Dilgam ismailov


İn the South Azerbaijan  4. Azerbaijan culture at the beginning of the XX century  1. The economic crisis in the world and Azerbaijan



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history of Azerbaijan

İn the South Azerbaijan 
4. Azerbaijan culture at the beginning of the XX century 
1. The economic crisis in the world and Azerbaijan at the 
beginning of the XX century 
 
The expansion of the Russian empire at the beginning 
of XX century industrial capitalism, monopoly stage was 
combined with the world economic crisis. Between 1900 
and 1903 years Russian empire’s economy first of all 
industry had fallen a hard crisis. During this period, in the 
oil field of industry and the introduction of new techniques 
had been improvements. Electric engines, internal 
combustion engines and gas engines were commissioned. 
The number of electricity-driven cars increased. During of 
crisis in Baku in large monopoly troops production has 
increased rapidly. Prices kept falling. Despite the measures 
taken by the government during the crisis the price of oil 
has fallen to 3 times.
Crisis impacted in Baku all the fields of oil industry. 
The drilling of oil production is being reduction increasing 
the volume of exploration work number of stopping wells is 
increased. During the crisis of small and medium-size 


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enterprises to bankruptcy, as a result concentration of 
production significantly strengthened. The majority of 
workers assembled in the enterprises. Baku oil industry for 
the level of centralization of capital not only in Russia, but 
all over the world stood in the front row. The concentration 
process continued oil refining industry also. During this 
period, foreign investment in the oil industry was getting 
stronger. In 1903 English oil companies Baku, capital of oil 
companies put 60 million pounds. In 1904 England 47 
percent of white oil demand, in France 71 percent paid by 
Baku. The agreement signed with the Baku industrialists 
“Standart oil” company (USA) for exported Baku white oil 
abroad. Between 1904-1905 years Russia-Japan war did not 
let the revolution of expected revival of the economy after 
the crisis. In the period of stagnation the concentration of 
production is increased. Refining, transportation and sales 
of oil production focused in the hands of monopolies.
The main companies were “Nobel qardashlari” (Nobel 
brothers) Nobmazut, Oyl, Sell. Monopolies came to an 
agreement on market sharing and price. They reduced the 
prices of the product in order to elevate the driving out 
competitors. The concentration of production was stronger 
than in the field of oil refining. As Nobel brothers, Rotsild, 
Shibayev 5-6 big companies produced white oil 65 percent 
black oil, 59 percent and lubricants’ 75 percent. 1901-1903 
years in Azerbaijan oil production had reduced 33 percent. 
İt resulted in the loss of Russian first place in in the world 
market and United States were the first. Azerbaijani oil 
oppressed in the world markets. On the eve of the First 
World War in Azerbaijan the processing and sale of oil 


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production collected big monopolies as “Nobel Brothers” 
Company, Nobmazut, Oyl and Shell.
In 1912 Russia organized by the 7 country's largest 
bank foregins “Oil Union monopoly” which merged 20 big 
companies. 
İn the sell world oil market on the control over 
USA monopoly “Standard Oil” continued to fight among 
these monopolies. There were 20 big oil industry companies 
which included here the representatives of Azerbaijan 
capital Musa Nagiyev and Shemsi Asadullaev. 
İn the 
district of Ganja acting of the “Garaman-Naftalan joint-
stock company” was under the control of Russian a huge 
joint-stock commercial banks of Russian –Asian bank. 
The natural resources allowed development of the 
country's industry as mining, mechanical manufacturing
power engineering, weaving, cotton cleaning, silk produce, 
food industry, transportation, telecommunications, bank-
credit system and trade. The mechanical engineering 
industry occupied a special place. Mechanical engineering 
factories engaged in the production of boilers, machine 
tools and other equipment for oil wells as well as kerosene 
oil used in factories. Most of these establishments belonged 
to the “Vulkan” joint stock company. The load capacity of 
Russian ports Baku ships had of great importance to repair. 
In Azerbaijan ferrous metallurgy industry, reached the 
highest level. Gadabay copper and precious copper was 
considered the cleanest in the world. Since XIX century at 
the Galakend purifying copper plant valuable metals 
obtained and their subsequent production continued in 
Germany. At the beginning of XIX century in Moscow was 
built these kinds of plants therefore in 1906 Galakend plant 


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stopped producted. During the drilling operation of ore the 
heavy manual labor was replaced by electricity. Expanded 
use of the method diamond drilling. In 1900 according to 
the contract between Siemens brothers and Ko society with 
the Voqau and Ko produced copper had sold Moscow 
copper-rolling factories only through the monopoly. This 
agreement was the beginning of the monopoly of country's 
non-ferrous metallurgy.
In 1907 Russia created 7 copper plant unions “copper 
syndicate”. Gadabey plant was inside this monopoly until 
1917. In 1900 the South Caucasus Nukha city was a center 
of silk production. There were 46 factories in Nukha-
Zagatala. There were many silk factories in Nakhcivan and 
Karabakh especially in Ordubad were working so many silk 
factories. Azerbaijan's raw silk has been used in Moscow, Lodz, 
Marsel and Lion silk weaving industry. Along with the 
development of the cotton-growing industry cotton cleaning 
industry also had developed. At the beginning of the XIX cen-
tury more than 100 cotton cleaning factories were in the North 
Azerbaijan. 
İn this field Ganja governor was the first place. 
Monopoly specially was on tobacco in Zagatala district, 
Nukha, Cavanshir and Samakhi districts. In Baku, Ganja, 
Sheki, Samakhi and Agdash were so many tobacco 
factories.
The first tobacco factory in Azerbaijan began operated 
half part of XIX century in Nukha. Starting 1906 capital 
investment to the fish industry increased. According to the 
total volume of the product and the number of workers in 
the North Azerbaijan fish industry was the second place 
after oil industry. Russia which is engaged in production 


242 
licorice 4 out of 7 plants located in Azerbaijan. Because of 
the best quality licorice cultivated in our country. In 1902 
Ucar, Ganja, Kurdamir and Leki licorice-root factories 
were under control of British company. In 1902 at Leki 
plant produced excellent quality seed oil. The weight of the 
industry and the number of workers Nukha city was the 
second place after Baku and the second industry and trade 
center of our country. Baku was a favorable sea port and a 
railway junction which combined South Caucasus with the 
Russia. 
In 1912 Baku was the first place for cargo turnover 
compare the Russian’s sea port cities. The development of 
internal and external trade Baku, Lankaran, Astara ports 
played an important role. In 1911 Baku - Guba and 
Khachmaz connecting the phone line was put into 
operation. In 1912 between Baku and Tbilisi connected 
directly phone line. During this period was used only in 
Baku from trams.
Since 1905 in Mugan had been accommodated 
Russians. There were 4 thousand desyatins of land suitable 
for the territory of Baku province relocated. 
İn the 
governorate had come to the land of an entire village to the 
Russian villagers. 
İn 1909 Guba district some of the most 
fertile lands had been given 2 thousand villagers which
settled here from Kiyev. Charism forced resettlement policy 
was implemented in Azerbaijan. The result of resettlement 
policy the number of landless peasants increased day by 
day. Ignoring the protests of the tsarist government 
continued colonial transfer policy. In 1912 there were 60 
villages in Baku, governorates and 29 villages in Ganja 


243 
governorate. According to the Baku governorate most of 
Russian population was placed in the Cavad district. There 
were 49 kinds of villages which in different times had 
moved from Russia to Azerbaijan. To protect Russian 
villagers from local people government had gave them a 
gun.
İn Azerbaijan the condition of villagers were seriously. 
Most of the land belonged to the state. The colonialist policy 
of tsarist aggravated the situation of the peasants further. The 
amount of landless people increased year by year. 1870 in 
Azerbaijan peasant reform unfinished solved agrarian issue. 
While the peasants of feudal dependencies, theirs a piece of 
land which should give them 1912-1913 years according to the 
agrarian rules did not fully realized. Until the adoption of new 
laws, villagers who live in host’s lands only part of the peasant's 
yard could got her a piece of land. One of the factors difficult 
issues the purchase price of lands in Azerbaijan were very 
expensive compare Russia. Therefore villagers couldn’t buy 
their lands. After the reform the villagers instead of the land 
which used to they forced pay taxes and obligations. Another 
word these “temporary obligations “relationships in Russia 
abolished between 1881 and 1886 years. But in Azerbaijan 
the same situation had continued more than 40 years. 
On 1 May 1900 government accept the rule about 
straighten out the relationship between the state land in the 
village. In the South Caucasus the law about structure of 
state peasants gave them used to lands generation to 
generation. In 1900 on 1May in accordance with Article 14 of 
the law on 21 April in 1903 was given a new regulation. 
According to this regulation while preparing the lands plan 


244 
should be based on the existing boundaries. After completed 
the centralization villages taxes increased considerably. Because 
of redundant soils by added their using lands areas increased 
the total areas. The condition of peasants had worsened. The 
novelty of Regulation consisted of that to giving the land to 
the villagers grassland, grazing and forests.
On 20 December in 1912 was accepted law about in the 
South Caucasus in the governors compulsory purchase of 
lands on 1
st
January 1913 in Azerbaijan owner peasants 
released to take obligation. Since that day land that has 
been declared the property of their should have been 
bought. Also, peasants could not to buy grassland, grazings 
and forests areas. As in the in the past villagers could use 
with the permission of the landowner. Water ditches were 
owned by landlords. Landlords took land fees from the
state treasury and state treasury should picked up land fees 
during 20 years from peasants. Peasants was paying for 
malcehet and bahra taxes. Degraded lands passed to the 
peasants’ ownership without fees.On the instead of garden 
lands didint pay money. 1912 the agrarian law was not 
related to the Zagatala district. On 7 July 1913 in Dagestan 
and Zagatala districts were decided the project about depe-
nding and abolition of feudal relations. Instead of villagers 
they have to pay debt during 20 years to the state treasury. 
2. National democratic movement in Azerbaijan the 
creation of political parties and public organizations. 
İn Azerbaijan ten thousands of workers, especially 
from Russia, worked in the industrial establishments. Most 
of them had enough strike experience. Among them were 


245 
professional revolutionaries. In Baku were a big part of the 
organizers and participants. On January 1901 large tobacco 
factories workers stopped in front of put forward a number 
of requirements. In 1902 the first time took place overtly 
political demonstration. They said slogans as long live 
freedom, down with autocracy. In 1903 Azerbaijan workers 
movement were openly demonstrated. On 18 June in 
Bibiheybet workers by demanding wages increased went on 
strike. There was a hard opposition with the police and ka-
zaks. On 4 June these kinds of striks were widely spread. 
For introducing demands to the entrepreneurs had been 
created strike committees. Commute had a great role beca-
use of oil magnates called this commute “Workers govern-
ment”. According to the requisition of strike committee 8-hour 
working day, the arrest of the workers who were arrested for 
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