The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-06-27
u. 5. MAY BAN
ALL PRODUCTS
FROM RUSSIA
lron-CIad Embargo Would
Go Into Effect on
Jan. /:
OIL DUMPING LOOMING
Court Battle May Flare
= From Severe Ruling
by America.
BY THOMAS L. STOKES
United Press staff Correspondent
Copyright. 1881. by United pros.,


WASHINGTON. June 27.-The
United States treasury is planning
TO seek an iron-clad embargo
against all imports from Soviet
Russia the United Press learned
today. The action, if successful.
would be the most drastic of its
KIND IN recent history.
The plan now is to put the en-
barge into effect next Jan. l. when
provision Of the Hawley-Smoot
tariff law forbidding importation of
any products of forced or indentured
labor become effective.
The treasury expects to take the
position that all labor in Russia is
forced or indentured. It's interpre-
tatlon is based on the fact that
Russian man power is drafted to
work under the five-year plan and
is subject to penalties if the Soviet's
industrial orders are disobeyed.
Battle is Expected
] 1t is assumed that Russia will
contest vigorously such an interpre-
tation OF the Hawley-Smoot proyi-
sions. 1t would have the right to
carry the issue to the courts, act
ing probably through the Amtorg
Trading Company, Soviet business
agent in this country.
Under present law, only goods
produced by actual convict labor
are banned from the United States.
Several times the treasury has held
up Russian shipments temporarily,
particularly lumber, for investiga-
ton on this score. A cargo of pulp
wood now is being detained at New
York pending a ruling by Ogden l..
Mills, acting secretary of the treas
ury.
No such shipments have been
kept out so far. But under the new
regulations. the treasury proposes
to bar not only goods allegedly pro-
duced by convict labor in Russia.
but all Soviet products. 1t would
give to these provisions a signifi-
canoe that apparently was not re-
allied by congress.
Cite Soviet Edict
officials cite a decree of the Soviet
commissariat of labor, issued last
November. The decree says that
skilled workmen who refuse the
tasks offered them then will be put
to doing ulskilled labor, and if
they refuse this will be removed
from the employment register.
To be stricken from the employ
ment register means that the
worker loses his food book, is de-
prived Of the right to buy in the
stores, and is driven from his
lodgings.
RuSsias alleged dumping of
goods into the United States, as
into other countries, is a result of
her effort to sell enough to finance
her own industrial development.
She is stripping herself to do this,
exporting products, including food
stuffs, which she could we'll use.
Pulled Two Ways
Protests have been raised in other
countries against the dumping" "
but no government has taken very
positive action. All governments,
like the American, are pulled two
ways-for an embargo by those
\ whose products suffer from Russian
competition, such as lumber, pulp
wood, oil and manganese, and
against any restriction on import
trade by those who have developed
markets in Russia for their prod
ucts and do not want to antagonize
the Soviet government.
ANY embargo would provoke pro-
tests from American manufacturers
who are selling to Russia, and who
even now are seeing this trade slip
from their fingers. The demand for
an embargo from other interests,
on the other hand, is just as insist
ent, if not more so.
Russia in recent months has cur
tailed her purchases here because
of the hostile feeling against her
and the lack of credits in this coun-
try. She still has to buy some types
of industrial machinery and will be
forced to continue to do so because
of the superiority of the American
product.
Oil Dumping, Looms
Before the treasury has an OPP
portunity to try its broad embargo
plan there is likely to be another
hareup over alleged Russian dump
ing, this time involving oil. There
are persistene reports that a De-
troit company has contracted for
10000 barrels of Russian oil.
Russia has sold large quantities
of oil elsewhere, extending her trade
by leaps and bounds in recent
months, but this is the first init
nation that she is planning to in
wade the American market on big
scale.
The Standard Oil Company OF
New Jersey and others, 1t is under
stood, are ready to protest vigor-
ously to the treasury if such ship
ment enters American ports. Gus
toms officials said such a shipment
would be sugject to the same con-
ditions as other Russian shipments;
that is, an inquiry would be made
AS to whether convict labor entered
into its production. If so, 1t would
be banned.
Veteran, "a, Dies
Bg United Press