Evening star., 1949-10-22
Soviet Reprisa|s
Over indictment
0fAmtorg Seen
Five Top Officers
Are Placed Under
$4,000 Bond
BY the Associated Press

BY the Associated Press
Indictment Of Russia's famed
Amtorg Trading Corp. and its top
officers as unregistered foreign
agents appears certain to set of
new tensions between the United
States and the Soviet Union.
The indictment was returned
by a Federal grand jury here and
announced by Attorney General
McGrath late yesterday. 1t
charged the corporation and six
officers with failure to register as
agents of a foreign power in ac-
cordance with American law. The
maximum penalty is a $4,000 fine
and five years imprisonment.
Washington officials promptly
began speculating on Soviet
reprisals. The Russian Embassy
was reported to have lodged a
formal protest with the State De-
partment and a Moscow prop
aganda blast denouncing the in
dictment was expected almost i'm
mediately.
Held in $4,000 Bail.
Shortly after Mr.. McGrath
made his announcement, five of
the Russians were arrested in New
York and taken before United
States commissioner, who held
them under $4,000 bail each
pending a hearing Wednesday on
removal to Washington.
The six Amtorg officers named
in the indictment are:
Aleksei Vasilievich Zakharov,
president; Dmitri Ivanovich Ba-
grow and Vasili Petrovich Rebrov,
vice president; Serguei Andree-
vich Shevchenko, treasurer; Alex
sander Aleksandrovich Istchenko,
secretary, and Gennadi Nokalae-
vich Ogloblin, former assistant
treasurer, now doing other work
for Amtorg.
All were taken into custody ex-
cept Bagrov. The Justice Depart
ment said he is in Russia.
Attorney 1sadore Needleman
appearing for the Russians. told
the commissioner there is no
question" the men will be on
hand for the Wednesday hearing
But a Government attorney. Ed
ward E. Richey. argued success
fully that II prefer $4,000 (bail)
to the counsel's word"
Amtorg Warned Repeatedly.
Mr.. McGrath said in his an
nouncement that since October /,
1916, Amtorg had collected in
formation for and reported in
formation to- Russia and other
wise had acted at the orders OF
the Russian government.
In the past three years, he as
serted, Amtorg was told repeatedly
to register under the Foreign
Agents Registration Act. The
State Department said it had sent
q note to the Soviet Embassy only
six weeks ago officially calling at
tention to Amtorg's failure tc
register.
Mr.. Needleman told the COM
missioner in New York: There is
no wilfulness here. We have been
discussing it with the Department
of Justice for the past six months
and wrote only recently and then
this happened"
The Russian Embassy report
edly made known its initial reac-
tion to the State Department
during seven-minute call which
the Charge d'Affaires. Vladimir I
Bazykin. made on Undersecretary
of State Webb.
Mr.. Bazykin strode out of Mr.
Webb's Office with a mo COM
ment" to waiting reporters. But
American officials, while they
would make no statement on his
visit, strongly indicated that he
had filed a protest.
Amtorg Organized in 1924.
Amtorg is an American corpo-
ration, chartered by New York
State, with headquarters in New
York City. It was initially Or
ganized in 1924, 10 years before
the United States established
diplomatic relations with Commu-
mist Russia. During that time it
was the only formal contact Or
ganization with Russia in this
country.
It's Importance decreased some
what after Soviet Embassy
opened In Washington, but it has
remained the main channel for
trade between the United States
and Russia.
While it's functions are sup
posed to be purely commercial,
there have been repeated charges
in Congress that Amtorg acted
as an espionage agency for Mos
COW.
Mr.. McGrath's statement made
(See AMTORG, Page A-3D