New-York tribune., 1922-11-24

Clothing Plan
Called Failure
tcsasiaaes from ssss ons,

nd painful effort to put Russia
s.sS 6 d her feet
~ 7, scu pus ss.aoo,ooo.ooo into Rus
..,av /. Il wouldn't make the slight
= s.,nrsssion, said Thompson, ''for
s.. S. sor;et regime as at present con
..S the money would be wasted
k''s ..se;eney, bad organization and
90 other diaaeuities.'
.s a;i,man scheme, Mr.. Thompson
sss,sss represents partnership en-
sgls,a.t .as The Russian clothing trust, the
sas.ss snapcial syndicate financing
sssa' ..,,ss and the Russian American
s 49, Corporation, which pro
lso lasss..; invest 100000 in this syndi..
- which the corporation is guar
IA 4 per cent profit by the Soviet
is.s,sen,. is.s.s Thus far about 100000
ssia.s hasn raised by Mr., Hillman's or
as ss.;aa [ which he is supposed 70 send
a,,ai passia % his return to America,
b. IS Is now bound.
ps;a's ssr Tsoinpson, who helped AR. Hill
draw up the contract with the
-, government, declared tonight
sssed Dir. Hiliman still would find
sssssible TO withdraw srom the
,s.se. Mr. Thompson based his op-
stlcn on the following points:
.girst, the whole scheme of trust
,xS;tstes and their inter relation is
s.. inyoived and inefficient. While
sagss ID the clothing industry in Rus
s are low, the price OF clothing. on
xsi,k the Soviet government retaine a
smepoly, is high. The average worker
!. iAe clothing industry earns about
i;a.aao.000 rubles monthly, but the
sts Of a suit TO these workers. who
reive large discount, is 350,00o. 900
a,ts00eo coo rubles. This difference
assill largor with regard to the tex
Il workers, who make textiles FOR
sizing and whose average wage is
100000 rubles monthly. This high
:ss clothing il due to inefficient
.ssiaess methods. ss shown in the in
saitab:e wage scaies prevailing in tho
sasstry md fantastic overhead ex-
sases.
.sscond, the lack OF business and
ahnical personnel. which has now
iehed its lowest ebb.
sThmd, tho lack Of real control BY
Il American end Of the enterprise in
aaal operation OF she industry. Such
.atrel under present conditions is inn
sssibie,
fourth. 70 per cent of the business
assists Of manufacturing clothing for
As army. which is subject to the
.aee.ion and is under the absolut"
snsfol of the Soviet government and
sanot BE- considered business propo-
ajlon
Fifth. the serious shortage OF cot
an snd wool. which, since the Soviet
does not regard the cloth
~ industry as basic, there is no guar
iaty it will so out of its way to
sapply.
sixth Under its contract the Rus
Industrial Corporation
Ais no right to import or export goods
. and from Russia, this being a gov
ssament monopoly. While the clothing
gndicate has the right to import raw
Materials for its industry, the govern
Htnt can easily cripple the industry,
should it so desire, by prohibiting the
Importation of sewing machine needles,
~sish are not manufactured in Russia
pnafy he contract the syndicate must
lstaad salts own economic feet, and If
u iais t5pay its way it can be closed
5y tte gorernment at any time This ]
yoald mean destruction of the whole j
ausi1ess While under the contract the
American investors can withdraw their
zeaey in such case, they must wait
trii for four years.
Rassian Currency Catastrophe
FSsyenth, the catastrophe condition
ttAs Russian currency. When we en-
end Russia the ruble was 100000
. tie dollar. and when we left it was
100000 During that time hundreds
! Billions of rubles were owing the
lothing syndicate by the Soviet gov
rrment, but in the meantime the pur-
aasing power OF the ruble in the
ord markets was reduced by one-half,
nd many commodities will have to be
nported by the clothing industry di-
ectly or indirectly from abroad.
Eighth, in the matter of industry
% settled policy has yet been de-
eloped and it is impossible to de-
ermine beforehand w1at charges r1ay
'e levied against the ccothing industry
II any other industry in the future.
Ninth, the question of the use of
factories and terms therefore, which !
factories remain the Soviet govern
ment's property. is one which is sure
10 cause serious trouble.
enth, there is no definite code !