New Britain herald., 1930-07-28
Soviet's Convict-Made Products
 Cause Rift In Trade Relations

Washington. July 26 (UP) - A situation already tense and compli- cated has been accentuated by the action of Senator David A. Reed, republican, Pa, in asking the treas ury department to employ the new Shoot -Hawley tariff act as an in strument to shut out lumber and anthracite coal produced by convict labor in Soviet Russia,
 One of two sections of the act might be invoked for this purpose, Reed suggested in a letter:-Section BOT. prohibiting the entry of pris- on-made goods, or Section 337, bar ring goods entered in unfair com petition" with American-made mar kets.
 Trade War Looms
 A series of developments has threatened to bring on serious trade differences between the United States and Russia. Assistant Secre- tary of Treasury bowman announc- ed Saturday he would study the possibilities of placing an embargo on Soviet coal. manganese and lum- Der if they proved 10 be convict produced.
 On the previous day, Maxim Lit vinoff, Soviet foreign minister. told correspondents in Moscow his coun- try would cease trading with nations which barred Soviet imports.
 This embryoning trade war was seen as menacing an international business which has expanded more than six times over in the past eight years.
 Commerce department figures show |, S.-Russian trade grew in value from s16,583,39G in 1921 to 3107,2S0.919 in 1929. It promises to be even larger in 1880. The preponderant balance of trade rests with the United States.
 Lumber Held Up
 The question of penal labor in Russia arose more than two weeks ago. Then the treasury department refused entry to two ship-loads of lumber, on the grounds the lumber was produced by convicts Later, in the absence of proof, the cargo was admitted.
 Last Friday the treasury announc- ed it's refusal to admit wood-pulp from Russia, which it likewise charged was. handled by convicts. At the same time the American Manga ncse Producers association stated manganese was being dumped by Russia on the American market at q figure lower than cost.
 These developments took place while house committee, headed by Representative Fish, republican, N. Y, was Investigating alleged Soviet propaganda in the United States and particularly the Amtorg Trading corporation, chief Soviet commercial agency in this country.
 Treasury officials have not re- vealed what prompted their new in terest in Russian imports. It was stated on competent authority, how ever, that an association of lumber dealers asked that the Soviet lumber ships be barred
 nNeStigate Labor
 Meanwhile, the tariff commission. acting under a house resolution, IS conducting an investigation to de- termine whether the labor employed in Soviet coal mines is voluntary, convict, conscripted, indentured la bor under penal sanction, or labor exacted under menace of penalty for it's non-p performance.
 This will be valuable investiga- tion," Reed said in his letter to Sec retary of Treasury Mellon. The only trouble with it is that several months will be required to gather these facts.
 Tn the meantime. great quanti ties Of Russian coal can be and un- doubtedly will be dumped in this country unless restricted by treas ury regulations or embargoed by presidential proclamation"
 The treasury department is plan ming to send an investigator to Rus sia. to view Russian mines and lum- Der camps although the state de- partment advised against it because this country has no diplomatic rela- ! tions with the Soviets.
 Another foreign trade develop ment over the weekend was issu- ance of a statement by Senator Har- rison, democrat. Miss, challenging Chairman Shoots recent tariff state