Monday, Sep. 29, 1930

Reds & the World

Chewing Children. Small London tots today buy for 2 1/2 pence (5-c-) fat, quarter-pound bags of toothsome, squashy "fruit drops" made in Russia. British competitors bemoaned last week that they cannot sell similar bagsful for less than 5 pence 10-c-).

President & Pit. In Washington anxious Secretary of Agriculture Arthur Mastick Hyde told President Herbert Hoover that trade representatives of the Soviet Government have sold short "at least 5,000,000 bushels" of grain (and possibly 7,500,000 bu.) in Chicago's pit, hope to depress prices further, sow discontent among U. S. farmers (see p. 18).

Red Oil. Paris oilmen learned after a survey early this year that imports from Russia have risen until Russia ranks third after the U. S. and Persia as an oil purveyor to France, supplies 13.8% of the national consumption.

"Acute Shortage." Indignant, the British National Farmers' Union complained that its members are being undersold in the home market by "Russian grain, fruit, butter, eggs, sugar and timber . . . despite the acute shortage of these products in Russia."

"Lumber Hells." From Leningrad to Helsinki (Finland) hastened angrily Editor-Publisher George M. Cornwall of The Timberman of Portland, Ore. He had entered Russia last week to check up on Soviet lumber production, confirm or refute rumors of Russian convicts worked to death in Soviet "Lumber Hells" (TIME, Sept. 22). Said he:

"I received high-handed treatment from the authorities in Leningrad. They obstructed my intended tour of Russian timber areas. They pretended to suspect me of wanting to speculate in their currency."

Germans Warned. To Berlin a group of 14 German miners, returned from working in Russia's Don Basin, manifestoed:

"We warn every German worker against going to Russia. . . . Our contracts called for six-hour shifts with pay of 140 to 150 rubles ($70 to $75) a month . . . but each man was set so large a daily task that seven or eight hours was required to finish it. ... Food was bad ... no meat .... quarters dirty. . . . Briefly, the cultural and social conditions in Russia cannot satisfy any German worker."

Americans Squeezed? Recently in Manhattan's Chrysler (tallest) building one B. W. Delgass opened offices. Employed until a few weeks ago by Amtorg (Soviet trade agency in the U. S.), Mr. Delgass now proposes to "advise" U. S. firms doing or intending to do business with Russia. Explaining why he resigned from Amtorg, Adviser Delgass said:

"Ever since the beginning of the financial crisis in the United States there has been a change in the policy of the Amtorg. . . . The heads . . . have taken it into their minds that because of the business depression they could squeeze American firms and get better terms. This was an unwise attitude and showed a lack of knowledge of the situation. How could a manufacturer grant better terms when he had to look for money himself? I raised my voice against this foolish attitude. Soon after, Mr. Peter A. Bogdanov [now chairman of Amtorg] came to the United States and brought a bunch of Communists with him. It was decided by him to 'teach Americans a lesson.' Telegrams were sent to Moscow with the request to divert orders from the United States to other countries. The Amtorg is now engaged in trying to blackmail the United States into recognizing the Soviet government. . . .

"My ideas being unacceptable to the officials of the Amtorg, I, therefore, tendered my resignation. I decided not to return to Soviet Russia, as criticizing the policy of the Soviet Government or its officials is a criminal offense in Russia."

In despatches from Moscow, before Mr. Delgass' statement, he was reported sentenced to Death.

Rebuttal for Amtorg came from President A. S. Mamaev, Chairman Bogdanov being "out of town." Said he: "It is untrue that Amtorg attempted to bring pressure on the U. S. Government by diverting orders to Europe. . . . Prices offered there were particularly low. . . . Amtorg did not send these orders to Europe: Amtorg lost them to Europe."

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