The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1925-08-01

Thru Courtesy of the
international Pub
fishers Co.
Organisation of Trusts

Organisation Of Trusts
The powers position to the Trusts
first worked out in the controversy the formation of the
followed days later by the general regulating the
Trusts under the New Economic Policy This at first limited
to 10 the produce disposal the
Trusts which however raised to so per But
whole series of Trusts sanctioned by decree of October 2
At first the management these Trusts restricted and
overreguated but before long had become completely auton
omous even exceeding that allowed to limited companies else
where as for example in conclusion OF loans Finally decree
Of May 23rd 1922 recognised these Trusts judicial PERSONAL
ties They are indeed in some respects in more responsible
and autonomous position than the things of the kind
Europe such Government railways and institutions The
reason for this the intention in Russia to put these Trusts in
position to attract capital their account The other
form of Mixed enterprise in which the Government paTc
pates shares considered in Russia suitable only for the
smaller concerns.
Status Of Trusts
position the Central Trusts is regulated by the
April 10th July 17th 1928 that Trusts
by decree of September 17h 1928 The all the
Trusts have within the last months been brought
conformity with These thereby
been definitely separated from the State This decree
ognses the Of the Trusts in all that their
operations with Articles Association
substitutes commercial basis for their operations the
making of profit for the previous economic basis which only
required business-ke bookkeeping This again involves
remuneration by the State of all acquisitions require
ment incompatible prosperity
On the other hand the Government is responsible for the
liabilities Of the Trust loss of capital other than debts from
State enterprises This decree also defines for the first time
the property rights of the Trust with view enabling it to
get credit In the first place the
Trust against loss and liability due to State interference which
fully by Articles and IA The State is
only entitled net profit after provision for sinking fund
and the putting OF ~ per cent TO reserves as Wen as 10 any
after liquidation of all liabilities The statutory capital
divided capital and working capital statutory capital
does not include property Basic capital cannot be aenaed
mogaged except by consent of the Supreme Economic
Council This applies also to long loans These provisions
give the Trust basis for credit which is however restricted
working Oborotny) capital against which alone creditors
proceed ARTICLE I'D Structures machinery and equip
generally consequence be used security The
debentures taken by Government guarantee
Private capital excluded from holding shares though
cepon respect co-operatives The
reason for this that in the case OF the coopratos there
fear the ultimate predomnance of private capital
Each Trust is based on Articles Association (Ustav)
which should properly (prolozhenie)
legal lingo these Trusts neither Associations
Corporations but Establishments pubques personalities They
judicial persons
The division of powers as between the directors and the
Government Supreme Economic Counc based the prin
cpe the authority assigned limited
the general meeting of shareholders appointing the
directors Auditors appointed jointly by the Supreme
the Trade Union) Indeed the
excluded from Intervention in the management
greater extent than the general meeting h State like the
meeting has authority financial operations and all
affecting the constitution and control of the Trust
To this be added the usual authority assumed by the
State over corporations under western legislation
All Trusts be members of the Bourse and register their
transactions. article As, decree 10 Nv. 23)
The Supreme Economic Council the Council of Labour and
the Commsariat of Internal Trade leases
necessity fix the selling price of its products (Article As b
conditions Trusts must give preference State
and to co-operatives private enterprises.
BY 1928 there already 42S Trusts employing about
million workers.
Mixed Companies and Private Enterprises
The companies operate private companies
The only complicated feature of their
is the State participation which not in but
material land building ETC. But this naonased
erty be aenated the States participation has
expressed the form of remission of for which
the directors being appointed by the shareholders
body the shareholders each appoint repre-
sentatiyes
In spite pecuIarites the companies are
respect of status private companies And though there
are likely to private further jursc
definition of their status is probable and desirable