The Dickenson County herald. [volume] (Clintwood, Va.) 1927-1930, 1927-12-29
INDUSTRY FACES
RUIN IN RUSSIA
Soviet Cannot Make Mills
and Factories Pay,
Says Observer.

-
taboo and that is Russia. Upon leav-
ing Russia as soon as the train
crosses the frontier change is no.
ticeable among the passengers. II
seems as though every one has heaved
sigh of relief People who were
friendly before become even charming.
Tongues wag and before the train ar
rives at Warsaw. Riga or Reval, as
the case might be, all the passengers
in the car have become friends.
Leaving Moscow my neighbor in the
compartment went to bed before ! did
and in the evening we did not see each
other. In the morning, after we passed
the Latvian frontier we both seemed
to feel load lifted from our shoul
ders. The peculiar mental depression
which affects visitors to Russia was
gone. We invited each other for
breakfast and began to get acquaint,
ed. We had both been in Russia for.
three months and visited widely sepa
rated districts.
Visited Industrial centers.
He turned out TO be German en-
gineer who had visited all of the in
dustriai districts in Russia, from Len
.ngrad right down to the Caucasus.
Representing one of the big German
industrial combines he had been sent
to Russia to investigate industrial con
tlitions and discover what chance
there was of establishing large plant
IN there. He talked with workers.
fOremen and managers. He was bring
ing back q pessimistic report and per
sonaly he was disilusioned about do
ing business in Russia. He also haG
met aud talked with many Americans
"After the Rapallo treaty WA
signed we Germans had Illusions abou
exploiting the Russian market an
gaining control of the Russian indus
try" he said "Today we know bet
Ter. We have discovered that tn;
trade relations existing between Ger
many and Russia are not for the i'm
provement of trade and commerce bu1
for the furtherance of Bolshevik poll
ties.
Politics Ahead of Business
RUSSIA, we found, does not dc
business with countries where she can
sell the most profitably and buy the
cheapest, she does business for poll
tics. Today in Moscow the hotels ar.
filled with Americans, they sit in thu
waiting rooms at the various commits
sariats and are taking out officials
the various soviet trusts. syndicate
ard co-operatives to dinner. They ar
receiving encouragement, just wha
we got before the Rapallo treaty wa
signed. They are going to learn JUS
what we have learned during thes.
last three years.
1.-THE reason why there are so few
representatives of German concern.
in Russia today is not because we are
not interested in the Russian market
Neither does it mean that we have
capitulated to American competition
1t only means the soviet government
is row doing everything possible t.
convince Americans that business can
he done and that there is much more
business awaiting around the corner
just as soon as they can force the
United States to recognize the soviet
regime. They worked the same game
successfully with Sweden. Germany
Italy. England and France and now
they are trying ii on America.
Purchase Few German Articles. :
al present there are very few Ger
man concessions operating in Russna
The soviet foreign trade monopoly is
using almost no licenses permitting
the import of German goods. called
on many trusts attempting to sell the
many varieties of machines we pro
duce. but found they all had to oh
tain special permits to import them
from the trade monopoly, and if after
long negotiations such permit was
received. then it would take several
additional months before the order
would be officially placed by the sovie'
trade delegation in Berlin.
Just now the soviet delegation In
Berlin is not buying because there is
no tNhltlttI pT'llIl III uVHlS DuSlIleSS
in Germany. They would rather pay
higher pr les to the United States in
hopes of obtaining political recogni,
tion and huge loans and credits in the
future.
"rhe second reason for the poor
/, business in Russia is the extreme
poverty of all soviet institutions
which all demand credit These sams
syndicaieS. trusts and co-OperativeS
bargain to the last pfennia and after
endless bureaucratic negotiations and
reams of acquisitions one discovers
they can buy nothing. If business is
finally transacted there Is no profit
because of the expenses ENABLED.
ctate Factories Losing Money.
Heavy industry is buying the most
abroad. The purchases mainly con
sist IF requirements in machinery fol
mills. factories. mines. railroads. all
at which need new equipment. The
oil. coal and metal industries are buy
Ing most In regard to the electrical in,
dustry | found many of the old works
jn nperutinn and a few new ones.
Some hytiru-rlectric stations have heen
built and they are making slow prog