The New York herald., 1922-07-17
BUSINESS PROMISES
in RUSSIA A Snare.
German Manufacturers
Have Tried i'm Vain to Es-
tablish Relations.
CONCESSIONS NOT USED
Soviet Could Not or Would
Not Deliver the Goods
When Time Came.
CAPITAL HELD UNSAFE
Big Firms Have Plenty Of
Agents in Country, but
Risk No Money.

Special Correspondence to TIE New YORK
HmALD.
New York Herald Bureau.
- Berlin, July 3.
So-called mixed enterprises where
the Soviet Government is a party in
the company are a snare and de-
lusion.
Until the Russians come half way
German manufacturers and contrac-
tors will not spend money. nor begin
work in Russia" summarizes the con-
clusions Of large numbers of Germans
who intended and still intend to re-
open and to begin business in Russia.
Since March of this year they have
made preparations and investigated
but not invested.
When the trade agreement between
the two countries was signed year
ago there was a rush of Germans for
Russia. Trade with the Bolshevilli
was to be a panacea for everything.
The Soviet offices in Berlin were be-
sieged by Germans who wanted to be-
gin business. The word was then that
Lenine with his new policy would
make normal business possible. There
were endless negotiations and some
concessions concluded. There are now
supposed to be as many as $500 con-
cessions, large and small, granted in
Russia. But as yet few of these have
been put into practical execution and
still fewer were secure enough for the
Germans to feel safe in risking real
money in them. Then, too, transporta-
ton difficulties are to very great ex-
tent untouched.
Failed to Keep Contract.
The Germans say that the Russians
for various reasons have failed to live
up to their part of the contract They
promised much but could not. or would
not deliver the goods. In many in
stances Germans have feeling that the
Soviet Government was doing business
with them for politics and not with a
serious intention to carry out agree
men.s.
The first big German firms who sent
their representatives to Russia were the
Krupps and the General Electric Com
pany. Semens e. Schuckert also sent
experts on the invitation, of Krassine,
who formerly was an engineer in their
plant. Then the octogenarian iron and
coal magnate, August Thyssen, and
Hugo SHINES did the same. The next
big firm to send engineers and agents
into Russia was that of julius Pntsch.
the manufacturer of railroad signals,
devices and railroad repair
parts.
Krupp agreed to cultivate some 20O,0p0
acres of land in the Don steppes. plow-
ing at least 10000 Of this in the fall.
General Electric and Siemens & Schuck-
ert had large interests in Russia and
have again taken them in hand. but
without as yet investing further capital.
Thyssen. who has coal mines and steel
mills in the Ruhr, seeks to replace his
losses in French and Moroccan mines
by Russian fields. His principal need is
and this is found In large
quantities in the Ukraine. He also has
negotiated for forest concessions for the
wood he needs in his mines and he also
has buyers out in the Caucasus for
hardwoods.
julius Pintsch. the Berlin railrosd
equipment firm. has found plenty to do
in Russia in the railroad repair shops
Pintsch and Krupp have a number of
engineers there. But here again Pintsch
hesitates to put capital into Russia.
Then there are other firms such as
four big German locomotive works, the
Hirsch copper syndicate and score OF
others who have experts in Russia at
the present time.