Show industry M faces ruin in russia soviet cannot make mills and factories pay says observer riga latvia both entering and leaving russia Is an experience going in one guards his tongue immediately upon boarding the train the comra derle existing between travelers Is slightly strained ned one subject Is taboo inid and that Is russia upon lea leaving v russia as soon as the train crosses the frontier a change Is noticeable ti among the passengers I 1 it I 1 seems as though every one tins lias heaved a sigh of 0 relies relief people who nho were friendly before become even charming tongues wag and before the train or ar rives at warsaw riga or revell 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 I 1 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 a load lifted from our shoulders the peculiar mental depression which affects visitors to russia was gone we invited each other tor for breakfast and be began an to get acquainted we had and both been in rutola tor for three months and visited widely separated districts visited industrial centers he ge turned out to be a german engineer who nho had visited all of the industrial du districts in russia from len right down to the caucasus representing one of the big geimann industrial combines he had bad been sent to russia to investigate industrial conditions find and discover what chance there was of establishing a large plant to in there ile he talked with workers foremen and managers he was bringing back a pessimistic report and personally he was disillusioned about doing business in russia he also bad net met and talked with many americans AmeI cans after the rapallo treaty was signed we germans had illusions about exploiting the russian market and gaining control of the russian industry lie said today we know bet ter we have discovered that the trade relations existing between germany and russia are not for the improvement pro of trade and commerce but for the furtherance of bolshevik polities politics politics ahead of business russia ne is found does not do business with countries where she enn an sell the most profitably and buy the cheapest she does business tor for poll poli ties today in the hotels are filled with americans they sit in the waiting rooms at the various commis and are taking out officials of the various soviet trusts syndicates and operatives cooperatives co to dinner they are receiving encouragement just what we a got before the rapallo treaty was signed they are going to learn just what we have learned during these last three years the reason why there are so few representatives of german concerns to in russia today Is not because we are not cot interested to in the russian market neither does it mean that we me have capitulated to american competition it only means the soviet government to Is now doing everything possible to convince americans that business can be done and that there Is much macch 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 game successfully with sweden germany italy england and france and now they are trying it on america purchase few german articles at present there are very few german conces concessions lons operating in the soviet foreign trade monopoly Is using almost no do licenses permitting the import of german goods I 1 called on many trusts attempting bosell the many varieties of machines we pro dum duce but found they all hail had to oh ob tain special permits to import them from the trade monopoly and if after long negotiations such a permit was received then it would take several additional months before the order would be offie lally placed hy by the soviet trade delegation in berlin just now the borlet dete delegation gation in berlin Is not buying because there Is no political profit in doing business in germany they would rather pay higher prices peces to the united states in hopes or of obtaining political recount recognition and huge loans and credits in the future the secona reason for or the poor business to in russia Is the die extreme poverty of oil all soviet institutions which all demand credit these same syndi syndicates cater trusts mid and operatives cooperatives co bargain to the last 9 and after endless bureaucratic negotiations and resins reams of requisition one discovers they can buy nothing if business Is flamily transacted there Is no profit because of the expenses enabled enal led state factories factorial losing money heavy industry Is buying the most abroad the purchases mainly consist of replacements in machinery for mills factories mines railroads oil all of which need new equipment the oil coal and metal industries are buy ing most in regard to the elect electrical cical industry I 1 found many of the old works in operation and a few new ones some hydroelectric hydro electric stations have been built and they are making slow ress to in the process of electra flea alon chimneys are a re smoking hing ing workmen come to the mills and in the offices employees calculate endlessly for reports the soviet press Is full of articles about industry the elie of the country Is voe fie latest slogan there are lots of meetings and conferences feren ces they are going to make everything th aliey ey need themselves that Is when they get the machinery y they need to start MIS miracle working program but when one has see seen 0 it all one has the imp essico of looking at a dead body being galvanized into action by an electric current this Is because all of the mills and factories are working corking with workout machines maunder chines L under state monopoly konopol y having a protected market still all these con cerns are losing money and are continually in need of 01 new subsidies from the government jobless army nationalized industry in russia Is a luxury which the soviet government can ill III afford if tomorrow the present russian industry were placed in a position where it could compete with european industry still it could not exist imagine six weavers on an island having a monopoly suppose one weaving machine started to work there what would the other oilier five weavers do russia today has more than a million and a halt half unemployed skilled workers and another million unemployed unskilled slid and white collar workers industry in russia Is so old fashioned that it cannot be compared with any industry in more progressive gres sive countries what Is more amazing Is that all industry in russia Is operating at a loss it Is not helping to increase state revenues but exists because it Is supposed to rt itself and it does not do that I 1 obtained the impression pres slon that one of the chief ren rea sons why industry Is continued to in russia Is as an advertisement to show that industry actually can exist under communist government this Is an expensive advertisement chaos for industry the peasant pays he Is paying for the present government ue he Is paying for the good tor for nothing industry and he pays the demoralized workers who ho lore so BO busily engaged in balling water with a sieve the government appropriations to purchase new equipment are not dot a drop in the bucket of bolshevik need the enterprises tham adain admin and run by former work workmen ruen are a sad sight to an industrial man the management Is 13 without esperi ence or education they have been appointed chiefs of enterprises which even though they may not be modern still are large and the leads beads of which should haie theoretical and practical education and culture it Is true they are now trying to remedy this situation by calling back the specialists those who were the brains before cut but they are employed only in an advisory capacity capa roty if the communist director wishes to demon strate three times each week against germany england or america he tails calls out all the workers nod and gives them a half holiday to listen to his bis speech with proper encouragement he will talk all afternoon he frequently lops this kind no wonder production falls off high prices for poor products in many of the mills they are trying to produce several articles and this Is the age of standardization standardisation it Is hardly necessary to speak about the awful quality of the goods pr produced but it Is necessary to remark about the prices they are by far the highest in the world today such Is is the soviet nationalized industry which Is being managed by a bunch ot of I 1 in n competente compe tenta and despite the terrific loss ui a operating this industry the soviet government erD IDent Is now engaged in trying to cut down prices this Is more senseless politics low how can prices be cut when industry Is 19 being operated at a loss when prices are cut quality al so tails falls to reduce overhead means the disch nige of more employees employee and as I 1 have bave mentioned the ment problem Is serious enough with out making it more serious As for the condition of the be workers anzi and employees at the mills well there Is a strong discipline they are not dot forced to work but they know tor for every employed man there Is three jobless willing and noxious anxious to take his place fines deductions for workers there Is a system of fines which cut into the workers pay and from his pay envelope Is also deducted be tween one fifth and one fourth his en tire lire wages for or the aid of various gov eminent revolutionary enterprises such as the aviation chemical society balch m hleb Is preparing russia for or thi the next war the international society to provide foreign imprisoned revola zionists witt luxuries in jail the fund to aid the homeless children ete etc without end there Is supposed to be an eight nour hour wor workday kelly but it averages be tween nine and ten hours with a mill tary lary drill in the evening three times each week lasting an hour how ever the communists I 1 talked never mentioned war it Is oot not a pop ular subject the workers find and em cm have a hopeless look lobik which ile le presses one there Is nothing to de rend fend to in russia A laugh startles the hearer bearer the government ment lit Is not pup pop ula uliar r but the people seem too ton to late sly my unal final conclusion well lm nol a politician I 1 ani am tin an engineer sue aul merchant I 1 know luy aly ime I 1 alm abo knois that it 11 Is sensible to have politics bui bill I 1 believe that politic trade canno exist political trade hal Is the crowning absurdity ol of russia today chicago tribune |