The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-08-06
RUSSIAN GUINNESS METHODS.
Great Care Necessary in Employing


an Attorney.
Richard Gueatfiar. Consul General to
Frankfort. hasA transmitted to the State
Department an interesting report on Rus
sian business 1aethpds. He writes:
The Chamber of Commerce of Frank
fort has pubiissedza statement about Rus
sian credits and commercial laws. which
should be OF interest TO American firms
trading in Russia. 1t is summarized be-
low:
Since the operation of the German
russian commercial treaty, cases have in
creased in which German arms could not
collect payment for their goods without re-
course to law, and the losses sustained by
Trims who did not exercise caution in ex-
tending credit have been very heavy
In the large cities OF Russia-Moseow
and others--there exist may absolutely
reliable firms. The average commercial
trustWorthiness. however, is of lower Or
DER than in western Europe. Nowhere is
IL more essentially necessary to obtain in
FORMATION concerning the standing, respon-
sioility, and honesty of buyers than in Rus
s1a, and nowhere is it so difficult to OBJ
tain Commercial bureaus of information
are not permitted by the Russian Govern
ment. Those people who, in spite of this
PROMOTION. conduct this sort of business
have to do so under cover, which creates
suspicion. and makes public control impos-
sibie. The respective consuIs cannot be of
service, as their official position prevents
them lmpartinS unfaYorabie information
relative to Russian firms in their districts.
The best way would be always to apply TO
responsible foreign bureaus of information
With reference to merchants in the pro-
ytncial towns. with the exception perhaps
OF some foreigners doing business there, it
IS quite impossible to obtain any informa-
ton Even Russian firms send agents to
these places in order TO gain the desired
data en- the ground All merchants in Rus
sia work with large loss account. Ger
man firms frequently ship goods before
they have received information requested,
and If an unfayoTabIe answer arrives after
the shipment they try to stop delivery of
the goods already on Russian soil. This
cannot be done. According to Russian law,
all merchandise which has crossed the Dor
der and arrived IN Russian territory is the
property of the Russian addressee. and the
forwarding agent has 10 deliver it TO him,
even if the sender should send orders to
the contrary. A judicial seizure cannot be
made in most cases. as payment has not
yet become due.
Great caution must be exercised in
the choice Of an attorney-at-Iaw; there are
two classes in Russia-sworu and private
attorneys. Only the former are organ
lied as an association, and its membe
are much more reliable and trustworthy
than the latter II is always advisable to
employ only sworn" attorneys. In the
interior aside from other causes. It is i'm
possible to successfully sue a merchant. as
no reliable attorneys exist there Many at
torneys are III the habit OF considering
err L
the court asstheiE oed property and using
them for private purposes.
The mode of compensation for an attor-
ney's service in Russia is very different
from that in Germany. The Russian law
pTescribes hatcattoFneys have TO MAKE an
agreement with thsir clients before taking
a case. Oftens Embarrassment for costs
and percentage of the sum recovered is
agreed upon, varying between and 20 per
cent, In Russia all debts exceeding ST.
and all protested commercial papers
have to be sued IN the commercial
courts The losing, party Is assessed only
a very portion oi-the costs of suit Tae
foreign claimant has therefore to stand
almost the entire costs. even IL successful
and even whenstke defendant by all man
ner OF trickeTy has purposeiy increased the
costs
1t must also be borne in mind that on
demands denied b. the court, a fine of
kopecks per rubIe is 10 be paid, and for
unwarranted appeals 10 kopecks per ruble
in favor of the judges. IT, whole court
institution is maintained by these fires
They are collected il the most rigorous
manner even in cases of arbitration.
where the plaintiff from the start is Will
ing TO abide by the decision OF the arbftra-
tors. Although everybody in Russia agrees
that TIE manner Of doing business in these
commercial courts. which dates back from
about 1920. is superannuated. it has so far
not been possible to institute reforms
The Russian law recognizes no inter
est after maturity Of a claim. Merchants
can therefore recover interest after ma
turity of claims only when this has been
explicitly stipulated by a contract: other
wise, claim for interest at 6 per cent
must be stated specially in the judicial de-
cree. But interest never commences be
fore the day of bringing cult merchant
in Russia can be declared inso,vent if
claims against him exceeding S7T2 are due
In practice. only notes due are considered.
For the foreign exporter, the posi-
bility OF a contest hardly ever exists It
happens very often that the debtor whom
bankruptcy stares IN the face transfers his
business and the whole stock to his wife
or other persons, and nothing can be COL
lected- The creditors may have him de-
elared fraudulent bankrupt bur cannot
recover, as the purchasers OF the business
OF the debtor cannot be reached The at
taehment of goods lin natura'' cannot be
made, not even where held on commission.
as according to the letter of the law All
goods with hardly an exception. must 60
into the assets.