Abstract:

40th foundation day of IETT is being celebrated in 2012. It is observed that horse carried tramways in the center of Karaköy and Galata - Pera tunnel was established because of the need for developed ground public transportation in the second half of the 19th century. Those investments were substantiated by French and English firms, thus with the aids and privileges of the Ottoman Empire. Public bonds financed those investments. Those initiatives are important in many ways; sales of loans were actualized, cost calculations were done effectively, balance between income and expenditures could be set, developed financial statements and most importantly a developed income statement can be observed. Initiatives started with two separate firms and leaded a way for urban transformation, modern management concepts and modern accounting practices. This paper aims to examine the first forty years of those two firms. After the first forty years, it is observed that those two firms are merged under a consortium due to the pre-emptive rights. This condition continued until the nationalization of these firms in 1939 and named as Istanbul Electricity, Tramway and Tunnel General Management (IETT).

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