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THE ECONOMIC WEEKLY August 13, 1960 The Colonial Beginnings of Calcutta Urbanisation without Industrialisation Benoy Ghose

IN an industrial age, there is a stages of growth, from 'infantile' to nomic background for the develop­ correlation between 'urbanisa­ "mature', it not only offers better ment of a city like Calcutta. The tion' and 'industrialisation'. Some security and protection to people, zamindari policy of the Company minimum technological development but also greater employment oppor­ hastened this process of rural of production, transportation, con­ tunities and wider scope for services disintegration. struction, utilities and administration and enterprises than are available The most important achievement is clearly required to permit of large in a rural area. The economic and social history of the city of Calcutta of the Company in the period 1690- concentrations of people in urban 1757 was the acquisition in 1698 areas. The size of population, provides an example of this aspect of urbanisation, better perhaps than of the tenure, in terms of the Mu­ depending directly on 'agriculture', ghal Revenue Law, of the three including forestry, hunting and fish­ any other city in , for histori­ cal reasons. villages of 'Dihi Calcutta', 'Covind- ing, and also on 'traditional handi­ pore' and *'. the 'nucleus' The story of the growth of Cal­ crafts', should be negligible in an from which grew the City of Cal­ cutta in the 18th and 19th centuries urban area in relation to that de­ cutta. "By this acquisition, the is largely one of the influx of peo­ pending mainly on 'industry,' i.e., Company obtained for the first time ple of different castes and occupa­ factories and public utilities (e.g. a legal position within the Mughal tions from the countryside to the electricity, gas, and water supply), Empire, and thus brought into ex­ new city in quest of fortune through and on 'services' in both the public istence a working theory, in the and private sectors, comprising, new employment opportunities, development of which the accept­ among others, trade-commerce, trans- services and enterprises created ance of the Diwani in 1765 was the port, storage and communications. under the new British administra­ final logical completion".2 The Many observers of urban growth tion. There had been a steady mi­ English were made responsible by have concluded that cities in Afro- gration of such people to Calcutta this grant for the payment of lump Asian countries are faced with the since the days of its foundation by sums, representing the estimated problem of 'over-urbanization' in re­ in the closing decade revenue due from the inhabitants of lation to the degree of economic of the 17th century. Along with the 'three towns'; and to meet this development, particularly of indus­ these fortune-hunters a large num­ annual due, the Company was pri­ trialization. This is especially true ber of people, uprooted from village vileged to collect rents from the lo­ of almost all colonial cities, in the communities, began also to flock to cal inhabitants, to deal at pleasure sense that these cities do not have the city and swell the ranks of with waste lands and to levy taxes, the requisite productive economic 'domestic servants' and various duties and fines on them. It is base, corresponding to the size of 'wage-earners'—who were also pro­ difficult to determine with precision their population and to their pro- ducts of the new urban economic the exact legal rights conferred on per function in the national eco­ conditions. the Company by the grant. That nomy as a whole. INVESTMENT POLICY point may be interesting, but not important. What is of great histo­ In relation to the national eco­ Like many colonial cities in Asia. rical significance is the fact that the nomy, a city may have quite differ­ Calcutta is chiefly the product of Company regarded itself as 'Zamin- ent economic functions. It may economic development oriented es­ dar". and exercised the functions of contribute heavily through industry sentially to a foreign country, rather that office. and commerce to the per capita pro­ than of indigenous economic deve­ duction and the economic uplift of lopment. This external economic COMPANY AS ZAMINDAR the State, or it may drain off and orientation of Calcutta () to As zamindar the Company, while consume unproductively the wealth emerged in the last two trying to adhere to 'native' tradi­ of the countryside without giving centuries, producing the great city tions and customs, made a curious anything of economic value in re­ as a link between them. The 'in- amalgam of them with extraneous turn. The economic function of a vestment' policy (the purchases regulations to find out ways and city can, therefore, vary widely made by the Company means of increasing the revenue of from the generative' to the 'parasi­ in Bengal for trade purposes acquir­ the town. One of these means was tic', depending on the relation of ed the name of 'investment') of the 'farming" on an extensive scale. the city to the rest of the country1 through 'na­ Hats, bazars, marts, ghats, gunjes, A city, of course, is not likely to tive' brokers, merchants and gomas- ferries, articles for sale and con­ be wholly 'parasitic' if even a small thas, the private trade of the Com­ sumption, export and import, arti­ fraction of urban income flows pany's servants, whose sole motive cles for manufacture, collection of down to the village and contributes was money-making by any means, to rural wealth and prosperity. and the inter-caste mobility of rent in the different areas of the trades and occupations, usually en­ town and in the ceded territories in FORTUNE HUNTERS couraged by the English merchant- its neighbourhood, even the grazing Although a colonial city has a rulers, slowly and steadily sapped right on the Calcutta and tendency to be more 'parasitic' than the vitality of the traditional 'Vil­ the shoemaker's right on the car­ others, its 'generative' role cannot lage Community' in Bengal in the cases of cattle flowing down the be overlooked, In its different 18th century, and created the eco­ —all were 'farmed' out for 1255 August 13, 1960 THE ECONOMIC WEEKLY

1256 August 13, 1960 a lump sum over a certain period transition, this naturally proved dis­ strate how the historical houses and of time (not always yearly) to the astrous, and in 1769 British Super­ families of Bengal Tell beneath the highest bidder in public auction. visors were appointed to look after guillotine of the Revenue Sale Laws, When the Court of Directors in local collections. The servants of and how a still larger number were 1758 abolished the post of zamindar the Company were not trained for extinguished by their private credi­ and created "an Office, the Head of the task, and this policy of British tors and the Civil Courts. It fixed which must be called Collector of supervision also failed miserably. for ever the revenue to be paid by Rents and Revenue the "articles' In 1772, was au­ the landholders to the State, but placed under his management were thorised by the Court of Directors it never fixed the rent to be paid 'Ground Kent, Duty on Sale of to inaugurate a new policy of Bri­ by the cultivators. It also endea­ Houses. Duly on Sale of Sloops and tish Central Control and a Joint voured to substitute for the village Boats. Duty on Sale of Slaves. British and Native agency in the patwaris. who had so long been Pottahs. Ground Overplus. Glass Districts for establishing direct coir the joint servants of the State and makers Farm. Damar and Okum tact with the rural people. But ac­ the village community, their per­ Farm, Sallamy on new Sloops and tually the collection of revenue was sonal servants working under their Boats. Commission on Mortgage managed by the farming system. orders in their own 'kacheris' or Bonds. Duty collected on the Out- according to which tenders were in­ land offices against the interest of Towns, Duty on Burthened Oxen. vited for each , and a settle­ the cultivators. This was one of Bang Shops Farm and the thirty- ment for five years (1772-1777) the major organic defects of the eight villages ceded by the was concluded with the highest which brought or whatever may be those acquisi­ bidder, whether he was the old tions.a ruin to the cultivators and which zamindar or not. lav at the root of all the agrarian The wide range of articles brought troubles in Bengal throughout the PERMANENT SETTLEMENT under farming can be easily com­ 19th century. It ruined the old prehended from this list. For the Many old zamindars were thus zamindars and also the cultivators, first time "all Duties relative to Food ousted, and a subsistence allowance and wrecked the foundation of the Raiment or Trade' were allocated was granted to them out of the re­ old village community. to "Customs", and the hats and ba­ venue. On the termination of the zars where these duties were collect­ five-year settlement in 1777' annual NEW RURAL MRIET ed were set aside. Two custom settlements were made with farmers The system of local administra­ houses were constructed and two until 1781 when a Committee of tion was also gradually changed. custom masters appointed there. As Revenue was constituted in. Calcutta. By the Proclamation of December for 'farming, it was clearly stated But the farming system was steadi­ 7. 1792. re-enacted by Regulation in the letter that 'all farms in future ly wearing down the old village XXII. 1793. Government took the are to be put up to Public Sale by communities which had been thri­ police of the country for the first our Governor and Council and not ving for centuries under the "bene­ time directly under its control, by the Collector The reason for volent despotism' of the old and 'all paiks, chokidars, pasbans. this stringency was that the Col­ zamindars. in 1785 the Court of dusada. nigabans. bancs and other lector, in collusion with his 'native Directors struck the first note of description of village watchmen" deputies and assistants, was found the Permanent Settlement to come were declared subject to the orders responsible for a considerable leak­ by intimating to the Bengal Govern of the newly-appointed Darogas. age of revenue. ment that they had 'to arrange a The whole of the Chakran lands, FARMING OF LAND REVENUE final system' for transacting busi­ held by public officers and private 1 This farming system, widely ness with the zamindars. So servants in lieu of wages, were practised in Calcutta since the first when Cornwallis arrived in 1786. ordered to be annexed to the mat- decade of the loth century, had an the idea of a Permanent Settlement gurtni or rent-paying lands and important bearing on the subse­ had already taken shape; and it is declared responsible for the pubhr quent land-revenue policy of the wrong to think that it was spun out revenue assessed on the Zamindaris. Company. It appears from records of his brain, with a preconceived The new zamindars also claimed for that the new town of Calcutta, the bias for the English landlord system. themselves the right of ejecting at will the servants of the village com­ first zamindari of the English, was Successive blows had already been munity from chakran lands held by made an experimental ground for dealt to the rural structure of Ben­ them, and of assessing these lands testing the expediency of a method gal by the farming system from with money rents. This turned a for raising revenue through a 1760 to 1788. and' the final and large section of rural people, pea­ hierarchy of intermediaries a me­ fatal blow was dealt by the Perma­ sants and public servant into hands thod which was afterwards extended nent Settlement in 1793. The ancient of roving proletariat," to the Company's territories beyond zamindars. and with them the old the town for collecting land tax. rural social organisation, were levelled The pillar of medieval society On August 12. 1765. the Mughal down, and a new class of revenue- was land. This was ruthlessly pull­ Emperor assigned the Dewani or farmers was levelled up into new ed down by the economic and ad­ revenue administration of Bengal. zamindars with a legal basis for ministrative policies of the English Bihar and Orissa to the English their new social status under the Company. In its place. a new Company for an annual payment of Regulations of 1793. The Settle­ pillar was erected, the pillar of 26 lakhs of rupees. From 1765 to ment could protect neither the zamin­ 'money', lo support a new type of 1769. the old 'native' officials were dars nor the cultivators. The four rural society, rising on the ruins of chiefly entrusted with revenue ad­ volumes of W W Hunters' Bengal the old. The human relationship of ministration. In the early period of MS Records. 1782-1807 clearly illu- the traditional village community 1257 August 13, 1960

was torn asunder and supplanted by plahade, the site of Fort William This is not a very 'modern' plan a sort of callous 'cash-nexus'. The and , were so late as for a city like Calcutta, and nothing new zamindars fell back on the 1756 a complete jungle interspersed beyond this was thought of by the same farming system, to which a with a few huts and small pieces of majority of them owed their origin, grazing and arable land." In 1710 Company about two hundred years to escape from the direct responsi­ the population of Calcutta was esti­ ago for 'urbanising' it. Allocation bility of Public Revenue, and a mated at 12,000 by Hamilton, in of separate segments of the town to vast band of intermediaries was 1752 at 209,720 by Wilson and at different occupational castes, and created between them and the peo- 409,056 by Holwell (undoubtedly an regulation of their trade by rigid pie, having no interest in the soil. overestimate), in 1796 at 500,000 by laws, certainly did not further the They were nothing but speculators, Martin, in 1802 at 600,000 by the cause of urbanisation, in the real eco­ out-and-out commercial in their atti­ Police Committee, and in 1814 at nomic sense. The plan was not tude to the land and the people. 700,000 by Justice Hyde. All these related to any new method of eco­ Their only passion was money estimates appear to have been mere nomic production or new type of making in the new rural milieu as guesses. economic organisation. It was never contemplated by the English rulers, in the case of many fortune-hunters MEDIEVAL PATTERN in the new urban centre of Calcutta. at least not in the first half of the Actually the population of Cab 18th century. Not even a little 'PULL AND 'PUSH' cutta began to increase steadily, vertical social mobility, inter-caste Where should these helpless peo- though not rapidly, from the last and occupational, so essential for pie, uprooted from their hereditary quarter of the 18th century, when urbanisation, was consciously en­ the crumbling village communities couraged by them. But still Cal­ lands and services, properties and 1 occupations, seek refuge? Of course, began to ^push rural people from cutta, though not so much economi­ cally, was being steadily urbanised in the new town of Calcutta, which their limits towards the town. Be­ socially and demographically through­ was then emerging as an oasis in fore that, efforts were made by the Company to encourage all classes out the 18th century. It appears the midst of a spreading desert of of artisans, particularly the weavers, from its history that the early phase rural debris. Within a decade af­ to settle within the limits of Cal­ of urbanisation of a colonial city, ter Charnock's death, the town start­ cutta to serve their own commercial economically oriented to a foreign ed growing and prospering, and interests. The ostensible purpose of country, is primarily social and de­ the process of urbanisation was set this was, it seems, to develop their mographic, and secondarily econo­ in motion in the villages of 'Suta- new headquarters on the model of mic. And between the 'pull' and nuti,' 'Govindapore" and 'Dihi Cal­ a medieval trading town and a self- 'push' factors, the latter appears to cutta', In 1706, the Calcutta Council sufficient village community for be at times more active in this pro­ wrote to the Court of Directors : making their 'investment* under their cess of urbanisation than the former. "Revenues especially the Rent to the own eyes. The Court of Directors NON-PRODUCTIVE URBAN 3 Towns increase yearly, people wrote in 1755, and again in 1758 : flocking there to make the Neigh­ PROLETARIAT 6 "As it is evidently for our interest bouring Jemindars envy them." therefore to encourage not only all It is difficult to determine how People were already drawn to the the weavers now in our bounds, but much of the urban population gro­ new city by the employment oppor­ likewise to draw as many others as wth of Calcutta in the I8th and in tunities' offered by the English possible from all countries to reside the first half of the 10th centuries zamindars and by the attractions of under our protection, we shall de­ had occurred in response to real a new urban existence. The old pend on your utmost efforts to ac­ economic need for large urban con- zamindars, particularly those of the complish the same . . . wherein we centrations. that is, due to 'pull' neighbouring villages, were therefore shall find a great share of your factors represented by greater em­ envying their lot. investment made under your own ployment opportunities and brighter 7 income prospects from new indus­ But the operation of these pull eyes" It was suggested in 1757 that all weavers, carpenters, smiths, trial developments in the city or factors was very slow in the first- around it, and how much due to tailors and other artisans should be half of the 18th century, as indi­ 'push' factors arising out of the incorporated into their respective cated by the population growth of steadily deteriorating rural situation. bodies, one in each district of the Calcutta. Hamilton was an eye­ We have already stated how the old town, and that each body should witness to the condition of the town village communities and the bases elect a 'chowdree' or headman to in 1710-1727, and he gives, in the of rural social organisation were dis­ represent its interest. The 'Mandals' East India Gazetteer (1815), the rupted by the 'investment' and 'land- of each district of the town were the following 'correct description' of revenue' policies of the Company, to submit an account (monthly) to Calcutta as it existed in 1717 : and how large numbers of rural the zamindar for every artisan re­ "The present town was then a vil­ people were uprooted from their siding within his limits as well as lage . . . the houses of which were hereditary soil and services and for all other 'tenants', lodgers' and scattered about in clusters of ten turned into bands of wandering 'sojourners'. The wages of the or twelve each, and the inhabitants proletariat. A section of them orga­ artisans and labourers were to be chiefly husbandmen .... In 1717 nised themselves into gangs of rob­ there was a small village consisting regulated by the zamindar of Cal­ bers and dacoits for plundering and of straggling houses surrounded by cutta, and every artisan was to take looting, and another section moved puddles of water, where now stand out a licence for his trade from him, to the new town in expectation of paying a quarter of a month's wage the elegant houses at Chowringhee. 8 some employment (as 'domestics' and . . . What are now called the Es- for it" . wage-earners'). But there was no 1258 August 13,1960

industry then, either in the city or of Calcutta From the beginning of ently to the Board of Revenue in in its suburbs, to absorb them as the 18th century to try their luck,— the time of Mr Hastings and thus the new 'industrial proletariat', unlike the Bengali cloth and yarn amassed a large fortune". The There were employment opportu­ dealers, viz. Setts and Basyacks, who founder of Andul Raj family was nities only as personal and domestic had established themselves at Suta "Ram Churn Race, who made his servants of the new 'European' and nuti () some time in the fortune under Governor Vansittart the 'Native' aristocracy, as bearers, 17th century, long before the Eng­ to whom he was private as chaprasis and harkaras in the new lish settlement was founded. Hamil­ well as to General Smith". The city-offices and mercantile firms, in ton, therefore, speaks of the Sells as founder of (bhukailas) shops, hats and bazars, and also as the ancient family of the .Seats, who Raj family was "Gokul Chunder coolies and day-labourers in gigantic were at that time (1717) merchants, Ghosaul, who made the fortune of constructional works of roads, drains of great note and very instrumental the family as Dewan to Mr Verelst" and squares, of the Fort and public in bringing Calcutta into the form Gokul Ghoshal earned a huge lot of buildings and of new residential of town'. Except the Bengali Setts, money by extensive inland and fore­ bouses in the city. A huge battalion most of the wealthy family-founders ign trade transactions, and by farm­ of domestic servants was needed by of the new city, started their adven­ ing. The founder of the famous the city aristocrats, both '' and turous careers in fortune-ma king Tagore family was "Durop Narayan 'natives', to maintain the parapher­ from the beginning of the 18th cere Thakoor, who made his fortune as nalia of their new urban aristocracy. tury. The Calcutta Council wrote to Dewan to Mr Wheeler and in the The demand for domestic, servants the Court in 1710 about the people pay office of that time", Dwarkanath rose as the. ranks of the aristocracy of the new town; "The people are Tagore, a contemporary and friend swelled with the growth of the city. poor, the Rich Merchants live at of Rammohan Roy. amassed huge The stories of these domestic serv­ Hugley' It is evident therefore fortune by dewanee and trade. ants of Calcutta have been narrated that the "anonymous" fortune-hunters The Selts, it is noted in the Re­ in detail by many travellers and had not yet been able to establish cords of 1839, were "conducting a city-dwellers in their memoirs, re­ themselves and form a new urban very extensive banking business in miniscences and letters, and they aristocracy in the first quarter of the the Burra Bazarr where they have constitute one of the most interest­ as a distinct 'social class' in the established for several generations". ing chapters of the socio-economic 18th century. They began to emerge The Setts, and the Basyaeks also, history of Calcutta and of its urba­ in the second half of it, were the most important dadni mer­ nisation. There are also many in­ chants and brokers of the Company, teresting facts about them, about The history of the founders of wealthy families of Calcutta is ex and their history can be traced their wages, customs and manners, through the Records from about master-servant relationships etc. in trentely, interesting and important from the economic and social point 1706. The founder of the Simlah Government Records and old perio­ De (Sarkar) family was "Ram Doo- of view. Although a very difficult dicals. The story of the coolies and lal De. the richest man nearly in task, their history may be traced day-labourers of Calcutta in the 18th Calcutta"", who "acquired his wealth through the Records of the Home, and the early 19th centuries, relat­ wholly by Trade and as Dewan to Foreign and Public Departments ed in the records and the Town im­ Messrs Fairlie & Co he had most and scattered 'family papers'. 1 provement Committees' Reports, are extensive dealings with Americans shall relate very briefly here from also equally interesting. at the time when they engros­ All these facts indicate that the these sources the history of few 1 sed much of the carrying trade of urban growth of a colonial city may families only to illustrate my point. " the Port". The founder of the Bis­ be largely non-economic and the SOME NOTABLE: FAMILIES was family was "Ramhurree Biswas" new urban proletariat, accounting Nabakrishna. the found­ who made his fortune "as Dewan to for a considerable bulk of its popu­ er of Sohhabazar Raj family "was Mr Harris when salt agent at Bu- lation, may also be 'non-industrial', Lord Clive's Dewan at the time of looah and ". The found and therefore 'non-productive'. It the elevation of Jefur Ulee to er of the Singha family of may be said that urban growth in the Musnud of Bengal. He arnased was "Santeeram Singh, dewan to Mr a colonial country is directly related an immense fortune on that occa­ Middleton and Sir Thomas Rum- to the growth of a vast army of non­ sion, and subsequently upon the bold. Chief of Palna". Dewan productive urban proletariat, who acquisition of the Dew a nee. was Santeeram was also a notable farmer are expected to exert a backward placed by Lord Give in most con­ in his time. The founder of the pull in (he social and cultural sec­ fidential situations". Nabakrishna Kumartuli (in North Calcutta) tors of the urban centre. was also a lug farmer of the hats, Mitra family was Govindram Mitra, THE NEW ARISTOCRACY bazars and ghats of Calcutta and who made his fortune as "dewan to What is economically true of the of other zamindaris. The founder the Zemindaree Cutchery of Cal­ new urban proletariat is also large­ of Sukhornay Roy's family cutta and by trade." This Govinda- ly true of the so-called new urban was "Lukshmee Kunt Dhur, who ram was perhaps the most influen­ 'bourgeoisie' or 'aristocracy'. They made his fortune as Buneea (bank­ tial man of Calcutta in the first half were not industrial entrepreneurs, er) to Colonel Give and other of the 18th century and he was harbingers of a new age of capital­ Governors of that time. Sookhmaee known as 'black deputy'. He was istic production, but desperate for­ was his daughter's son and increas­ also a very big farmer of Calcutta tune-hunters, a band of shrewd and ed his inheritance by acting as hats and bazars in his time. The intelligent middlemen and specula­ Dewan to Sir Elizah Impey". The founder of the Pal Chowdhury farm tors, some of whom were nothing founder of Paikpara Raj family was lv was "Kishen Chunder Panl but talented 'traders' only. They "Gunga Govind Singh who was Chowdree. one of three brothers, began to migrate to the new town Dewan to the Council and subsequ originally in very low circumstan- 1259 August 13.1960 THE ECONOMIC WEEKLY

ces" but afterwards "acquired an worthless descendants wasted the Firminger's Historical Introduc­ immense fortune in the salt trade". enormous wealth in long-drawn-out tion to the Fifth Report. The actual The family of Radhamadhab Baner- litigations, and in conspicuous luxu­ 'nishan' signed by Azim-ush-shan has jea acquired a considerable fortune ries, ceremonies, religious endow­ beer, lost; The Bai-Namah., or Deed "as Dewan to the Opium ments and charities. The largest of Purchase. dated November 9, Agent" and by trade. "Sheeb Nara- part of the accumulated 'capital' of 1698. is preserved in the British yun Chose, with two brothers" were the new Bengali urban aristocracy Museum (Add Mss No 24039),' a enjoying a large fortune (in 1839), was thus diverted from "production" translation of which by W Irvine is "made by Ramlochun Ghose their to 'conspicuous consumption' and ,published in Wilson's Old Fort Wil­ father (and founder of the Pathuria- waste. liam in Bengal (Vol 1, 40-48). ghata Ghose family) who was Sirkar It is obvious, therefore, that the 3 Home Department. Public Pro­ to Mr Hastings". urbanisation of a colonial city, may ceedings, Letter from Court, March No INDUSTRIALISATION not always be associated with any 3, 1758. 'economically productive' activity of 4 Court of Directors' Letter, dated It is dear from this account of the new urban 'bourgeoisie' or 'aris­ notable Bengali family-founders of December 22. 1785. tocracy'. A city like Calcutta, eco­ 5 Calcutta that none of them was in D J Mcneile's Report on the Vil­ nomically oriented to a foreign lage Watch of the Lower Provinces any way connected with any indus­ country, may suffer, therefore, from trial enterprise whatsoever. There of Bengal, 1866. the symptoms of 'over-urbanisation'', 6 Home Department, Miscellane­ was, of course, no scope for such in regard to the degree of economic enterprise in the 18th century under ous Records. dated December 31, development. The major benefit of 1706. British rule. Most of them acquir­ this urbanisation was only some oc­ 7 Court's Letter, dated January ed their fortunes as , Sircars cupational diversification and social and Banians to the English Gover­ 31, 1755 and March 3, 1758. mobility; and that was conducive 8 nors, Officers and Merchants, Some somewhat to social and cultural pro­ Home Department, Public Pro­ were successful traders like Bamdu- gress, but not to any substantial ceedings, No 834, May 2, 1757. lal De, Motilal Seal and Madan economic progress. Home Department, Miscellane­ Dutta. but they employed their tal­ ous Records, Fort William General, ent and accumulated 'capital' more References Hated October 16, 1710. in the middle-man's business, in B F Hoselitz: 'Generative and "' Foreign Department, Miscella­ speculation as farmers and contrac­ Parasitic Cities', in Economic Deve­ neous, 1839, No 139, Home and tors, than in independent economic lopment and Cultural Change, Vol Public Department Records from enterprises. And most of their 3, No 3, 1955. 3706.