, The Hague, Access No 2.20.04 Items 1477 and 1478. Note 1: Freight 1914-1916 reflects additional payment by NCF Note 2: The unit price 1923-1927 was dependent on the alkaloid content. 29.50 cts per unit was the average price over the period. The first contract ran from 1900-1910 and the second from 1910-1920. The first contract had almost certainly the same conditions as the second viz. the price was NLG 0.40 per kg c.i.f. irrespective of the alkaloid content. Under the later contracts the coca was supplied at a price varying with the alkaloid content as was usual in the coca trade at the time. Supplies of coca leaf from Soekamadjoe to NCF by period have been summarised in Table 18.6 together with their alkaloid content and average weighed unit price for each period for which the (V,P)-estimates are calculated. 413 Table 18.6 Soekamadjoe Coca Shipments to NCF (1892-1930) Year of Shipment estimate estimate Total Total Total Total 1902-1908 Shipped to NCF kg 25,000 Alkaloid assay percent Cocaine Alkaloid Content kg Estimated Cocaine HCl Prod. at NCF kg 1.50 375 250 1909 0 1910 1911 1912 1913 1914 20,000 7,850 23,230 31,410 32,850 1.50 1.52 1.52 1.59 1.75 300 119 353 499 575 200 80 235 333 383 1910-1914 115,340 1.60 1,847 1,231 1915 1916 1917 1918 1919 1920 49,990 50,045 0 33,550 65,460 39,380 1.30 1.39 1.55 0.70 1.24 1.62 650 696 0 235 812 638 433 464 0 157 541 425 1915-1920 238,425 1.27 3,030 2,020 1921 1922 1923 1924 40,413 29,396 21,774 30,210 1.93 1.97 1.83 1.91 780 579 398 577 520 386 266 385 1921-1924 121,793 1.92 2,335 1,556 1925 1926 1927 26,925 37,785 41,800 1.76 1.86 1.75 474 703 732 316 469 488 1925-1927 106,510 1.79 1,908 1,272 Estimated Cocaine HCl Prod. Average kg p.a. Soeka Price cts/hkg Soeka Price p(s) cts / unit 250 20.00 13.33 20.00 20.00 20.00 20.00 22.32 13.33 13.16 13.16 12.58 12.75 246 337 12.90 22.32 22.32 17.17 16.06 20.00 20.00 28.57 16.13 21.37 18.40 21.37 21.37 30.00 30.00 389 24.98 29.50 30.00 29.50 424 29.68 Notes The figures in Blue are calculated by the author Source: Soekamadjoe, Jaarverslagen (Annual Reports) 1909-1927, National Archief, The Hague, Access No 2.20.04 Items 1477 and 1478. The data are summarized in Part IV, Source Data, JCL 7.The contact prices are specified in Table 18.5. The prices in NLcents per Unit in the last column of the above table are calculated using the contract prices and the alkaloid assay figures. The contract prices by period are assay weighted averages. Cocaine yield at NCF is 2/3 of the content as per assay. No direct information is available of the quantities of coca supplied by Soekamadjoe to NCF during the period 1900-1910. In the early years Soekamadjoe supplied probably the total requirements of ca 30,000 kg p.a. but in a report of 1909 by F.G.H. van Houtum, the new superintendent (“administrateur”) of the Soekamadjoe plantation, it is noted that the condition of the coca cultivation was very poor. The estimate of the 1910 harvest was ca 20,000 kg of leaf and only 7,850 kg was shipped in 191121. On the basis of the above we assume that the average quantity of coca supplied by Soekamadjoe during the period 1902-1908 was ca 25,000 kg p.a. The average assay of the coca leaf supplied during the period 1902-1908 is assumed to be 1.50 %, equal to the assay for the year 1910. For various reasons Soekamadjoe was not able, after 1910, to supply the total coca requirements of NCF. Additional quantities must have been bought on the open market and/or through the Koloniale Bank presumably at open market prices. From 1905 to 1921 Java coca was extensively traded at auctions in Amsterdam; thereafter the prices were set by a combination of producers and traders, which 21 Soekamadjoe, Annual Reports (1909) 8 and (1911) 5. 414 formed a formal association, the “Coca-Producenten Vereniging” (Coca Producers Association) in 1925. The broker P. Brusse played an important role in the Amsterdam coca trade. His statistics on the trade in Java coca cover the years from 1905 onwards.22 These statistics have been used as the source for Table JCL 5 (Part III, Source Data). Averages pertaining to the periods specified in this chapter are calculated by the author and are summarised in the following table. The prices for the period 1927-1930 are those published by the Coca Producers Association. Averages for the various periods are calculated from the source data; they appear in Table 18.7. Table 18.7 Coca Leaf sales Amsterdam (1905-1929) Year Coca Leaf Sold At auction kg [1] Coca Leaf Sold Directly kg [2] Coca Leaf Sold Total kg [3] Alkaloid In leaf sold At auction kg [4] Alkaloid In leaf sold Directly kg [5] Alkaloid In leaf sold Total kg [6] Assay Calculated HHB % [7] Unit Price NL cts [8] 1905-1908 110,709 0 110,709 1,752 0 1,752 1.58 21.44 1910-1914 2,921,440 87,674 3,009,114 46,730 1,455 48,185 1.60 22.27 1915-1920 970,436 1,457,537 2,427,973 13,590 21,856 35,446 1.46 28.90 1921-1924 27,626 1,881,381 1,909,007 403 28,520 28,923 1.52 51.33 1925-1930 0 2,061,384 2,061,384 0 30,315 30,315 1.47 33.40 Sources P. Brusse, Jaarverslagen voor kinabast en Coca (Annual Reports on Cinchona bark and Coca), 1910-1933 Library Royal Tropical Institute (KIT) Amsterdam. For a summary ref. Part III, Source Data, JCL 5 Unit Prices 1927-1929 are calculated from prices reported by the Coca-Producenten Vereniging (Coca Producers Association), Jaarverslagen (Annual Reports), 1926-1950 Nationaal Archief, The Hague, Access No. 2.20.04 Item 1643. Notes All figures in Blue are calculated by the author [3] = [1]+[2] and [6] =[4] +[5] Assay: [7] = [6]/[3]*100; Brusse's annual assay figures are apparently averages of monthly sales. Average Unit Prices and Average Assays by period are weighted averages The prices appearing in column [8] of the above table are an estimate of what NCF will have paid for the additional quantities. These prices are considerably higher than the Soekamadjoe contract price as is shown in the under following Table 18.8. 22 P. Brusse, Jaarverslagen voor kinabast en coca (Annual Reports on Cinchona bark and Coca) 1910-1933. 415 Table 18.8 Prices Java Coca Soekamadjoe compared to Open Market prices (Brusse) Period p1 Soekamadjoe NLcents/Unit p Open Market NLcents/Unit p2/p1 Price Ratio 1902-1908 1910-1914 1915-1920 1921-1924 1925-1930 13.33 12.90 18.40 24.98 29.68 21.44 22.27 28.90 51.33 33.40 1.61 1.73 1.57 2.05 1.13 Notes The figures in Blue are calculated by the author The prices are the assay weighted averages for each period. For the first period the average open market price is calculated over the years 1905-1908 The unit coca prices from Soekamadjoe and other suppliers are p1 and p2 respectively. The price p1 is known from the supply contracts between NCF and Soekamadjoe and p2 is the price that was paid for additional quantities. That price is assumed to be equal to the average coca price paid at auctions and direct sales at Amsterdam (1905-1926) and from those set by the Coca Producers Association (CPV) (1927-1930). They are summarised in Table 18.8. Chemicals, Solvents and Energy. The costs of chemicals, solvents and energy (CSE) incurred in the extraction of poppy straw at NCF in 1943-1944 are known. These costs amounted to NLG 53 per tonne of poppy straw.23 The costs of CSE in the extraction of coca leaf will have been very similar, and therefore we estimate the extraction cost at NLG 5 per kg cocaine HCl for 1943-1944.24 The cost of CSE for the conversion of the total alkaloids into cocaine HCl (cost level 1943-1944) has been estimated by the author on the basis of the approximate quantities of the chemicals and solvents used for each process step and using prices for these chemicals and solvents obtained from the literature.25 The results are presented with Table 18.9. The cost of CSE during the various periods pertaining to the (V,P)-calculations have been estimated by using the Index of Wholesale Price of Chemicals and Drugs published by the US Bureau of Labor Statistics.26 These costs are shown in Table 18.10. Any errors in the estimate of the costs of CSE will affect the calculated values for V and P only slightly because the amounts involved are relatively small. Nederlandsche Cocaine Fabriek, ‘Final Statement of Account on the extraction of poppy straw’ (1945). Experience of the author when working at the NCF in the 1960s.Yield of cocaine HCl from Java coca was ca 10.7 kg/t (1.60% total alkaloid * 66.7% yield). NLG 53/10.7 = NLG 5. 25 Cf. J. Schwyzer, Die Fabrikation der Alkaloide, Berlin 1927. 26 US Bureau of Labor Statistics, US Department of Labor, Index of Wholesale Price of Chemicals and Drugs. www.nber.org/databases/macrohistory/rectdata/04/docs/m040969.txt. 23 24 416 Tables 18.9 and 18.10 Estimated cost of Chemicals, Solvents and Energy for producing 1 kg cocaine HCl from Java coca leaf. . Table 18.9 Table 18.10 Unit Operation Hydrolysis Esterification Benzoylation Purification Extraction Total Notes Cost 1943-44 NLG / kg Period US Price Index Total Cost NLG / kg 1 3 5 3 5 1902-1908 1910-1914 1915-1920 1921-1924 1925-1930 81.5 82.2 158.8 103.4 95.7 15 15 28 19 17 17 1943-1944 94.9 17 The figures in Blue are estimated by the author CSE cost by unit operation based on NCF cost for poppy extraction during 1943-1944. Total CSE cost by period estimated using the US Price Index for Chemicals and Drugs 18.5 Other Factors. Ethocaine. Until 1921 cocaine was NCF’s only product and therefore the formula for the contribution margin V(P-C) = W + F = T can be used as the relationship between the sales volume V, the price P and the variable cost C of that single product. In 1921 NCF commenced the manufacture of the synthetic local anaesthetic Ethocaine (Novocaine).27 As a result, from 1921 onwards the formula for the contribution margin becomes VC(PC-CC) + VE(PE-CE) = TC + TE = T, in which formula VC etc. represents cocaine and VE etc. ethocaine. The contribution margin of cocaine TC can be calculated from T if the contribution margin for ethocaine TE is known. No direct information is available for quantities, prices and manufacturing cost of ethocaine during the 1920s. However, we know that in the years 1933-1934 ca 3,000 kg ethocaine p.a. was manufactured and sold by NCF at a price of ca NLG 30 per kg28. The margin over cost was ca 10%.29 On the basis of these figures we estimate that during the periods 1921-1924 and 1925-1930 quantities of 1,000 and 2,000 kg respectively were manufactured and sold by NCF at the unchanged price of NLG 30 per kg. The variable costs (chemicals, solvents and energy) are estimated to be in the order of two-thirds of the selling price. For the period 1921-1930 the fixed costs as estimated for cocaine were hardly affected by the ethocaine production. This includes the cost of factory labour, because the estimate of labour requirements was based on full capacity cocaine production over the total period while the cocaine production came down substantially over the second half of that period. Therefore labour as estimated for cocaine is assumed sufficient for the production of ethocaine in the quantities as estimated. 27 NCF, Minutes of Board Meetings, Meeting of 1 June 1948. Ibidem, Meeting of 10 December 1934. 29 Ibidem, Meeting of 23 February 1934. 28 417 These approximations result in a contribution margin for ethocaine of NLG 10,000 and 20,000 over the periods 1921-1924 and 1925-1930 respectively. These estimations are rather broad but the effect of any errors in the contribution margin of ethocaine (TE) on the contribution margin of cocaine (TC) is relatively small because of the quite large values of total T over these periods. The average cost of the coca leaf used as raw material by NCF In Table 18.6 the amounts of cocaine HCl produced from the quantities of coca leaf supplied by Soekamadjoe (V1) have been estimated.30 Additional amounts of cocaine (V2) were produced by NCF from Java coca leaf bought from suppliers other than Soekamadjoe. Because of the different raw material cost, cocaine made from Soekamadjoe coca leaf had a different production cost than cocaine made from coca from other sources. Consequently, the average variable production cost C in the equation V (P – C) = TC becomes a function of V and the equation is re-arranged as follows: V (P – C) = V1 (P – C1) + V2 (P – C2) = TC in which equation V1, C1, and V2, C2 represent the volume and variable cost of cocaine made from Soekamadjoe coca and from coca bought on the open market respectively and V = V1 + V2. The average cost of the coca leaf per unit is: p(avg) p1V1 p 2 V2 p1V1 p 2 (V V1 ) V V The variable cost for the manufacture of 1 kg cocaine HCl at NCF is C = 3p + q, the sum of the cost of the raw material coca leaf (3p) and the cost of chemicals, solvents and energy (q). The derivation of the term 3p for the cost of coca leaf from Java in 1 kg cocaine HCl produced at NCF is provided with the following table: Soekamadjoe,’ Jaarverslagen’ (Annual Reports) (1909-1927), National Archief, The Hague, Access No 2.20.04 Items 1477 and 1478. 30 418 Table 18.11 The cost of the raw material Java coca in 1 kg cocaine HCl at NCF Worked Example for p = 30 NL cents and A = 1.6% alkaloid Formula Price of ½kg of coca leaf at 1% total alkaloid (in NL cents) Price of ½kg of coca leaf at A% total alkaloid (in NL cents) Price of 1 metric tonne of coca leaf at A% total alkaloid (in NLG) kg Alkaloid present in 1 metric tonne of coca leaf at A% total alkaloid kg Cocaine HCl produced from 1 metric tonne of coca leaf at A% total alkaloid at a yield of 2/3 (66.7%) Cost of coca leaf in 1 kg of cocaine HCl produced (20pA) / (20A/3) (in NLG) Note p pA 20pA 10A 30 48 960 16 20A/3 3p 10.67 90 NL cents NL cents NLG kg kg NLG At NCF the yield of cocaine HCl from total alkaloids contained in the Java coca leaf was ca 66.7% Ref. Chapter 6. Price Information Table 18.12 European Prices Cocaine HCl (NLG/kg) Year Price Year Price Year Price 1902 1903 1904 1905 1906 1907 1908 338 295 256 249 230 183 146 1910 1911 1912 1913 162 177 148 122 1925 1926 1927 1928 1929 1930 354 409 338 295 295 418 Average 1902-1908 242 Average 1910-1913 152 Average 1925-1930 352 Sources 1902-1913 Part IV, Souce Data, COC 4 and 5 1925-1930 Calculated from Convention prices (Table 7.7) The price for 1914 is assumed to be equal to the average price 1910-1913, because the low prices in the first half of 1914 were compensated by the high prices achieved during the second half of that year.31 This results in an estimate of average price for 1910-1914 of NLG 152. For the period 1915-1920 European prices are not known. US prices in 1915-1916 were in the range of NLG 340-390 and rising sharply. In annual reports by directors to the board of the Koloniale Bank it is mentioned that the cocaine price increased very considerable after 31 Koloniale Bank, Reports by the Directors to the Board (1914-1916), Nationaal Archief, The Hague, Access No 2.20.04, Item 58. 419 the start of the war in 1914.32 We estimate the average price for the period 1915-1920 at NLG 360, which figure is to be considered as a ballpark estimate. No price information is available for the period 1921-1924. During the period 1925-1930 NCF sold not only cocaine HCl but also crude cocaine base. The price at which the base was sold is not documented but historical price records for Peru crude cocaine (Part IV, Source Data, Table PCC 3) in comparison to pure cocaine HCl (Table COC 5) show an average ratio of 79%. This percentage is used to estimate the average price of crude cocaine sold by NCF during the period 1925-1930. (Table 18.14, below). This average price of NLG 333 per kg is of limited accuracy and is only used for a comparison with the value for P resulting from solving the [P,V]-equation. Volume Information For the period 1902-1908 we know that the agreed quota with the German Cocaine Convention was 300 kg p.a. and that monthly 30-35 kg was supplied to Gehe & Co. mid 1902. These amounts have not been used as input for the calculations but they are used for a comparison with the value for V resulting from solving the [P,V]-equation. For the years 1910-1920 no information is available on the quantities sold/manufactured by NCF. During the period 1921-1924 an average quantity of 1,050 kg p.a. was manufactured (Part IV, Source Data, COC 3). Quantities of cocaine HCl and cocaine base produced during 1925-1930 are contained in Table 18.13. Although Chemische Fabriek “Naarden” obtained a manufacturing license for cocaine in 1926 it is unlikely that this Dutch company actually manufactured the product. “Naarden” is known to have traded in cocaine, especially during the years 1927-1928, but according to a document on the history of the company, “Naarden” often traded products (including cocaine) bought from other companies labelled as its own.33 There is no information available that “Naarden” actually manufactured cocaine. We conclude that NCF was the only cocaine manufacturer in the Netherlands during the periods 1921-1914 and 1925-1930. 32 Ibidem. W.A. van Dorp, De Geschiedenis van de N.V. Chemische Fabriek “Naarden” 1905-1945, preliminary document (1998) 14-15. 33 420 Table 18.13 NCF Cocaine Production 1925-1930 Year kg HCl 1925 1926 1927 1928 1929 1930 977 775 692 668 281 135 0 232 244 141 284 325 977 1,007 936 809 565 460 Average 588 204 792 Sources kg Base kg Total Part IV, Source Data, COC 2 and 6 Table 18.14 Average Price Cocaine HCl and Cocaine Base NCF 1925-1930 Production kg Price NLG/kg HCl Base 588 204 352 278 Total 1925-1930 792 333 Average Sources Tables 18.11 and 18.12 Base Price = 79% of cocaine HCl price 18.6 Solving the Equation for V and P respectively. The average values of P and V calculated in the previous section, which are used as input for solving the [P,V]-equation for each period are summarized in the following table. When P is known the equation is solved for V and vice versa. Table 18.15 Average selling prices and volumes used for solving the [P,V]-equation Period 1902 - 1908 1910 - 1914 1915 - 1920 1921 - 1924 1925 - 1930 Average Price P Average Annual Volume V 242 152 360 --- ---1,051 792 421 The actual calculations are performed with the spreadsheet presented with Table 15.15 in which all cost factors estimated in the previous sections of this chapter are brought together. As shown in the previous section on the cost of coca leaf, the original simple equation for [P,V]: V (P – C) = TC changes because Soekamadjoe could not supply all the coca leaf required by NCF and NCF had to buy additional quantities at the open market at a higher cost. The equation becomes: V1 (P – C1) + V2 (P – C2) = TC In this equation the volume V1 represents the quantity of cocaine HCl manufactured from coca leaf sourced from Soekamadjoe (at cost p1) and V2 is the quantity manufactured from coca leaf bought on the open market (at cost p2). By substituting (V – V1) for V2 in the above formula for V (P-C) and rearranging, we find V (P - C) = V (P – C2) + V1 (C2 – C1) = TC and V = (TC – V1 (C2 – C1)) / (P-C2) Substituting 3p2 + q for C2, 3p1 + q for C1 and Δp for (p2 – p1) results in: V TC 3V1p P (3p 2 q) This is the equation used for the calculation of the unknown volume V from the price P. Alternatively, the unknown price P can be calculated from the volume V by using the equation: P TC 3V1p (3p 2 q) V Table 15.6 Table 15.7 Coca price Soekamadjoe p1 Coca price Other suppliers p2 Price Difference Δp Note Table 15.6 Cocaine from Soekamadjoe V1 Variable cost 3*p(avg) + q NLG / kg Cocaine HCl Table 15.10 Chemicals, Solvents, Energy q 242 P NLG / kg 324 V kg p.a. 61 13.33 21.44 8.11 250 15 58,831 152 P NLG / kg 499 V kg p.a. 68 12.90 22.27 9.37 246 15 41,978 0 15,629 5,429 1,100 4,692 26,850 11,376 4,935 1,000 9,326 26,637 0 11,729 1,130 2,269 15,128 1910-1914 23,314 7,771 1,109 32,194 1902-1908 The values in blue are estimated / calculated by the author Output of the spreadsheet in orange NLG / kg Cocaine HCl NLcents / Unit NLcents / Unit NLcents / Unit kg Cocaine HCl NLG Cocaine Contribution Margin T C NLG NLG NLG NLG NLG NLG Table 15.3 Table 15.4 Table 15.4 (Table 15.1) Factory Labour Technical Director and Staff Administration (KB) Depreciation 0.4*D Sub-Total Fixed Costs F NLG NLG NLG NLG Unit Ethocaine Contribution Margin T E Table 15.1 Table 15.1 Table 15.1 Source Dividend Profit-Sharing / Bonuses Reserve Fund Sub-Total Net Profit W Period Table 18.16 Nederlandsche Cocaine Fabriek Estimates of Sales Volumes and Prices by application of the (V,P)-equation 360 P NLG / kg 712 V kg p.a. 100 18.40 28.90 10.50 337 28 185,264 0 31,258 10,858 2,200 35,662 79,978 89,154 9,690 6,442 105,286 1915-1920 223 P NLG / kg 1,051 V kg p.a. 144 24.98 51.33 26.35 389 19 83,642 10,000 55,339 13,325 2,550 5,994 77,208 14,985 1,449 0 16,434 1921-1924 312 P NLG / kg 792 V kg p.a. 111 29.68 33.40 3.72 424 17 158,968 20,000 55,339 13,325 2,400 28,620 99,684 71,550 7,734 0 79,284 1925-1930 All values are averages over the periods 422 Table 18.16 NCF Estimates of Sales Volume and Prices 1902-1930 423 18.7. The Accuracy of the Estimates The accuracy of the estimates follows from the accuracy of the model used to calculate the estimates and the accuracy of the inputs. The model is the Profit and Loss Account for the NCF, and the formula used from the calculation of the annual quantity V of cocaine HCl produced from the average price P is V TC 3V1p P (3p 2 q) The model is considered as representing the actual situation correctly but the accuracy of the calculated values for V depends on the accuracy of the input. The uncertainty of V is a function of the uncertainty of the other variables used to calculate V. The variance of a function (f) is 2 f Var (i) Var (f ) i in which formula i represent the various variables.34 In our case these variables are the contribution margin TC, the amount of cocaine produced from coca leaf supplied by Soekamadjoe V1, the price P and the cost of chemicals, solvents and energy q. Applying the formula for the variance to the formula for V we find Var (V) Var (TC ) (3p) 2 Var (V1 ) (TC 3V1p) 2 Var (P) 9Var (p 2 ) Var (q) (P 3p 2 q) 2 (P 3p 2 q) 2 (P 3p 2 q) 4 The formula to calculate the price P from the volume V is P TC 3V1p (3p 2 q) V Applying the formula for the variance we find Var (P) Var (TC ) (3p) 2 Var (V1 ) V2 (TC 3pV1 ) 2 V4 .Var (V) 9Var (p 2 ) Var (q) Because in general insufficient data are available to calculate the variances in the normal way it was necessary to make estimates of these variances. That was done by the author by making “educated’ guesses of the standard deviations of the parameters. The process used therefore is that of imagining the maximum and minimum values that the parameters could take under “normal” circumstances. The difference between the maximum and the minimum 34 Harri Lapplainen, www.cis.hut.fi/harri/ijcnn98/node8.html. 424 value represents 4 times the standard deviation. It is a subjective process and checking is not easily possible. The author, when in doubt, has opted for making the estimate rather too large than too small. The values chosen for the relative standard deviations were restricted to the values 2, 5, 10 and 20%. The resulting estimates of the standard deviations of the parameters are summarized in the following table: Table 18.17 Estimates of Standard Deviations Variance in W F TE V V1 P p2 q Main factor determining Uncertainty no uncertainty all amounts known inexact estimates of the costs volume of ethocaine manufactured accuracy PCOB statistics quantity of coca leaf supplied uncertainty of price information purchase price coca leaf in the open market cost of chemicals used Period Rel Std % all all 1921-1930 1921-1930 1902-1908 1902-1920 all all 0 10 20 5 10 2-10 5 10 Notes on the variances: Var(V) and Var(P) determine the uncertainty in the calculated values for V and P respectively. Var(V) and Var(P) are calculated from the estimated variances of the variables (cost factors) appearing in the formulas. The accuracy of these variances cannot be estimated. However, because of the applied “to err on the side of the larger estimate” method, the author is of the opinion that V ± 1.65 Std(V) and P ± 1.65 Std(P) are conservative estimates of the 90% confidence intervals. W Net profit is calculated from the known amounts of dividend paid, using the relevant clauses of the Memorandum of Association of the company. These amounts are exact. F The variance of the estimated fixed costs is the result of uncertainties in the number of employees and their salaries and wages. The estimated relative standard deviation of 10%, results in a range of 80-120% (±2s) which is considered by the author to represent the maximum error. TE The quantities of Ethocaine manufactured in the 1920s and the selling price thereof have been estimated on the basis of the sales and cost figures for this product during the early 1930s. Because this is a rather broad estimate, a range of of 60-140% is postulated for the maximum error. V The production volumes for the Netherlands 1921-1928 have been calculated from export and import statistics published by the PCOB (League of Nations) (Part III, Source Data, COC 3). Because of the unavailability of data for year-end 425 stocks, a relative standard deviation of 5% has been assumed for the average cocaine production over the periods 1921-1924 and 1925-1930. V1 No exact data are available for the quantity of coca leaf shipped by Soekamadjoe to NCF during the period 1902-1908, therefore a range of 200-300 metric tonnes has been used for the variance calculations. P The accuracy of the calculated average prices depends on the number of data available over each period. Reflecting the amount of information available we have estimated the standard deviation of the average price for the periods 1902-1908, 1910-1914 and 1915-1930 at 2, 5 and 10% respectively (Part IV, Source Data, COC 5 and 6). p2 It is not certain that NCF could buy coca leaf on the open market at exactly the average price. Therefore, we have assumed a maximum range for the average price of 90-110%. q The cost of Chemicals, Solvents and Energy has been estimated on the basis of rather broad information on prices and quantities. To reflect this a relative standard deviation of 10% has been used. The influence of any variance in q on the end result of the calculations is very small anyhow. The calculations resulting in the variances are made using the spreadsheet in Table 18.18 and the resulting values if the variances are presented together with 90% confidence intervals. 426 Table 18.18 Calculation of Variances and Confidence Intervals for P and V Period 1902-1908 V calculated from P 1910-1914 1915-1920 P calculated from V 1921-1924 1925-1930 Net Profit W Rel Std (W) % Var (W) 32,194 0 0 15,128 0 0 105,256 0 0 16,434 0 0 79,284 0 0 Fixed Costs F Rel Std (F) % Var(F) 26,637 10 7,095,298 26,850 10 7,209,225 79,978 10 63,964,805 77,208 10 59,610,753 99,684 10 99,368,999 0 0 0 10,000 20,000 Ethocaine Margin TE Rel Std (TE) % Var(TE) 0 TC = W + F - TE 0 20 4,000,000 16,000,000 58,831 41,978 185,234 83,642 158,968 7,095,298 2,664 7,209,225 2,685 63,964,805 7,998 63,610,753 7,976 115,368,999 10,741 4.5 6.4 4.3 9.5 6.8 21.44 13.33 8.11 22.27 12.90 9.37 28.90 18.40 10.5 51.33 24.98 26.35 33.40 29.51 3.89 Rel Std(p2) % 5 5 5 5 5 Var(p2) 1 1 2 7 3 q Rel Std(q) % Var(q) 15 10 2 15 10 2 28 10 8 19 10 4 17 10 3 3*p2+q 79 82 115 173 117 250 10 625 246 2 24 337 2 45 389 2 61 424 2 72 52,749 163 4 35,063 70 51 174,619 245 8 52,892 50 154,020 194 Var(P) * [1]^2 / [2]^4 9*Var(p2) * [1]^2 / [2]^4 Var(q) * [1]^2 / [2]^4 SUM = Var(V) 268 14 93 41 9 425 1,463 4 2,926 565 114 5,072 1,063 1 10,914 158 66 12,202 V = [1] / [2] Output Rel Std(V) % Var(V) Std(V) 1.65*Std(V) 324 6.4 425 21 34 499 14.3 5,072 71 118 712 15.5 12,202 110 182 Input Note 1 1,051 5 2,762 53 87 792 5 1,568 40 65 P = Input Rel Std(P) % Var(P) Std(P) 1.65*Std(P) 242 2 23 5 8 152 5 58 8 13 360 10 1,296 36 59 Output Note 2 Note 3 223 5.0 127 11 19 312 5.6 306 18 29 Var(TC) Std(TC) Rel Std(TC) % p2 p1 Δp V1 Rel Std(V1) % Var(V1) [1] [2] 0 20 TC-3Δp*V1 P-3p2-q [1]^2 / [2]^4 Var(TC) / [2]^2 (3Δp)^2*Var(V1) / [2]^2 Note Note 1 Note 2 Note 3 All values in Blue are calculated by the author All values im Orange are the output of this spreadsheet For 1921-1930 V = Input and P = Output For 1921-1930 P = [1] / V + 3*p2 + q For 1921-1930 Var(P) = Var(TC)/V^2+(T-3ΔpV1)^2/V^4*Var(V)+9*Var(p2)+Var(q) 427 Table 18.19 Summary of the Estimates values for Average Prices and Volumes by Period and 90% Confidence Intervals thereof. Period V ± 1.65 Std P 1902-1908 1910-1914 1915-1920 1921-1924 1925-1930 324 499 712 1,051 792 34 118 182 87 65 242 152 360 223 312 Period V ± 1.65 Std P 1902-1908 1910-1914 1915-1920 1921-1924 1925-1930 320 500 710 1,050 790 30 120 180 90 70 240 150 360 220 310 ± 1.65 Std 8 13 59 19 29 Rounded Note ± 1.65 Std 10 10 60 20 30 All values in Blue are calculated by the author All values im Orange are the output of the spreadsheet Discussion of the results 1902-1908 V = 324 (290-350) kg P = NLG 242 (230-250) The estimated average volume of 324 kg cocaine HCl fits well with the quota of 300 kg p.a. which NCF had agreed with the German Cocaine Convention and the 30-35 kg supplied monthly to Gehe & Co. mid 1903.35 Another figure supporting the volume estimate is the production cost (without depreciation and interest) of 1 kg cocaine HCl of ca NLG 100 reported for the NCF in 1902.36 From the figures in Table 15.16 we calculate that in 1902 the production cost was 3 p + q + (Fixed Cost - salary Dr Kramers) / V = NLG 3*13.33 + 15 + (17,311-3,513)/338 = NLG 96 which is in good agreement with the reported NLG 100. Merck Darmstadt, ‘Conventionen und Vertretungen’, 1901/1902, 7; Koloniale Bank, Minutes of Board Meetings, Meeting of 14 August 1903. 36 Koloniale Bank, Minutes of Board Meetings, Meeting of 2 January 1902. 35 428 1910-1914 V = 499 (380-620) kg P = NLG 152 (140-160) No specific information is available for the NCF production volume over the period. The estimated value for V is in line with the design capacity of the new NCF factory of 750 kg p.a. The rather wide confidence interval for V results mathematically from the low price and the therefore small contribution margin (P-C) in the denominator of the formulas for V and Var(V). 1915-1920 V = 713 (530-890) kg P = NLG 360 (300-420) This is the least certain of the estimates for V. The large confidence interval results from of the limited information on the price which resulted in an estimated relative standard deviation of 10% of the price. As a result of the installation of a second extractor in 1917 the design capacity of the factory doubled to 1,500 kg p.a. from 1918 onwards. 1921-1924 V = 1,051 (960-1,120) kg P = NLG 223 (200-240) Estimate of the price from the volume. Despite the rather large estimate for the standard deviation of the ethocaine contribution margin (20% relative) the confidence interval of the price estimate is quite narrow (± 10%). This is due to the mathematics of the calculations. 1925-1930 V = 792 (710-860) kg P = NLG 314 (280-340) The average price for cocaine HCl and cocaine base of NLG 333 for the period as calculated in Table 18.14. That is within the estimated 90% confidence interval of NLG 280-340. 18.8 Summary and Conclusions In summary the method of making estimates of V and P from the financial figures over the various periods has produced satisfactory results. For the first and the last period the calculated amounts agree well with the values we know from other sources which confirms the in principle correctness of the method. The values of V provide us for the total period 1902-1930 with a picture of the size of NCF as cocaine producer which is compared with the total output of cocaine manufacturers worldwide in the following table and graph: 429 Table 18.20 and Graph - Cocaine Manufacture 1902-1930 NCF versus Total World (Annual averages, kg Cocaine HCl p.a.) Period 1902-1908 1910-1914 1915-1920 1921-1924 1925-1930 Notes World Total NCF 320 500 710 1,050 790 Percent NCF 11,500 15,700 11,400 12,800 8,900 90 % Conf Interval 3 3 6 8 9 ± 0.3 ± 0.7 ± 1.5 ± 0.8 ± 1.0 World Totals calculated from data contained in Table 17.11 Ca 200 kg of NCF's production 1925-1930 was as cocaine base Manufacture of Cocaine NCF versus Total World 1902-1930 kg Cocaine HCl p.a. 20,000 15,700 15,000 11,500 11,400 12,800 8,900 10,000 5,000 320 500 710 1,050 790 1902-1908 1910-1914 1915-1920 1921-1924 1925-1930 0 NCF Total World The above table and graph are the copestone of the calculations in chapters 16, 17 and 18. They show the NCF as a relatively small company with a modest but continually increasing market share. The figures prove the incorrectness of exaggerated statements on the size and the relative importance of the NCF as a cocaine manufacturer.37 In Table 18.16 estimates of the average annual values of all major commercial, financial and production parameters are brought together in the form of condensed Profit & Loss Accounts for each of the periods. The estimates provide valuable insight in the performance of the NCF as a commercial organisation during the period 1902-1930. For example: M. de Kort in P.l Gootenberg (Ed.) Cocaine, Global Histories (1999) 132: “In 1910 [NCF] could claim to be largest single cocaine manufacturer in the world” and P. Gootenberg, in Ibidem, page 11: “ …with Amsterdam’s giant monopoly NCF factory, by 1910 the Dutch came to dominate (for a decade) world cocaine and coca commerce”. 37 430 LIST OF LETTER-SYMBOLS USED IN CHAPTER 18 Profit Estimates V P C T W Volume (quantity) of cocaine HCl sold / produced (kg) Average net selling price cocaine HCl (NLG/kg) Variable production cost cocaine HCl (NLG/kg) Total contribution margin NCF (NLG) Net profit NCF (NLG) D F PS B R Dividend paid to NCF shareholders (NLG) Fixed cost (NLG) Amount paid to holders of profit-sharing notes NCF (NLG) Bonuses paid to NCF directors (NLG) Retained earnings (NLG) Variable Cost A c.i.f. f.o.b. Total alkaloid content of coca leaf (%) cost, insurance and freight (included in the price) free on board (insurance and freight not included in the price) p p1 p2 Unit cost Java coca leaf (NL cents per half kg per % total alkaloid) Unit cost Java coca leaf NCF supplied by Soekamadjoe (NL cents) Unit cost Java coca leaf NCF purchased on the open market (NL cents) q Cost of chemicals, solvents and energy in 1 kg cocaine HCl (NLG/kg) Other Factors – Ethocaine VC VE Volume of cocaine HCl produced (kg) Volume of ethocaine produced (kg) PC PE Average net selling price cocaine HCl (NLG/kg) Average net selling price ethocaine (NLG/kg) CC CE Variable production cost cocaine HCl (NLG/kg) Variable production cost Ethocaine (NLG/kg) TC TE Contribution margin cocaine (NLG) Contribution margin ethocaine (NLG) V1 V2 Volume of cocaine HCl produced from coca leaf ex Soekamadjoe (kg) Volume of cocaine HCl produced from coca leaf ex open market (kg) C1 Variable production cost cocaine HCl (NLG/kg) made from coca leaf sourced from Soekamadjoe Variable production cost cocaine HCl (NLG/kg) made from coca leaf bought at the open market from Soekamadjoe C2 431 Solving the Equation and Statistical Δp p2 – p1 Std(x) Rel Std Var(x) Standard deviation of x Relative Standard deviation Variance of x Rel Var Relative variance 432 433 CHAPTER 19 SUMMARY AND CONCLUSIONS OF PARTS I AND II Part I – The History The discovery by Koller in 1884 that cocaine is an effective local anaesthetic led to a surge in the demand for the product and its raw materials. That kindled the fledgling industry of cultivation of the coca plant on Java, and after the discovery that the alkaloids from Java coca could be converted into cocaine with good yield, the future for this raw material was bright. Because of the patent situation in Germany there were some initial hurdles but in the Netherlands where there was no patent law at the time, the availability of cheap coca leaf from Java led in 1900 to the establishment of the Nederlandsche Cocaine Fabriek by van Hengst, a coca grower from Java, and the Koloniale Bank. The building of the factory in Amsterdam and the start-up of the production proceeded without problems and the cocaine was sold on contract to Gehe & Co, a member of the German cocaine convention. This arrangement worked well for a number of years and NCF made a good profit. However, cocaine is a commodity product sold in an inelastic market and competition for sales volume results in a sharp price decline. High prices attract competition and the cocaine market was intrinsically unstable. Cocaine conventions (cartels) were formed by (larger) manufacturers to establish a minimum price and production quotas usually worked for a number of years but collapsed when the price was set too high and outsiders entered the market. When prices became rock-bottom again, the outsiders would leave the market and the cycle would start again. It was the main reason that cocaine manufacturers and, in general, any alkaloid manufacturer, experienced periods of variable profitability. For NCF the first period of lean years lasted from 1906 to 1915 but the company survived on the basis of low cost Java coca supplied by Soekamadjoe, originally owned by van Hengst and later taken over by the Koloniale Bank. This was an important stabilizing factor for NCF. It made the decision of 1908 to build a new and larger factory outside Amsterdam easier. World War I opened-up the market for NCF and profitability was very good until 1920. Then another swing in profit occurred, this time downwards, as a result of competition returning to the market. Another factor seriously affecting the market was international narcotics control that was gradually implemented after the Geneva Convention of 1925. The trade became restricted to the need for medical applications, resulting in a reduction in size of the cocaine world market by more than 50%, cocaine thereby becoming an unimportant product. Also, movement of the controlled substances became less free as a result of the provisions of the Convention. In the Netherlands the terms of the Convention came into force in 1928; the export market for NCF shrank but prices went up and the income was not immediately unduly affected. It was, however, clear that longer term finding of new products which could be manufactured in the existing facilities was essential for NCFs continued existence. NCF took the logical step to build on its existing experience as an alkaloid manufacturer and entered the opiate business by the production of morphine and codeine from opium after having developed the necessary processes. 434 Profitability of NCF during the 1930s was quite stable as cocaine production and sales were gradually replaced by those of opiates, and payments by the Cocaine Cartel continued. During World War II production at NCF and Bonnema, a second manufacturer, which started producing opiates in the 1920s, came to a virtual halt and profits disappeared accordingly. After the war business returned slowly to normal but the opium price, which had increased substantially during the war, stayed high, causing NCF and Bonnema to explore the use of poppy straw as an alternative raw material. Initially Dutch poppy straw was used but this was not an economical option. However, the extraction of poppy straw imported from Turkey and Yugoslavia turned out to be feasible and during the 1950s morphine production was based on the use of these raw materials. The poppy straw process yields as the main product Concentrate of Poppy Straw (CPS), a crude morphine which is used as the raw material for the making of codeine, the principal opium alkaloid of the trade. The production cost of CPS was low as a result of the low cost of the poppy straw and a new market opened up: selling CPS in competition with opium to codeine manufacturers. Bonnema, renamed Verenigde Pharmaceutisch Fabrieken (VPF) in 1948, took the lead and invested in modern extractors. NCF followed at a distance. Morphine (CPS) production in the Netherlands increased from ca 2 t p.a. during the first half of the 1950s to ca 5 t p.a. (5% of the total world production) during the second half. Most of the production was exported either in the form of CPS or, after conversion, as codeine. The 1960s was a period of major change in the Dutch opiate industry. In 1962, NCF was acquired by Koninklijke Zwanenberg Organon (KZO), and the take-over of VPF followed in 1964. The NCF production facilities in Amsterdam were closed and all operations were merged with those of the VPF at Apeldoorn. Average morphine production in the Netherlands was ca 10 t p.a. during the 1960s. The production costs of CPS and codeine at Apeldoorn were low, but world market prices were depressed because of overproduction. In 1971 a sea change occurred for the opiate industry in general and for VPF in particular: as a result of an agreement with the USA the Turkish government decided to ban poppy cultivation in Turkey completely. VPF was able to organise procurement of poppy straw from India as the alternative raw material but the average morphine production fell back to 6.5 t p.a. during the period 1971-1975. Turkey resumed poppy cultivation in 1975 and supplied VPF with poppy straw from 1976, but it was clear that supplies would cease once the Turkish poppy extraction plant, which was under construction, became operational. That was a few years away and in the meantime the VPF, now as part of Diosynth, processed large quantities of Turkish poppy straw and supplied US codeine manufacturers with considerable quantities of CPS. Prices were high and profit soared accordingly. It was, however, clear that future supplies of poppy straw to Diosynth were most uncertain. From 1980, a number of unfavourable developments for Diosynth came to the fore: the Turkish poppy extraction plant came on stream; the US government ruled that at least 80% of all opiate raw materials imported into the USA would be sourced from India and Turkey; and prices came down because of increased production of opiate raw materials in India, Australia and Hungary. Diosynth sought to solve the raw material supply problem by imports of poppy straw from India and Poland, and by growing poppies in the Netherlands. None of these provided an economically viable solution. The ultimate result was that in 1988 the poppy extraction facility in Apeldoorn was decommissioned. 435 Codeine manufacture from purchased CPS continued until 1993 but was then shut down because of insufficient profitability of the business. This was the end of the manufacture of narcotic drugs in the Netherlands. It was caused by Diosynth’s incapacity to find a solution for the raw material problem and the lack of a sufficiently large accessible market. Diosynth continued to manufacture nal-compounds, which are non-controlled opiates, but also this business was abandoned, in 2005. * * * In conclusion, we can say that the legal narcotics business is complex and challenging. Consumption of the products is determined by the needs for them as essential medicinal products, and the demand cannot be stimulated by lowering the price. As a result, the market for the bulk product has a tendency to be unstable because overproduction leads to strong competition to gain a larger market share, and to price deterioration. Extended periods (years) of low prices are common in this industry. On the other hand, raw material shortages have the effect that prices for the end product go up very substantially. An example is the steep price increase for opiates during the 1970s after Turkey stopped the production of opium and poppy straw in 1972. The products are commodities and competition for market share is on price only. In the open world market a company with a lower production cost will long term displace a company incurring higher cost. Because the cost of the plant raw material represents the major part of the total production cost, access to an exclusive, reliable source of low cost raw material is essential. NCF had such a reliable source for low cost Java coca in Soekamadjoe, and could survive the low cocaine prices during the period 1906-1914 as a result. After World War II when the price of opium had increased very substantially both NCF and VPF changed over to poppy straw as the raw material. Access to low cost poppy straw from Turkey and development of modern extraction technology was the basis for the expansion of VPF as a morphine producer during the late 1950s. Morphine was sold as CPS which opened up a new market, much less restricted by regulation than the codeine market. In the 1960s VPF became the largest manufacturer of CPS in the world. In the second half of the 1970s, after resumption of the poppy cultivation in Turkey, VPFs large extraction capacity and good yields were the basis for the supply of large quantities of CPS to US codeine manufacturers, thereby achieving very favourable financial results for Diosynth. Being located in a protected home market of sufficient size for end products (codeine) is a condition for success for an opiate manufacturer. Protected here means that imports are not allowed and that domestic prices can be maintained at a profitable level on domestic sales volume alone. Any additional export sales into the open world market (at lower prices) brings additional profit. Examples of countries with quite large protected home markets for codeine operating in the open world market are France and the UK. The smallness of the Dutch home market limited the competitiveness of codeine produced in the Netherlands. Raw material supply problems caused the eventual downfall of Diosynth as a morphine manufacturer after no viable alternative could be found when the supply of Turkish poppy straw came to a halt in the early 1980s. The lack of a suitable low cost raw material resulted in the shutting down of the extraction facilities in 1988. The Netherlands’ home market was small and not protected, a factor that contributed to Diosynth ultimately also ceasing codeine production. 436 Part II – Estimates and Models Quantitative information on the production of cocaine for the years before 1930 is scarce. For a good understanding of the industry and the place of NCF therein it is considered important to know, at least approximately, the quantities that were manufactured annually. The method chosen in chapters 16-17 to make estimates of cocaine manufactured was to multiply quantities of cocaine raw materials exported from the countries of origin to the manufacturing countries by yield factors i.e. the amounts of cocaine that could be produced from a standard weight of the raw material. For each of the raw materials: Peru coca, Java coca and Crude Cocaine from Peru, export and import statistics were collected and analysed and checked for compatibility using the principle that over time total quantities exported should be equal to total quantities imported. For Peru coca this turned out not to be the case over certain periods and the most likely cause of one of the discrepancies was found to be Spillane’s estimate of coca leaf imported into the USA. For further analysis the Goods-In-Transit (GIT) method (Appendix 3) was developed which showed that these estimates were too high and which correction factor should be applied. Another discrepancy in the Peru coca statistics showed up and three different scenarios for an explanation were postulated. From the most likely scenario it was concluded that the German import statistics must have been erroneous. Finally, when studying the graph of Peru coca exported to other countries than the USA versus time, it was found that, ignoring certain deviations, an approximate straight line appeared representing the amounts of Peru coca exported to Europe. The corresponding regression line representing the amounts was used to make estimates of the quantities of Peru coca exported to Europe, while the deviations were interpreted as exports from Peru to Chile and imports of Java coca into the USA. Some Peru coca was used in the production of Coca-cola, Vin Mariani and other beverages. To find at the quantity of coca leaf used for making cocaine, the quantities of coca leaf used for beverages had to be deducted from the total import. Estimates of the amount of Peru coca used for making a “de-cocainised” coca extract for Coca-cola were made on the basis of Coca-cola sales statistics. Further estimates were made of the amounts Peru coca used for other beverages. These estimates are rather broad and the uncertainty of the amounts calculated is quite large. It was shown, however, that because of the relative smallness of the quantities of coca leaf used for beverages, the accuracy of the estimates of the total amounts of cocaine manufactured was not unduly affected. No records are available of quantities of cocaine manufactured by NCF during the period 1900-1924. To put to rest the persistent statements in various publications that in or around 1910 the NCF was the largest cocaine manufacturer in the world, a method was devised to make estimates of quantities of cocaine sold by NCF for the period 1902-1930. The principle of that method was that sales volume (V) and prices (P), together with the manufacturing costs and overheads, determine the profit made by the company. On that basis the product P times V, the sales revenue for the period, was calculated from data available from NCF’s financial administration and from factory costs. Sales volume V in kg cocaine was calculated subsequently using the average selling price P derived from market information. The accuracy of the various estimates was assessed by calculating the variances thereof in some cases using ‘educated guesses’ of the standard deviations of the parameters by the 437 author. This introduces a subjective element in the calculations and challenges the correctness of the application of the statistical methods used. It is, however, believed that the calculated confidence intervals provide a useful indication of the uncertainty of the estimates, assuming correctness of the model. Drawing conclusions from historical information by means of calculations and the application of statistical methods is known as “cliometrics” or “historiometrics”. Not all historians support the use of such methods; the positions of those in favour and those against are well stated in a booklet by Fogel and Elton, Which Road to the Past? 1 In the opinion of the author of this dissertation application of cliometric methods can lead to “discovering” insights into historical situations not attainable by traditional methods. The calculations in Part II are an example thereof. However, the value of the results obtained depends on the appropriateness of the mathematical model used, the quality of the input and how statistical methods are applied. Strict rules cannot be provided; the choice of the model is determined by the views of the historian responsible for the study, the data used as input are “non-repeatable” facts, often limited in number, and the application of certain statistical procedures were applied may from a strict mathematical point of view not always be entirely justified. Notwithstanding the above, the author is of the opinion that cliometric methods are valuable for interpretation of data series and may lead to new insights. The bottom line is in the interpretation of the results; the results are necessarily approximations and should, as far as possible, be accompanied by “guesstimates” of the uncertainty thereof. There is always a subjective element involved and the validity of the conclusions depends on the expertise of the historian responsible. But the calculations derive their value from the demonstration that no plausible error in the numbers used as input, will make the accuracy of the final result unacceptable. It is the experience of the author of this dissertation that careful analysis of complex quantitative data, while trying to construct a fitting model, forces one to work very carefully, taking into account all available data, thereby avoiding unfounded interpretations which may result from an inclination to keep the reader’s attention.2 1 R.W. Fogel, and G.R. Elton, Which Road to the Past? Two Views of History, New Haven and London 1983. D.K. Simonton, Psychology, Science and History. An introduction to Historiometry, New Haven and London (1990) 17. 2 438 439 PART III APPENDICES, ARCHIVES AND BIBLIOGRAPHY, SUMMARY IN DUTCH, CURRICULUM VITAE 440 441 APPENDIX 1 RELATIONSHIPS BETWEEN THE FAMILIES VAN HENGST AND HUYGEN DE RAAT TH TH IN THE DUTCH EAST INDIES (JAVA) DURING THE 19 AND THE EARLY 20 CENTURY PEOPLE AT THE OUTSET OF THE CULTIVATION OF COCA ON JAVA Introduction The families Van Hengst and Huygen de Raat were related by marriage and several members were involved in the cocaine business through ownership/management of the Soekamadjoe plantation on Java and the Nederlandsche Cocaine Fabriek in Amsterdam. Knowledge of the relationships between and within the families Van Hengst and Huygen de Raat provides an insight into how ownership of the cocaine business arose and developed over time. Key person of the early cocaine business on Java was Johannes Van Hengst who was married to Jenny Huygen de Raat. Johannes Van Hengst was the principal owner of the Soekamadjoe estate at Tjibadak, the largest plantation of coca on Java during 1890-1900, and the major shareholder of the NCF at its inception in 1900. The wealth of the Huygen de Raat family was created by Willem Karel Eduard Huygen de Raat who amassed a fortune during his working life of 50 years by the establishment and exploitation of plantations for rice, coffee and cinchona on Java. Shortly before his passing, his assets were placed in a limited liability company (NV) with a capital stock of 2,100,000 guilders, the shares of which were distributed among his heirs (mainly his children and grandchildren) upon his death in 1887. 1 From 1881 to 1887 Johannes van Hengst managed the estates of father-in-law W.K.E. Huygen de Raat, first as manager (administrateur), and later as director. The genealogy of the families Van Hengst and Huygen de Raat was put together by researching family documents at the Koninklijk Instituut voor Taal- Land- en Volkenkunde (KITLV), Leiden, the Centraal Bureau voor Genealogie (CBG) and the Koninklijke Bibliotheek (KB), The Hague, in conjunction with publications on the cocaine industry. The result of the research is depicted in the genealogical chart appearing on the next page. 1 Collectie Huygen de Raat, KITLV-inventaris No 58 (H970), Koninklijk Instituut voor Taal- Land- en Volkenkunde, Leiden: Toelichting (explanation) and Item 14 Jan Hendrik DE GROOT DE GROOT DE GROOT 3 2 1 Cientje VAN DER SPEK Robbert HUYGEN DE RAAT Mathijs N. WIJT ?-1913 Charlotte Henrietta HUYGEN DE RAAT 1854-1876 Michael Theophile H. PERELAER 1831-1901 Amelie Wilhelmina A. HUYGEN DE RAAT ?-1880 G.C.R.R. DE GRAEFF ?-1923 Angeline HUYGEN DE RAAT ?-1934 Willem Karel E. HUYGEN DE RAAT ?-1887 Hendrik (HUYGEN) DE RAAT 1789-1841 Johannes DE RAAT 14 13 12 11 10 9 8 7 6 5 4 Jenny HUYGEN DE RAAT ?-1935 Henrietta Elize E. HUYGEN DE RAAT 1830-1876 Margrita HUYGEN 1795-1840 Maria Johanna VAN RIJN two children seven children HUYGEN DE RAAT 16 15 14 13 18 17 Johannes VAN HENGST ca 1848-1910 20 19 Fredericus Ferdinandus J. VAN HENGST 1816-1883 Johannus Baptist P. (VAN) HENGST 1791-1863 Gradus Antonius HENGST VAN HENGST Wijnand Adolf VAN WEELDEREN 1845-1898 Maria Johanna. VAN HENGST ca 1850-1920 Antoine MASSINK 1851-1911 Henrietta Fredrica VAN HENGST 1855-1937 Frederik Hendrik J. VAN HENGST ?-1891 Johanna Catharina PROHN 1791-1840 Anna Catharina K. CONINX 27 26 25 24 23 22 21 Dossier Van Hengst (Indië) at the CBG, the Hague, including notices of death and a letter from W van der Lee dated 10 July 1972 Collectie Huygen de Raat, Leiden. KITLV-Inventaris 58 (H 970) Research by the CBG, the Hague, Report contained in a letter dated 30 October 1972 Dossier Van Hengst (Indië) PRINCIPAL SOURCES 442 Figure 1 Genealogical Chart of the families Huygen de Raat and Van Hengst Principal Sources 443 Principal Sources of information for the Genealogical Chart of the Families Huygen de Raat en Van Hengst (1) Report on the research by the CBG on the parentage of Mrs H.P. van de LeeMassink. 2 This report provides genealogical information on the great-grandparents of Mrs H.P. van der Lee: Fredericus F.J. van Hengst and Henrietta E.E. Huygen de Raat and their forbears.3 The family relationships of these people are depicted (yellow rectangles) in the Chart on page 3. It shows the pedigree starting with Johannes de Raat and Gradus A. Hengst as the male ancestors, living in the second half if the 18th century. The surnames of both families changed in the next generation. Hendrik, the son of Johannes de Raat called himself Hendrik Huygen the Raat some time after his marriage to Margrita Huygen, and Johannes B.P. the son of Gradus Hengst became Johnannes B.P. van Hengst. The marriage between Fredericus F.J. van Hengst and Henrietta E.E. Huygen de Raat was the first matrimonial link between the families. The second was established in the next generation when Johannnes van Hengst (a son of Fredericus F.J. van Hengst) married Jenny Huygen de Raat (a niece of Henrietta E.E. Huygen de Raat). (2) Death notices present in the Dossier Van Hengst (Indië). 4 A death notice (1891) shows the names of the children of Fredericus F.J. van Hengst and Henrietta E.E. Huygen de Raat viz. Johannes van Hengst, Frederik Hendrik J. van Hengst, Henrietta Fredrica van Hengst (married to Antoine Massink) and Marie Johanna van Hengst (married to Wijnand Adolf van Weelderen). This confirms that Johannes van Hengst was the brother of Henrietta Fredrica van Hengst, the grandmother of Mrs H.P. van der Lee-Massink. The death notice of Henrietta Fredrica van Hengst (1937) is also present in the dossier. These names are entered in the Chart (Figure 1) in the blue rectangles. (3) Collection Huygen de Raat. 5 This collection is held at the Koninklijk Instituut voor Taal- Land- en Volkenkunde (KITLV), Leiden, and contains 54 documents pertaining to the N.V. Handel- en Landbouw Maatschappij Huygen de Raat, the limited liability company, in which, shortly before his death, the assets of Willem Karel Eduard Huygen de Raat were placed, allowing for a convenient transfer of his considerable wealth to his heirs. The documents also provide detailed information about individual members of the family over the period 1874-1917. 2 The report is contained in a letter by W. Wijnaends van Resant (conservator CBG) to W. van der Lee dated 30 October 1972. Dossier Van Hengst (Indië), Centraal Bureau voor Genealogie, The Hague. 3 Research leading to the report was instigated by Ir. W. van der Lee, the husband of Mrs H.P. van der LeeMassink. Letter to the CBG dated 10 July 1972. Dossier Van Hengst (Indië), CBG, The Hague 4 Dossier Van Hengst (Indië), CBG, The Hague. 5 Collectie Huygen de Raat, KITLV-inventaris No 58. 444 W.K.E. Huygen de Raat had four daughters and one (natural) son.6 All four daughters were married, Angelina to G.C.R.R. de Graeff, Amelie W.A. to M.T.H. Perelaer, Charlotte H. to M.N. Wijt and Jenny to J. van Hengst.7 At the time of the passing of W.K.E. Huygen de Raat (1887) Amelie and Charlotte were already deceased and the son, Robbert, was still under age. W.K.E. Huygen de Raat had eleven grandchildren, seven from Amelie Perelaer and two from Charlotte Wijt. J.H. de Groot is mentioned as maternal great-uncle of the grandchildren; he was appointed as their co-guardian.8 From this information it is concluded that J.H. de Groot was the brother of W.K.E. Huygen de Raat’s late wife. No further information was found, however, on the late wife. W.K.E. Huygen de Raat was born around 1820 and belonged to the generation of Henriette E.E. Huygen de Raat.9 Because of this and the uncommon surname it is almost certain that he was a brother of Henriettte and a son of Hendrik. W.K.E. Huygen de Raat and relatives are placed accordingly in the Chart (Figure 1) in the pink rectangles. (4) A sequence of booklets (marked ‘confidential’) written by J. van Hengst , H.T.M. Perelear, J.E Gimberg and Robbert Huygen de Raat respectively; mainly on the financial disputes that arose about the settlement of the estate of W.K.E. Huygen de Raat.10 After the death of W.K.E. Huygen de Raat in 1887 a feud developed within the family as a result of disagreements on matters related to the inheritance. Parties were J. van Hengst, his wife Jenny and J.H. de Groot on one side and M.T.H. Perelaer, M.N. Wijt and G.C.R.R. de Graeff, later supported by J.E. Gimberg, director of the N.V. Handel- en Landbouw Maatschappij Huygen de Raat, on the other. These disagreements led to a worsening of the relationships within the family and ultimately to a feud that continued well after the settlement of the estate and after Van Hengst and Jenny had sold their shares in the company to Perelaer and Wijt in 1890. Van Hengst and Perelaer started a polemic which took the form of the writing of a sequence of booklets between 1890 and 1895 by which parties accused each other of lying, dishonesty etc. Matters were so complicated and involved so much detail that, for an outsider, it is difficult to arrive at an opinion of who was right and who was wrong. The booklets contain, however, a wealth of information on family matters and family members and are therefore useful for our purpose. At a later stage a dispute developed between Robbert Huygen de Raat and J.E. Gimberg on the management of the company which led to two booklets written by Robbert in 1902. Also these booklets are full of details on complex matters which make them also difficult for an outsider to read. The copies of these booklets available at the KITLV, Leiden, do, however, contain extensive comments written in the margin by an insider. 6 Collectie Huygen de Raat, Items 32, 38, 41 and 43. J. van Hengst, Verdediging van J.van Hengst contra Perelaer c.s. (1893) 2. Koninklijke Bibliotheek, The Hague. 8 Collectie Huygen de Raat, Items 42 and 44. 9 W.K.E. Huygen de Raat died in 1887 after a working life of 50 years. Collectie Huygen de Raat, Item 14. 10 J. van Hengst, Laatste woord van J. van Hengst: contra Perelaer c.s. (1890), J. van Hengst, Verdediging van J.van Hengst contra Perelaer c.s. (1893), H.T.M. Perelear, Beantwoording van de Verdediging van J.van Hengst contra Perelaer c.s.(1894) J.E. Gimberg, Toelichting op de Verdediging van J.van Hengst (1894), H.T.M. Perelaer, Mijn laatste woord op het Laatste woord van J.van Hengst (1895), R.Huygen de Raat, R. Huygen de Raat contra J.E. Gimberg (1902) (two different booklets under the same main title). 7 Jan Hendrik DE GROOT DE GROOT DE GROOT 3 2 1 Cientje VAN DER SPEK Robbert HUYGEN DE RAAT Mathijs N. WIJT ?-1913 Charlotte Henrietta HUYGEN DE RAAT 1854-1876 Michael Theophile H. PERELAER 1831-1901 Amelie Wilhelmina A. HUYGEN DE RAAT ?-1880 G.C.R.R. DE GRAEFF ?-1923 Angeline HUYGEN DE RAAT ?-1934 Willem Karel E. HUYGEN DE RAAT ?-1887 Hendrik (HUYGEN) DE RAAT 1789-1841 Johannes DE RAAT 14 13 12 11 10 9 8 7 6 5 4 Jenny HUYGEN DE RAAT ?-1935 Henrietta Elize E. HUYGEN DE RAAT 1830-1876 Margrita HUYGEN 1795-1840 Maria Johanna VAN RIJN two children seven children HUYGEN DE RAAT 16 15 14 13 18 Johannes VAN HENGST 1848-1910 20 19 Fredericus Ferdinandus J. VAN HENGST 1816-1883 Johannus Baptist P. (VAN) HENGST 1791-1863 Gradus Antonius HENGST 17 VAN HENGST Wijnand Adolf VAN WEELDEREN 1845-1898 Maria Johanna. VAN HENGST ca 1850-1920 Antoine MASSINK 1851-1911 Henrietta Fredrica VAN HENGST 1855-1937 Frederik Hendrik J. VAN HENGST ?-1891 Johanna Catharina PROHN 1791-1840 Anna Catharina K. CONINX 27 26 25 24 23 22 21 key people with respect to the establishment of the commercial cultivation of coca on Java during the 1890's. married to LEGEND 445 Figure 2 Genealogical Chart of the families Huygen de Raat and Van Hengst (uncoloured). Key People at the Outset of the Cultivation of Coca on Java 446 Information on J. van Hengst and others involved in the cocaine industry From information contained in documents mentioned in section 2 the following Curriculum Vitae of Johannes van Hengst has been constructed: 1848 1866 1867-1872 1872 1872 1875 1881-1886 1887-1889 ca 1886 1890 1890-1900 1893 1900 1909 1910 Born as a son of Fredericus F.J. van Hengst, warehouse-keeper at Tjikao (Preanger, Java), and Henrietta E.E. Huygen de Raat.11 Enters Government service. Custom-house Officer/Duty Collector (‘Commies/Algemeen Ontvanger’).12 Examination Higher Civil Servant (‘Groot Ambtenaarsexamen’).13 Senior Custom-house Officer at the Department of Civil Public Works.14 Marriage to Jenny Huygen de Raat.15 Manager of W.K.E. Huygen de Raat’s estates.16 Director of N.V. Handel- en Landbouw Maatschappij Huygen de Raat.17 Owner of the Soekamadjoe plantation.18 Sells his and Jenny’s shares in N.V. Handel- en Landbouw Maatschappij Huygen de Raat to Perelaer en Wijt for an amount of 345,000 Guilders.19 Soekamadjoe becomes the first major producer of coca on Java.20 Owner of four profitable unencumbered plantations for coffee, tea, indigo and tobacco respectively.21 Major shareholder of the Nederlandsche Cocaine Fabriek at its inception.22 Sells 84% of the Soekamadjoe shares to the Koloniale Bank.23 Year of his death.24 Summary of the involvement of certain family members in the cocaine industry: Johannes van Hengst after his training and career as a public servant became manager of the extensive estates of his very wealthy father-in-law W.K.E. Huygen de Raat. Van Hengst was successful and he accumulated sufficient capital himself to become the owner of the plantation Soekamadjoe which in the 1890s became the first large producer of Java coca. After the death of his father-in-law in1887, Johannes and his wife Jenny inherited one fifth of the estate, mainly in the form of shares in the N.V. Handel- en Landbouw Maatschappij Huygen de Raat which they sold to the brothers-in-law Perelaer and Wijt shortly thereafter. Van Hengst also invested in other plantations and was quite successful in his ventures. Through the Koloniale Bank, Van Hengst participated in establishment of the Nederlansche Cocaine Fabriek of which he became the major shareholder at its inception. Shortly before 11 Letter by W. Wijnaends van Resant (conservator CBG) to W. van der Lee dated 30 October 1972. J. van Hengst, Verdediging van J.van Hengst contra Perelaer c.s. (1893) 27. 13 J. van Hengst, Verdediging van J.van Hengst contra Perelaer c.s. (1893) 28. 14 J. van Hengst, Verdediging van J.van Hengst contra Perelaer c.s. (1893) 2. 15 H.T.M. Perelear, Beantwoording van de Verdediging van J.van Hengst contra Perelaer c.s.(1894) 91. 16 J. van Hengst, Verdediging van J.van Hengst contra Perelaer c.s. (1893) 6, 71. 17 Collectie Huygen de Raat, Item 14. 18 J. van Hengst, Laatste woord van J. van Hengst: contra Perelaer c.s. (1890) 12. 19 J. van Hengst, Verdediging van J.van Hengst contra Perelaer c.s. (1893) 58, 81. 20 This dissertation Chapter 4. 21 J. van Hengst, Verdediging van J.van Hengst contra Perelaer c.s. (1893) 72. 22 This dissertation Chapter 4. 23 Koloniale Bank, Minutes of Board Meetings, Meeting of 16 November 1909; Soekamadjoe, Minutes of Shareholders Meetings, Meeting of 12 August 1910. 24 Soekamadjoe, Minutes of Shareholders Meetings, Meeting of 12 June 1911. 12 447 his death in 1910, the majority of the shares in N.V. Landbouwmaatschappij “Soekamadjoe” were sold to the Koloniale Bank. His widow, Jenny van Hengst-Huygen de Raat, inherited the majority of the retained shareholdings in Soekamadjoe and the NCF shares. Frederik Hendrik J. van Hengst, the brother of Johannes, died in 1891. He was involved in a number of his brother’s ventures. He was manager of Soekamadjoe and as such he will have been for a short time involved in the cultivation of coca. He also was superintendent of Pandan Aroem, one of the ventures of Handel- en Landbouw Maatschappij Huygen de Raat.25 Antoine Massink was married to Henrietta Fredrica, one of Johannes van Hengst’s sisters. He was acting manager (‘administrateur titulair’) of the experimental garden and the agricultural/chemical laboratory of the Botanical Gardens at Buitenzorg and, as such, he will have had knowledge of the coca cultivation on Java.26 He was involved in the Soekamadjoe plantation. A.W.K. de Jong writes that in the 1890s Massing at Tjibadak was the owner of the largest coca plantation on Java.27 Soekamadjoe was located at Tjibadak and de Jong must have mistakenly assumed that Massink (not Massing) was the owner; it appears that Massink was the man with knowledge of coca cultivation rather than the owner of the plantation, which was J. van Hengst. It is likely that Antoine Massink was the person who suggested coca growing to Van Hengst. In 1910 Antoine Massink was Board member (‘commissaris’) of Soekamadjoe and minority shareholder (2%).28 Jan Hendrik de Groot was the brother-in-law of W.K.E. Huygen de Raat. In the family feud he took the side of Johannes van Hengst. From 1900 to 1908 J.H. de Groot is mentioned as a Board member (‘commissaris’) van de Nederlandsche Cocaine Fabriek.29 It is virtually certain that J.H. de Groot, the Board member, is the same person as Jan Hendrik de Groot, the brother-in-law of W.K.E. Huygen de Raat and that he was appointed to the Board to look after the interests of J. van Hengst. Willem Karel Eduard Huygen de Raat can be considered, in an indirect way, to be at the origin of the coca industry on Java. The example set by him of successful pioneering in establishing plantations on Java and his working relationship with his son-in-law Johannes Van Hengst will have opened the way for the latter to acquire the Soekamadjoe estate where the commercial cultivation of coca on Java started. Financial and other support by W.K.E. Huygen de Raat may well have contributed to the success of Soekamadjoe. 25 J. van Hengst, Laatste woord van J. van Hengst: contra Perelaer c.s. (1890) 13, H.T.M. Perelear, Beantwoording van de Verdediging van J.van Hengst contra Perelaer c.s.(1894), 23. 26 Dossier Van Hengst (Indië), CBG, the Hague. Note: Antoine Massink is not be confused with his cousin Aart Massink (deceased in 1899) who was involved in the management in one of W.K.E. Huygen de Raat’s estates. 27 A.W.K. de Jong, Chapter ‘Coca’ in: C.J.J. van Hall and C. van de Koppel, editors, De Landbouw in de Indische Archipel Vol II A (The Hague 1948) 873. 28 Soekamadjoe, Minutes of Shareholders Meetings, Meeting of 12 August 1910. Nationaal Archief, The Hague, Access No. 2.20.04 (Koloniale Bank). 29 Van Nierop & Baak, Naamlooze Vennootschappen, (1900-1908). 448 449 APPENDIX 2 SOME ADVERSE PUBLICITY ON NCF Unfortunate opinions on the NCF have been expressed by Ger Harmsen in his book Herfsttijloos (1993), by Dirk Kolf and Marcel de Kort in a newspaper article ‘NV De Witte Waan’ (1989), by Jeanette Groenendaal in a video documentary ‘Dutch Cocaine Factory’ (2007) and by Conny Braam in her book De handelsreiziger van de Nederlandsche Cocaïne Fabriek (2008). All four opinions are quite different, but one thing they have in common is the view that NCF made, inappropriately, exorbitant profits from making and selling cocaine. Harmsen’s basis for this criticism of the company is that in his opinion large profits were made while the health of factory workers was endangered by exposure to toxic substances. In Kolf and de Kort’s article the blame is laid in a much less explicit way, more by means of innuendo. It is in the title: ‘NV De Witte Waan’, translating as ‘The White Delusion Ltd’, and in statements such as: ‘…. “the Dutch cocaine barons could call themselves the largest manufacturers in the world” and “the boasting at the beginning of the century that the Netherlands was the largest and best cocaine manufacturer in the world would be better forgotten in 1975”.1 Jeanette Groenendaal’s documentary cannot be taken seriously (see below); it is only included here because of the title. Finally, Braams book is a novel but based on ‘true facts’ according to the website of the author. It is, however, a totally unfounded story of hundreds of thousand British and German soldiers who, stirred up by NCF cocaine, became “killing machines” and, if surviving, ended up as cocaine addicts. Ger Harmsen, “De natuur en de fabriek” Chapter 5 of Herfsttijloos (Colchicum autumnale): Een levensverhaal” In 1993 Ger Harmsen published his autobiography Herfsttijloos in which he describes his experiences when he, from 1938 at the age of sixteen, was employed at the NCF as a cleaner 2 of laboratory glassware for a few years. Ger Harmsen was a strongly left leaning intellectual who later in life was appointed as professor in dialectic philosophy at the University of Groningen (the Netherlands). Harmsen depicts the NCF at the time as a company that made extraordinary profits at the cost of the health of its factory workers. He writes: “possibly we received good wages because of the dangers and the very harmful vapours to which we were exposed” and “… a human life did not count here”. “We worked with the awful compounds and the probability of getting old in good health at the company was small.” (Translation HHB) As mentioned before in this study, some of the chemicals used at NCF at the time were certainly toxic, but procedures, instructions and supervision were such that related risks were reduced to acceptable levels. The situation at NCF was certainly not worse than that considered as normal in the fine chemical industry at the time. There was no oral history of deaths or serious work related health problems at the NCF in 1960, when the author commenced working there. In 2003, Mr. A. Kramer, former production manager at the NCF, aged ninety, expressed to the author his pleasure about the fact that so many former 1 2 1975 was the year that the official name of the company was changed into ‘NCF Holding BV’. G.Harmsen, Herfsttijloos (Colchicum autumnale): een levensverhaal (Nijmegen 1993). 450 employees of the NCF had long careers with the company until retirement and enjoyed life beyond.3 There is certainly no justification for Harmsen’s statements. The concern of the NCF Board for the well-being of the employees is reflected in statements on the NCF pension fund during Board meetings. NCF had, for the time, an advanced pension fund, fully funded by the company. Whenever necessary, substantial amounts were allocated from company profit to the fund. Harmsen is of the opinion that an additional week of wages paid to the workers at Christmas 1939 was the result of “exorbitant profits”. From the dividend paid over 1939 we see that profits were not exorbitant. In the Minutes of the NCF Board meeting of 28 December 1939 we read that the justification for the Board to approve the bonus was the wish to reduce hardship of the employees resulting from the increased cost of living. In his own words, work at the NCF was Harmsen’s first exposure to “capitalism in practice”. He writes that “an elementary sense of justice” made him condemn this experience. As an example he writes with a sneer about the big car of the director, who used to arrive late at the factory. Jeanette Groenendaal Video Documentary “Dutch Cocaine Factory” This video was presented at the International Documentary Festival Amsterdam (IDFA) in 2007. The video is not available in its totality on the Internet, but a presentation by Groenendaal, and a ‘trailer’ and fragments are.4 Her presentation is chaotic, the main theme appears to be that early in the 20th century enormous profits were made by the Koloniale Bank on cocaine made from Java coca. These profits are demonstrated by her quoting current black market selling prices for cocaine (Euro 25,000 to 30,000 per kg), and calculating that the cost of making cocaine was then 0.006 Eurocent per gram (Euro 0.06 per kg). It seems that she believes that the current black market prices were also obtainable on the early 1900s. The basis for her cost calculation (cost equal to the price of coffee) comes out of thin air and is further corrupted by an arithmetical error, making the calculated value 100 times too low. The ‘trailer’ includes pictures of a factory incorrectly marked as representing the NCF. The available fragments of the video show people happily buying a white powder in bulk (cocaine?) and contain seemingly unrelated images related to eavesdropping on phone conversations. One cannot make head or tail of it. Dirk Korf and Marcel de Kort Various publications From 1989, in several joint publications by the authors and by de Kort individually, it has been stated (erroneously) that around 1910 NCF was in ‘the position to call itself the largest cocaine factory in the world’.5 This statement has been uncritically repeated in serious publications on the cocaine industry and later in the popular press. The statement and its ramifications are discussed in some detail in this dissertation, in an extensive footnote to section 6.4., where it is shown that the statement cannot be correct. 3 Interview Mr A.Kramer, De Roekenhof Apeldoorn, 14 August 2003. YouTube video clips: ‘Dutch Cocaine factory’, a film by Jeanette Groenendaal. Premiere IDFA festival 2007 and ‘Nederlandse Cocaine Fabriek’ Parool TV, Jeanette Groenendaal presents her documentary ‘Dutch Cocaine Factory’; Review of the video-documentary: ‘De Nederlandse Cocaïne fabriek’ by Jeanette Groenendaal (2007) in Filmbanktour # 18, containing a brief outline of the content, www.filmbank.nl/artikel/373/ 5 See footnote [83] in section 6.4. 4 451 Another piece of (incorrect) information dessiminated by Kolf and de Kort on the NCF is that the company commenced the manufacture of amphetamine (speed) in 1941, “presumably for German soldiers”.6 No evidence for any involvement of the NCF in amphetamine production could be found in the literature and the product is not included in a list of NCF products developed from 1900 onwards, contained in the minutes of an NCF Board meeting of 1948.7 The information on NCF making amphetamine in 1941 is therefore incorrect. The amphetamine story was picked up by Braam and was subsequently devoured by the media with the unfortunate effect that the allegation: “... in 40-45 they started to make speed for Hitler and his cronies ...” (Du: “... in 40-45 gingen ze speed maken voor Hitler en zijn mannen ...”) appeared on the Internet after the appearance of Braam in the Vara talkshow “Pauw and Witteman” (see next section).8 Conny Braam De handelsreiziger van de Nederlandsche Cocaïne Fabriek In a recently published novel titled De handelsreiziger van de Nederlandsche Cocaïnefabriek the author, Conny Braam, presents a story about the experiences of a travelling salesman of the NCF during the latter part of the First World War.9 On Braam’s website, the book is presented as fiction based on “true facts” discovered by Braam during her research on the history of the NCF and the use of cocaine at that time.10 The reason that the book is discussed here is that a story is told which is totally at odds with the historical situation as emerging from the research for this dissertation. If there had been no claim that the novel was based on true facts, the book would have been ignored here. The claim exists however and has been strongly emphasized by Braam in subsequent interviews where many more additional “true facts” resulting from her “research” were disclosed. This compels to a critical evaluation of the text and the statements. In a review of the book by Ir. E. R. J. Wils it is stated that the problem with a novel is that true facts can transform seamlessly into actual untruths and fabrications.11 The story is built around conjectured very large supplies of cocaine by the NCF to both Germany and the United Kingdom where it allegedly was distributed by the army commanders to their own soldiers at the front during the First World War. According to Braam, the objective of the administration of cocaine was to make the soldiers fearless, to transform them into fierce combatants (“killing-machines”). As a result of the soldiers receiving cocaine, the likelihood of their being killed or maimed increased, and they became addicted. In the book it is stated that in this way in the order of a hundred thousand soldiers became cocaine addicts. The book suggests that the NCF was fully aware of these effects but did not care how its cocaine was used because profit making was more important. D. Korf and M. de Kort, ‘NV De Witte Waan. De geschiedenis van de Nederlandsche Cocaïnefabriek’ NRC Handelsblad (Newspaper) (1989) May 13 and Interview of M.de Kort by Sybilla Claus, in‘Nederland wist de weg met drugs’, De Telegraaf (Newspaper) (1994) May 14. 7 NCF Minutes of Board Meetings, Meeting of 1 June 1948. 8 www.ZapLog.nl 9 C. Braam, De handelsreiziger van de Nederlandsche Cocaïne Fabriek (Nieuw Amsterdam Uitgevers 2009). 10 http://www.connybraam.nl/ 11 E. R. J. Wils, Nederlandse cocaine aan het oorlogsfront, http://ssew.nl/nederlandse-cocaine-oorlogsfront (November 2009). 6 452 In interviews and promotional readings of the book, Braam has substantially enlarged on the story, mentioning even greater quantities of cocaine supplied by NCF than in the book, and making explicit and implicit accusations of immoral behavior by management and employees of the NCF, the Koloniale Bank and even the Dutch government.12 The misrepresentations by Braam of the historical situation include the following: (1) Cocaine was systematically and in substantial doses supplied to soldiers of the British and German armies by their own commanders during World War I to make them fearless fighters. Comments: Reports on systematic supplies of cocaine to British and German soldiers to make them fearless have not been encountered in any publications found during the research for this dissertation.13 Recreative cocaine use by soldiers on leave in London did occur but it was feared that this would “render them worthless as soldiers” and in 1916 the Defense of the Realm Act (DORA) was passed making it unlawful to supply cocaine and opium-based products to the military without a prescription.14 In 1917, in Germany the War Ministry’s Health Department started to control stocks of drugs including cocaine to suppress abuse. Braam mentions in an interview that Theodor Aschenbrandt, a German army physician, had found that tests on German soldiers with cocaine had shown that their endurance increased while hunger and fear diminished. She adds that the soldiers overestimated themselves as a result of taking cocaine and that they were more easily incited. Braam concludes: “In short, cocaine made good ’fighting-machines’ of them”.15 Aschenbrandt, in his publication of 1883 describes the reaction of the soldiers on taking cocaine as positive, especially on endurance; they did not feel hunger and were able to continue the long marches in full marching-kit without too many problems after consuming the cocaine. He summarises his experiences with cocaine as: “the effect of cocaine on the human body is more stimulating than that of alcoholic drinks and of cold coffee”. ‘Fear’, ‘overestimation of themselves’, ‘easy incitement’ and’ fighting-machines’ are not mentioned at all by Aschenbrandt.16 It appears that Braam took some liberties with her quotes from Aschenbrandt. That cocaine is an effective remedy for fear is challenged by Steven Karch M.D. He writes that “This claim [that it is an effective remedy for nervousness and stage-fright] is particularly strange because the symptoms of stage-fright are the result of high blood levels of stress hormones [….]. Coca[ine] actually increases the blood levels of such hormones”.17 It is concluded that Braam does not provide any evidence for large scale systematic supplies of cocaine to the British and German soldiers and that large numbers of cocaine addicts were created in that way. A good example of such an interview is that by Jan van Tienen: “Holland was the world’s biggest coke manufacturer”, www.viceland.com/blogs/en/2009/10/28; in Dutch: www.viceland.com/blogs/nl/2009/09/29. 13 Reports on distributions of unspecified quantities of cocaine to Australian troops at Gallipoli and to the Canadian army have appeared: Dominic Streatfeild, Cocaine (London 2007) 158-159. 14 Ibidem, 160. 15 Interview with Jan van Tienen, www.viceland.com/blogs/nl/2009/09/29 16 T. Aschenbrandt, ‘Die physiologische Wirkung und Bedeutung des Cocain. muriat. auf den menschlichen Organismus’, Deutsche Medizinische Wochenschrift 50 (1883) 730-732. 17 S.B. Karch, A Brief History of Cocaine (2nd Ed. Boca Raton 2006) 46. 12 453 (2) Sales of 13,941 kg of cocaine by NCF during 1919, mentioned in the book, and a production of 20,000 to 30,000 kg per annum after 1914, mentioned in an interview.18 Comments: The production capacity of the NCF for the period 1910-1917 was 750 kg cocaine p.a. and from 1918 onwards 1,500 kg. (Chapters 6 and 7 of this dissertation). The actual average annual production for the period 1915-1920 has been estimated at of the order of 700 kg cocaine (Chapter 15). Hence, Braam’s figures are a factor 20-40 times too large. At a daily required quantity to maintain an addiction of, say, 500 mg, 700 kg p.a. would be sufficient for only about 4,000 soldiers if all cocaine produced by NCF would have been used for that purpose. To keep 100,000 soldiers permanently addicted annual quantities of cocaine in the order of those estimated by Braam for the NCF production would be required. Braam’s “estimates” are possibly the result of such a calculation. The related “discovery” by Braam that the NCF was the largest cocaine manufacturer in the world at the time is equally unfounded. Merck, Darmstadt, produced an average of almost 7,000 kg p.a. during the period 1912-1914 and even 1,700 kg in 1918, and was thereby a much larger a cocaine producer than NCF (Section 5.3). (3) NCF supplied cocaine to all warring countries; supplies to the UK, Germany, France and Canada are mentioned specifically. Comments: The only countries the NCF supplied with cocaine during World War I mentioned in the article in the Pharmaceutisch Weekblad of 1939 quoted by Braam are the UK and Japan. In the UK and Japan no cocaine was produced at the time and supplies by the German manufacturers were cut off as a result of the War.19 This provided the NCF with the opportunity to supply the regular cocaine requirements of these markets. NCF will have supplied (smaller) quantities also to other markets but we are not aware of any publication in which the names of such countries appear. The Germans seem to have had ample cocaine from their own production during World War I; they put an embargo on the export in 1914 and diversions of cocaine from military stockpiles have been reported for 1920.20 (4) In 1942, the NCF manufactured amphetamine which it supplied to Germany . Comments: The NCF never manufactured amphetamine and consequently it did not supply this product to Germany. From 1937 NCF produced and sold racemic ephedrine, a nasal decongestant and cough medicine.21 Amphetamine and ephedrine are chemically related compounds but are not identical products. Braam will have found the erroneous information on NCF manufacturing amphetamine and supplying it to Germany in the newspaper article by Kolf and de Kort (1989) and in the interview of de Kort by Sybille Claus (1994).22 “Dutch Cocaine – the ultimate weapon”, Interview Braam by Marijke Peters for Radio Netherlands Worldwide. www.rnw.nl/english/article/dutch-cocaine-ultimate-weapon. (17 October 2009) 19 Japan commenced cocaine manufacture on a commercial scale in 1918 (Table 7.3) 20 H.R. Friman, ‘Germany and the transformations of cocaine, 1860-1920’ Chapter 4 in: P. Gootenberg, editor. Cocaine: Global Histories (London 1999) 96. 21 Nederlandsche Cocaïne Fabriek Notulenboek, Commissaris vergaderingen 23 Februari 1934 - 15 May 1950. (Minutes of Board Meetings 23 February 1934 - 15 May 1950). Meeting of 14 May 1937. 22 Korf and M. de Kort, ‘NV De Witte Waan, NRC Handelsblad (Newspaper) (1989) May 13 and Interview of M.de Kort by Sybilla Claus, in‘Nederland wist de weg met drugs’, De Telegraaf (Newspaper) (1994) May 14. 18 454 (5) The unhealthy situation in the NCF factory resulting in the death of an employee and the entirely heartless and irresponsible reaction by Ir. Cremers, the technical director of the NCF as described in the book on page 205. Comments: There are no reports of the death of an employee at the NCF as a result of exposure to “chemical vapours” or any other unhealthy situation in the factory. The reaction by the technical director as described in the book is an entirely baseless attempt to defame Dr G.H. Kramers, the technical director of the NCF at the time. As mentioned above, Braams has promoted the sales her book strongly by appearances on television e.g. on the talk shows ‘Paul en Witteman’ and ‘Phara’, by radio interviews and by book readings.23 Book reviews have been mostly favourable. It is of concern that, except for Ir. Wils, none of the book reviewers and none of the talk show hosts challenged the veracity of the under laying “facts”. These “facts” were passed on to viewers of the TV programs and readers of the reviews often in strong words. For example: ‘the abuses around cocaine which are brought to light’ (Du: “de wantoestanden rondom cocaïne die aan het licht worden gebracht”) (www.recensieweb.nl) and ‘a novel that opens the eyes for the double-dealing role which a Dutch company, with consent of the government, played during the war,’ (Du: “een roman die de ogen opent over de dubbelhartige rol die een Nederlands bedrijf met medeweten van de overheid speelde in de oorlogsgeschiedenis” (de Telegraaf). Such comments will influence the public opinion on the NCF much more than any serious publication on the subject will be able to do. In summary, the book by Braam is not based on “true facts” but is the result of a prejudiced interpretation of some publications supplemented with fabrications to arrive at a sensational story. That as a consequence an entirely untrue and detrimental picture of the Dutch cocaine industry was created and spread whereby the reputation of the NCF, the Koloniale Bank and their employees has been groundlessly besmirched, seems not to have bothered the author. Braam even qualifies the supply of cocaine by the NCF during World War I as a dirty episode in the Dutch history (“een smerig stuk Nederlandse geschiedenis”). Video clips (YouTube): De Nederlandse Cocaïne Fabriek deel 1’ Conny Braam guest at ‘Paul en Witteman’ (Vara TV talk show), 2 October 2009, ‘Paul en Witteman – 2 oktober 2009’ (Vara TV talk show), Appearance Conny Braam; ‘De handelsreiziger van de Nederlansche Cocaïne Fabriek’, Interview Conny Braam, “nwamsterdam” (publisher of the book), 8 October 2009 and ‘Conny Braam te gast bij Phara: Cocaïnefabriek’, 3 December 2009. 23 455 APPENDIX 3 THE DEVELOPMENT AND APPLICATIONS OF THE GOODS-IN-TRANSIT METHOD A3.1 Introduction Statistics on the trade in coca leaf are available for the years from ca 1890 onwards. These statistics mainly cover exports from Peru and Java and imports into Germany and the USA. Coca leaf was also exported to other countries but data on imports into these “Other Countries” are scarce. Assuming that the available statistics are correct and that no coca leaf was lost in transport, it is possible to calculate imports into Other Countries as the difference between the total quantities of leaf exported and the total quantities imported into the USA and Germany. For the calculation of the quantities of coca leaf imported into Other Countries we start with the simplest model for the trade in Peruvian coca using the annual quantities exported from Peru and the annual quantities imported into Germany and the USA. We assume that all goods arrived in the same year as they were exported. In this appendix we will make this model gradually more complex to reflect the real situation.1 For the simplest model, the mathematical relationship between the exports from Peru (P) and imports of Peruvian coca leaf into Germany, the USA and “Other Countries” (G, U and O respectively) is P=G+U+O (1) Hence the quantity imported into “other countries” can be calculated from O=P–G–U (2) In practice not all goods shipped in a particular year (i) arrive in that very same year at their destination. Shipping of coca leaves by sea from Peru to Europe and to the USA takes a fair amount of time and the result is that although most of the goods will arrive at their destination in the same year as exported, the remainder will arrive early in the following year. To take this into account we include the quantity of goods in transit at year end (GIT or Send) in the calculations. That year end quantity is equal to the quantity in transit at the beginning of the year plus the quantity exported less the total of the quantities imported during the year. The exports and imports as flows of goods the trade process can be represented graphically by: 1 Note: The model developed here for making these calculations can, with appropriate modifications, be used for the analysis of trade statistics in general. 456 Figure A3.1 Flow Chart Peruvian Coca S GOODS IN TRANSIT P Export G U O Imports P = Export Peru Coca; G, U and O are Imports Germany, the USA and Other Countries, respectively. S represents the level of goods in the box and is a function of time. If S1 is the quantity of goods in transit (at sea) at by the end of year 1 and S0 is that quantity at the beginning of that year, the following the mathematical relationship holds: S1 S0 P G U O (3) For a series of consecutive years (1 to n) this equation can be written as: O1 P1 G1 U1 (S1 S0 ) O2 = P2 – G2 – U2 – (S2 – S0) etc. On = Pn – Gn – Un – (Sn – S0) (4) Adding all these equations results in: n n n n 1 1 1 1 O i Pi G i U i (Sn S0 ) (5) Assuming a steady stream of goods being shipped during the year, Si will be roughly proportional with Pi, which can be expressed as Si = fPi in which formula f represents the fraction of the total quantity exported during the year, in transit at year end. The fraction f is equal to the shipping time in years; if the average shipping time is w weeks, then f = w/52. Assuming that for the period under consideration all f values being approximately equal to the average value f, the average value of O over a period of n years can be calculated using the following formula: O avg = P avg – G avg –U avg – f(Pn-Po)/n (6) From formula (6) it is concluded that if the average imports into Other Countries are calculated as the difference between exports from Peru and imports into Germany and the USA, an error is introduced amounting to f(Pn-Po)/n. The error depends on the difference between the quantities of goods in transit at the beginning and the end of the period and not on the amount of goods in transit in any year in between. The error is proportional to the shipping time and it becomes smaller when the period over which the averages are calculated increases. For a shipping time of 5.2 457 weeks and a period of 5 years the error becomes (Pn – Po)/50, which is negligible for practical purposes unless O average is very small in comparison with P. A3.2 Goods-in-Transit at Year End The considerations in section 15.1 above presume that the statistical data are correct i.e. without systematic errors, in other words that the relationship P = G + U + O holds when measured over a long period. In the real world that is not always the case. In chapter 16 when calculating O using the formula O = P – G – U, for a certain periods it was found that P < (G + U) resulting in negative figures for O, indicating possible incompatibility of the various statistics. For a closer analysis of this problem we consider to which extent negative values for O can be caused by variations in goods in transit (S) at year end. For that purpose the characteristics of the cumulative time series of annual values of T, “Goods in Transit at Year End Disregarding O”, is evaluated. The time series is represented by: Ti Ti1 Pi G i U i (T0 = S0) (7) A graph of T plotted against time gives a first clue for the evaluation. An example of three cases is presented with the following graph. The blue line, showing a gradual increase of the values of T with time indicates exports from Peru were greater than the sum of imports into Germany and the USA, or, in algebraic notation: P > (G + U). Such a line indicates positive values of O, implying that Peru coca was exported to Other Countries. Variations around a more or less horizontal line (the brown line) imply that virtually all coca was exported to Germany and the USA, P = G + U, and no coca going to Other Countries. Negative values of T (the green line) imply P < (G + U) and point to incompatibility of the statistics from year 4 onwards. Figure A3.2 Goods in Transit at Year End (Three Cases) T - values (tonnes) Goods in Transit at Year End Three Cases 300 250 200 150 100 50 0 -50 -100 -150 0 1 2 3 4 5 6 7 8 Years P > (G + U) P=G+U P < (G + U) incompatibilities This approach is especially valuable for analyzing time series which contain retrograde steps. In such case the graph for T shows one or more maxima i.e. the amount of goods in transit at year end becomes smaller with time, in which case a 458 more detailed investigation is required. The principle of the method of investigation is that at any time the quantity of goods in transit should be positive or zero. A retrograde step, implying Pi – Gi – Ui < 0, will result in a reduction of GIT at year end but should not be so large that GIT becomes negative. We recall that Ti = Ti-1 + Pi – Gi – Ui. If this calculation results in Ti < 0, it is a sign that either the average shipping time f used in the calculations is too low or that the sets data are incompatible. If Ti < 0, the value of the shipping time f used in the initial estimation of Ti-1 = S0 should be reconsidered. S0 = fP0 and a larger value for f will make all T values larger thereby reducing the likelihood that T values become negative. It is a matter of judgment for the case under consideration if the value for f that makes all Ti values positive represents a realistic shipping time. If the answer to that question is negative then the conclusion must be that the sets of data are incompatible. The procedure for the above investigation is the following: Estimate average shipping time (w weeks) and calculate the quantity of goods in transit at the end of each year as Si = fPi, using the factor p = w/52. Subsequently calculate for each year (i) the value of Ti using formula (6) commencing the series with To = So = fPo Next, starting with year 1, proceed sequentially as follows: If Ti > fPi we define the quantity of Di = Ti-fPi as delivered to Other Countries in that year.2 In other words, we assume that the quantity in transit at year end is equal to the average value of Si = fPi. Subsequently calculate an auxiliary variable T* which is defined as T less the quantities delivered. In mathematical terms: T*i+1 = Ti+1 – (Ti –fPi) = Ti+1 - Di (8) For any year (j) for which Tj* < fPj we assume that no goods were delivered to Other Countries; hence Dj = 0 and S at year end is equal to Tj*. This means that we keep Si as close as possible to the average value fPi. If the above results in a negative value for S at any year end, the procedure should be repeated with larger values for f until all values for Send are ≥0. The above procedure is best elucidated with the help of a worked example which is provided with the following table and graph. The table was constructed as an Excel spreadsheet using the “IF”-function to calculate the values for D and for Send.3 2 The symbol D(elivered) is used for the estimated quantity actually delivered to Other Countries as determined by the here described method to distinguish it from O as defined in equation (4) and from P-G-U. 3 D = IF((T*-fP)>0, (T*-fP), 0) and S end = IF(D>0, fP, T*) 459 Table A3.1 and Figure A3.3 Goods in Transit at Year End – Worked Example (f = 0.10; w = 5.2 weeks; kg 000) Year P 0 1 2 3 4 5 6 7 G+U 300 500 400 300 600 400 500 400 P-G-U 510 340 250 420 460 340 430 -10 60 50 180 -60 160 -30 T T* 30 20 80 130 310 250 410 380 30 20 80 90 210 0 160 20 S=fP D 30 50 40 30 60 40 50 40 30 0 40 60 150 0 110 0 kg 000 Good in Transit at Year End Worked Example 450 400 350 300 250 200 150 100 50 0 0 1 2 3 4 5 6 Year T T* S avg =fP S end S end Note: In the graph the distances between T*(brown) and S at year end (violet) represent D, the delivered quantity. 7 20 40 30 60 0 50 20 460 The table and graph show that using f = 0.10 (5.2 weeks shipping time): For all years Send ≥ 0, implying no incompatibilities of the statistics; P – G – U, as a first estimate for the quantities exported to Other Countries shows negative values for three of the seven years. For these three years the calculations result in D = 0, meaning no imports into Other Countries. Positive values for D are generated by the spreadsheet for all other years; The difference between the sum of D and the sum of P-G-U over the period is 360 - 350 = 10, representing the reduction in S at year end from the beginning to the end of the period, viz. 30 -20 = 10. Running the spreadsheet for various values of f in the range 0.05-0.30 resulted in negative values for GIT at the end of year 5 if f < 0.10. This implies a minimum average shipping time of 5.2 weeks. For all values of f the value of D remained 0 for the years 1, 5 and 7 and the distribution of the D’s over the other years changed only marginally (See the table below). This indicates that the method is not overly sensitive for inaccuracies in the estimates of f and that, if we run similar spreadsheets using an estimated value of the shipping time f, the outcome is still a good approximation. Table A3.2 Goods Delivered (D) as a function of the average shipping time f (years) (kg 000) f (years) Year 0.05 0.08 0.10 0.15 0.20 0.30 1 2 3 4 5 6 7 0 45 55 165 0 105 0 0 42 58 156 0 108 0 0 40 60 150 0 110 0 0 35 65 135 0 115 0 0 30 70 120 0 120 0 0 20 80 90 0 130 0 Sum of D 370 364 360 350 340 320 S end year 5 -30 -12 0 30 60 120 461 Note on the values of D, the quantities delivered. Once the calculations using the spreadsheet are completed it is possible to determine to which extent the actual quantities delivered in particular years are allowed to differ from the calculated D’s while still complying with the boundary conditions 0 < Send < 2fP set by the GIT-method.4 These modifications are allowed, with the proviso that the new D’s do not affect the already established minimum value for Send for the total period under consideration. Note on the use of the GIT-method It is the experience of the author with the GIT-method that the use of a hand-drawn graph of T, T*, Savg and Send against time in conjunction with a spreadsheet for making the calculations is very helpful for the interpretation of the figures. This applies in particular for the auxiliary parameter T* and the understanding of how quantities actually delivered are allowed to differ from the calculated D’s while still satisfying the boundary conditions When working purely numerically it is much harder to see how the various parameters interrelate. A3.3 Summary and Conclusions The “Goods-in-Transit” method (GIT-method) was developed for use in Chapter 16 for analyzing the problem posed by the negative values for imports into Other Countries, which were the outcome of initial calculations. For the period 1897-1903 application of the method resulted in elimination of the negative values by reassessment of earlier estimates of US coca imports by Spillane, resulting in an improved estimate of the ratio of the coca imports into the USA as a whole and those into New York. 4 For shipments of Java coca arriving at the auctions at Amsterdam during the period 1910-1915 we calculated for each year the ratio maximum/average of the monthly arrivals. We found an average of 1.9 (range 1.7-2.2), while months with zero arrivals occurred in each year. This indicates a range for Send of 0< Send <2pP, for a shipping time of one month. This range provides the boundary conditions for Send for our calculations. The import data were taken from P. Brusse, Jaarverslag voor Kinabast en Coca (1910-1915). 462 LIST OF LETTER-SYMBOLS USED IN APPENDIX 3 i The index i attached to any letter symbol means that the value refers to year i. Flowchart P G Total Export Peru Coca from Peru Import Peru Coca Germany U O Total Import Coca USA Import Peru Coca Other European Countries GIT Method GIT k p w T T* D S So Sn S end Goods In Transit Ratio Import Coca leaf USA / New York Fraction of the total quantity of coca exported during a year in transit at year end Fraction of the total quantity of coca exported during a year in transit at year end expressed in weeks (w = 52p) Quantity of coca in transit at year end assuming that no coca is delivered during the period Auxiliary variable equal to T minus the quantities delivered during the period Quantity of coca delivered Quantity of coca in transit at end of a year Quantity of coca in transit at the beginning of a period Quantity of coca in transit at end of year n Quantity of coca in transit at end of a period 463 ARCHIVES AND BIBLIOGRAPHY ARCHIVES Nationaal Archief (National Archive), The Hague 2.20.04/05 Koloniale Bank (from1957 Cultuurbank) Minutes Board Meetings, Reports by Management, Nederlandsche Cocaine Fabriek, Soekamadjoe, Coca Producenten Vereniging 2.05.21 Ministerie van Buitenlandse Zaken Volkenbondzaken. Beperking van de productie van verdovende middelen 2.07.076.07 Rijksbureau voor Pharmaceutische en Chemische Producten Project Bolkaf verwerking voor de Nederlandse overheid 2.15.39 Ministerie van Volksgezondheid, Welzijn en Sport. Archief Farmaceutische Hoofdinspectie, Beperking van de produktie van opium Ministerie van Buitenlanse Zaken (Foreign Affairs), The Hague Code 421 Openbare zedelijkheid enz. waaronder verdovende middelen Code 00.232.170 Verenigde Naties Stadsarchief (Municipal Archive), Amsterdam Gemeente Amsterdam, Hinderwetvergunningen Publieke Werken (PW 5180), Bouw-en Woningtoezicht (BWT 5221) Dienst Milieu en Bouwtoezicht (Dossier 39188) Brandweer (Dossier 29) Gemeente Ouder-Amstel, Hinderwetvergunningen Archief 5500, Inventaris Nr 690 Internationaal Instituut voor Sociale Geschiedenis (International Institute of Social History), Amsterdam Nederlandsche Cocaine Fabriek: Annual accounts, Photo book with index. 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WŐHLER, F., ‘Fortsetsung der Untersuchungen űber das Coca und das Cocain’, Annalen der Chemie und Pharmacie 121 (1862) 372-375. WÜEST, H.M., ‘A Hundred Years of Alkaloid Industry’, Chemistry and Industry (1937) Dec 4. 475 ZIMMER & CO, ‘Java-coca in 1888 en in 1889’, Teysmannia, 1 (1890) 174-175 and 189-190. MISCELLANEOUS Internet Akzo-Nobel. ’Announcement of the Integration of Organon and Diosynth’ www2.akzonobel.nl/nl/pharma/index.asp [2005]. Centraal Bureau voor de Statistiek, ‘Historie inkomen, vermogen en consumptie 1900-1998’. www.cbs.nl De handelsreiziger van de Nederlandsche Cocaine Fabriek, www.connybraam.nl Denker, John S. ‘A Discussion of How to Report Measurement Uncertainties’, Section 2.2 www.av8n.com/physics/uncertainty.htm Dutch Cocaine - The Ultimate Weapon, Interview with Conny Braam on ‘Radio Netherlands Worldwide’ by Marijke Peters, 17 October 2009, www.rnw.nl/english/article/dutch-cocaine-ultimate-weapon Epstein, Edward J., ‘Agency of Fear’ Part III: The Nixon Crusades, Chapter 8, ‘The War on Poppies’, www.edwardjayepstein.com. Gibson, A.G., ‘Freud's Magical Drug (Erythroxylon Coca)’ From: Course on Economic Botany at the UCLA (1984 -...). www.botgard.ucla.edu/. [2004]. Gieringer, D., ‘Centennial of an Unnatural Diaster’, Liberty 20[6] (2006), www.libertybound.com/archive/2006_06/gieringer-centennial.html. Interview with Conny Braam by Jan van Tienen, www.viceland.com/blogs/nl/2009/09/29/ een-fraai-stukje-geschiedenisnederland- was-de-grootste-cocaineproducent- ter-wereld/ [2009] English version titled: ‘Holland was the World’s Biggest Coke Manufacturer’ (Viceland today) www.viceland.com/blogs/nl/2009/10/28 [2011] Lapplainen, Harri , www.cis.hut.fi/harri/ijcnn98/node8.html General formula for the calculation of the variance of a function McCoy, Alfred W., ‘Opium History 1940 to 1979’, www.a1b2c3.com/drugs/opi 011.htm. Musto, D.F., ‘The History of Legislative Control over Opium, Cocaine and Their Derivatives’, DRCNet Library, Schaffer Library of Drug Policy. www.druglibrary.org Nederlandsche Cocaine Fabriek, Wikipedia article (Google NL) [2012] Officer, L.H., Exchange Rate between the United States Dollar and Forty Other Countries, 1913-1999, www.eh.net/hmit/exchange rates [2002]. Review of the video-documentary (54’): ‘De Nederlandse Cocaine Fabriek’ by Jeanette Groenendaal (2007) in Filmbanktour #18, containing brief outline of the content. www.filmbank.nl/artikel/373/ Shipping times from Peru (Callao) to New York and to Hamburg (via the Panama Canal) www.searates.com 476 Shipping times reported for 1887 Aspinwall – New York and Hamburg – New York New York Times, www.theshipslist.com. US Bureau of Labor Statistics, US Department of Labor, ‘Index of Wholesale Price of Chemicals and Drugs’. www.nber.org/databases/macrohistory/rectdata/04/docs/m040969.txt Wils, E.R.J.,’ Nederlandsche cocaine aan het oorlogsfront’ http://ssew.nl/nederlandse-cocaine-oorlogsfront, November 2009. Young, Andrew, and Daniel Levy. Explicit Evidence on an Implicit Contract MPRA Paper No. 926 (2006) <http://mpra.ub.uni-muenchen.de/926/>, 27 Interviews Interview with Mr Jack Nijssen, Marketing manager product group C, Diosynth , Oss, 27 August 2002. Interview with Mr A. Kramer, former production manager at the NCF and VPF, ‘Roekenhof’ Apeldoorn, 14 August 2003. Interview with Mr C.W.D. van Gruting, former Public Health Inspector (Inspecteur van de Volksgezondheid) of the Netherlands with special responsibilities regarding narcotic drugs, Aerdenhout, 21 July 2006. Video clips (“YouTube”) ‘Dutch Cocaine Factory – trailer’, “idfa”, on ‘Dutch Cocaine Factory, a film by Jeanette Groenendaal, premiere IDFA festival 2007, 2 April 2008. ‘Nederlandse Cocaine Fabriek’, Parool TV (‘hetparool’), Jeanette Groenendaal presents her documentary (“docutective”): ‘Dutch Cocaine Factory’, 2 September 2008 (updated 12 January 2010). De Nederlandse Cocaine Fabriek deel 1’ Conny Braam guest at ‘Paul en Witteman’ (Vara TV talk show), 2 October 2009, updated 12 May 2010. ‘Paul en Witteman – 2 oktober 2009’ (Vara TV talk show) Appearance Conny Braam. ‘De handelsreiziger van de Nederlansche Cocaine Fabriek’, Interview Conny Braam, “nwamsterdam” (publisher of the book), 8 October 2009. ‘Conny Braam te gast bij Phara: Cocainefabriek’, 3 December 2009. 477 DE GESCHIEDENIS VAN DE NEDERLANDSCHE COCAÏNE FABRIEK EN HAAR OPVOLGERS ALS FABRIKANTEN VAN VERDOVENDE MIDDELEN GEANALYSEERD VANUIT EEN INTERNATIONAAL GEZICHTSPUNT SAMENVATTING (Summary in Dutch) Deel I – De Geschiedenis van de NCF en haar opvolgers De oprichting van de NCF In 1900, toen de Nederlandsche Cocaïne-Fabriek (NCF) werd opgericht was cocaïne nog geen beladen woord. Cocaïne was een nieuw, hoog gewaardeerd plaatselijk verdovingsmiddel, speciaal geschikt voor toepassing bij operaties aan het oog en in de tandheelkunde. Er waren al eerste tekenen dat het product verslavend kon werken maar de productie en handel waren volledig vrij. Duitse fabrikanten, speciaal Merck, Darmstadt, beheersten de markt en waren verenigd in een kartel dat de prijs controleerde. De grondstof voor de cocaïnefabricage was voornamelijk cocablad uit Peru waaruit het door extractie werd gewonnen. Die extractie vond plaats zowel in Peru als in Duitsland; het ruwe extract gemaakt in Peru werd ge-exporteerd voor verdere zuivering in Duitsland en andere landen. Vanaf 1890 kwam er echter ook cocablad beschikbaar uit Java maar de kwaliteit daarvan werd in eerste aanleg als inferieur beschouwd omdat het gehalte aan cocaïne gering was. Java-coca bevatte echter ook andere, met cocaïne verwante verbindingen (secundaire alkaloiden), welke door middel van een door Duitse chemici juist ontdekt en geoctrooieerd proces in cocaïne konden worden omgezet. Bij toepassing van dat proces op Java-coca was de opbrengst aan cocaïne juist veel hoger dan uit Peru-coca. De cocaplant was rond 1875 vanuit Zuid-Amerika via België op Java terecht gekomen en bleek daar goed te gedijen. Ruim tien jaar later begon men met de kultuur en gedurende de jaren-90 werd Java-coca in betrekkelijk kleine hoeveelheden ge-exporteerd en verwerkt door een waarschijnlijk Duitse fabrikant. In Nederlands-Indië was inmiddels een stroom van ontwikkelingen op gang gekomen doordat de kolonie open gesteld was voor particuliere ondernemers, hetgeen leidde tot samenwerkingen tussen banken, planters, mijnbouwers en handelaren. In dat kader zag Georg Boldemann, een Duitse zakenman met relaties op Java en in Duitsland, de mogelijkheid om door het samenbrengen van (a) een cocablad-teler op Java met (b) Duitse chemici die het fabricage process van cocaïne kenden, en (c) de Koloniale Bank, die deel uit maakte van het zakelijk netwerk op Java, te komen tot de oprichting van een fabriek die in Nederland Java-coca zou extraheren en verwerken tot zuiver cocaïne hydrochloride (cocaïne.HCl) voor de Europese markt. Een belangrijk punt was dat het in Duitsland geoctrooieerde proces voor het omzetten van de secundaire alkaloïden in cocaïne in Nederland zonder inbreuk te maken op de Duitse octrooien kon worden gevolgd aangezien in Nederland pas in 1912 een octrooiwet zou worden ingevoerd. De bovengeschetste ontwikkeling leidde tot de oprichting van de NCF en de bouw van een productiebedrijf te Amsterdam. Aandeelhouders werden cocablad-producent J. van Hengst (eigenaar van de landbouwonderneming ‘Soekamadjoe’) en de Koloniale Bank; initiatiefnemers G. Boldemann en Dr.O. Eberhard werden directieleden en kregen een 478 aandeel in de winst. De Koloniale Bank vormde de Directie en Dr. F. Loth, een Duits chemicus, werd de eerste technisch directeur. De fabriek werd gebouwd aan de Schinkelkade en het eerste product werd afgeleverd in 1901. In dat jaar ging NCF een overeenkomst aan met het Duitse cocaïnekartel: het zou jaarlijks 300 kg gaan leveren aan de handelsfirma Gehe te Dresden. Om aan die vraag te kunnen voldoen werd de fabriek reeds in 1902 uitgebreid door de bouw een tweede verdieping op het pand aan de Schinkelkade en de installatie van meer apparatuur. De wereldmarkt in cocaïne 1900-1913: Schattingen van de cocaïneproductie op basis van import- en export statistieken Om de relatieve positie van de NCF in de wereldmarkt voor cocaïne te kunnen beoordelen is het nodig om informatie te hebben over de geproduceerde hoeveelheden, zowel voor de NCF als voor het wereldtotaal. Deze informatie is voor de jaren vóór 1930 niet direct beschikbaar en in dit proefschrift worden indirecte methoden ontwikkeld om tot redelijk betrouwbare schattingen te komen. Daartoe is al het vindbare statistische materiaal verzameld over de import en export van de grondstoffen voor cocaïne over de periode ca. 1890 tot ca. 1930 en zijn schattingen gemaakt van de hoeveelheden cocaïne welke daaruit geproduceerd zouden kunnen worden. Het omvangrijke statistisch materiaal is opgenomen in de tabellenverzameling in ‘Part IV’ van dit proefschrift. Kritische analyse van dit cijfermateriaal en het maken van de schattingen van de daaruit geproduceerde hoeveelheden cocaïne is het onderwerp van hoofdstukken 15 t/m 17. Deze berekeningen worden door de auteur gezien als een belangrijke bijdrage tot de kennis van het wereldtotaal van de geproduceerde hoeveelheden cocaïne gedurende de periode ca 1890-1930 en tot de oplossing van problemen met betrekking tot deze statistieken, ook gesignaleerd door Gootenberg en Soininen. De ramingen van de hoeveelheden cocaïne zijn meer accuraat van die van Musto. Deze ramingen zijn tevens gebruikt als uitgangspunt voor verdere berekeningen van de cocaïneproductie per land of regio. Zij houden correcties in van de waarden voor de USA zoals berekend door Spillane en zijn nieuw voor andere productielanden. Voor de periode 1900-1913 zijn de resultaten van de berekeningen vermeld in hoofdstuk 5 tesamen met informatie uit andere bronnen over de cocaïne-industrie, speciaal in Duitsland en de USA. Java-coca bleek uiteindelijk zowel in Europa als in de USA de meest economische grondstof. Vanaf 1907 werd Java-coca steeds belangrijker, het aandeel daarvan in de totale wereldproduktie nam toe tot ca. 80% in 1913. Merck, Darmstadt, produceerde ca. 40% of de totale wereldproductie. Deze was gedurende 1911-1913 tot ca 17.000 kg cocaïne.HCl per jaar toegenomen. Het is onduidelijk welk deel van die productie voor medisch gebruik bestemd was en welk deel als genotmiddel werd gebruikt, doch het is aannemelijk te vooronderstellen dat dit laatste deel niet onaanzienlijk was. Het begin van internationale controle op verdovende middelen. Tegen het eind van de 19e eeuw had roken van opium in China schrikbarende vormen aangenomen en als een gevolg daarvan kwam er een internationale beweging op gang om het gebruik van opium voor niet-medicinale doeleinden te beperken. De USA nam daarbij het voortouw en in 1909 werd een internationale conferentie gehouden te Shanghai waaraan dertien invloedrijke landen deelnamen om te trachten tot een samenwerking te komen. Tegengestelde handelsbelangen maakten het moeilijk zich te verenigen op bindende regelingen. Het resultaat van de conferentie was een reeks van vage, niet-bindende resoluties over de productie en handel in opium en opiaten, maar dit leidde wel tot vervolg-conferenties in Den Haag vanaf 1911 waar men trachtte om tot meer bindende afspraken te komen, die 479 zich ook uitstrekten tot de productie en handel in cocaïne. Door het uitbreken van de Eerste Wereldoorlog werd de ratificatie van de opgestelde verdragen uitgesteld tot na 1918. De NCF voor de Eerste Wereldoorlog De eerste 14 jaar van het bestaan van de NCF kan als een succesvolle periode beschouwd worden. De bouw van de fabriek en de aanvankelijke productie verliepen zonder problemen en de productiekosten waren niet hoog als gevolg van de levering van cocablad door Soekamadjoe tegen een lage prijs. De overeenkomst met het Duitse cocaïnekartel over de levering van een redelijke hoeveelheid product tegen de conventieprijs was een garantie voor een goede winst. In 1908 kwam daarin een verandering. Vanwege de steeds lager wordende cocaïneprijs werd het kartel ontbonden en NCF nam de marketing in eigen hand. Winst en dividendbetalingen werden duidelijk minder na 1905 maar bleven toch acceptabel. Een probleem was echter dat de fabriek gelegen was in een woonwijk in Amsterdam, en dat de brandweer, mede als gevolg van bezwaren van de omwonenden tegen de grote hoeveelheden opgeslagen brandbare stoffen, er op ging aandringen dat de fabriek verplaatst zou worden. Dit leidde er toe dat Dr. Kramers, die in 1907 Dr. Loth was opgevolgd als technisch directeur, een plan indiende bij de directie om een nieuwe fabriek te bouwen in de gemeente Ouder-Amstel, ca. 5 km ten zuiden van Amsterdam. Ondanks de heersende lage cocaïneprijs werd het plan door aandeelhouders goedgekeurd. Het project werd gefinancierd door de Koloniale Bank en de bouw begon in 1909. Vanaf 1910 vond de productie plaats in de nieuwe fabriek. De gemiddelde hoeveelheid geproduceerd gedurende de periode 19101914 was ca. 500 kg cocaïne.HCl per jaar. Deze hoeveelheid is berekend in hoofdstuk 18 onder gebruikmaking van de verlies- en winstrekening van de onderneming, in de vorm van een mathematisch model, waarbij schattingen van variabele en vaste kosten, en prijsinformatie het mogelijk maakten het productievolume te ramen. De Kort heeft in zijn proefschrift van 1995 gesteld dat: “in 1910 kon [de NCF] zich de grootste cocaïne fabriek ter wereld noemen” en die bewering is door hem en anderen vele malen herhaald. Dat deze stelling onjuist is volgt uit de vergelijking de nominale productiecapaciteit van 750 kg cocaïne.HCl per jaar van de NCF-fabriek in 1910 en de geraamde productie van 500 kg cocaïne.HCl per jaar over de periode 1910-1914, met de door Merck, Darmstadt, in 1910 geproduceerde hoeveelheid cocaïne.HCl van 5.241 kg. De wereldmarkt in cocaïne 1914-1930 Het uitbreken van de oorlog in 1914 leidde tot een embargo van Duitsland op de export van cocaïne en andere essentieële producten. Dat resulteerde in het wegvallen van concurrentie en opende nieuwe markten voor NCF en andere cocaïneproducenten. De verscheping van grondstoffen uit Java en Peru nam af, vooral na 1915, maar vormde toch geen probleem voor NCF vanwege de voorraden Java-coca bij Amsterdamse handelaren. In hoofdstuk 7 staan de hoeveelheden cocaïne geproduceerd uit grondstoffen geexporteerd gedurende de periode 1915-1930 vermeld, berekend met de methoden uiteengezet in de hoofdstukken 16 en 17. Deze tonen de sterke neergang in jaren 1916 en 1917, gevolgd door een inhaalvraag vanaf 1918 tot 1920, en daarna een geleidelijke afname van de productie tot het jaar 1930. Die teruggang moet worden toegeschreven aan het terugdringen van het leveren van cocaïne voor recreatieve doelen door de gevestigde fabrikanten onder invloed van plaatselijke en internationale verordeningen die van kracht werden. Duitsland bleef de grootste cocaïnefabrikant doch ook de productie in dat land verminderde gedurende de jaren-20 tot minder dan de helft van die van ca. 1913. De teruggang in USA was nog veel sterker, waarschijnlijk onder invloed van de US Harrison 480 Narcotics Act van 1914 die de vrije verkoop van verdovende middelen tegenhield. Japan daarentegen kwam sterk op als cocaïnefabrikant. Internationale controle maatregelen na de Eerste Wereldoorlog en de illegale productie en handel in verdovende middelen Na de Eerste Wereldoorlog sloot een groot aantal landen zich aan bij de Conventie van Den Haag. De implementatie werd in handen gelegd van de Volkenbond die daartoe het ‘Opium Advisory Committee’ (OAC) in het leven riep. Het OAC organiseerde de internationale conferenties van 1924/25 in Genève, die leidden tot de ‘Geneva Convention van 1925’, de installatie van de ‘Permanent Central Opium Board’ (PCOB), en een systeem van importcertificaten en uitvoervergunningen. Het duurde echter nog tot de ‘Limitation Treaty’ van 1931 voordat een international controle systeem werd gecreëerd van de produktie en handel van verdovende middelen dat succesvol was. Na de implementatie daarvan werden produkten van legale fabrikanten vrijwel nooit in de illegale handel aangetroffen. De vraag naar deze producten voor recreatieve doeleinden bleef echter bestaan hetwelk leidde tot het ontstaan van illegale productie en handel. Pogingen om deze illegale produktie en handel te controleren hebben zeer weinig sukses gehad. De hoeveelheden illegaal geproduceerde cocaïne en heroine zijn thans zeer groot. Er is (tegenwoordig) geen directe relatie tussen de legale en illegale verdovende middelen industrie. De hoeveelheden verdovende middelen van legale oorsprong welke in het illegale circuit terecht komen zijn uiterst gering. NCF gedurende de periode 1914-1930 Gedurende de eerste helft van 1914 waren de cocaïneprijzen nauwelijks voldoende om de kosten te dekken. Dat veranderde geheel na het uitbreken van de Eerste Wereldoorlog toen Duitsland wegviel als exporteur en de prijzen sterk omhoog gingen. De markt verruimde zich, en England en Japan werden grotendeels door NCF beleverd. De productiecapaciteit werd uitgebreid door de bouw van nieuwe werkruimten en een nieuw laboratorium, de installatie van een tweede extractiebatterij, en uiteindelijk, in 1917, een nieuw ketelhuis. Hierdoor verdubbelde de capacteit. De gemiddelde cocaïneproductie van de NCF over de periode 1915-1920 wordt geraamd op ca. 700 kg cocaïne.HCl per jaar. Na afloop van de oorlog kwam de competitie terug en Japan startte locale cocaïneproductie om in de eigen behoefte te voorzien. De NCF trachtte daarop door lage prijzen haar marktaandeel te vergroten. Dat resulteerde in de verkoop van meer product, maar tevens een lagere winst (vanaf 1921), ondanks de introductie van ethocaine, een synthetisch lokaal anestheticum. De situatie verbeterde vanaf 1925 doordat de nieuw gevormde Europese cocaïneconventie (kartel) in staat was de prijzen op een hoger nivo te handhaven. NCF ging toen ook ruwe cocaïne verkopen aan andere fabrikanten; maar onder invloed van de beperkende maatregelen van de Geneefse Conventie van 1925 liep de cocaïneverkoop vanaf 1928 toch aanzienlijk terug. Ook de export van Java-coca verminderde drastisch en het levercontract tussen Soekamadjoe en NCF dat in 1927 afliep werd niet vernieuwd. De winst van NCF leefde na 1924 op; het was echter duidelijk dat een verdere verbreding van het productenpakket nodig was om winstgevend te blijven. Een logische stap was om die uitbreiding te zoeken in opiaten omdat ook opium en morfine gecontroleerde producten waren die onder een vergunning verwerkt of geproduceerd konden worden. 481 Opiatenfabricage in Nederland vanaf 1920 tot 1939 Gedurende de jaren-20 begonnen twee Nederlandse ondernemingen met de fabricage van opiaten. Dat waren de Nederlandsche Fabriek voor Pharmaceutisch-Chemische Producten handelende onder de naam ‘Bonnema’ en de Chemische Fabriek Naarden. Bonnema produceerde morfine en codeïne op zeer kleine schaal, enige tientallen kilogrammen per jaar; onvoldoende om de Nederlandse markt volledig te beleveren. ‘Naarden’ was hoofdzakelijk handelaar, welke heroïne en cocaïne gefabriceerd door anderen onder eigen etiket doorverkocht, zonder dat deze producten officieël in Nederland werden ingevoerd. Dit laatste was mogelijk door een leemte in de Nederlandse wet, welke op grote schaal door ‘Naarden’ werd gebruikt om de bepalingen van de Geneefse Conventie te ontduiken. ‘Naarden’ trok zich in 1928 terug van deze handel maar Nieuwenhuis, een voormalig werknemer van deze onderneming, continueerde de semi-legale handel in verdovende middelen onder zijn eigen naam, vanaf 1930 als vertegenwoordeiger van Bonnema. Deze activiteiten eindigden in 1934 en Bonnema behield zijn vergunning tot produceren. NCF ontwikkelde in eigen laboratorium processen voor de fabricage van morfine en codeïne uit opium die vanaf 1931 op kleine schaal in de fabriek werden toegepast. In 1934 werd de Nederlandse markt, groot ca 300 kg codeïne plus morfine, gesloten voor invoer en werd deze voortaan uitsluitend beleverd door NCF en Bonnema. NCF ontwikkelde zich tot een opiatenfabrikant van redelijke grootte, die in 1939 ca. 900 kg morfine produceerde, terwijl Bonnema in 1938 ca. 200 kg maakte. De ontwikkeling van de NCF gedurende de eerste negen jaar van haar bestaan als opiatenfabrikant moet zeker als een goede prestatie worden gezien: de afgeschermdethuismarkt was klein, de NCF had geen bevoorrechte grondstoffenpositie en zij was een nieuwkomer in de markt waarin concurrenten 100 jaar ervaring hadden. Opiatenfabricage in de wereld en export gedurende de periode 1930-1939 Vanaf 1929 werden door de PCOB jaarlijks gedetailleerde statistieken gepubliceerd over de verdovende middelen, met betrekking tot fabricage, grondstoffen, tussenproducten, consumptie, en in-en uitvoer. Deze zijn in dit proefschrift als uitgangspunt gebruikt voor het samenstellen van tabellen en grafieken over de productie en handel van Nederlandse en buitenlandse narcoticaproducenten. De totale wereldproduktie van morfine gedurende 1930-1938 was gemiddeld in de range van 30.000 tot 40.000 kg base per jaar. Ca. 75% daarvan werd omgezet in codeïne. De voornaamste productielanden waren de USA, Duitsland, de USSR en Japan. Het grootste deel van de opiatenproductie was bestemd voor lokale consumptie; slechts ca. 6,500 kg werd jaarlijks als gereed product ge-exporteerd. Duitsland, Zwitserland en de UK waren de belangrijkste opiaten-exporterende landen. Boehringer Ingelheim, Merck en Knoll in Duitsland, Hoffmann La Roche in Zwitserland en Macfarlan en T. & H. Smith in de UK waren de voornaamste concurrenten van de NCF. De Nederlandse export bedroeg ca. 500 kg opiaten (als base) per jaar over 1934-1938, ofwel ca. 8% van de totale exportmarkt. In 1939 was de productie van de NCF aanzienlijk gegroeid; de export bedroeg toen ca. 700 kg. NCF en Bonnema gedurende de Tweede Wereldoorlog De Tweede Wereldoorlog leidde tot fundamentele veranderingen in de verdovende middelenindustrie. Opium en andere gronstoffen werden schaars en de internationale handel kwam vrijwel tot stilstand. De voorraad opium bij de NCF was in mei 1941 vrijwel uitgeput en men ging over tot het nogmaals verwerken van fabricage-residu’s met een laag alkaloidgehalte om nog iets te kunnen produceren. Hiertoe behoorde ook dimethylmorfine, een tot dusver 482 waardeloos bijproduct van de codeïnefabricage, dat farmacologisch en klinisch werd getest en een goed werkzaam anti-hoest middel bleek te zijn.Enige opleving kwam in 1943/45 toen door NCF 340 kg morfine werd geproduceerd uit Nederlands bolkaf (droge lege zaaddozen van voor het maanzaad verbouwde papavers) onder een contract met de Nederlandse overheid. Ook Bonnema participeerde in dat contract. Het bolkaf werd door de overheid aangeleverd en door genoemde firma’s verwerkt, waarvoor de kosten werden vergoed. De morfine werd daarna overgedragen aan NCF en Bonnema voor verdere zuivering en omzetting in codeïne. De ervaring opgedaan met bolkafverwerking was belangrijk want het leidde tot het gebruik van deze grondstof op grotere schaal na de oorlog. De winst van de NCF verminderde geleidelijk, en over 1945 werd geen dividend uitbetaald. Gelukkig hebben werknemers en bedrijf de oorlog zonder al te grote directe schade overleefd. Directie en management bleven onveranderd in functie. Bonnema verplaatste de productie naar een nieuwe fabriek te Apeldoorn in 1941. In 1944 werd aldaar ook apparatuur geinstalleerd voor het verwerken van bolkaf onder het bovengenoemd contract met de overheid. Opleving van de opiaten productie na afloop van de Tweede Wereldoorlog Vanaf 1946 kwam de wereldproductie van opiaten geleidelijk weer op gang en was snel toenemend in jaren-50, van 72.000 kg morfine 1951 tot 120.000 kg in 1960. De grootste productielanden waren de USA, de UK, de USSR en Duitsland. Opium bleef de belangrijkste grondstof ondanks het feit dat de prijs verviervoudigd was tussen juist vóór de oorlog tot juist daarna. Die prijsstijging had echter wel tot gevolg dat de interesse van fabrikanten in het gebruik van bolkaf als grondstof groter werd, met name in Hongarije en Polen, en vanaf 1955 ook in Nederland. Het percentage morfine geproduceerd uit bolkaf nam toe van 18% van het wereldtotaal in 1946 tot 25% in 1960. Het verbruik van morfine als zodanig bleef vrij constant op ca. 5.000 kg per jaar van 1946 tot 1960. De toegenomen morfineproductie werd vrijwel geheel omgezet in codeïne. De meeste codeïne werd geconsumeerd in de grote productielanden zoals in de USA en de USSR. De exportmarkt voor codeïne werd voornamelijk beleverd door de UK en daarnast door Duitsland en Hongarije. De prijs voor codeine was in the open exportmarkt belangrijk lager dan in de thuismarkten van de fabrikanten, waarvoor geen invoervergunnungen werden afgeven. NCF en Bonnema (VPF) gedurende de periode tot 1960 De Nederlandse opiatenindustrie kwam na de oorlog slechts langzaam weer op gang. Het duurde tot 1951 voordat het productie-niveau van 1939 was bereikt. NCF en Bonnema trachtten aanvankelijk Nederlands bolkaf te gebruiken als grondstof maar het bleek dat het morfine gehalte van de papaver-rassen geteeld voor het zaad in Nederland, te laag was om dit economisch haalbaar te maken. Vanaf 1950 ging Bonnema aangesneden bolkaf (waaruit reeds opium gewonnen was) importeren uit Turkije en NCF importeerde ook bolkaf, hoofdzakelijk uit Joegoslavië. Dat waren voordelige grondstoffen en de daaruit geproduceerde morfine en codeïne hadden een lage kostprijs en kon concurrerend worden aangeboden; productie en verkoop namen daardoor snel toe. De grotere productie werd tot 1958 voornamelijk ge-exporteerd als codeïne maar daarna ook als EPC (Extractum Papaveris Crudum), later genaamd CPS (Concentrate of Poppy Straw), een ruwe morfine, die geleverd werd aan andere fabrikanten die het gebruikten als grondstof voor het maken van codeïne. EPC, en ook technische morfine, werden verkocht in concurrentie met opium. De markt voor deze produkten was veel groter dan die voor codeïne en er waren geen problemen met 483 invoervergunningen. De morfine productie in Nederland nam toe van ca. 1.000 kg in 1951 tot ca. 5.800 kg in 1959. Van deze totalen werd ongeveer tweederde geproduceerd door VPF, de rest door NCF. De Nederlandse productie vertegenwoordigde in 1959 ruim 5% van de totale wereldproductie. NCF Direct na de oorlog vonden er belangrijke veranderingen plaats bij de NCF met betrekking tot aandeelhouders en management. Dr. Kramers ging met pensioen en werd als technisch directeur opgevolgd door Ir. J.P.H. Nieukerke, daarvoor manager bij de Amsterdamsche Chinine Fabriek. De heer W.C. Bonebakker, president commissaris der NCF, trok zich om leeftijds redenen terug. Eveneens in 1946 overleed Mej. Maarschalk die in het bezit was van 60% van de NCF aandelen. Deze aandelen kwamen in handen van Ir. Harry Dénis, een beroemd voetballer welke voor de oorlog vele jaren aanvoerder van het Nederlands elftal was. Dénis werd commissaris van de NCF en ging zich met details van de bedrijfsvoering bemoeien. Hij verzocht om een accountants-onderzoek om te zien welke besparingen gerealiseerd konden worden en suggereerde dat opiumaankopen gesplitst zouden moeten worden over kleine partijen om het prijsrisico te verminderen. De Koloniale Bank en ook Nieukerke waren niet gelukkig met deze ontwikkelingen. Veel tijd werd besteed aan dit soort discussies in de commissarissenvergaderingen en de verhouding tussen Dénis en de Cultuurbank (sinds 1949 de nieuwe naam van de Koloniale Bank) werd steeds slechter. In 1957 zegde de Cultuurbank de samenwerking op en Dénis nam de NCF aandelen van de Cultuurbank over. Dénis gaf daarna toestemming om te investeren in capaciteitsvergroting van de extractieafdeling welke werd geëffectueerd in 1958. De netto-winst van de NCF was over de periode 1950-1959 nogal variabel, ze bedroeg gemiddeld ca. 10% van het balanstotaal. VPF De heer C. J. Jansen, eigenaar en directeur van Bonnema, had meer zakelijke belangen in Apeldoorn met name in de Zwitsal-fabriek welke door hem in de jaren-20 was gegrondvest. In 1947 verenigde hij alle activiteiten onder de naam van Verenigde Pharmaceutische Fabrieken NV (VPF) en begon met de bouw van een nieuw bedrijfs-complex. Het maatschappelijke kapitaal bedroeg NLG 3 miljoen waarvan 2 miljoen was geplaatst. De gewone VPF aandelen waren op de beurs genoteerd en de prioriteitsaandelen waren in handen van Jansen. Jansen was een bezielend en autocratisch leider. Er was nooit enige twijfel over wie er aan het roer stond bij de VPF, van “de Zwitsal”, zoals de onderneming plaatselijk bekend was. Het was zijn visie en doorzettingsvermogen dat resulteerde in de productie van morfine uit Turks bolkaf. Vanaf 1954 werd in productieappartuur geinvesteerd en VPF nam vanaf 1957 een verdere voorsprong op de NCF door de installatie van een grote moderne continuextractor. Netto winst van de VPF, over de opiaten en de Zwitsal activiteiten samen, ontwikkelde zich bevredigend. Dividend als een percentage van het geplaatste aandelenkapitaal ging geleidelijk omhoog, van 5% in 1948 tot 10% in 1959. De winst van de VPF was in 1959 ca. 3,5 keer zo groot als die van de NCF. 484 Acquisitie van NCF en VPF door Koninklijke Zwanenberg Organon (KZO) NCF Dénis bleek na de investeringen in extractie apparatuur van rond 1958 niet geinteresseerd in verdere uitbreidingen van de NCF en Nieukerke ging met toestemming van Dénis contact leggen met grotere Nederlandsche ondernemingen voor welke de acquisitie van NCF aantrekkelijk zou kunnen zijn. Nieukerke vond in Koninklijke Zwanenberg Organon (KZO) zo’n onderneming. Dit leidde tot de overname van NCF door KZO in 1962. Management van NCF bleef onveranderd. Direect na de overname werden plannen voor de uitbreiding en modernisering van de fabriek gerealiseerd, waaronder de installatie van een nieuwe extractiebatterij. Ook het laboratorium werd verbouwd en NCF startte research voor het produceren van andere alkaloiden. Dit alles veroorzaakte een algemeen gevoel het begin van een nieuw leven van de ondenemening bij het personeel, en een enthousiasme om dat waar te maken. VPF De sterke toename van de morfineproductie bij VPF gedurende de jaren-50 zette zich voort in 1960 en de jaren daarna. Doordat de vraag niet in dezelfde mate toenam leidde dat vanaf 1961 tot aanzienlijke voorraden in Nederland en een prijsdaling op de wereldmarkt. Zulke voorraadvorming was in strijd met de bepalingen van de internationale verdragen inzake verdovende middelen en er dreigde een productiestop. Het bovenstaande en het feit dat Jansen op een leeftijd gekomen was dat hij ging denken aan het zich terugtrekken uit het zakenleven, maakten dat hij begon open te staan voor gesprekken over een acquisitie van VPF door KZO. Het was van het begin af duidelijk dat zulk een overname aanzienlijke voordelen zou opleveren voor KZO. Combinatie van NCF en VPF zou resulteren in het sluiten van de nu 50 jaar oude fabriek te Amsterdam en het produceren van alle opiaten en andere alkaloiden in het moderne bedrijf te Apeldoorn. De marketingactiviteten konden worden samengevoegd en zouden daardoor meer efficient opereren. Het resultaat van de gesprekken was dat KZO in 1964 de aandelen VPF overnam. De heer Jansen trok zich terug uit de onderneming en het bestaande NCF management werd benoemd als het nieuwe management van de gehele VPF met Ir. Nieukerke als algemeen directeur. Enige productie-apparatuur werd over gebracht van Amsterdam naar Apeldoorn en de fabricage bij NCF werd beëindigd. De morfineproductie te Apeldoorn werd vervolgens tijdelijk sterk verminderd en de export-activiteiten werden gecombineerd onder de VPF naam en geintensiveerd. Het resultaat was dat in 1964 de totale Nederlandse morfine productie 4 ton bedroeg en de export ruim 10 ton. Daarmee was de voorraad aan het eind van het jaar teruggebracht tot een normaal niveau. Opiaten fabricage en handel tot 1970 en de positie van VPF De totale morfineproductie in de wereld nam toe van 115 ton in 1961 tot 176 ton in 1970 . De voornaamste fabricagelanden bleven de USSR, de UK en de USA. Nederland (VPF) vertegenwoordigde bijna 10% van het totaal in 1970 en was daarmee de grootste fabrikant van morfine uit bolkaf geworden. Bolkaf werd steeds belangrijker als grondstof; in 1970 werd 33% van de totaal geproduceerde hoeveelheid morfine daaruit gewonnen. De exportmarkt voor codeïne nam van 1964 tot 1970 toe van 20 tot 34 ton. Gedurende het eerste deel van die periode exporteerde VPF slechts ca 2 ton per jaar. Vanaf 1968 groeide VPF’s marktaandeel echter sterk, tot meer dan 8 ton in 1970. Door scherpe concurrentie bleef de prijs voor codeïne echter laag gedurende het grootste deel van de jaren-60. 485 De integratie van NCF en VPF onder KZO verliep voorspoedig. De sterkte van de combinatie VPF/NCF was gelegen in goede contacten in het grondstoffenland Turkije met een eigen vestiging aldaar voor de inzameling en het transport van het bolkaf naar Nederland; verder in goede extractie- en verwerkings technologie en uitstekende relaties met afnemers van CPS o.a. in Zuid Afrika, België en Zwitserland. De concurrentie met CPS fabrikanten in OostEuropa was fors en leidde tot lage prijzen maar VPF was de grootste producent en beleverde ruim eenderde van de wereldmarkt. VPF ging deel uitmaken van Akzo Pharma, de pharmaceutische divisie van de sterk gegroeide moedermaatschappij (KZO), in 1969 opgegaan in Akzo na een fusie met AKU. Omzet en winstcijfers voor VPF en andere dochterondernemingen werden niet gepubliceerd door KZO/Akzo; de omzet van morfine (CPS) en codeine gecombineerd wordt geschat op NLG 6 miljoen per jaar voor de periode 1965-1970. De overeenkomst tussen de USA en Turkije van 1971 en de gevolgen daarvan tot 1980 In de tweede helft van de jaren-60 was er een sterke toename van het illegale drugsgebruik in de wereld, in het bijzonder in de USA. Dat leidde tot de theorie van de CIA dat de bron van de heroïne verschijnend op de US zwarte markt uiteindelijk Turks opium was. Dat opium werd gesmokkeld naar clandestiene laboratoria in Marseille, waar de daaruit gewonnen morfine werd omgezet in heroïne hetwelk vervolgens via de zo genaamde French connection in de USA terecht kwam. De remedie welke werd verzonnen in de USA was om Turkije te bewegen de (legale) opium productie op te geven in ruil voor een geldsbedrag ineens en verdere steun. President Nixon schaarde zich persoonlijk achter dit intiatief en diplomatieke druk werd uitgeoefend op Turkije om het doel te bereiken. De Turkse overheid liet zich overtuigen en ingaande 1972 werd de papaverteelt verboden. Dat had grote gevolgen voor de opiatenproductie in de wereld. Turkije had jaarlijks ca 33 ton morfine in opium en bolkaf geleverd aan de legale verdovende middelenindustrie en dat deze niet meer beschikbaar kwamen betekende dat vraag naar opiaten groter werd dan het aanbod en dat de prijzen snel stegen. De UN Division on Narcotic Drugs reageerde op het dreigend tekort door gedurende de periode 1972-1975 conferenties to organiseren over de teelt van Papaver bracteatum en de omzetting van het daaruit winbare thebaine in codeïne, waaraan de belangrijkste grondstoffenleveranciers, opiatenfabrikanten en research-instituten deelnamen. Dit was om verschillende redenen geen praktische oplossing voor het probleem. Die oplossing werd gevonden door de industrie zelf, onder andere door het vergroten van de opiumproductie in India, verder door uitbreiding van de papaverteelt in Frankrijk en Australië, en tenslotte, in 1975, door hervatting van de papaverteelt in Turkije onder de conditie dat er geen opium meer gewonnen zou worden, maar dat het bolkaf ongesneden zou worden geëxtraheerd. Het was de bedoeling om het Turks bolkaf uiteindelijk ter plaatse te gaan verwerken in een overheidsbedrijf en dat tot de tijd dat die fabriek gereed zou zijn, het bolkaf aan bestaande buitenlandse narcoticabedrijven met extractiecapaciteit zou worden geleverd. De verbouw van Papaver somniferum in Australië als grondstof voor de productie van morfine was gebaseerd op de ontwikkeling in Tasmanië, in the jaren-60, van varieteiten met een hoog morfinegehalte door dochterondernemingen van Glaxo UK, met name Macfarlan Smith en Glaxo Australia,. Vanaf 1972 werd het areaal van de teelt sterk uitgebreid; het bolkaf werd in Australië geëxtraheerd en een deel van geproduceerde CPS ging naar Macfarlan Smith in de UK voor verdere verwerking; de rest werd in Australië omgezet in codeïne. In 1975 begon Tasmanian Alkaloids, een joint-venture van Abbott Laboratories van Chicago en Ciech-Polfa van Polen, eveneens met de plaatselijke teelt van 486 papavers voor de productie van CPS. De totale morfineproductie in Australië groeide van ca 400 kg in 1971 tot 33.000 kg in 1979; in Frankrijk groeide Francopia’s morfineproductie over dezelfde periode van ca 14.000 kg tot 25.000 kg door uitbreiding van de locale papaverteelt. Het gevolg van de hervatting van de papaververbouw in Turkije, de uitbreiding daarvan in Australië en Frankrijk en de sterk toegenomen productie van opium in India was dat het aanvankelijk tekort aan grondstoffen voor de productie van opiaten na 1977 verdween en omsloeg in overproductie daarna. Het resultaat was dat de prijs van codeine(fosfaat) terugviel van USD 825 per kg in 1976 tot USD 400 in 1980. Consequenties voor VPF/Diosynth van de hervatting van de papaverteelt in Turkije. De bouw van het nieuwe papaverextractiebedrijf in Turkije begon met het uitschrijven van een tender daarvoor in 1974. De geplande capaciteit was de productie van 60.000 kg morfine per jaar. VPF en Knoll (Ludwigshafen) reageerden; het oogmerk van de VPF was om door nauwe samenwerking met de Turkse overheid te komen tot een overeenkomst waarbij VPF ook in de toekomst tegen gunstige voorwaarden bolkaf uit Turkije zou kunnen betrekken. Die opzet slaagde niet. Knoll won de trender door gunstigere financieringsvoorwaarden. Het duurde echter nog tot 1981voordat het bedrijf in Turkije begon met produceren. Voor VPF, welke aanvankelijk bolfaf uit India had verwerkt om het grondstoftekort uit Turkije op te vangen, bood het weer ter beschikking komen van Turks material de mogelijkheid om haar grote extractie capaciteit ten volle te kunnen benutten. VPF, vanaf 1974 deel uitmakend van Diosynth (de bulk-producent van Akzo Pharma), ging een overeenkomst aan met de grootste US codeïnefabrikant Mallinckrodt voor de verwerking van Turks bolkaf en de levering van de daaruit geproduceerde CPS. CPS werd ook geleverd aan andere codeïne producenten, zowel in de USA als in Zuid Afrika, België en Zwitserland. Samenvattend, de jaren-70 waren voor de opiaten fabricage door VPF/Diosynth zeer gunstig. VPF was succesvol met het verkijgen van bolkaf eerst uit India en later uit Turkije en kon gebruik maken van haar grote capaciteit voor bolkafverwerking middels overeenkomsten met alle drie grote US codeïnefabrikanten voor de levering van CPS. Al gevolg van het tekort aan grondstoffen en de daarmee samenhangende hoge prijzen werden over het tweede deel van de periode omzetten gehaald in de orde van NLG 30 miljoen per jaar. Het was de garantie voor een zeer goede winst. Het was echter van het begin af duidelijk dat Turkije in de toekomst alle grondstof zelf zou gaan verwerken en dat Diosynth een alternatieve grondstoffenbron zou moeten vinden. Dat was geen eenvoudige opgave. Een eis was dat de alternatieve grondstof in voldoende mate en tegen een zodanige prijs beschikbaar zou zijn dat Diosynth op de wereldmarkt zou kunnen blijven concurreren. Het morfinegehalte van bolkaf uit India was zo laag, dat de kosten daarvan te hoog waren om bij een dalende markt acceptabel te zijn. VPF/Diosynth deed research samen met Mommersteeg (een plantenveredelings bedrijf) over de verbouw van Papaver bracteatum in Nederland maar kwam tot de conclusie dat die teelt niet tot het gewenste resultaat zou leiden. Ook een ander project, de totaalsynthese van codeïne uit in de handel verkrijgbare chemicaliën, hetwelk geëntameerd werd in samenwerking met Professor Beijerman en Dr. Maat aan de TU te Delft, bleek, ondanks dat een goede synthese-route werd gevonden, uiteindelijk niet concurrerend. 487 De gevolgen van de overproductie van grondstoffen vanaf 1975 De sterk toegenomen productie van opium en bolkaf leidde vanaf 1978 tot de vorming van grote voorraden van deze grondstoffen, speciaal in India en Turkije. Deze landen trachtten daarop door te lobbyen in de UN Commission on Narcotic Drugs (CND) voor het nemen van maatregelen die er voor zouden moeten zorgen dat zij een bevoorrechte positie zouden krijgen voor het leveren van hun producten. Dit zou dan ten koste moeten gaan van landen die ‘recentelijk additionele productie capaciteit hebben geinstalleerd. Ondanks dat die voorraadvorming voor verreweg het grootste deel het gevolg was van overprodutie in India en Turkije slaagden deze landen er met de hulp van de USA in een resolutie van die strekking in de 1979-vergadering van de CND aangenomen te krijgen. De resolutie (nr 471) was hoofdzakelijk gericht tegen Australië en Frankrijk, er werd op aangedrongen dat ‘nieuwkomers’ hun productie zouden beperken. Het had ook nadelige gevolgen voor de VPF. Het enige importerend land dat maatregelen nam om inderdaad India en Turkije een bevoorrechte positie te geven bij het leveren van de grondstoffen was de USA. Dit land kondigde in 1981 maatregelen af waarbij ten minste 80% van de geimporteerde grondstoffen voor opiatenfabricage uit India en Turkije afkomstig moesten zijn. Oppositie van Australië, Frankrijk en enige andere partijen had geen success. De Turkse opiatenfabriek begon te produceren in 1982. Door een probleem met de kwaliteit en de behoefte aan thebaine, dat niet in Turks CPS voorkwam, waren de verkopen veel lager dan voorzien en aangezien de productie niet werd aangepast liep de voorraad snel op, tot meer dan 80 ton morfine in 1986. De prijs op de wereldmarkt bleef laag omdat Turkije tegen extreem lage prijzen aanbood. Pas vanaf 1987 werd Turkish CPS in aanzienlijke hoeveelheden naar de USA verkocht. Door het aanbod van goedkope CPS uit Turkije en ook uit Australië, bleef de prijs van codeïne onder druk. De prijs van codeïnefosfaat welke in 1981 in de open wereldmarkt USD 350 per kg bedroeg zonk tot ca USD 200 gedurende 1987-1989. Het waren moeilijke jaren voor allen in de opiatenindustrie, speciaal voor VPF die niet de beschikking had over de grondstof tegen een voldoend lage prijs. VPF probeerde hierin op diverse manieren verandering te brengen: door het gebruik van locaal verbouwde papavers van een speciaal ras als grondstof, door het importeren van bolkaf uit Polen en door een poging om tot een samenwerking te komen met Tasmanian Alkaloids, maar alles zonder blijvend resultaat. Deze negatieve uitkomsten leidden uiteindelijk tot het sluiten van de extractiebedrijf te Apeldoorn in 1988. Diosynth bleef nog codeïne maken uit aangekochte CPS/morfine, maar ondanks het aantrekken van de codeïne prijs vanaf 1990 bleek dat ook dat geen economische optie en in 1993 werd de productie stilgelegd en werd een contract aangegaan met Macfarlan waarbij deze onderneming Diosynth’s leveringsverplichtingen overnam. Dit was het einde van bijna 70 jaar codeïne fabricage in Nederland. De enige morfinederivaten welke Diosynth bleef maken waren nal-compounds zoals naloxone en naltrexone, welke opiaatantagonisten zijn en niet vallen onder de bepalingen van de verdovende middelen wetgeving. Diosynth had een eigen, gepatenteerd, process ontwikkeld voor het maken van deze stoffen uit morfine. Deze productie werd in 2005 om onbekende redenen gestaakt. 488 Deel II – Ramingen en Modellen Kwantitatieve informatie over de productie van cocaïne vóór 1930 is schaars. Voor een goed begrip van de industrie en de plaats welke de NCF daarin innam is het belangrijk te weten, op zijn minst bij benadering, hoeveel cocaïne jaarlijks was geproduceerd. De methode gebruikt in het proefschrift om schattingen te maken van deze hoeveelheden is door de jaarlijks in- en uitgevoerde hoeveelheden van de grondstoffen, waar wel statististische gegevens van bekend zijn, te vermenigvuldigen met opbrengst-factoren, de hoeveelheden cocaïne welke onder fabrieksomstandigheden geproduceerd kunnen worden per gewichtseenheid van elk der grondstoffen. Voor elke grondstof: Peru-coca, Java-coca en ruwe cocaïne uit Peru werden import en export statistieken verzameld en gechecked voor verenigbaarheid. Voor Peru-coca bleken de statistieken over zekere perioden discrepancies te vertonen. Voor een verdere analyse werd de Goods-In-Transit (GIT) methode ontwikkeld (Appendix 3) waarmee aannemelijk gemaakt kon worden dat de schattingen van Spillane inzake imports in de USA te hoog zijn. Voor een andere periode werd aangetoond dat de Duitse importstatistieken zeer waarschijnlijk onjuist zijn. Door analyse van de grafiek van de export van Peru-coca naar andere landen dan de USA tegen de tijd, werd gevonden dat deze geinterpreteerd kan worden als een rechte lijn die exporten naar Europa voorstelt met daarop gesuperponeerd exporten naar Chili en correcties voor de importen van Java-coca in de USA. Een gedeelte van het cocablad geëxporteerd vanuit Peru was bestemd voor de productie van Coca-cola, Vin Mariani en andere dranken. Om de hoeveelheid cocablad dat gebruikt werd om cocaïne te maken was het nodig om de hoeveelheid bestemd voor de dranken daarvan af te trekken. Schattingen van de hoeveelheid cocablad gebruikt van de bereiding van Coca-cola werden gemaakt op basis van Coca-cola verkoop statistieken. De waarden daarvan leverden dan weer ramingen op van de hoeveelheden gebruikt voor andere dranken. Deze schattingen zijn vrij ruw en de onzekerheid van de berekende waarden is derhalve vrij groot. Het kon echter worden aangetoond dat vanwege de relatieve kleinheid van de hoeveelheden cocablad gebruikt voor dranken, de naukeurigheid van de uiteindelijke schatting van de gefabriceerde hoeveeheden cocaïne slechts in geringe mate werd beïnvloed. Er is geen documentatie beschikbaar van de hoeveelheden cocaïne gefabriceerd door de NCF gedurende de periode 1900-1924. Daarom werd een methode ontwikkeld om schattingen te maken van de geproduceerd hoeveelheden over de periode 1902 tot 1930. Het principe van die methode was dat de verkochte hoeveelheden, te samen met de gemiddelde prijs, fabricagekosten en overheads de winst bepalen van de onderneming. Voldoende gegevens waren bekend om de verkochte hoeveelheden te kunnen ramen op basis van de beschikbare financiele informatie. De nauwkeurigheid van bovenomschreven ramingen werd geschat door de variantie daarvan te berekenen uit die van de onderliggende parameters welke in sommige gevallen door middel van educated guesses waren bepaald. Dit introduceert een subjectief element in de berekeningen en roept daarbij de vraag op aangaande de correctheid van de statistische berekeningen in strikt mathematische zin. Het is echter de mening van de auteur dat de berekende betrouwbaarheidsintervallen goede indicaties zijn voor de nauwkeurigheid van de schattingen, er van uitgaand dat de gebruikte modellen correct zijn. Het trekken van conclusies uit historische data door middel van statistische methoden is bekend als cliometrics of historiometrics. Niet alle historici zijn voorstanders van het gebruik van deze methoden; de stellingname van voor- en tegenstanders zijn duidelijk uiteengezet in 489 het boekje van Fogel en Elton, Which Road to the Past? (1983). De auteur behoort tot de voorstanders en is van mening dat de toepassing van cliometrische methoden in bepaalde gevallen kan leiden tot inzicht in historische situaties niet bereikbaar met de traditionele methoden. De berekeningen in Deel II zijn een voorbeeld daarvan. De waarde van de resultaten van de berekeningen hangt af van de geschiktheid van het mathematisch model, de kwaliteit van de gebruikte data en hoe de statistische methoden zijn aangewend. Algemene regels zijn moeilijk te geven; de keuze van het model volgt uit de mening van de historicus verantwoordelijk voor de studie, de gebruikte data zijn eenmalig (kunnen niet herhaald worden) en vaak gering in aantal, en de toepassing van zekere statistische berekeningen kan vanuit een strikt mathematisch standpunt bezien aan enige twijfel onderhevig zijn. Maar de waarde van de berekeningen is gelegen in het demonstreren dat geen geloofwaardige fout in de als input gebruikte waarden, de nauwkeurigheid van het berekende eindantwoord onaanvaardbaar zal maken. Deel III - Appendices Appendix 1 beschrijft de relaties tussen de families van Hengst en Huygen de Raat op Java gedurende de 19e en het begin van de 20e eeuw. Johannes van Hengst was de eigenaar van de ‘Soekamadjoe, de plantage waar in 1890 Java-coca voor het eerst op grote schaal verbouwd werd. Hij was gehuwd met Jenny van Huygen de Raat, een dochter van de zeer gefortuneerde Willem Karel Eduard Huygen de Raat. J. van Hengst werd de grootste aandeelhouder van de NCF bij de oprichting in 1900. Verschillende andere familieleden waren eveneens betrokken bij de cocateelt op Java, Soekamadjoe en de NCF. Antoine Massink, een zwager van J. van Hengst, had als administrateur-titulair bij ‘s Lands Plantentuin te Buitenzorg kennis van de experimentele kweek aldaar en Jan Hendrik de Groot, zwager van W.K.E. Huygen de Raat, was commissaris bij de NCF in 1908. Appendix 2 heeft betrekking op een aantal ongunstige uitlatingen over de NCF voorkomend in publicaties van Ger Harmsen, Dirk Kolf en Marcel de Kort, Jeanette Groenendaal en Conny Braam. Die uitlatingen worden van onjuist tot kwaadwillend gekwalificeerd. Ze berusten op bevooroordeelde interpretaties van situaties en gegevens. Al deze publicaties hebben gemeen dat NCF beschouwd wordt als een onderneming welke, onterecht, zeer grote winst maakte door het fabriceren en verkopen van cocaïne. Harmsen’s kritiek is gebaseerd op zijn (onterechte) mening dat de NCF grote winst maakte terwijl de gezondheid van de arbeiders in gevaar werd gebracht door deze bloot te stellen aan zeer schadelijke dampen (“een menseleven telde hier […] niet”). Kolf en de Kort’s uitlatingen zijn minder direct, ze berusten meer op insinuaties. Zij spreken (volslagen ten onrechte) van: “Tot in de jaren dertig was het vooral Nederland dat de wereld van het geestverruimende middel [cocaïne] voorzag” en “De trots waarmee aan het begin van de eeuw werd uitgeroepen dat Nederland de grootste en beste cocaïne producent ter wereld was kon in 1975 maar beter vergeten worden”. Zij komen ook met de totaal ongefundeerde bewering dat NCF in 1941 amphetamine geproduceerd zou hebben, volgens een later interview met de Kort: vermoedelijk voor Duitse soldaten. Groenendaal’s video documentaire kan niet serieus genomen worden. Braam gaat het verst met haar beschuldigingen. In haar boek, De handelsreiziger van de Nederlandsche Cocaïne Fabriek, hetwelk gepresenteerd wordt als zijnde gebaseerd op ware feiten en research, wordt gesteld dat honderduizenden Britse en Duitse soldaten, opgehitst door NCF cocaïne, vechtmachines werden welke, als ze overleefden, tenslotte verslaafd waren. Deze beweringen werden in daaropvolgende TV- en radio-interviews herhaald en 490 aangevuld met uit de lucht gegrepen getallen voor zeer grote hoeveelheden cocaïne welke door de NCF geproduceerd zouden zijn. Braam kwalificeert leveringen van de NCF gedurende de Eerste Wereldoorlog als: “een smerig stuk Nederlandse geschiedenis [welke is] helemaal weggewerkt uit de geschiedenisboeken”. Er geen enkele feitenlijke basis voor Braam’s beweringen. In het boek en de daaropvolgende interviews worden de reputatie van de NCF, de Koloniale Bank en hun bestuurders en employé’s volslagen ongegrond door het slijk gehaald. Appendix 3 handelt over de ontwikkeling en toepassing van de Goods-in-Transit (goederen in transito) methode welke gebruikt wordt om te beoordelen of in- en uitvoer statistieken verenigbaar zijn. Deel IV – Source Data Deel IV omvat tabellen waarin de verzamelde kwantitative gegevens over Peru-coca, ruwe cocaïne uit Peru, Java-coca, opiaten en financiële waarden worden gepresenteerd op jaarbasis. Voor de samenstelling daarvan werd een groot aantal bronnen gebruikt. Waarden van verschillende bronnen zijn afzonderlijk vermeld en in een aantal gevallen wordt een kolom met een keuze daaruit opgenomen. Data in niet-metrische eenheden worden als zodanig en ook omgerekend in metrische eenheden opgenomen. Financiële waarden zijn vermeld in de oorspronkelijke munteenheid en ook omgerekend in Nederlandse guldens. In een aantal gevallen zijn ook gemiddelden, totalen, verschillen en ratio’s berekend door de auteur en in afzonderlijke kolommen opgenomen. Voor de jaren vanaf 1930 zijn de tabellen over opiaten grotendeels gebaseerd op Statistics on Narcotics Drugs, gepubliceerd door de PCOB en de INCB. De financiële tabellen met betrekking tot de balansen en verlies- en winstrekeningen van NCF (1950-1960) en VPF (1948-1963) zijn door de auteur geconstrueerd op basis van de jaarverslagen van de ondernemigen. De getallen zijn afgerond tot de naaste duizend Nederlandse guldens en zo gearrangeerd dat ze een vergelijking van de resultaten van NCF en VPF op betrekkelijk eenvoudige wijze mogelijk maken. 491 CURRICULUM VITAE Hans Harold Bosman Date and place of Birth 13 October 1930, Bloemendaal, the Netherlands Education Kennemer Lyceum, Overveen, from 1942 Diploma HBS-B 1948 Vrije Universiteit, Amsterdam, from 1948 Faculty Wis- en Natuurkunde (Natural Sciences and Mathematics) Candidaats Examination (e) (Chemistry and Physics) 1953 Doctoraal Examination (Major: Organic Chemistry) 1957 Military Service Royal Dutch Artillery 1957-1959 (final rank First Lieutenant) Employment History Laboratorium voor Scheikundig Onderzoek “Haarlem”, Part time employment; synthesis of organic compounds 1953-1957 Heineken Breweries, Rotterdam, Operations Manager (trainee) 1959-1960 Nederlandsche Cocaine Fabriek N.V., Amsterdam, Chief Chemist, later Operations Manager 1960-1964 Verenigde Pharmaceutische Fabrieken N.V., Apeldoorn, Operations Manager and Chief Chemist, later Deputy General Manager 1964-1973 Les Aerosols Français S.A., Villemeux-sur Eure, France Président-directeur général 1971-1972 Part time function for Akzo Diosynth B.V., Oss. Manager Business Development, 1973-1977 Abbott Australasia Pty Ltd, Sydney, Australia General Manager Chemical Operations 1977-1982 Tasmanian Alkaloids Pty Ltd, Westbury, Tasmania, Australia General Manager 1977-1982, Managing Director 1982-1996 Additional functions within Johnson and Johnson: Extal Pty Ltd, Westbury, Tasmania, Australia Managing Director 1982-1989 Johnson & Johnson Pty Ltd. Sydney, Australia Director 1983-1996 492 Johnson & Johnson Retirement Benfits Plan (Australia) Director 1989-1996 Retired 1996 Activities in Retirement From 1996: Pursuing hobbies such as playing music, landscaping own coastal property in Tasmania, making outdoor sculptures. Managing own Superannuation Fund. Reading widely on subjects of interest such as alkaloid chemistry, botany and ethics. Collecting information on the history of the alkaloid industry in general and on the opiate and cocaine industries in the Netherlands in particular. From 2006: Researching and writing this dissertation under the guidance of professor Ernst Homburg, Maastricht University. Patent and publications AKZONA, ‘3-Alkoxy-14-acyloxydihydromorphinone Derivatives’, Inventors: W.R. Buckett and H.H. Bosman, US Patent 3,828,050 (1974) Aug 6. AGASI, C.J., and H.H. BOSMAN, ‘Determination of Thebaine in Papaver bracteatum’, United Nations Secretariat; ST/SOA/SER.J/16 (1974) Nov 27. BEYERMAN, H.C., T.S. LIE and L. MAAT (TH Delft), and BOSMAN, H.H., E. BUURMAN, E.J.M. BIJSTERVELD and H.J.M. SINNIGE (VPF), A convenient synthesis of codeine and morphine’, Receuil des Travaux Chimiques des Pays-Bas 95 (1976) 24-25. BEYERMAN, H.C., J. VAN BERKEL, T.S. LIE, L. MAAT and J.C.M. WESSELS (TH Delft) and BOSMAN, H.H., E. BUURMAN, E.J.M. BIJSTERVELD and H.J.M. SINNIGE (VPF), ‘Synthesis of racemic and optically active codeine and morphine via N-formylnordihydrothebainones’, Receuil des Travaux Chimiques des Pays-Bas 97 (1978) 127-130. 493 GENERAL LIST OF ABBREVIATIONS AND ACRONYMS Commercial Companies KB KZO NCF VPF Koloniale Bank Koninklijke Zwanenberg Organon Nederlandsche Cocaine Fabriek Verenigde Pharmaceutische Fabrieken Bodies involves in Narcotics Control CND DEA DND INCB LoN OAC PCOB UN Commission on Narcotic Drugs (UN) Drug Enforcement Administration (USA) Division of Narcotic Drugs (UN) International Narcotics Control Board (UN) League of Nations Opium Advisory Committee (LoN) Permanent Central Opium Board (LoN) United Nations Opium alkaloids and Opiate Raw Materials ACA AMA ATA CPS EPC NMR TM Anhydrous Codeine Alkaloid Anhydrous Morphine Alkaloid Anhydrous Thebaine Alkaloid Concentrate of Poppy Straw Extractum Papaveris Crudum (old name for CPS) Narcotic Raw Material Technical Morphine Miscellaneous CHF DEM NLG USD Swiss Francs German Marks Dutch Guilders US Dollars BCI CPV HHB TMO Bedrijfsgroep Chemische Industrie (the Netherlands) Coca Producenten Vereniging (Coca Producers Association) Hans Harold Bosman (the author) Toprak Mahsulleri Ofici (Turkish Grain Board) HCl Hydrochloride (alkaloid salt) CSE Chemicals, Solvents and Energy (used in alkaloid manufacture) FN&C Foreign Navigation and Commerce (annual publication) lb oz hkg avoirdupois pound (0.4536 kg) avoirdupois ounce (28.35 g) half kg (500 g) 494 PART IV SOURCE DATA 495 SOURCE DATA INDEX PERU (TOTAL) COCA LEAF (PCL) PCL 1 Export Peru Coca Leaf (1890-1933) PCL 2 Import Coca Leaf into the USA – 1 (1900-1933) FC&N Data compared with Spillane’s Graphs PCL 3 Import Coca Leaf into the USA – 2 (1892-1931) Spillane’s Graphs Digitized PCL 4 Import Coca Leaf into the USA – 3 (1892-1933) Summary Table Imports USA by Fiscal and Calendar Year PCL 5 Import Coca Leaf into Hamburg (1890-1913) from Gehe’s Handelsbericht PCL 6 Peru Coca Leaf Trade with Germany (1904-1913) PCL 7 Import of Coca Leaf into Hamburg (1886-99 and 1910-13) PCL 8 US Prices Peru Coca Leaf (1894-1916) 498-9 500 501 502-3 504 505 506 507 PERU CRUDE COCAINE (PCC) PCC 1 Export Crude Cocaine from Peru (1888-1933) PCC 2 Import Cocaine into the USA - 1 (1891-1923) PCC 3 Import Cocaine into the USA - 2 Summary Table Imports by Fiscal and Calendar Year (1901-1931) PCC 4 Import Crude Cocaine from Peru into Hamburg (1892-1913) PCC 5 German Prices for Crude Cocaine (1892-1913) 508 509 510 511 512 JAVA COCA LEAF (JCL) JCL 1 Koloniale Bank. Java Coca Sold in Consignment (1882-1931) JCL 2 Export Coca Leaf from Java (1891-1939) JCL 3 Export Coca Leaf from Java by Country (1908-1938) JCL 4 Export Coca Leaf from the Netherlands (1922-1932) JCL 5 Sales of Java Coca Amsterdam (1905-1929) Statistics P. Brusse JCL 6 Sales of Java Coca in the Netherlands (1911-1932) Conversion Number of Bales into Tonnes – Stocks at Year End 496 513 514-6 517 518 519 520 COCAINE (COC) COC 1 League of Nations (PCOB) Statistics on the Manufacture of Cocaine World-wide (1920-1939) COC 2 Cocaine Manufacture in the Netherlands (1921-1939) COC 3 US Prices for Cocaine Hydrochloride (1892-1916) COC 4 German Prices for Cocaine Hydrochloride (1898-1906) COC 5 German Prices for Cocaine Hydrochloride (1907-1913) COC 6 Crude Cocaine Manufacture in the Netherlands (1926-1938) 521 522 523 524 525 556 OPIATES (OPI) OPI 1 Manufacture of Morphine Worldwide by Raw Material (1946-1970) OPI 2 Manufacture of Morphine by Country (1929-1939) OPI 3 Morphine and Codeine - Manufacture, Raw Material Usage and Consumption Worldwide (1946-1960) OPI 4 Poppy Straw purchased during 1936-1956 for Extraction in Germany OPI 5 Extraction of Poppy Straw in Germany, Hungary France and the Netherlands (1946-1960) OPI 6 Codeine Manufacture by Country (1946-1969) OPI 7 Codeine Manufacture by Country (1981-1995) OPI 8 Morphine (CPS and Technical Morphine) Export and Import the Netherlands (1981-2009) OPI 9 Codeine Phosphate Price and Raw material (Opium) Cost (1962-2004) OPI 10 Opiate Consumption met by Imports and Production available for Export 1964-1980 527-8 539 530 531 532 533 534 535 536 537 FINANCE (FIN) FIN 1 NCF Dividend Payments (1902-1953) FIN 2 Exchange Rates US Dollar (USD), Dutch Guilder (NLG) and German Mark (DEM) (1876-1994) FIN 3 NCF Cost Extraction Poppy Straw (1943-1944) FIN 4 NCF Balance Sheets 1950-1960 (Re-arranged) FIN 5 NCF Profit & Loss Account 1950-1960 (Re-arranged) FIN 6 NCF Investments and Depreciation 1950-1960 FIN 7 VPF Balance Sheets 1948-1955 (Re-arranged) FIN 8 VPF Balance Sheets 1956-1963 (Re-arranged) FIN 9 VPF Profit & Loss Account 1948-1955 (Re-arranged) FIN 10 VPF Profit & Loss Account 1956-1963 (Re-arranged) FIN 11 VPF Investments and Depreciation 1948-1963 497 538-9 540 541-2 543-4 545 546 547 548 549 550 551 Source Data Export Peru Coca Leaf (1890-1933) Sources and Notes PCL 1A Columns [1], [2] D.F. Musto, ‘International Traffic in Coca’ Drug and Alcohol Dependence 49 [2] (1998) 145-156 GBFO = Great Britain Foreign Office; Peru = Official Statistics Peru; London = The Board of Trade Journal [2] 1906, Musto includes a second figure of 7,710,290 lbs (3,224 mt) marked "total" in his table 2 [3] Gehe & Co., Dresden, Handelsberichte, April (1890) 19, April (1897) 57 [4] US Department of State, Commercial Relations of the US with foreign countries during the year 1902, 107 [5] W. R. Tromp de Haas, ‘De Coca-Cultuur’, Teysmannia 14 (1903) 296-297 [6] Korte Berichten van Landbouw, Nijverheid en Handel [12] (1911) 157 [7] Abrahamson, ‘Het Coca Vraagstuk’ Tijdschrift voor Nijverheid en Landbouw in Nederlandsch-Indië 85 (1912) 142 [8] A.W.K. de Jong, Teysmannia (1912) 674 mentions "exported in 1911 to American and European ports" [9] Handelsberichten (Ministerie van Landbouw, Nijverheid en Handel, The Hague) (1914) 327, includes a specification. [10] T. Walger, ‘Die Coca: Ihre Geschichte, geographische Verbreitung und wirtschaftlische Bedeutung’ Dissertation University of Giessen (Berlin 1917) 68-69. On p 71 Walger mentions an export of 149 metric tonnes to Chile for 1911 [11] The amount appearing for 1908 is calculated as difference between the total for 1904-1908 (Paz Soldán), and the total for 1904-1907. C.E. Paz Soldán “La Coca Peruana” (Lima 1936). Figure 4 in P. Gootenberg, Coca and Cocaine in (commodity) chains: Their Licit, Global Rise and Demise, 1860-1950 (Stony Brook 2002) 498 7 129 378 494 407 312 566 610 933 1,026 911 1,490 1,211 654 496 496 768 770 393 478 393 266 307 167 386 453 88 124 190 170 217 204 143 150 101 192 170 97 86 Peru Peru GBFO Peru Peru Peru Peru London Peru GBFO Peru GBFO Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 Musto's Selection 1998 [2] Musto's Source 1998 [1] Year of Export 91 129 388 391 372 Gehe 1890, 1897 [3] 497 490 312 566 610 US Dpt of State 1902 [4] 770 393 Handelsberichten 1914 [9] Walger 1917 [10] 494 407 312 499 496 654 1,341 602 901 1,315 2,843 494 407 312 566 610 372 602 de Jong 1912 [8] 372 1,043 Abrahamson 1912 [7] 124 933 1,043 911 1,341 1,211 654 Korte Berichten 1911 [6] 124 388 Tromp de Haas 1903 [5] Export Coca Leaf from Peru (1890-1933) 494 407 312 566 610 933 1,026 911 1,490 1,211 654 404 496 496 768 770 393 478 393 266 307 167 386 453 88 124 190 170 217 204 143 150 101 192 170 97 86 91 129 388 391 372 Musto's Selection Augmented [11] Paz Soldán See Note Gehe Gehe Gehe Gehe Augmentation Source 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 Year of Export tonnes Source Data Export Peru Coca Leaf (1890-1933) tonnes The figure in blue is an estimate by the author PCL 1 Source Data PCL 2 Import Coca Leaf into the USA – 1 (1900-1933) FC&N Data compared with Spillane’s Graphs Foreign Commerce and Navigation Year Quantity lbs [1] Quantity lbs 000 [2] Fiscal 1900/01 1901/02 1902/03 1903/04 1904/05 1905/06 1906/07 1907/08 1908.09 Value USD [3] Price USD/lb [4] 483 -249,698 323,405 342,518 Spillane Duty Rate [5] USD [6] % ad val. [7] Quantity lbs 000 [8] Ratio Sp / FC&N [9] Year Graph 1901 1902 1903 1904 1905 Free Free Free Free Free 1,195 1,770 2,000 1,356 1,885 2,644 1,517 644 1,103 1.00 1.00 1.02 1.00 1906 1907 1908 1909 2,650,141 1,515,616 633,121 1,100,649 2,650 1,516 633 1,101 488,545 212,424 76,109 126,881 0.184 0.140 0.120 0.115 Free Free Free Free 117,134 591,412 708,546 117 591 709 16,947 81,507 98,454 0.145 0.138 0.139 Free 5c/lb mixed 29,571 29,571 36.3 30.0 713 1.01 1910 1,226,772 1,179,540 1,175,780 1,227 1,180 1,176 234,162 201,950 139,035 0.191 0.171 0.118 5c/lb 5c/lb 5c/lb 61,339 58,977 58,789 26.2 29.2 42.3 1,218 1,172 1,172 0.99 0.99 1.00 1911 1912 1913 202,062 509,502 711,564 202 510 712 30,204 61,180 91,384 0.149 0.120 0.128 5c/lb 10c/lb mixed 10,103 50,950 61,053 33.4 83.3 66.8 713 1.00 1914 1914/15 1915/16 1916/17 1917/18 1,048,312 947,537 634,932 1,059,484 1,048 948 635 1,059 98,870 106,627 90,131 179,312 0.094 0.113 0.142 0.169 10c/lb 10c/lb 10c/lb 10c/lb 104,831 94,754 63,493 105,848 106.0 88.9 70.4 59.0 1,034 943 644 1,057 0.99 0.99 1.01 1.00 1915 1916 1917 1918 Calendar 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1,346,013 795,074 634,356 104,129 147,256 345,758 129,879 158,736 291,698 286,964 211,371 122,242 1,346 795 634 104 147 346 130 159 292 287 211 122 219,153 167,957 161,643 15,320 45,360 84,854 21,975 38,287 31,636 44,523 40,198 24,123 0.163 0.211 0.255 0.147 0.308 0.245 0.169 0.241 0.108 0.155 0.190 0.197 10c/lb 10c/lb 10c/lb 10c/lb 10c/lb 10c/lb 10c/lb 10c/lb 10c/lb 10c/lb 10c/lb 10c/lb 134,601 79,507 63,436 10,413 14,726 34,576 12,988 15,874 29,170 28,696 21,137 12,224 61.4 47.3 39.2 68.0 32.5 40.7 59.1 41.5 92.2 64.5 52.6 50.7 1,011 897 322 46 322 230 92 253 276 230 253 1.27 1.41 3.09 0.31 0.93 1.77 0.58 0.87 0.96 1.09 2.07 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930/1 1930/2 1930 total 184,259 14,960 199,219 184 15 199 36,369 2,992 39,361 0.197 0.200 0.198 10c/lb 10c/lb 10c/lb 18,426 1,496 19,922 50.7 50.0 50.6 230 1.15 1930 1931 1932 1933 490,755 224,486 190,370 491 224 190 93,151 50,707 32,837 0.190 0.226 0.172 10c/lb 10c/lb 10c/lb 49,076 22,449 19,037 52.7 44.3 58.0 368 n/a n/a 0.75 1931 1909/10/1 1909/10/2 1909/10 total 1910/11 1911/12 1912/13 1913/14/1 1913/14/2 1913/14 total Sources US Department of Commerce, Foreign Commerce and Navigation of the United States (Annual Statistics) Volumes upto and including 1917/18 cover fiscal years ending June 30th, volumes from 1918 onwards cover calendar years. J.F. Spillane, Modern Drug, Modern Menace: The legal use and distribution of Cocaine in the United States, 1880-1920 Dissertation, Carnegie Mellon University (1994) Columns [1], [3] to [7] [2] [8] [9] Data taken from Foreign Commerce and Navigation of the United States [2] = [1] / 1000 Column [5] from Table UCL 2 [9] = [8] / [2] 500 New York Graph Year (Spillane) PCL 3 Import Peru Coca Leaf into the USA – 2 (1892-1931) Spillane’s Graphs Digitized Source Data Fiscal Year graph measured mm [1] calculated lbs 000 [2] USA calculated kg 000 [3] graph measured mm [4] calculated lbs 000 [5] calculated kg 000 [6] Ratio USA / NY Fiscal Year Graph Year (Spillane) [7] 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1891/92 1892/93 1893/94 1894/95 1895/96 1896/97 1897/98 1898/99 1899'00 1900/01 1901/02 1902/03 1903/04 1904/05 10 26 13 19 33 38 19 14 43 47 70 78 54 99 128 333 167 244 423 487 244 179 551 603 897 1,000 692 1,269 58 151 76 110 192 221 110 81 250 273 407 454 314 576 11 29 14 21 36 42 21 15 47 52 77 87 59 82 253 667 322 483 828 966 483 345 1,080 1,195 1,770 2,000 1,356 1,885 115 302 146 219 375 438 219 156 490 542 803 907 615 855 1.97 2.00 1.93 1.98 1.96 1.98 1.98 1.92 1.96 1.98 1.97 2.00 1.96 1.49 1891/92 1892/93 1893/94 1894/95 1895/96 1896/97 1897/98 1898/99 1899'00 1900/01 1901/02 1902/03 1903/04 1904/05 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1905/06 1906/07 1907/08 1908.09 1909/10 1910/11 1911/12 1912/13 1913/14 1914/15 1915/16 1916/17 1917/18 89 30 31 46 30 38 42 44 32 39 47 1,141 385 397 590 385 487 538 564 410 500 603 518 174 180 268 174 221 244 256 186 227 273 115 66 28 48 31 53 51 51 31 45 41 28 46 2,644 1,517 644 1,103 713 1,218 1,172 1,172 713 1,034 943 644 1,057 1,199 688 292 501 323 553 532 532 323 469 428 292 480 2.32 3.94 1.62 1.87 1.85 2.50 2.18 2.08 1.74 2.07 1.56 1905/06 1906/07 1907/08 1908.09 1909/10 1910/11 1911/12 1912/13 1913/14 1914/15 1915/16 1916/17 1917/18 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 44 39 14 2 14 10 4 11 12 10 11 10 16 1,011 897 322 46 322 230 92 253 276 230 253 230 368 459 407 146 21 146 104 42 115 125 104 115 104 167 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 Source Column J.F Spillane, Modern Drug, Modern Menace: The legal use and distribution of Cocaine in the United States, 1880-1920. Dissertation, Carnegie Mellon University (1994) [1] [2] [3] [4] [5] [6] [7] Measured column height in figure 3.2, page 162; 78 mm representing 1 million pounds [2] = [1] / 0.78 * 10 [3] = [2] * 0.4536 Measured column height in figure 3.3, page 163; 87 mm representing 2 million pounds [5] = [4] / 0.87 * 20 [6] = [5] * 0.4536 [7] = [5] / [2] For the years 1904/05 to 1915/16, inclusive, the ratio of the totals of columns [5] and [2] is 14,759 kg / 7,269 kg = 2.03. This provides the basis for Spillane's extrapolation whereby he calculates the imports USA as imports New York times 2.00 for the years 1892/93 to 1903/04. 501 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 Source Data Import Peru Coca Leaf into the USA – 3 (1892-1933) Summary Table Imports USA by Fiscal and Calendar Year Sources and Notes PCL 4A Column [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] Column [2] Table 13.1 [2] = [1] * 0.4536 Column [6] Table 13.2 E. Reens, La Coca de Java, Monographie historique, botanique et pharmacologique, Dissertation University of Paris (Lons-le-Saunier 1919) 18 T. Walger, Die Coca: Ihre Geschichte, geographische Verbreitung und wirtschaftlische Bedeutung, Dissertation University of Giessen (Berlin 1917) 6. A.W.K. de Jong, Chapter ‘Coca’ in: H.C. Prinsen Geerligs, editor, K.W. Van Gorkom’s Oost-Indische Cultures 2nd Ed [3] (Amsterdam 1919) 299, Calculated approximate quantity as the average of two consecutive fiscal years column [1], [7] = [6] * 0.4536. Calculated approximate quantity as the average of two consecutive fiscal years column [3], Calculated approximate quantity as the average of two consecutive fiscal years column [6], Reens, La coca de Java. The same data are reported in Handelsberichten (Ministerie van Landbouw, Nijverheid en Handel, The Hague) (1914), 327 (for 1912/13) and in de Jong, Teysmannia (1912) 674 (for 1911) as export to Peru and the USA US Department of Treasury, Traffic in Opium and Other Dangerous Drugs in the year 1960,Table 10 Author's selection: 1905 Splillane col [9] and de Jong col [10]; 1906-1933 - FC & N col [8] 1910-1923, Bües, La coca del Peru; 1925-1933, Pilli, Coca Industry, from Gootenberg, Andean Cocaine (North Carolina 2008) 158 Table 16.3 502 Import USA Total FC&N lbs 000 [1] 2,650 1,516 633 1,101 709 1,227 1,180 1,176 712 1,048 948 635 1,059 Fiscal Year of Import columns [1] to [6] 1891/92 1892/93 1893/94 1894/95 1895/96 1896/97 1897/98 1898/99 1899'00 1900/01 1901/02 1902/03 1903/04 1904/05 1905/06 1906/07 1907/08 1908/09 1909/10 1910/11 1911/12 1912/13 1913/14 1914/15 1915/16 1916/17 1917/18 1,202 687 287 499 321 556 535 533 323 476 430 288 480 [2] Import USA Total FC&N kg 000 115 302 146 219 375 438 219 156 490 542 803 907 615 855 1,199 688 292 501 323 553 532 532 323 469 428 292 480 [3] Import USA Total Spillane kg 000 Fiscal Years 849 1,183 676 282 491 316 548 [4] Import New York ex Peru Reens kg 000 1,183 676 282 491 316 548 [5] Import New York ex Peru Walger kg 000 503 475 429 849 1,183 676 282 491 316 548 534 [6] Import New York ex Peru de Jong kg 000 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 [7] to [13] 2,083 1,074 867 905 968 1,203 1,178 944 880 998 792 847 1,346 795 634 104 147 346 130 159 292 287 211 122 199 491 224 190 [7] Import USA Total FC&N lbs 000 945 487 393 410 439 546 534 428 399 453 359 384 611 361 288 47 67 157 59 72 132 130 96 55 90 223 102 86 [8] Import USA Total FC&N kg 000 209 224 182 297 407 328 188 323 516 673 855 761 735 1,027 [9] Import USA Total Spillane kg 000 452 1,016 930 479 387 404 432 541 [10] Import New York ex Peru de Jong kg 000 455 424 144 [11] Import New York ex Peru Reens kg 000 72 133 115 111 62 90 221 102 82 [12] Import USA Total Treasury kg 000 Calendar Years (approximate values) Summary Table Imports by Fiscal and by Calendar Year (1892-1933) Calendar Year of Import columns Import Coca Leaf into the USA - 3 1,027 945 487 393 410 439 546 534 428 399 453 359 384 611 361 288 47 67 157 59 72 132 130 96 55 90 223 102 86 [13] Import USA Author's Selection kg 000 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 [14] to [15] Calendar Year of Export columns 277 467 423 144 330 274 99 153 135 176 198 10 44 94 0 42 61 84 56 52 68 166 68 59 [14] Export from Peru to the USA Bües/Pilli kg 000 456 424 144 [15] Export from Peru to the USA Table 16.3 kg 000 Source Data Import Peru Coca Leaf into the USA – 3 (1892-1933) Summary Table Imports USA by Fiscal and Calendar Year The figures in blue represent the author’s choice PCL 4 Source Data PCL 5 Import Coca Leaf into Hamburg (1890-1913) from Gehe’s Handelsbericht Number of Bales Year 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 Total Import G bales [1] Gehe Reference Year Page 2,910 745 2,113 1,732 1,474 2,618 5,000 1,823 1,334 2,156 1,852 3,500 1,870 2,000 92A 17 93A 14 94A 16 95A 17 95A 17 96A 19 97 20 98 19 99 26 00 23 01 19 02 31 03 29 04 32 06 28 06 28 07 26 08 33 09 68 10 66 11 76 12 65 13 76 14 75 400 850 890 710 Net Import G* [2] 1,500 2,618 1,188 1,133 Gehe Reference Year Page 96A 53 98 19 98A 65 99A 65 In Transit tr = G-G* [3] 1,118 3,000 635 201 >50% 950 1,400 Tonnes Gehe Reference Year Page 97 20 02 31 03 29 04 32 Source Gehe & Co., Handelsbericht (1885-1914) Column [5] 43 60 35 15 60 51 70 Total Import G tonnes [5] 169 43 123 100 85 152 290 106 77 125 107 203 108 116 23 49 52 41 The figures in blue are estimates by the author [3] [4] In Transit % of Total (G-G*)/G [4] [3] = [1] - [2] (if no reference) [4] = [3]/[1]*100 (for 1901: "ein grosser Theil") Average of all values: 48% [5] = [1]*0.058 (average bag weight in tonnes) The Average bag weight was calculated using quantities of cocaine manufactured from leaf during 1890-1903 estimated by Spillane, Cocaine (2000) 53. 504 Source Data Year of Import/ Export Exported to Hamburg [1] 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 PCL 6 Peru Coca Leaf Trade with Germany (1904-1913) tonnes n/a 619 578 355 n/a n/a n/a 67 76 49 Imported into Hamburg Reens [2] Imported into Hamburg Walger [3] Imported into Hamburg de Jong [4] n/a 619 578 355 n/a n/a 20 42 n/a n/a n/a 619 578 355 237 47 20 43 n/a n/a n/a 1,587 619 355 n/a n/a 20 43 40 36 Exported to Germany Selection HHB [5] n/a 619 578 355 237 47 20 67 76 49 The figures in blue represent the author’s choice Sources and Notes [1] [2] [3] [4] [5] The figures in this column are reported as exports from Peru. Sources: for 1905-1907, Korte Berichten voor Landbouw, Nijverheid en Handel, (Batavia, Dutch East Indies) (1911) 157 and Handelsberichten (Ministerie van Landbouw , Nijverheid en Handel, The Hague) (1911) 147; for 1911, De Jong, Teysmannia (1912) 674; for 1912-1913, Handelsberichten (The Hague) (1914) 327. E. Reens, La Coca de Java. Monographie historique, botanique et pharmacologique. Dissertation University of Paris (1919) 18. Thedata for imports 1905 and 1906 in Rees' dissertation are at odds with those reported by Walger and De Jong. The author presumes that the latter figures are correct. For imports 1905-1910, Reens refers to Korte Berichten voor Landbouw, Nijverheid en Handel (1912) 276 as the source. When checking Korte Berichten the author found that only the number of bales of Trujillo coca imported into Hamburg in 1910 and 1911 was mentioned. For imports into Hamburg 1912-1913 Reens refers to Gehe's Handelsbericht, where they could not be traced by the author.. T. Walger, Die Coca: Ihre Geschichte, geographische Verbreitung und wirtschaftlische Bedeutung, Dissertation University of Giessen (1917) 69. Walger refers to Verslag van de Commissie tot Oprichting van het Coca-Syndicaat, Batavia (1912) as the source. A.W.K. de Jong, Chapter ‘Coca’ in: H.C. Prinsen Geerligs, editor, K.W. Van Gorkom’s Oost-Indische Cultures (1919) 299. No references. The figures in column [5] were selected by the author (HHB). For the years 1905-1907 and 19121913 the export figures from Handelsberichten [1] were chosen, while for the years 1908-1910 the import figures from de Jong [4] were taken. 505 Source Data Import Coca Leaf into Hamburg (1886-99 and 1910-13) By Provenance, in tonnes / number of bales Bolivia Cuzco Trujillo Huanuco Total Units 1886 1887 22 35 29 0 86 tonnes 17 0 16 0 33 tonnes 1897 1898 1899 1910 1911 1912 1913 0 313 180 0 0 90 0 637 1,754 900 0 0 200 350 230 0 261 400 850 600 360 321 89 511 0 0 0 0 1,188 2,156 1,852 400 850 890 710 bales bales bales bales bales bales bales By Provenance, in per cent. Bolivia % Cuzco % Trujillo % Huanuco % Total % 1886 1887 1897 1898 1899 26 52 0 15 10 41 0 54 81 49 34 48 19 0 14 0 0 27 4 28 100 100 100 100 100 Average 1886-1899 20 45 23 12 100 1910 1911 1912 1913 0 0 10 0 0 0 22 49 100 100 67 51 0 0 0 0 100 100 100 100 3 18 80 0 100 Average 1910-1913 Source The above information on the varieties of coca leaf imported into Hamburg was sourced from Gehe’s Handelsbericht. The Bolivian coca was exported via the port of Mollendo (South Peru)- 506 PCL 7 Source Data PCL 8 US Prices Peru Coca Leaf (1894-1916) Year 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 Price Huanuco Coca Leaf US cents / lb [1] 34 35 28 26 22 20 23 22 23 24 33 32 40 39 35 35 30 30 30 30 30 35 32 32 28 28 26 26 26 26 30 30 n/a n/a n/a n/a 30 30 30 30 n/a n/a n/a n/a Price Huanuco Coca Leaf NLG / kg [2] 1.73 1.32 1.18 1.23 1.56 1.97 2.03 1.78 1.65 1.65 1.84 1.65 1.48 1.43 1.54 1.65 n/a 1.65 1.65 1.65 n/a n/a Price Truxillo Coca Leaf US cents / lb [3] 22 20 20 21 14 13 11 13 14 22 32 20 27 29 25 25 19 19 20 20 18 20 18 18 17 14 14 13 13 13 25 25 35 35 35 33 28 22 24 24 40 40 40 40 Price Truxillo Coca Leaf NLG / kg [4] 1.10 0.96 0.66 0.74 1.48 1.29 1.48 1.21 1.07 1.04 1.04 0.96 0.77 0.71 1.04 1.65 1.92 1.67 1.26 1.76 2.19 2.19 Source Joseph F. Spillane, Cocaine (2000) 54. Weekly wholesale prices, taken from the Oil, Paint and Drug Reporter were compiled by Spillane and halfyear averages were plotted in his Figure 3.2. The graph was digitalized by the author (HHB) and the outcome is presented in columns [1] and [3]. Notes [2] = annual averages of [1]*2.49/45.4 (USD = 2.49 NLG) [4] = annual averages of [3]*2.49/45.4 507 Source Data PCC 1 Export Crude Cocaine from Peru (1888-1933) (kg) Year of Export Musto's Source 1998 Musto's Selection 1998 [1] 1888 1889 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 Peru 1,730 Peru Peru Peru 930 3,215 4,550 London Peru Peru Peru London Peru Unknown Unknown GBFO Peru GBFO 4,200 4,346 4,500 7,745 10,688 8,268 10,000 9,500 6,778 5,914 6,057 Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru Peru 5,266 5,524 5,434 2,944 3,267 979 1,353 1,576 1,896 2,967 596 1,637 157 778 192 967 621 1,048 980 625 236 Peru Peru Peru 246 420 918 Gehe 1897 [2] Tromp de Haas 1903 [3] Comm. Rel. USA 1901 [4] Korte Berichten Abrahamson 1911, 1914 1912 [5] [6] Walger 1917 [7] Musto's Selection Augmented [8] Augmentation Source 1,730 1,730 3,215 4,550 2,357 4,716 1,730 3,212 4,550 2,357 4,716 4,206 4,346 4,500 4,550 2,357 4,716 4,200 4,350 4,500 7,750 10,600 4,206 4,346 4,500 7,750 10,688 7,800 7,527 6,778 5,914 7,800 6,778 7,800 7,527 6,778 5,914 6,057 5,000 5,402 2,944 3,267 5,434 1,730 3,215 4,550 2,357 4,716 4,200 4,346 4,500 7,745 10,688 8,268 7,800 7,527 6,778 5,914 6,057 5,175 5,266 5,524 5,434 2,944 3,267 979 1,353 1,576 1,896 2,967 596 1,637 157 778 192 967 621 1,048 980 625 236 20 246 420 918 Gehe Gehe Gehe Walger Walger Paz Soldán Paz Soldán Year of Export 1888 1889 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 Sources and Notes Column [1] D.F. Musto, ‘International Traffic in Coca’ Drug and Alcohol Dependence 49 [2] (1998) 145-156. GBFO = Great Britain Foreign Office; Peru = Official Statistics Peru; London = The Board of Trade Journal. [2] Gehe & Co., Dresden, Handelsbericht, April (1897) 57, [3] W. R. Tromp de Haas, ‘De Coca-Cultuur’, Teysmannia 14 (1903) 296-297. [4] Commercial relations of the United States with foreign countries for the year 1901, 107 (US Dpt. of State). [5] Korte Berichten voor Landbouw, Nijverheid en Handel (Batavia) (1911) 157; Handelsberichten, Ministerie van Landbouw etc.(The Hague) (1914) 326; de Jong, Teysmannia (1912) 674. [6] Abrahamson, ‘Het Coca Vraagstuk’ Tijdschr. voor Nijverheid en Landbouw in Ned,-Indië 85 (1912) 142. [7] T. Walger, Die Coca: Ihre Geschichte, geographische Verbreitung und wirtschaftlische Bedeutung, Dissertation University of Giessen (1917), 70. [8] Calculated by the author for 1908 as the difference between the total for 1904-1908 (Paz Soldán) and the total for 1904-1907 (above table column [8]); and for 1930 as the difference between the total for 1929-1933 (Paz Soldán) and the total for 1931-1933 plus 1929 (above table column [8]). C.E. Paz Soldán, “La Coca Peruana” (Lima 1936). Figure 4 in P. Gootenberg, Coca and Cocaine in (commodity) chains: Their Licit, Global Rise and Demise, 1860-1950 (Stony Brook 2002). 508 Source Data PCC 2 Import Cocaine into the USA - 1 (1891-1923) Foreign Commerce and Navigation Quantity oz [1] Year Quantity oz 000 [2] Value USD [3] Price USD/oz [4] Spillane Rate USD/oz [5] Duty USD [6] Percent ad valorem [7] measured mm [8] Fiscal 1891/92 1892/93 1893/94 1894/95 1895/96 1896/97 1897/98 1898/99 1899'00 1900/01 1901/02 1902/03 1903/04 1904/05 1905/06 1906/07 calculated oz 000 [9] Sp - FC&N oz 000 [10] Year 25 50 47 34 25 15 22 15 27 34 68 64 47 34 21 30 21 37 Graph 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 176,948 254,704 224,453 74,446 10,391 10,782 37,585 3.00 3.00 2.98 2.17 1.90 1.97 1.44 44,237 63,676 56,113 18,612 2,598 2,696 9,396 25 25 25 25 25 25 25 43 62 55 25 4 4 19 59 85 75 34 5 5 26 1,027 12,086 25 25 3 24 4 33 0 1 1908 1909 1907/08 1908/09 3,792 32,272 4 32 4,108 48,343 1.08 1.50 1909/10/1 1909/10/2 1909/10 total 29,632 24,928 54,560 30 25 55 38,163 42,438 80,601 1.29 1.70 1.48 1.50 mixed 9,541 37,392 46,933 25 88 58 126 55 0 1910 1910/11 1911/12 1912/13 4,031 2,004 3,715 4 2 4 8,306 3,499 4,835 2.06 1.75 1.30 1.50 1.50 1.50 6,047 3,006 5,573 73 86 115 3 2 3 4 3 4 0 1 0 1911 1912 1913 1913/14/1 1913/14/2 1913/14 total 3,206 85 3,291 3 0 3 3,995 106 4,101 1.25 1.25 1.25 1.50 2.00 mixed 4,808 171 4,979 120 161 121 2 3 -1 1914 1914/15 1915/16 1916/17 1917/18 179 4,275 19,388 8,597 0 4 19 9 422 5,887 38,627 35,358 2.36 1.38 1.99 4.11 2.00 2.00 2.00 2.00 358 8,550 38,776 17,194 85 145 100 49 1 3 15 6 1 4 21 8 1 -0 1 -0 1915 1916 1917 1918 Calendar 1918 1919 1920 1921 18,389 12,424 8,642 7,065 18 12 9 7 80,652 29,035 27,324 18,428 4.39 2.34 3.16 2.61 2.00 2.00 2.00 2.00 36,778 24,848 17,284 14,130 46 86 63 77 15 8 4 21 11 5 8 2 -2 1919 1920 1921 1922/1 1922/2 1922/3 1922 total 5,015 2,403 100 7,518 5 2 0 8 11,514 6,730 238 18,482 2.30 2.80 2.38 2.46 2.00 2.60 2.60 mixed 10,030 6,248 260 16,538 87 93 109 89 4 5 -2 1922 0 238 2.38 2.60 260 109 2 3 3 1923 1923 1924-1931 100 no imports The figures in blue are calculates by the author Sources US Department of Commerce, Foreign Commerce and Navigation of the United States Volumes up to and including 1917/18 cover fiscal years ending June 30th, volumes from 1918 onwards cover calendar years. J.F. Spillane, Modern Drug, Modern Menace: The legal use and distribution of Cocaine in the United States, 1880-1920, Dissertation, Carnegie Mellon University (1994). Notes FC&N Statistics on Cocaine include "cocaine, ecgonine and salts and derivatives of same" (from 1914). It is assumed that in practice the quantity represented the total of Crude Cocaine plus (pure) Cocaine HCl [1] and [3]-[7] [2] [4] [8] [9] and [10] Data taken from Foreign Commerce and Navigation of the United States (FC&N). [2] = [1] / 1000 For 1900/01 to 1906/07 [4] = [9] / [3] / 1000. For other years the price information is taken/calculated from the FC&N statistics. Measured column height in Spillane's figure 3.5, page 171; 73 mm representing 100,000 oz. [9] = [8] / 0.7 [10] = [9] - [2] 509 Source Data PCC 3 Import Cocaine into the USA - 2 Summary Table Imports by Fiscal and Calendar Year (1901-1931) Fiscal Years Calendar Years (approximate values) Fiscal Year of Import columns Import USA Total FC&N oz Import USA Total FC&N kg Import USA Total Spillane oz Import USA Total Spillane kg Import New York ex Peru Reens kg Import New York ex Peru Walger kg Import New York ex Peru de Jong kg Calendar Year of Import columns Import USA Total FC&N oz Import USA Total FC&N kg Import USA Total Spillane kg [1] to [6] [1] [2] [3] [4] [5] [6] [7] [8] to [10] [8] [9] [10] 59,000 85,000 75,000 34,000 5,000 5,000 26,000 1,673 2,410 2,126 964 142 142 737 1900/01 1901/02 1902/03 1903/04 1904/05 1905/06 1906/07 1907/08 1908/09 1909/10 1910/11 1911/12 1912/13 1913/14 1914/15 1915/16 1916/17 1917/18 3,792 32,272 54,560 4,031 2,004 3,715 3,291 179 4,275 19,388 8,597 108 915 1,547 114 57 105 93 5 121 550 244 284 136 591 114 968 889 120 591 114 968 889 120 284 136 591 114 968 889 120 60 5 121 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924-1931 2,041 2,268 1,545 553 142 439 422 18,032 43,416 29,296 3,018 2,860 3,503 1,735 2,227 11,832 13,993 18,389 12,424 8,642 7,065 7,518 100 0 Sources and Notes The figures in blue are calculated by the author Column [1] [2] [3] [4] [5] [6] [7] [8] [9] Table PCC 2 column [1] [2] = [1] *28.35 / 1000 Table PCC 2 column [9] [4] = [3] *28.35 / 1000 E. Reens, La coca de Java, dissertation (1919), referring to Verslag van de Commissie tot Oprichting van het Coca Syndicaat, Batavia (1912). T. Walger, Die Koka, dissertation, (1917), 70, referring to Verslag van de Commissie tot Oprichting van het Coca Syndicaat, Batavia (1912). A.W.K. de Jong, Chapter "Coca" in K.W. van Gorkom's Oost-Indische Cultures (1919) 299. No references. 1908 = column [1] (1908/09 +1909/10)/2 etc. 1901 = column [1] (1901/01 +1901/02)/2 etc. 510 511 1,231 831 86 81 99 49 63 335 397 521 352 245 200 213 3 0 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 Year of Import 511 1900 A 1899 A 1904 1904 1904 1904 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 2,407 1,067 3,280 4,210 4,595 5,817 5,642 6,443 6,178 5,230 5,143 4,132 3,835 3,717 3,980 2,502 2,405 1898 A 1900 A 1901 1902 1,666 2,470 2,774 Source: Gehe's Handelsbericht Issue 1,898 Import Peru Crude Hamburg Earlier Data [2] 1,272 1,130 1,370 480 Transit Peru Crude Hamburg Gehe [3] 1904 1905 1906 1907 Source: Gehe's Handelsbericht Issue 5,189 6,133 6,201 4,552 4,977 4,944 3,980 2,502 2,405 Import Peru Crude Hamburg Reens [4] 6,201 4,552 4,977 4,944 3,980 Import Peru Crude Hamburg Walger [5] Sources and Notes Gehe & Co., Dresden, Handelsbericht,1893-1914 [1], [2], [3] E. Reens, La coca de Java , dissertation, 1919 [4] T. Walger, Die Koka , dissertation, 1917, 70, referring to [5] Verslag van de Commissie tot Oprichting van het Coca Syndicaat , Batavia 1912 A.W.K. de Jong, Chapter "Coca" in K.W. van Gorkom's Oost-Indische Cultures [6] 1919, 299. No references 1896 A Source: Gehe's Handelsbericht Issue 2,382 Import Peru Crude Hamburg Gehe [1] Import Crude Cocaine from Peru into Hamburg (1892-1913) 6,133 5,184 6,201 4,552 4,977 4,944 3,980 Import Peru Crude Hamburg de Jong [6] 4,271 5,106 2,729 2,449 Import Peru Crude Hamburg Gootenberg [7] 5,073 2,729 2,449 6,670 6,156 6,313 5,184 Import Peru Crude Hamburg Netherlands [8] kg 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 Year of Import Source Data Import Crude Cocaine from Peru into Hamburg (1892-1913) kg PCC 4 Source Data PCC 5 German Prices for Crude Cocaine (1892-1913) Year 1902 Price Crude Cocaine DEM per kg [1] 440 270 220 390 350 Average Price Crude Cocaine DEM per kg [4] Average Price Crude Cocaine NLG per kg [5] Month [2] Source [3] Jan Gehe Gehe Gehe Gehe Gehe 334 197 Gehe Gehe 340 201 330 195 Sep Dec 1903 290 390 1904 340 360 280 340 Dec Gehe Gehe Gehe Gehe 1905 340 225 320 Jan Oct Dec Gehe Gehe Gehe 295 174 1906 320 Jan Gehe 320 189 1907 195 200 250 215 127 May Gehe Gehe Gehe 1908 198 180 240 Jan Mar Dec Gehe Gehe Gehe 206 122 1909 240 240 Jan Dec Gehe Gehe 240 142 1910 240 300 247 305 Jan Dec Gehe Gehe Abrahamson Abrahamson 273 161 1911 260 250 300 310 264 305 Gehe Gehe Gehe Gehe Abrahamson Abrahamson 282 166 Gehe Gehe Gehe Gehe Gehe Abrahamson Abrahamson 236 139 Gehe Gehe 173 102 1912 1913 280 185 225 180 275 305 203 Jan Apr Dec Jan Dec Jan Jun 145 200 Sources Gehe & Co. Handelsbericht (1898-1914) Abrahamson, Het Cocavraagstuk, Tijdschrift voor Nijverheid en Landbouw (1912) 150-151. Column [4] [4] is the average of [1] for the year [5] [5] = [4] (non-rounded) * 0.59 (Exchange Rate DEM / NLG) 512 Source Data Koloniale Bank. Java Coca Sold in Consignment (1882-1931) Year 1889-1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 Quantity (weight) Unit (of weight) "kleine partijtjes (small lots) coca" 44,000 A.P. 103,000 A.P. 106,000 A.P. 96,000 A.P. 162,264 A.P. 76,026 kg 162,655 half kg 153,624 half kg 97,300 half kg n/a 79,010 half kg 41,510 kg 46,811 kg 46,526 kg 41,934 kg 59,510 kg 50,032 kg 57,675 kg 73,167 kg 168,374 kg 254,423 kg 385,506 kg 389,172 kg 428,280 kg 350,456 kg 49,484 kg 114,505 kg 268,008 kg 288,535 kg 330,828 kg 317,610 kg 262,993 kg 237,562 kg 260,750 kg 210,000 kg 237,000 kg 145,000 kg 112,000 kg 87,000 kg 91,000 kg 74,000 kg 37,000 kg 0 kg Quantity in kg 21,736 50,882 52,364 47,424 80,158 76,026 81,328 76,812 48,650 n/a 39,505 41,510 46,811 46,526 41,934 59,510 50,032 57,675 73,167 168,374 254,423 385,506 389,172 428,280 350,456 49,484 114,505 268,008 288,535 330,828 317,610 262,993 237,562 260,750 210,000 237,000 145,000 112,000 87,000 91,000 74,000 37,000 0 Source Koloniale Bank, Jaarverslagen (Annual Reports) 1889-1935. Nationaal Archief, Access No. 2.20.04, Items 4-7. Notes A.P. = Amsterdam's Pond = 0.494 kg For 1891-1895 [2] = [1]*0.494 For 1897-1901 [2] = [1]*0.500 For 1897 in the Annual Report "KG" is mentioned as the unit but that is presumably in error; when the unit "half kg" is used, the quantity calculated in column [2]is in line with the other figures. 513 JCL 1 Source Data Export Coca Leaf from Java (1891-1939) Sources and Notes JCL 2A The numbers refer to the columns [1] Sold on consignment. Koloniale Bank, Jaarverslagen (Annual Reports) 1891-1904. Nationaal Archief, Access No. 2.20.04, Items 4-7. Table JCL 1. [2] C.S. Abrahamson, ‘Het Coca Vraagstuk’ Tijdschrift voor Nijverheid en Landbouw in Nederlandsch-Indië 85 (1912) 142. [3] T. Walger, Coca: Its history, geographic distribution and economic significance, Dissertation University of Giessen (1917). Chapter 7 in S.B. Karch, A History of Cocaine. The Mystery of Java Coca and the Kew Plant (2003) 155. [4] E. Reens, Java Coca, Dissertation University of Paris (1919), Chapter 5 in S.B. Karch A History of Cocaine. The Mystery of Java Coca and the Kew Plant (2003) 73. Reens refers to Abrahamson [2]. [5] A.W.K. de Jong, Chapter ‘Coca’ in: H.C. Prinsen Geerligs, editor, K.W. Van Gorkom’s OostIndische Cultures Volume 3 (1919) 294. [6] P. Brusse, Jaarverslagen voor Kinabast en Coca (Annual Reports on Cinchona bark and Coca), Library Royal Tropical Institute (KIT) Amsterdam. Brusse’s statistics (1920) are identical with the Statistics Dutch East Indies. From 1921 onwards Brusse’s statistics differ considerably from his 1920 figures and from the D.E.I. Statistics.[12]. Brusse does not mention the source of his statistics and does not comment on the differences between the amounts reported in 1920 and in later years. [7] W. Labohm, ‘Uitbreiding Cocacultuur’ Mededeelingen van het Nederlandsch-Indisch Landbouw Syndicaat 26 (1922) 91-94. [8] H. Maier, Der Kokainismus (Leipzig 1926). Maier refers to Brusse [6] as the source. [9] Coca Producenten Vereniging Jaarverslagen (Annual Reports) 1927-1932, Nationaal Archief, The Hague, Acc. No. 2.20.04 Item 1673. The CPV mentions Brusse as the source of the statistics appearing in its publication. [10] A.W.K. de Jong, Chapter ‘Coca’ in: C.J.J. van Hall and C. van de Koppel, editors, De Landbouw in de Indische Archipel Vol II A (1948) 887. [11] D.F. Musto, ‘International Traffic in Coca through the early 20th Century’, Drug and Alcohol Dependence 49 [2] (1998) 153. [12] Statistiek van den Handel en de In-en Uitvoerrechten (Statistics Dutch East Indies), Deel IIa (Java en Madoera) Weltevreden 1874-1923, Library Royal Tropical Institute (KIT), Amsterdam. (1908-1938) [13] Author’s selection Column [13] (in blue). 1891-1905 Koloniale Bank (no other information available) 1906-1907 Consensus – Reens, de Jong, Walger and Musto 1908-1938 Statistics Dutch East Indies 1939 de Jong (1948) = Statistics Permanent Central Opium Board. 514 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 Year of Export 22 51 52 47 80 76 81 77 49 30 70 72 77 77 Koloniale Bank 1891/1904 [1] 200 417 380 430 751 Abrahamson 1912 [2] 26 67 122 200 417 380 430 750 Walger 1917 [3] 67 122 200 417 380 430 750 1,075 1,332 Reens 1919 [4] 67 122 200 418 373 430 750 1,060 1,332 1,353 777 137 179 De Jong 1919 [5] 433 748 1,072 1,335 1,356 1,091 408 272 662 994 Brusse 1920 [6] 741 1,065 1,332 1,353 777 137 179 494 994 1,707 1,073 1,284 907 1,118 978 1,065 723 413 627 Brusse from 1921 [6] 1,332 1,353 777 137 179 494 993 1,707 1,073 Labohm 1922 [7] Export Coca Leaf from Java (Total) (1891-1939) 740 1,065 1,332 1,353 777 137 179 494 994 1,707 1,073 1,284 Maier 1926 [8] 907 1,118 978 1,020 678 385 585 354 287 209 CPV 1927/1932 [9] 105 125 117 133 41 180 De Jong 1948 [10] 26 67 122 200 417 373 430 750 1,075 1,332 1,353 1,089 408 272 662 994 1,677 1,137 1,284 907 1,118 1,008 1,043 709 385 585 354 304 209 161 105 125 Musto's Selection 1998 [11] 417 373 430 741 1,075 1,332 1,353 1,089 408 273 662 994 1,677 1,137 1,269 907 1,118 997 1,020 678 385 585 354 287 209 161 105 125 117 133 41 Statistics D.E.I. from 1908 [12] 22 51 52 47 80 76 81 77 49 30 70 72 77 77 67 122 200 417 373 430 741 1,075 1,332 1,353 1,089 408 273 662 994 1,677 1,137 1,269 907 1,118 997 1,020 678 385 585 354 287 209 160 105 125 117 133 41 180 Author's Selection [13] 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 Year of Export tonnes Source Data Export Coca Leaf from Java (1891-1939) tonnes The figures in blue are the author’s choice 515 JCL 2 tonnes Source: Table JCL 2 516 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 1891 1893 1895 1897 1899 1901 1903 1905 1907 1909 1911 1913 1915 1917 1919 1921 1923 1925 1927 1929 1931 1933 1935 1937 1939 Export Coca Leaf from Java 1891-1939 Source Data Export Coca Leaf from Java (1891-1939) Chart JCL 2B Source Data Export Coca Leaf from Java by Country (1908-1938) tonnes Year of Export to the Netherlands 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 311 353 401 645 1,043 1,231 1,250 909 125 17 0 756 1,394 677 903 509 791 657 763 436 307 396 252 to the UK 3 0 15 84 26 92 103 88 8 4 to Germany to USA 102 21 9 12 5 9 to Other Countries 5 80 273 235 408 125 11 6 3 11 30 to Japan 1 9 21 17 19 67 34 100 72 26 20 11 2 17 254 107 269 456 364 364 307 323 200 175 25 42 1 5 38 37 JCL 3 Total Exports from Java 417 373 430 741 1,075 1,332 1,353 1,089 408 273 662 994 1,677 1,137 1,269 907 1,118 997 1,020 678 385 585 354 Source Statistiek van Den Handel en de In-en Uitvoerrechten (Statistics Dutch East Indies), Deel IIa (Java en Madoera) Weltevreden 19741923, Library Royal Tropical Institute (KIT) Amsterdam. 517 518 Source 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 Year of Export 0 8,000 9,000 1,760 8,678 21,498 91,575 13,483 51,284 2,549 33,206 to France 32,000 34,000 0 31,000 74,069 43,837 22,724 11,287 24,334 57,176 11,340 to USA 33,000 10,000 24,000 6,000 1,014 17,279 40,124 58,720 102 14,037 20,205 to Switzerland 0 0 0 0 0 0 2,087 15,453 3,220 30,641 8,864 to UK 4,000 0 0 14,719 1,050 493 435 947 186 0 225 to "Other" Coca-Producenten Vereniging (Coca Producers Association), Annual Reports 1926, 1927 and 1932 Nationaal Archief, The Hague, Access No. 2.20.04 Item 1643 357,000 277,000 466,000 84,645 60,258 60,621 794,545 78,603 102,813 88,577 33,371 to Germany Export Java Coca from the Netherlands (1922-1932) 426,000 329,000 499,000 138,124 145,069 143,728 951,490 178,493 181,939 192,980 107,211 Total Export kg Source Data Export Coca Leaf from the Netherlands (1922-1932) kg JCL 4 5,346 20,249 27,450 57,664 110,379 180,491 412,901 578,155 846,255 903,638 114,255 40,172 5,610 0 157,740 652,659 27,626 0 0 0 0 0 0 0 0 0 Year 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1929 0 0 0 0 0 0 0 0 0 87,674 277,165 224,699 316,302 23,588 196,429 419,354 530,854 382,839 423,393 544,295 198,318 195,266 225,990 1,049,359 223,831 168,620 Coca Leaf Sold Directly kg [2] 5,346 20,249 27,450 57,664 110,379 180,491 412,901 578,155 846,255 991,312 391,420 264,871 321,912 23,588 354,169 1,072,013 558,480 382,839 423,393 544,295 198,318 195,266 225,990 1,049,359 223,831 168,620 Coca Leaf Sold Total kg [3] 82 303 427 940 1,795 2,992 6,517 9,241 13,062 14,918 1,717 650 103 0 2,147 8,973 403 0 0 0 0 0 0 0 0 0 Alkaloid In leaf sold At auction kg [4] 0 0 0 0 0 0 0 0 0 1,455 4,580 4,022 4,562 286 2,495 5,911 7,860 5,965 6,462 8,233 2,931 2,838 3,261 15,446 3,293 2,546 Alkaloid In leaf sold Directly kg [5] 82 303 427 940 1,795 2,992 6,517 9,241 13,062 16,373 6,297 4,672 4,665 286 4,642 14,884 8,263 5,965 6,462 8,233 2,931 2,838 3,261 15,446 3,293 2,546 Alkaloid In leaf sold Total kg [6] 519 1.53 1.50 1.56 1.63 1.63 1.66 1.58 1.60 1.54 1.65 1.61 1.76 1.45 1.21 1.31 1.39 1.48 1.56 1.53 1.51 1.48 1.45 1.44 1.47 1.47 1.51 Assay Calculated HHB % [8] 28.55 25.91 23.18 18.58 27.59 39.59 39.10 21.55 19.45 15.06 12.04 16.31 20.09 55.00 67.17 30.30 28.38 54.78 61.63 63.79 59.27 60.97 34.00 24.00 24.00 44.80 [9] Unit Price NL cts 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1929 Year Notes [3]=[1]+[2] and [6]=[4]+[5] Assay figures: [8]=[6]/[3]*100 are calculated by the author; Brusse's annual assay figures [7] are apparently averages of assays of monthly sales. Unit Prices 19271929 are derived from the tables published by the CPV. 1.53 1.50 1.59 1.67 1.63 1.65 1.57 1.61 1.56 1.64 1.52 1.44 1.45 1.33 1.28 1.37 1.50 1.59 1.53 1.50 1.48 1.45 1.44 1.47 1.47 1.51 Assay Reported Brusse % [7] Statistics P. Brusse Sales of Java Coca Amsterdam (1905-1929) Statistics P. Brusse Sources P. Brusse, Jaarverslagen voor Kinabast en Coca (Annual Reports on Cinchona bark and Coca), 1910-1933 Library Royal Tropical Institute (KIT) Amsterdam: All figures in black are from this source except Unit Prices 1927-1929 which are taken from: Coca-Producenten Vereniging (Coca Producers Association), Jaarverslagen (Annual Reports), 1926-1950, Nationaal Archief, The Hague, Access No. 2.20.04 Item 1643. (CPV) Coca Leaf Sold At auction kg [1] Sales of Java Coca Amsterdam (1905-1929) Source Data JCL 5 520 [3] = [1] + [2] [7] = [5] + [6] [8] = [7]/[3]*1000 [9] = [4]*[8]/1000 7,743 10,759 16,066 18,372 7,326 4,832 5,679 444 6,186 18,983 10,434 6,901 7,868 10,362 3,779 3,743 4,210 19,368 4,019 2,885 2,273 1,446 1,723 Notes 0 0 0 1,588 5,218 4,111 5,607 444 3,342 7,183 9,918 6,901 7,868 10,362 3,779 3,743 4,210 19,368 4,019 2,885 2,273 1,446 1,723 Sold Total [3] [1], [2], [4], [5] and [6] 7,743 10,759 16,066 16,784 2,108 721 72 0 2,844 11,800 516 0 0 0 0 0 0 0 0 0 0 0 0 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 Sold Directly [2] Source Sold at Auction [1] Year 413 578 846 904 114 40 6 0 158 653 28 0 0 0 0 0 0 0 0 0 0 0 0 Sold at Auction [5] 0 0 0 88 277 225 316 24 196 419 531 383 423 544 198 195 226 1,049 224 169 131 84 107 Sold Directly [6] Average 413 578 846 991 391 265 322 24 354 1,072 558 383 423 544 198 195 226 1,049 224 169 131 84 107 Sold Total [7] TONNES 54 53.3 53.7 52.7 54.0 53.4 54.8 56.7 53.1 57.3 56.5 53.5 55.5 53.8 52.5 52.5 52.2 53.7 54.2 55.7 58.4 57.7 57.8 62.3 Weight of One Bale kg [8] 133 106 95 511 322 23 0 201 332 77 200 227 227 639 1,016 1,221 418 520 588 574 562 Stock at Year End [9] P. Brusse, Jaarverslagen voor Kinabast en Coca (Annual Reports on Cinchona bark and Coca), Library RoyalTropical Institute (KIT) Amsterdam. 2,471 2,006 1,754 9,570 5,877 403 0 3,518 5,879 1,436 3,610 4,213 4,319 12,179 19,483 22,747 7,708 9,340 10,053 9,947 9,731 Stock at Year End [4] NUMBER OF BALES (COLLI) Sales of Java Coca in the Netherlands (1911-1933) Conversion Bales (Colli) into Tonnes - Stocks at Year End 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 Year Source Data Sales of Java Coca in the Netherlands (1911-1932) Conversion Number of Bales into Tonnes – Stocks at Year End JCL 6 521 3,300 2,400 2,500 2,344 1,826 1,153 1,020 744 870 358 810 566 595 236 N.R. 6,302 Germany 500 500 500 500 1,100 911 831 373 297 394 244 365 536 333 324 N.R. France ---140 238 318 381 395 427 385 395 393 367 376 401 UK 70 59 140 344 328 155 243 161 99 79 257 129 83 215 321 732 391 186 Switzerland 1,623 892 1,026 818 846 723 870 788 792 856 841 782 813 785 868 2,311 1,656 1,623 USA 1,479 1,418 1,509 1,542 1,420 1,215 1,192 1,008 931 920 910 900 900 896 900 900 4,100 2,324 3,680 Japan 38 37 179 52 40 84 75 90 85 80 Formosa -N.R. 537 269 85 122 193 181 459 405 USSR ----103 132 127 160 155 176 357 Belgium ---111 90 154 119 117 137 N.R. Czechoslovakia -----57 31 41 42 N.R. Poland -1 -1 10 12 -2 37 60 21 Other Société des Nations, Deuxième Conférence de l'Opium, Partie I, Tableaux Statistiques 1920-1923 O.D.C. 1 (C,656.H234.1924.XI) Geneva 1924, 46 Advisory Committee on traffic in opium and other dangerous drugs. Report on the 13th Session, Geneva 1930, Annex 3 PCOB Document C.121.M.39.1930.XI Geneva, League of Nations; 1930 Annual Reports to the Council on the Work of the Board and Statistics. PCOB Document A.35.1932.XI (Synopsis 1929-1931) PCOB Document C.368.M.242.1936.XI (Synopsis 1931-1935) PCOB Document C.364.M.185.1935.XI (Synopsis 1930-1934) PCOB Document C.353.M.240.1937.XI PCOB Document C.261.M.179.1939.XI PCOB Document C.157.M.143.1940.XI All PCOB (Permanent Central Opium Board) Documents were accessed at or via the League of Nations Library at Geneva. In the above table "--" stands for Return (by governments) marked "nil" and "N.R"for "Not Reported". A blank cel means: no information available. Amounts reported for France 1924-1927 are "estimates only" and amounts reported for USA 1921-1923 represent 'sales'. The amount reported for Japan 1920 is taken from the letter by J.B.M. Coebergh to the "Minister van Arbeid etc." dated 13 February 1924, Nationaal Archief, The Hague, Access No. 2.05.21 Item 1465. All amounts in Blue are calculated by the author. For Manufacture the Netherlands 1921-1924 see Table COC 2. Total quantities manufactured 1925-1918 and 1936 are calculated from the PCOB figures. 1,223 971 1,128 880 977 775 692 668 281 135 89 189 106 95 58 76 89 60 185 the Netherlands 7,818 6,146 6,319 6,630 5,699 4,718 4,612 3,968 4,010 3,464 4,002 4,086 4,142 3,490 Total kg 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 Year League of Nations (PCOB) Statistics on the Manufacture of Cocaine World-wide (1920-1939) kg 1929-1939 1929-1931 1932-1935 1934 1935-1936 1937-1938 1939 Sources 1920-1923 1925-1928 Notes 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 Year League of Nations (PCOB), Statistics on the Manufacture of Cocaine 1920-1939 Source Data COC 1 Source Data Cocaine Manufacture in the Netherlands (1921-1939) (kg) Year Export [1] Import [2] 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1,515 1,151 1,157 931 1,076 787 711 493 227 109 92 184 88 47 64 42 43 40 126 337 225 71 89 133 44 54 42 7 28 22 21 53 9 4 5 3 4 0 Consumption [3] 45 45 43 38 34 32 22 33 32 37 34 31 32 23 27 25 25 22 33 Manufacture Calculated [4] 1,223 971 1,129 880 977 775 679 484 252 118 104 194 67 61 87 62 65 58 159 Manufacture Reported [5] n/a n/a n/a n/a n/a n/a 692 668 281 135 89 189 106 103 58 76 89 60 185 Notes Amounts in Blue are calclated by HHB. [4] = [1]-[2]+[3], [6] = [5]-[4]. Stock Increases [6] are the calculated amounts. Actual stocks at year end are not available for all years. They are inconclusive. Utilisation 1924 is estimated the average of 1923 and 1925 Sources 1920-1923 1925-1928 1929-1931 1932-1935 1934 1935-1936 1937-1938 1939 Société des Nations, Deuxième Conférence de l'Opium, Partie I, Tableaux Statistiques C,656.H234.1924.XI Geneva 1924, 46 Permanent Central Opium Board (PCOB) Advisory Committee on traffic in opium and other dangerous drugs. PCOB Document C.121.M.39.1930.XI Geneva, League of Nations; 1930 Permanent Central Opium Board (PCOB) Annual Reports to the Council on the Work of the Board and Statistics. PCOB Document A.35.1932.XI PCOB Document C.368.M.242.1936.XI PCOB Document C.364.M.185.1935.XI PCOB Document C.353.M.240.1937.XI PCOB Document C.261.M.179.1939.XI PCOB Document C.157.M.143.1940.XI 522 COC 2 Stock Increase [6] n/a n/a n/a n/a n/a n/a 13 184 29 17 -15 -5 39 42 -29 14 24 2 26 Source Data US Prices for Cocaine Hydrochloride (1892-1916) Calendar Year 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 USA Price O, P & D R USD / oz [1] 6.20 6.20 5.70 5.10 5.70 5.60 4.80 4.80 4.00 3.60 2.80 3.50 3.00 3.20 3.50 6.20 5.00 6.30 6.20 5.00 4.00 4.30 4.30 3.80 3.50 3.50 3.80 3.30 3.20 2.70 2.70 2.30 2.00 2.30 2.70 3.40 3.30 3.50 3.90 3.60 3.20 3.30 3.00 2.90 3.10 4.20 3.80 4.00 4.50 USA Price Average USD / oz [2] USA Price Average DEM / kg [3] USA Price Average NLG / kg [4] 6.20 918 545 5.40 800 474 5.65 837 496 4.80 711 422 3.80 563 334 3.15 467 277 3.10 459 272 4.85 718 426 5.65 837 496 5.60 829 492 4.15 615 364 4.05 600 356 3.50 518 307 3.55 526 312 2.95 437 259 2.50 370 220 2.15 318 189 3.05 452 268 3.40 504 299 3.75 555 329 3.25 481 285 2.95 437 259 3.65 541 321 3.90 578 343 4.50 667 395 COC 3 Source Joseph F. Spillane, Cocaine (Baltimore 2000). Weeky wholesale prices from the Oil, Paint and Drug Reporter were compiled by Spillane and half-year averages are plotted in his Figure 3.2 on p. 54. The graph (Figure 3.2) was digitalized by the author (HHB), the outcome is contained in column [1]. Notes All figures in [2], [3] and [4] are calculated by the author. [2] = annual averages of [1]. [3] = [2]*42/0.2835 (USD = 4.20 DEM). [4] = [3]*0.59 (DEM = 0.59 NLG) 523 Source Data German Prices for Cocaine Hydrochloride (1898-1906) Price Cocaine HCl DEM per kg [1] Average Price Cocaine HCl DEM per kg [4] Average Price Cocaine HCl NLG per kg [5] Month [2] Source [3] 320 400 Dec Gehe Gehe 360 212 1899 700 Nov Gehe 700 413 1900 600 570 550 620 600 620 700 720 720 700 Jan Mar Jul Aug Aug Sep Sep Sep Oct Dec Gehe CZ Gehe Merck Gehe CZ Gehe Merck CZ Gehe 640 378 1901 600 620 720 Jan Jan May Gehe Merck Merck 647 382 1902 700 620 600 600 550 570 500 480 530 Jan Jan Jan Jan May May Jul Jul Nov Gehe Merck Kol. Bank Gehe Gehe Merck Merck Gehe Gehe 572 338 1903 530 580 580 530 460 420 400 Jan Mar Aug Oct Nov Dec Dec Gehe Gehe Kol. Bank Gehe Gehe CZ Gehe 500 295 1904 400 430 470 Mar Apr Dec Gehe Gehe Gehe 433 256 1905 470 430 380 410 Jan Sep Oct Nov Gehe Gehe Gehe Gehe 423 249 1906 410 370 Jan Gehe CZ 390 230 Year 1898 Sources Notes Gehe CZ Kol. Bank Abrahamson Gehe & Co. Handelsbericht (1898-1914) Chemiker Zeitung (1900-1908) Koloniale Bank, Minutes of Board Meetings (1902-1908) Het Cocavraagstuk, Tijdschrift voor Nijverheid en Landbouw (1912) All averages are calculated by the author. Exchange Rate DEM / NLG = 0.59 [5] = [4] * 0.59 524 COC 4 Source Data German Prices for Cocaine Hydrochloride (1907-1913) Year Price Cocaine HCl DEM per kg [1] Month [2] Average Price Cocaine HCl DEM per kg [4] Average Price Cocaine HCl NLG per kg [5] Gehe Gehe 310 183 248 146 Source [3] 1907 300 320 1908 320 270 200 240 215 200 265 270 July Dec Gehe Gehe Kol. Bank Gehe CZ Gehe Kol. Bank Gehe 1909 270 290 265 Jan Mar Nov Gehe Gehe Gehe 275 162 1910 265 230 260 290 320 234 325 Jan Mar Sep Oct Dec Gehe Gehe Gehe Gehe Gehe Abrahamson Abrahamson 275 162 1911 320 270 300 300 325 275 305 Jan Jul Oct Dec Gehe Gehe Gehe Gehe Abrahamson Abrahamson Abrahamson 299 177 1912 300 250 225 215 225 265 305 220 Jan Mar Jun Sep Oct Nov Jan Jun Gehe Gehe Gehe Gehe Gehe Gehe Abrahamson Abrahamson 251 148 1913 265 240 220 210 200 180 195 205 180 165 Jan Jan Mar Mar Apr Apr May Jul Oct Dec Gehe Gehe Gehe Gehe Gehe Gehe Gehe Gehe Gehe Gehe 206 122 Sources Notes Gehe CZ Kol. Bank Abrahamson Jan Feb Feb Mar Mar Gehe & Co. Handelsbericht (1898-1914) Chemiker Zeitung (1900-1908) Koloniale Bank, Minutes of Board Meetings (1902-1908) Het Cocavraagstuk, Tijdschrift voor Nijverheid en Landbouw (1912) All averages are calculated by the author. Exchange Rate DEM / NLG = 0.59 [5] = [4] * 0.59 525 COC 5 Source Data Crude Cocaine Manufacture in the Netherlands (1926-1938) kg Year Export [1] Import [2] 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 259 244 141 288 326 183 53 139 77 101 276 100 309 27 0 0 0 25 116 75 155 92 30 250 10 248 Utilisation [3] 0 0 0 0 0 96 157 0 127 0 0 0 24 Manufacture [4] 232 244 141 284 325 180 54 16 93 56 75 40 86 Notes Amounts in Blue are estimates by the author. [4] = [1]-[2]+[3] They are calculated based on the assumption that stocks were constant. Sources 1926-1928 1929-1931 1932-1935 1934 1935-1936 1937-1938 Permanent Central Opium Board (PCOB) Advisory Committee on traffic in opium and other dangerous drugs. PCOB Document C.121.M.39.1930.XI Geneva, 1930 PCOB Document A.35.1932.XI PCOB Document C.368.M.242.1936.XI PCOB Document C.364.M.185.1935.XI PCOB Document C.353.M.240.1937.XI PCOB Document C.261.M.179.1939.XI ` 526 COC 6 527 82,607 114,285 97,112 93,661 104,827 117,541 105,485 AVG 1961-1965 1966 1967 1968 1969 1970 AVG 1966-1970 52,795 34,573 49,776 62,591 58,169 58,868 36,502 32,460 44,239 32,907 38,050 34,853 PCOB/INCB Statistics 83,170 76,807 83,751 80,950 88,355 1961 1962 1963 1964 1965 20,807 13,580 16,895 22,003 21,142 30,417 17,027 12,065 16,900 19,645 18,425 18,100 8,468 7,860 4,591 8,120 10,107 11,662 from Poppy Straw [2] 158,281 148,858 146,888 156,252 162,996 176,409 119,108 115,630 121,046 116,658 119,000 123,208 107,235 87,368 108,953 111,845 108,217 119,791 79,319 72,345 77,948 73,894 83,414 88,993 55,008 43,704 52,869 56,169 56,563 65,733 Total [4] AVG 1991-1995 1991 1992 1993 1994 1995 AVG 1986-1990 1986 1987 1988 1989 1990 AVG 1981-1985 1981 1982 1983 1984 1985 AVG 1976-1980 1976 1977 1978 1979 1980 AVG 1971-1975 1971 1972 1973 1974 1975 Year 73,081 94,420 74,557 75,186 64,699 56,544 64,025 75,012 62,878 59,261 41,833 81,140 77,081 59,314 81,833 80,006 77,174 87,077 87,074 108,878 87,929 94,318 80,287 63,957 106,933 110,309 109,111 105,609 108,196 101,439 from Opium [1] 15,851 18,139 14,056 12,472 18,053 16,536 27,131 36,496 30,325 28,121 17,698 23,014 29,715 25,114 22,654 26,859 30,419 43,528 101,474 68,537 101,505 118,325 111,058 107,945 56,819 64,373 62,658 56,390 46,047 54,627 from Poppy Straw [2] 149,193 125,695 123,681 150,272 155,956 190,359 109,611 79,527 128,120 111,270 129,721 99,418 78,706 79,035 73,233 72,720 79,314 89,230 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a from CPS [3] 238,125 238,254 212,294 237,930 238,708 263,439 200,767 191,035 221,323 198,652 189,252 203,572 185,502 163,463 177,720 179,585 186,907 219,835 188,548 177,415 189,434 212,643 191,345 171,902 161,803 172,967 165,501 151,656 162,823 156,066 Total [4] kg AMA Manufacture of Morphine Worldwide by Raw Material (1946-1995) Source: 86,427 62,292 AVG 1951-1955 AVG 1956-1960 60,280 61,048 54,249 64,989 70,893 1951 1952 1953 1954 1955 73,788 92,058 89,842 87,075 89,374 46,540 AVG 1946-1950 1956 1957 1958 1959 1960 35,844 48,278 48,049 46,456 54,071 from Opium [1] 1946 1947 1948 1949 1950 Year Manufacture of Morphine Worldwide by Raw Material (1946-1995) Source Data OPI 1 kg AMA 528 0 50,000 100,000 150,000 200,000 250,000 300,000 from Opium from Poppy Straw from CPS 1946194819501952195419561958196019621964196619681970197219741976197819801982198419861988199019921994 Manufacture Morphine Worldwide by Raw Material 1946-1995 Source Data Manufacture of Morphine Worldwide by Raw Material (1946-1995) Chart OPI 1A 55,221 Sub-Total Major Manufacturing countries 529 0 Minor Manuf. Countries as a Percentage of Total 1929 1930 1931 1932 1933 1934 55,453 Total (PCOB) of all Manufacturing countries Sources: PCOB Publications (Sinopses) 232 Sub-Total Minor Manufacturing countries 8 0 69 106 ----0 49 --- 8,374 24,000 N/R 12,141 1,989 4,577 4,140 USA Germany USSR France Japan UK Switzerland Belgium Czechoslovakia Netherlands Italy Hungary Poland Yugoslavia Korea Other Countries 1929 Manufacturing countries 3 34 29 47 3 30,457 767 2 124 20 194 12 0 5 328 82 29,690 7,728 4,994 1,766 8,734 1,446 1,021 4,001 1931 A.35 (1932) A.35 (1932) C.364.M.185 (1935) C.364.M.185 (1935) C.364.M.185 (1935) C.261.M.179 (1939) 1 34,423 341 0 156 72 --- --- 34,082 5,373 10,555 N/R 12,495 1,904 1,911 1,844 1930 1935 1936 1937 1938 1939 6 27,580 1,570 6 295 85 337 61 349 119 114 204 26,010 7,966 7,421 3,468 2,824 1,832 1,292 1,207 1932 15 26,761 4,045 973 460 270 595 348 456 342 324 277 22,716 5,983 4,983 2,581 3,022 3,305 2,037 805 1934 C.261.M.179 (1939) C.261.M.179 (1939) C.261.M.179 (1939) C.261.M.179 (1939) C.147.M.143 (1940) 10 30,466 3,025 419 367 390 380 192 174 441 458 204 27,441 7,459 6,285 2,123 4,482 3,624 1,873 1,595 1933 Morphine Manufacture by Country 1929-1939 14 30,805 4,308 1,175 558 495 619 419 352 404 0 286 26,497 6,270 6,252 3,178 3,903 3,245 2,103 1,546 1935 16 36,884 5,843 1,304 698 743 1,335 724 508 299 0 232 31,041 7,697 6,294 4,927 4,645 3,947 2,023 1,508 1936 16 41,899 6,579 1,769 1,037 1,220 N/R 687 810 707 0 349 35,320 10,256 4,910 7,755 4,284 4,798 1,810 1,507 1937 39,515 4,505 1,769 N/R 1,093 N/R 780 N/R 615 0 248 35,010 8,625 5,292 8,098 4,291 4,549 1,890 2,265 1938 1,310 N/R N/R N/R 1,941 N/R N/R 10,154 N/R N/R N/R N/R 6,233 4,378 1939 Minor Manuf. Countries as a Percentage of Total Total (PCOB) of all Manufacturing countries Sub-Total Minor Manufacturing countries Belgium Czechoslovakia Netherlands Italy Hungary Poland Yugoslavia Korea Other Sub-Total Major Manufacturing countries USA Germany USSR France Japan UK Switzerland Manufacturing countries kg Source Data Manufacture of Morphine by Country (1929-1939) OPI 2 530 1955-1960 1951-1954 1946-1950 844 PCOB Statistics Source 676 885 876 861 923 1956 1957 1958 1959 1960 86,427 73,788 92,058 89,842 87,075 89,374 62,292 60,280 61,048 54,249 64,989 70,893 46,540 35,844 48,278 48,049 46,456 54,071 Morphine manuf. kg AMA Average 594 594 560 541 614 659 430 340 454 440 441 473 Utilized t Average 1951 1952 1953 1954 1955 Average 1946 1947 1948 1949 1950 Year Opium 13,350 9,323 11,405 14,022 12,641 19,357 8,803 5,204 8,838 9,612 9,590 10,769 4,709 3,433 2,064 6,571 6,036 5,442 20,807 13,580 16,895 22,003 21,142 30,417 17,027 12,065 16,900 19,645 18,425 18,100 8,468 7,860 4,591 8,120 10,107 11,662 Morphine manuf. kg AMA Poppy Straw 0.16 0.15 0.15 0.16 0.17 0.16 0.19 0.23 0.19 0.20 0.19 0.17 0.18 0.23 0.22 0.12 0.17 0.21 107,247 87,410 108,955 111,854 108,220 119,798 79,319 72,345 77,948 73,894 83,414 88,993 55,008 43,704 52,869 56,169 56,563 65,733 Morphine Total ManuYield factured % 5,695 2,235 5,588 7,211 4,464 8,976 4,777 4,035 8,218 3,017 2,813 5,803 5,319 3,921 6,532 5,838 4,942 5,361 Unconverted 4,095 4,354 4,156 4,165 4,188 3,614 5,158 5,848 5,124 5,101 5,150 4,568 5,801 6,340 6,130 5,516 5,406 5,615 Morphine Consumption Morphine (kg AMA) ` 92,339 78,118 94,032 94,744 93,506 101,294 67,815 61,336 63,486 64,542 73,839 75,871 44,673 35,631 41,335 44,633 45,981 55,784 95,758 80,384 97,005 99,815 97,521 104,065 70,094 66,490 65,070 66,444 75,395 77,070 45,152 36,592 42,180 44,078 45,201 57,708 Codeine Manufactured 88,423 77,484 89,976 87,302 90,788 96,565 65,281 55,905 57,645 67,489 68,473 76,893 40,521 30,158 36,399 42,294 41,932 51,821 Codeine Consumption Codeine (kg ACA) Morphine Utilized kg AMA Manufacture, Raw Material Usage and Consumption Worldwide (1946-1960) Utilized t Morphine and Codeine Source Data Morphine and Codeine - Manufacture, Raw Material Usage and Consumption Worldwide (1946-1960) OPI 3 Source Data Poppy Straw purchased during 1936-1956 for Extraction in Germany Poppy Straw t Merck Assay % kg AMA 1936-1939 1936 1937 1938 1939 Total 333 356 143 126 958 0.19 0.37 0.27 0.29 0.28 633 1,318 385 365 2,701 1940-1945 1940 1941 1942 1943 1944 1945 Total 1,106 359 1,690 3,643 497 130 7,425 0.15 0.15 0.26 0.32 0.31 0.32 0.27 1,659 538 4,393 11,658 1,540 415 20,203 1946-1950 1946 1947 1948 1949 1950 Total 703 1,262 2,092 1,489 561 6,107 0.29 0.39 0.16 0.39 0.31 0.29 2,038 4,923 3,347 5,806 1,738 17,852 1951-1955 1951 1952 1953 1954 1955 Total 1,482 2,371 1,369 931 203 6,356 0.29 0.39 0.34 0.18 0.23 0.32 4,296 9,246 4,654 1,690 466 20,352 1956 250 0.31 774 21,096 0.293 61,882 1936-1956 Source Grand Total W.Küssner, Bulletin on Narcotics (1961)[3] 531 OPI 4 532 Average 0.20 0.17 0.23 0.33 0.40 0.24 0.26 0.36 0.24 0.28 0.26 0.22 0.25 0.19 0.34 0.26 Yield F.R. Germany PCOB Statistics 353 399 8 0 0 152 1956 1957 1958 1959 1960 1956-1960 Average Source 799 1,535 1,810 1,109 1,385 1,328 691 234 1,400 1,707 1,347 1,076 t 1951 1952 1953 1954 1955 1951-1955 Average 1946 1947 1948 1949 1950 1946-1950 Year 603 902 26 0 0 306 3,191 3,611 4,702 4,047 3,354 3,781 1,787 526 3,539 3,323 4,619 2,759 kg AMA 1,836 3,599 4,280 2,992 5,374 3,616 2,866 4,420 3,051 3,201 3,574 3,422 221 377 3,754 3,024 2,140 1,903 t 0.08 0.18 0.17 0.18 0.15 0.17 0.23 0.20 0.21 0.16 0.13 0.18 0.14 0.21 0.06 0.16 0.21 0.13 Yield Hungary 2,780 6,352 7,479 5,436 8,292 6,068 6,594 8,685 6,289 5,240 4,525 6,267 312 783 2,076 4,836 4,522 2,506 kg AMA 293 0 119 179 295 177 240 446 492 683 458 464 1,177 700 514 621 235 649 t 0.19 0.20 0.22 0.20 0.17 0.31 0.32 0.32 0.29 0.26 0.30 0.27 0.33 0.27 0.24 0.33 0.28 Yield France 507 0 224 362 653 349 750 1,435 1,561 2,006 1,212 1,393 3,178 2,308 1,397 1,503 769 1,831 kg AMA 25 0 108 13 0 29 t 1,224 1,759 2,092 2,124 3,547 2,149 267 435 968 939 1,033 728 Extraction of Poppy Straw in Germany, Hungary, France and the Netherlands 1946-1960 0.20 0.21 0.27 0.27 0.23 0.24 0.19 0.24 0.24 0.27 0.24 0.24 0.19 0.19 0.16 0.17 Yield Netherlands 2,504 3,778 5,590 5,818 8,266 5,191 514 1,047 2,371 2,494 2,470 1,779 43 0 208 21 0 54 kg AMA 7,186 5,863 8,684 9,526 13,206 8,893 1,016 2,122 4,625 4,638 6,539 3,788 2,540 974 900 424 1,752 1,318 Other kg AMA 13,580 16,895 22,003 21,142 30,417 20,807 12,065 16,900 19,548 18,425 18,100 17,008 7,860 4,591 8,120 10,107 11,662 8,468 Total kg AMA Source Data Extraction of Poppy Straw in Germany, Hungary, France and the Netherlands (1946-1960) OPI 5 533 1956-1960 1951-1955 1946-1950 18,693 20 PCOB Statistics 1946-1960 17,615 18 16,797 19,320 19,212 18,207 19,931 13,753 20 11,068 10,197 15,808 17,582 14,111 9,234 20 9,809 10,214 5,722 9,166 11,261 UK 12,090 13 8,570 11,000 12,600 14,097 14,185 8,845 13 8,080 7,097 10,705 9,951 8,390 5,010 11 2,002 4,226 5,378 5,300 8,142 USSR 8,250 9 7,694 9,075 8,759 8,050 7,674 5,467 8 5,015 4,871 4,868 5,769 6,814 4,723 10 2,430 4,429 6,097 5,164 5,495 France 10,868 11 8,311 11,460 12,235 11,537 10,796 6,776 10 5,494 5,395 8,952 8,135 5,906 2,478 5 1,152 1,046 3,066 2,560 4,567 Fed. Rep. Germany 4,776 5 2,941 5,550 5,240 3,838 6,311 4,237 6 5,636 4,531 3,640 4,177 4,499 1,643 4 144 293 873 2,803 4,101 Hungary 2,908 3 2,036 2,445 3,095 3,158 3,806 1,578 2 1,090 2,357 2,134 1,551 758 467 1 388 477 433 523 512 Netherlands 20,357 21 16,577 18,913 21,205 21,754 23,338 12,338 18 12,109 12,585 12,916 14,059 10,020 5,714 13 3,620 5,715 7,472 6,038 5,724 Other Manuf. Countries 95,558 100 80,384 97,005 99,815 97,521 103,065 70,094 100 65,070 66,444 75,395 77,070 66,490 45,152 100 36,592 42,180 44,078 45,201 57,708 World Total Manufacture kg ACA Manufacture of Codeine by Country (1946-1960) Source Average Percent 17,458 19,242 17,469 16,880 17,024 1956 1957 1958 1959 1960 16,578 19,411 16,372 15,846 1952 1953 1954 1955 16,943 24 15,992 1951 Average Percent 15,883 35 17,047 15,780 15,037 13,647 17,906 1946 1947 1948 1949 1950 Average Percent USA Year Manufacture of Codeine by Country (1946-1960) Source Data OPI 6 534 1991-1995 1986-1990 1981-1985 INCB Statistics 1981-1995 35,464 17 28,566 30,095 36,580 42,049 40,030 23,647 13 24,470 25,498 19,231 24,768 24,267 24,683 14 21,936 22,423 22,224 26,746 30,084 UK 24,295 12 25,305 18,570 23,378 21,726 32,494 14,083 8 13,072 12,789 14,921 14,722 14,911 10,133 6 8,804 8,435 9,323 11,616 12,485 Australia 23,982 11 24,854 21,058 25,747 23,425 24,825 15,967 9 15,052 13,826 14,493 18,051 18,413 14,892 9 13,482 13,676 15,017 15,547 16,739 France 6,004 3 4,392 2,864 6,433 6,910 9,419 8,012 4 7,663 8,369 10,425 6,443 7,160 5,553 3 5,786 4,528 5,256 7,496 4,698 Hungary 5,513 3 14,098 0 6,842 3,540 3,087 15,027 8 18,035 21,745 12,670 10,664 12,021 15,410 9 15,015 15,763 17,653 16,953 11,665 USSR 3,299 2 9,855 6,339 300 0 0 7,574 4 6,377 7,736 7,689 10,174 5,892 10,506 6 10,038 8,567 9,774 12,169 11,980 Netherlands 53,877 26 50,023 53,885 50,457 49,121 65,900 44,942 25 42,027 49,121 44,637 47,461 41,464 38,674 22 40,945 41,563 36,281 37,424 37,158 Other Manuf. Countries 210,453 100 211,592 184,184 215,699 208,912 231,878 182,430 100 181,493 197,231 173,437 185,118 174,870 172,081 100 163,794 164,673 168,128 181,050 182,759 World Total Manufacture kg ACA Manufacture of Codeine by Country (1981-1995) Source 58,020 28 54,499 51,373 65,962 62,141 56,123 1991 1992 1993 1994 1995 Average Percent 53,178 29 54,797 58,147 49,371 52,835 50,742 1986 1987 1988 1989 1990 Average Percent 52,231 30 47,788 49,718 52,600 53,099 57,950 1981 1982 1983 1984 1985 Average Percent USA Year Manufacture of Codeine by Country (1981-1995) Source Data OPI 7 Source Data Morphine (CPS and Technical Morphine) Export and Import the Netherlands (1981-2009) kg AMA OPI 8 . CPS (AMA) TM (AMA) Total CPS plus TM (AMA) Year Average Average Average Average Average Average Export Import Net Export Export Import 1981 1982 1983 1984 1985 11,189 7,800 3,882 4,215 8,872 0 0 0 501 0 11,189 7,800 3,882 3,714 8,872 34 955 1,864 91 35 0 0 0 0 0 1981-1985 7,192 100 7,091 596 1986 1987 1988 1989 1990 0 0 0 2,657 4,773 0 3,299 18,000 3,968 15,061 0 -3,299 -18,000 -1,312 -10,289 1986-1990 1,486 8,066 1991 1992 1993 1994 1995 4,253 3,192 4,269 4,256 0 1991-1995 Net Export Export Import Net Export 34 955 1,864 91 35 11,223 8,755 5,746 4,306 8,907 0 0 0 501 0 11,223 8,755 5,746 3,805 8,907 0 596 7,787 100 7,687 7,053 5,670 5,229 2,042 721 13 46 68 56 74 7,040 5,624 5,161 1,986 647 7,053 5,670 5,229 4,699 5,494 13 3,345 18,068 4,024 15,135 7,040 2,325 -12,839 675 -9,642 -6,580 4,143 51 4,092 5,629 8,117 -2,488 15,163 12,254 7,778 6,496 4,007 -10,911 -9,062 -3,509 -2,240 -4,007 893 741 2,242 1,465 1,334 96 119 121 187 1,220 797 622 2,121 1,278 114 5,146 3,933 6,511 5,721 1,334 15,259 12,373 7,899 6,683 5,227 -10,114 -8,440 -1,388 -962 -3,893 3,194 9,139 -5,946 1,335 349 986 4,529 9,488 -4,959 1996 1997 1998 1999 2000 0 0 0 0 0 4,531 2,500 0 0 5,639 -4,531 -2,500 0 0 -5,639 1,787 2,028 1,255 2,014 2,133 1,500 1,190 4,720 3,767 1,640 287 838 -3,465 -1,753 493 1,787 2,028 1,255 2,014 2,133 6,031 3,690 4,720 3,767 7,279 -4,244 -1,662 -3,465 -1,753 -5,146 1995-2000 0 2,534 -2,534 1,843 2,563 -720 1,843 5,097 -3,254 2001 2002 2003 2004 2005 0 0 0 0 0 2,859 5,997 12,597 0 1,998 -2,859 -5,997 -12,597 0 -1,998 2,151 2,908 1,470 1,931 848 1,495 1,136 1,468 1,614 588 656 1,772 2 317 260 2,151 2,908 1,470 1,931 848 4,354 7,133 14,065 1,614 2,586 -2,203 -4,225 -12,595 317 -1,738 2001-2005 0 4,690 -4,690 1,862 1,260 601 1,862 5,950 -4,089 2006 2007 2008 2009 0 0 0 0 0 0 1,997 0 0 0 -1,997 0 595 749 838 1,030 800 1,271 359 1,088 -205 -522 479 -58 595 749 838 1,030 800 1,271 2,356 1,088 -205 -522 -1,518 -58 2006-2009 0 499 -499 803 880 -77 803 1,379 -576 Source INCB Statistics 1981-2009 Note 1 The year 2005 was the last year of opiate manufacture at Diosynth. Some trading in CPS and TM and importation of pure morphine and salts for pharmaceutical use, continued after 2005 For the year 2008 the INCB Report "Comparative Statement of Estimates and Statistics" contains an error for the Netherlands. The calculated and reported figures for Stock at Year End do not agree For the year 2008 the INCB Report mentions 1,997 kg AMA for CPS imported into the Netherlands. In the "Comparative Statements" this quantity reported as "utilized" without any further specifation or explanation. Note 2 Note 3 535 Source Data OPI 9 Codeine Phosphate Price and Raw Material (Opium) Cost Year Indian Opium Price USD/kg [1] Codeine Phosphate Price USD/kg [2] Opium Cost USD/kg Codphos [3] 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 15.5 14.0 13.0 13.0 12.0 11.5 11.8 12.0 15.0 18.0 18.0 24.0 26.7 32.0 49.0 60.0 60.0 50.0 45.0 42.4 35.0 35.0 100 80 n/a n/a n/a n/a n/a n/a 100 125 325 330 405 650 825 780 650 495 400 350 345 340 111 100 93 93 86 82 84 86 107 129 129 171 191 229 350 429 429 357 321 303 250 340 Sources: [1] [2] [2] [3] Year Indian Opium Price USD/kg [1] Codeine Phosphate Price USD/kg [2] Opium Cost USD/kg Codphos [3] 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 n/a n/a 30.0 31.5 31.5 31.5 31.5 35.0 36.5 38.0 42.0 50.0 58.0 62.0 70.0 77.5 77.5 77.5 72.5 72.5 72.5 330 280 230 200 205 210 380 485 442 385 400 469 445 570 650 646 625 576 515 500 500 n/a n/a 214 225 225 225 225 250 261 271 300 357 414 443 500 554 554 554 518 518 518 Prices at 10% AMA as established by the Indian Government (courtesy Tas Alk) Average annual open world-market price (courtesy Tasmanian Alkaloids) 1962-63 and 1970-71 recollections of the author (approximate prices) [3] = [1] / 1.40 Cost of opium per kg codeine phosphate (1.40 is the yield factor commonly used in the industry). Codeine Phosphate Price and Raw Material (Opium) Cost 1961-2004 1000 600 400 200 Codeine Phosphate Price Raw Material (Opium) Cost 536 2004 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1978 1976 1974 1972 1970 1968 1966 1964 0 1962 USD / kg 800 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 Year 537 Source Notes (1) (2) (3) (4) (5) (6) (7) (8) (9) 134.2 143.4 153.1 143.2 175.1 176.5 193.5 184.3 189.7 197.9 189.4 186.0 185.5 187.1 196.2 192.6 186.6 (1) Total Consumption 103.5 110.7 115.8 105.9 146.4 136.1 141.4 137.5 140.6 156.2 155.8 141.9 151.7 141.5 152.6 148.0 143.5 (3) Consumption met by Import 91.2 80.1 82.5 81.8 111.9 161.9 132.4 155.6 138.8 116.4 121.4 153.6 213.4 288.9 318.2 259.0 186.5 Surplus Production available for Export (4) -12.3 -30.6 -33.3 -24.1 -34.5 25.8 -9.0 18.1 -1.8 -39.8 -34.4 11.7 61.7 71.9 136.3 170.2 115.5 (5) Excess Production 52.6 50.0 34.3 36.6 60.9 90.7 81.1 91.5 104.6 97.8 111.2 125.8 153.8 131.1 175.8 151.7 117.2 India (6) 14.2 18.0 36.2 24.8 26.7 43.2 31.3 48.4 15.5 0.0 0.0 17.5 48.0 127.3 98.5 41.5 46.5 Turkey (7) 66.8 68.0 70.5 61.4 87.6 133.9 112.4 139.9 120.1 97.8 111.2 143.3 201.8 258.4 274.3 193.2 163.7 India + Turkey (8) 24.4 12.1 12.0 20.4 24.3 28.0 20.0 15.7 18.7 18.6 10.2 10.3 11.6 30.5 43.9 65.8 22.8 Other Countries (9) Surplus Production available for Export Equivalent tonnes AMA Opiate Consumption met by Imports and Production available for Export (1964-1980) Total opiate consumption worldwide Opiate consumption in raw materials producing countries Opiate consumption met by imports (all other countries) (3) = (1) - (2) Surplus raw materials plus opiates available for export (4) = (6) + (7) + (9) Excess production raw materials and opiates (5) = (4) - (3) Raw materials available for export from India Raw materials available for export from Turkey Raw materials available for export from India plus Turkey (8) = (6) + (7) Raw materials plus opiates available for export from Other Countries INCB Report for 1980 E/INCB/52/Supp, Tables 17-18, p 108-109 30.7 32.7 37.3 37.3 28.7 40.4 52.1 46.8 49.1 41.7 33.6 44.1 33.8 45.6 43.6 44.6 43.1 Consumption met by Domestic Production (2) Opiate Consumption met by Imports and Surplus Production available for Export 1984-1980 Source Data OPI 10 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 Share Capital NLG [1] 200 300 360 225 80 55 140 0 50 75 36 0 20 130 280 291 300 300 350 35 50 50 50 150 250 150 Dividend % [2] 24,000 36,000 43,200 27,000 9,600 6,600 16,800 0 16,200 24,300 11,664 0 6,480 42,120 90,720 94,284 97,200 97,200 113,400 11,340 16,200 16,200 16,200 48,600 81,000 48,600 Dividend NLG [3] 538 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 32,400 64,800 97,200 97,200 97,200 97,200 97,200 97,200 97,200 97,200 97,200 97,200 97,200 97,200 Share Capital NLG [1] 500 125 150 95 55 85 80 75 85 90 75 150 140 50 10 18 10 0 12 35 n/a 20 30 60 20 53.33 Dividend % [2] 162,000 40,500 48,600 30,780 17,820 27,540 25,920 24,300 27,540 29,160 24,300 48,600 45,360 32,400 9,720 17,496 9,720 0 11,664 34,020 n/a 19,440 29,160 58,320 19,440 51,840 Dividend NLG [3] Notes The figures in column [3] are calculated by the author [3] = [1]* [2]% Dividend 1940: 100% paid as shares plus 40% paid in cash. Dividend 1941: 50% paid as shares. Dividend 1951 plus 1953: 66.67% paid as shares 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 Year NCF Dividend Payments (1902-1953) Sources 1902-1944 Report by the Koloniale Bank on the NCF, dated 26 Nov. 1945 Nationaal Archief, The Hague, Access No.2.20.04 Item 928 1945-1949 Nederlandsche Cocaine Fabriek (Minutes of Board Meetings), 23 February 1934 - 15 May 1950. 1950-1953 NCF Profit and Loss Accounts 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 Year NCF Dividend Payments (1902-1950) Source Data FIN 1 539 NLG 0 20000 40000 60000 80000 100000 120000 140000 160000 180000 1902 1904 1906 1908 1910 1912 1914 NCF Dividend Payments 1902-1953 1916 1918 1920 1922 1924 1926 1928 1930 1932 1934 1936 1938 1940 1942 1944 1946 1948 1950 1952 Source Data NCF Dividend Payments (1902-1953) Chart FIN 1A USD/NLG 2.49 2.46 2.47 2.39 2.38 2.13 2.55 2.91 2.97 2.60 2.56 2.62 2.49 2.49 2.49 2.49 2.49 2.49 2.49 2.48 1.93 1.48 1.48 1.55 1.82 1.82 1.87 1.88 Year until 1914 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 4.23 4.85 5.50 5.77 n/a n/a n/a n/a n/a n/a n/a 4.20 4.20 4.21 4.19 4.20 4.19 4.23 4.21 3.28 2.54 2.48 2.48 2.49 2.49 2.50 2.50 4.20 USD/DEM 0.58 0.51 0.43 0.41 n/a n/a n/a n/a n/a n/a n/a 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.59 0.58 0.60 0.63 0.73 0.73 0.75 0.75 0.59 DEM/NLG During the period 1876-1913 a number of countries including the USA, Germany and the Netherlands had linked the values of their currencies to a defined weight of pure gold (the Gold Standard). From 1834 to 1933 the price of 1 Troy Ounce (31.103481 gram) of gold was fixed at USD 20.67. Exchange Rates US Dollar (USD), Dutch Guilder (NLG) and German Mark (DEM) (1876-1994) 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 2.64 2.64 2.65 2.65 2.90 3.81 3.81 3.80 3.80 3.79 3.81 3.83 3.82 3.79 3.77 3.77 3.63 3.60 3.60 3.61 3.60 3.62 3.60 3.62 3.62 3.62 3.49 3.21 2.78 USD/NLG 1.5048 0.6048 0.3584 1 USD 1 NLG 1 DEM Year Gram Gold Currency 1.000 0.402 0.238 USD 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Year 2.488 1.000 0.593 NLG 4.199 1.688 1.000 DEM 2.68 2.52 2.64 2.45 2.16 2.01 1.99 2.50 2.67 2.85 3.21 3.32 2.45 2.03 1.98 2.12 1.82 1.87 1.76 1.86 1.82 USD/NLG 1876 - 1913 Exchange Rates US Dollar (USD), Dutch Guilder (NLG) and German Mark (DEM) (1876-1994) 540 Source: Lawrence H. Officer, "Exchange Rates Between the United States Dollar and Forty-one Currencies", MeasuringWorth, 2008. URL: http://www.measuringworth.org/exchangeglobal Value Source Data FIN 2 Source Data NCF Cost Extraction Poppy Straw (1943-1944) Page 1 541 FIN 3 Source Data NCF Cost Extraction Poppy Straw (1943-1944) Page 2 542 FIN 3A 543 Source: 640 4 137 5 85 747 NCF Annual Accounts 1950-1960 540 1 14 Equities and Bonds Banks and Cash TOTAL ASSETS 57 Accounts Receivable 474 443 461 57 65 311 276 35 28 25 25 1954 611 5 228 303 262 41 349 125 274 169 416 58 152 626 31 25 3 1953 Inventory Finished Product Inventory Raw Materials Inventory for Third Parties Total Inventory 25 25 6 1952 50 25 Property, Plant and Equipment 25 1951 Participations 25 Land and Buildings Machinery and Equipment Machinery on Order 1950 Nederlandsche Cocaine Fabriek Balance Sheets 1950-1960 (Re-arranged) Assets 714 15 257 361 299 62 50 31 25 6 1955 860 6 376 371 371 5 102 25 3 74 1956 1,170 1 335 624 379 245 5 205 133 72 1957 1,183 27 228 679 456 223 5 244 143 101 1958 1,411 9 212 693 452 241 212 285 161 124 1959 NLG 000 1,410 2 110 826 652 174 140 332 171 161 1960 Source Data NCF Balance Sheets 1950-1960 (Re-arranged) Assets FIN 4 544 Source: 540 TOTAL EQUITIES NCF Annual Accounts 1950-1960 747 10 20 169 220 19 29 29 183 70 90 18 5 97 1952 461 8 56 2 0 70 17 29 29 182 70 90 17 5 97 1953 611 7 78 1 64 72 45 0 0 182 70 90 17 5 162 1954 714 13 89 110 74 64 25 25 177 50 127 0 0 162 1955 860 14 50 239 102 26 90 90 177 50 127 0 0 162 1956 1,170 4 73 1 387 199 37 90 35 125 182 70 90 17 5 162 1957 1,183 127 254 186 77 35 90 70 160 182 70 90 17 5 162 1958 1,411 144 258 288 87 55 90 145 235 182 70 90 17 5 162 1959 NLG 000 1,410 76 560 135 28 7 90 170 260 182 50 67 0 0 65 162 1960 NCF Balance Sheets 1950-1960 (Re-arranged) Equities 640 3 72 2 34 Undistributed Net Income Net Income current year 158 62 138 Various Debts Bank Loans 55 Accounts Payable 65 0 0 29 0 183 70 90 18 5 97 1951 0 Provision for Taxes Other Provisions Dividend Reserve (Loan) Renewal Fund (Loan) (Shareholder) Loans 185 70 90 20 5 General Reserve Special Reserve Delcredere Support Fund Renewal Fund (Retained) Retained Earnings 97 Capital Stock (Issued) 1950 Nederlandsche Cocaine Fabriek Balance Sheets 1950-1960 (Re-arranged) Equities Source Data FIN 4A 545 2 0 5 128 56 72 1 3 3 54 20 34 Interest Other Income Provision for Losses Income before Taxes Provision for taxes Net Income 11 20 9 1 0 31 3 39 71 15 14 42 1952 NCF Annual Accounts 1950-1960 0 135 1 55 Depreciation Operating Income Source: 170 15 20 135 78 10 12 56 1951 Income from Operations Contributions to NCF Superfund Bonuses Margin on Operations 1950 Nederlandsche Cocaine Fabriek Profit & Loss Account 1950-1960 (Re-arranged) (Income Statement) 40 56 0 1 0 96 4 95 134 15 20 99 1953 59 78 1 2 0 137 5 136 180 15 25 140 1954 56 89 0 12 0 145 4 134 152 15 0 137 1955 20 50 0 15 46 70 5 101 121 15 0 106 1956 38 73 0 5 0 111 15 106 146 0 25 120 1957 77 127 19 0 35 203 20 257 311 0 33 278 1958 77 144 0 0 21 220 31 241 272 0 0 272 1959 NLG 000 0 76 0 23 17 76 41 70 139 0 28 111 1960 Source Data NCF Profit & Loss Account 1950-1960 (Re-arranged) Income Statement FIN 5 546 5 7 220 118 76 107 103 15 205 1957 0 8 264 59 39 20 244 1958 9 34 9 0 25 6 3 31 1952 0 0 25 1951 71 5 102 1956 1 25 1950 10 316 72 41 31 285 1959 13 32 1 -3 4 28 1953 11 373 88 47 41 332 1960 17 30 2 -3 5 25 1954 NLG 000 11 35 10 6 4 31 1955 NCF Investments and Depreciation 1950-1960 Source: NCF Annual Accounts 1950-1960 Calculations by the author (HHB) Percent depreciation Property, Plant and Equipment before depreciation Net Increase in value Depreciation (P&L Account) New investments Property, Plant and Equipment (Balance Sheet) Percent depreciation Property, Plant and Equipment before depreciation Net Increase in value Depreciation (P&L Account) New investments Property, Plant and Equipment (Balance Sheet) Nederlandsche Cocaine Fabriek Investments and Depreciation 1950-1960 Source Data FIN 6 547 TOTAL EQUITIES 2,978 3,097 0 100 622 0 125 250 2,000 3,097 419 926 253 741 559 47 152 758 1950 3,243 0 142 681 0 120 300 2,000 3,243 523 69 226 1,437 772 46 170 989 1951 The figures are rounded to the nearest thousand NLG Annual Reports VPF 1948-1963 2,920 10 90 529 15 83 250 2,000 2,978 0 1,023 300 781 729 21 124 874 1949 3,333 27 146 656 0 150 354 2,000 3,333 259 208 381 1,412 782 45 246 1,073 1952 3,512 37 150 691 0 225 409 2,000 3,512 186 725 470 1,006 811 69 245 1,125 1953 3,766 29 151 842 0 280 464 2,000 3,766 184 782 532 1,113 836 53 266 1,155 1954 NLG 000 4,070 22 175 657 0 698 519 2,000 4,070 184 1,047 573 1,019 855 85 308 1,248 1955 VPF Balance Sheets 1948-1955 (Re-arranged) Note Source 443 16 Accounts Payable Doubtful Debts 11 99 100 Provision for Taxes Undistributed Net Income Net Income current year 250 2,000 Capital Stock (Issued) General Reserve (Retained Earnings) 2,920 0 503 Equities and Bonds Banks and Cash TOTAL ASSETS 327 1,250 687 0 153 840 Accounts Receivable Inventory Land and Buildings Real Estate Machinery and Equipment Property, Plant and Equipment 1948 Verenigde Pharmaceutische Fabrieken Balance Sheets 1948-1955 (Re-arranged) Source Data FIN 7 548 Note 4,336 TOTAL EQUITIES 4,557 4 227 0 0 220 941 431 734 0 0 734 2,000 4,557 178 74 850 1,958 0 850 342 304 0 1,496 1957 9,211 18 254 0 750 734 2,170 1,030 1,000 250 1,005 2,255 2,000 9,211 111 175 1,080 4,656 30 984 385 1,040 750 3,159 1959 The figures are rounded to the nearest thousand NLG 4,758 6 241 0 0 0 740 771 1,000 0 0 1,000 2,000 4,758 148 1,036 700 1,481 0 828 372 193 0 1,394 1958 10,317 18 237 2,500 196 0 1,219 1,692 1,200 250 1,005 2,455 2,000 10,317 111 464 1,274 5,138 30 1,382 365 1,358 196 3,301 1960 10,392 24 214 2,500 0 120 1,286 1,542 1,450 150 1,005 2,605 2,100 10,392 117 443 1,474 5,417 30 1,340 366 1,203 0 2,910 1961 9,241 3 221 2,500 0 0 651 1,060 1,550 150 1,005 2,705 2,100 9,241 117 1,676 1,889 3,256 30 1,225 356 692 0 2,272 1962 NLG 000 9,728 9 220 2,500 0 0 631 1,413 1,700 150 1,005 2,855 2,100 9,728 117 4,115 1,437 2,474 30 1,088 350 117 0 1,555 1963 VPF Balance Sheets 1956-1963 (Re-arranged) Annual Reports VPF 1948-1963 11 181 Undistributed Net Income Net Income current year Source 746 Accounts Payable 0 0 0 822 Provision for Taxes 5% Debenture Loan Various Debts Bank Loans 576 0 0 576 2,000 Capital Stock (Issued) General Reserve Share Premium Revaluation reserve for machinery Total Reserves (Retained Earnings) 4,336 193 268 Equities and Bonds Banks and Cash TOTAL ASSETS 746 Accounts Receivable 1,579 0 Participation in Belgian Affiliate Inventory 923 316 312 0 1,551 Land and Buildings Real Estate Machinery and Equipment Machinery on order Property, Plant and Equipment 1956 Verenigde Pharmaceutische Fabrieken Balance Sheets 1956-1963 (Re-arranged) Source Data FIN 8 549 83 0 90 100 0 99 Other Income Income before Taxes Provision for taxes Retained Earnings Net Income VPF Annual Reports 1948-1963 46 173 52 199 Operating Income Source: 95 127 1,104 882 222 1,167 986 181 34 147 Depreciation Total Cost less Raw Mat. Cost Margin on Operations Sales less Raw Mat. Cost 1949 1948 125 0 100 32 225 190 193 1,232 849 383 1950 Verenigde Pharmaceutische Fabrieken Profit & Loss Account 1948-1955 (Re-arranged) (Income Statement) 120 50 142 259 312 393 53 1,387 941 446 1951 150 50 146 29 346 333 317 1,751 1,101 650 1952 225 50 150 78 425 372 347 1,949 1,230 719 1953 280 50 151 35 481 388 446 2,328 1,494 834 1954 NLG 000 380 50 175 87 605 554 518 2,919 1,847 1,072 1955 Source Data VPF Profit & Loss Account 1948-1955 (Re-arranged) Income Statement FIN 9 0 153 588 211 150 227 0 77 591 360 50 181 Interest Other Income Income before Taxes 550 Provision for taxes Retained Earnings Net Income 630 253 241 0 67 1,124 450 1,057 3,974 2,467 1,507 1958 750 236 254 0 173 1,240 548 1,067 4,328 2,713 1,615 1959 1,000 185 237 0 149 1,422 966 1,273 5,561 3,322 2,239 1960 600 250 214 125 65 1,064 760 1,124 4,914 3,030 1,884 1961 400 100 221 125 200 721 759 646 4,395 2,990 1,405 1962 NLG 000 830 150 220 125 235 1,200 788 1,090 5,236 3,358 1,878 1963 VPF Profit & Loss Account 1956-1963 (Re-arranged) Income Statement VPF Annual Reports 1948-1963 363 435 365 514 3,057 2,259 798 2,922 2,043 879 Depreciation Operating Income Source: Sales less Raw Mat. Cost Total Cost less Raw Mat. Cost Margin on Operations 1957 1956 Verenigde Pharmaceutische Fabrieken Profit & Loss Account 1956-1963 (Re-arranged) (Income Statement) Source Data FIN 10 551 Percent depreciation Source Notes Property, Plant and Equipment before depreciation Net Increase in value Depreciation (P&L Account) Revaluation Machinery New investments Property, Plant and Equipment (Balance Sheet) Percent depreciation Property, Plant and Equipment before depreciation Net Increase in value Depreciation (P&L Account) New investments Property, Plant and Equipment (Balance Sheet) 19 20 1,860 309 668 1,916 -55 364 1,496 1957 10 969 34 95 129 874 1949 303 365 1,551 1956 34 840 1948 24 1,844 348 -102 450 1,394 1958 20 948 -117 190 73 758 1950 20 2,702 1,765 548 -1,005 1,308 3,159 1959 28 1,382 231 393 624 989 1951 VPF Annual Reports 1948-1963 The figures are rounded to the nearest thousand NLG Calculations by the author (HHB) Verenigde Pharmaceutische Fabrieken Investments and Depreciation 1948-1963 23 4,267 1,108 142 966 3,301 1960 24 1,406 84 333 418 1,073 1952 21 3,670 369 -391 760 2,910 1961 25 1,497 52 372 424 1,125 1953 25 3,031 121 -638 759 2,272 1962 25 1,543 30 388 418 1,155 1954 NLG 000 34 2,343 71 -717 788 1,555 1963 31 1,802 93 554 647 1,248 1955 Source Data VPF Investments and Depreciation 1948-1963 FIN 11 552
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