The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-05-29
RUSSIA FACING !
ECONOMIC RUIN,
SAYS MINISTER
Only a Miracle Can Prevent
It. Asserts Financial
Executive.
PEACE AS SOLUTION
Socialist Members of Cabi-
net Regard 1t as Only
Feasible Step.
LABOR TOO EXORBITANT
Breakdown in Three Months
Predicted Unless Troubles t.
Are Adjusted.
PEACE AS SOLUTION
LABOR TOO EXORBITANT

PETRooRAp, via London. May 2s--The
Industrial crisis In Russia is SO acute
according to a recent utterance OF ths
Minister of Finance. NJ. shingaroff. that
only miracle can save the country
IRON economic ruin. The demands OF
the workmen were so enormous, he
said. that 1t seemed impossible to keep
tho Industrial wheels going for any
great length of time.
The Socialist Ministers at a reeest
Ministerial council said that the onIy
possiDility they saw Of settling the dif.
ncuity was to bring the war to a close.
Neither the coalition cabinet nor the
newly appointed commission to regulate
the difficulties between capital and labor
has found a way to settle the Industrial
crisis. The commission is composed Of
the Ministers of Finance, Trade ane In
dustry and Labor, but since there is q
wide divergence OF views between the
Minister OF Finance and the new So
cialistic Minister of Labor 1t seems
probable that this commission will be
confronted with the same difficulties that
attended previous efforts at reconcilia-
ton.
Features of Situation.
An investigation of the factory condi-
tions In PetroBrad leads to the alarming
but inevitable conclusion that unless the
| Government soon finds n means OF ad-
1ustins the present difficulties most Of
the industrial enterprises working for
national defence will be compelled 10
close within n few months The out.
standing features OF the labor situation
are as follows:
An investigation shows that virtually
the same difficulties prevail in all
the big factories In Petrograd. ana ap-
parentiy authenticated reports from the
MOSCOW, Dunaetz and Ural districts in
dicate general disorgsnization. In
, many or the factories the demands by
the workmen for increa sed wages are
actually greater than the entire proHt.
OF the factories under the. best condi.
| tions of production.
The workmen. through their commit
toes. are in virtual command Of the fac
tories, and oll business has to be sub
mitted 10 them for approval Wages in
majority or the factpres have already
been Increased from 100 to $50 per cent.
but there has yet been no offset bv an
advance in prices OF the OUTPUT
Incident in Petrosrad.
In one of the works In Petropraa ,h.
workmen recently demanded the inn,edi-
ate payment of about s6.500. 900 TO cover
an increase OF Is kopecs per hour for
each workman since the beginning ~
the war The directors OF the organiza-
ton Immediately communicated with the
Government and asked to be placed nm
der voluntary arrest az protector,
against the threats of the workmen.
which as usual accompanied the demand
The directors were for two days
housed IN the Ministry of Justice Th.
rectors that the matter would be con-
sidered. and. with the demand of the
workmen held temporarily in allowance
the directors returned To the factory.
An eight hour day has become effective
in all factories. According to the esti-
mate Of a leading manufacturer the out
average decrease of 40 per cent. since
the revolution. He explained that all
these concerns We're confronted with all
imminent shortage of raw materials and
with bankruptcy.
Not only have the prices OF products
not met the advance in wages. but pay
in urgent need of working capital The
money, as the banks naturally are not
eager to extend credit to factories which
are in control of temporary workmen's
factories, according to this informant.
will be compelled TO close within a
month.