AFFAIRS IN ITALY.

Press, Volume LIV, Issue 16210, 13 May 1918, Page 7

AFFAIRS IN ITALY.

(By Cable.—Pre sa Association.—Copyright.) ;' ? " (Australian and N.Z. C*bla Association.) ROME, May 10. Tho seizure of Signor Parodi's documents show that ho despatched liugo supplies of jute to Germany via Chiasso. ' In order to defraud the Customs * the consignments were disguised as hemp aud tow. ' A great iiro occurred early in 1917' ' in the national ropemaking manufactories at Oornigliano. A iarge quantity of enemy jute was destroyed. Parodi falsified the accounts and t-o----cured the insurance money, as though the jute belonged to Italians. Parodi. was recently severely criticised lor keeping a iarge number of merchant steamers idle at Genoa, obstructing Al« lied traffic. •

A recent cable message stated:—Signor Parodi, president ot the Federation of Shipowners, whose fortune is ±14,000,000, has been arrested, apparently for trading with Germany. Signor Parodi is director of financial ana industrial companies, and a leading personality in tile Italian shipping world.

The "Daily Chronicle's" special correspondent, writing from Milan on February fctith, says that a big scandal of shameless trading with tho enemy haß been brought to light. For some time past the Rome Government had information that contraband business in silk and cotton shreds wub being carried on with Switzerland on an exceptionally largo scale from Upper Piedmont and Lombardy. The matter enmo bofore Parliament when the Minister of Finance gave assurances that a stringent investigation was pending, and the police made a thorough perquisition of tho establishments belonging to the Lombard Silk Thread Company, which has its administrative offices at Milan, with spinning mills at Novara and six other towns.

The result of the inquiry shows that the company, which possesses a nominal capital of half a million sterling, with a £200,000 reserve, had devised cunning means of maintaining an oxtensive trado with Germany and Austria ever since the outbreak of war. The directors, nearly all of whom arc titled personages, created a pseudoSwiss company at Zurich, under the trade name of Garnhandol.

The primary object of this scheme was to realise credits duo from customers in Germany on pre-war contracts, but under pressure from these enemy clients who, in liquidating outstanding debts, the Zurich offico became quickly transformed into a huge clearing-houso for Italian silk produce destined for Germany.

Some insight into the extent of this traffic is afforded by the fact that certain expert members of the Milan staff wero transferred to Zurich under the pretext of offering their services to tho nscudo-independent Garnhandol, which figured as of purely Swiss origin, whilst the Milan central company's balancesheet during tho year 1916 alone roveals a net profit of £800.000 derived From thin single source. In the moantime anothor company, called the Floret fioiden Spinnerst, was sot-up at Sagrado for the purpose of carrying on similar operations with Austria-Hun-gary. iSeven-eighths of its shareholders' capital turn out to belong to the samo Lombard spun silk company, Cominendatorc Francesco Gnecshi, president of its board of directors, and vommendatoro Francesco Gnecshi, preadviser, both of whom are Knight Commanders of the Crown of Italy, have bosn arrested, and their private residences have been searched. THE POPE AND PEACE. ROME, May 10. Tho Pope has ordered priests in all parts of too world to celebrate Mass oa

June 29tli, praying that peace and a fratarnal spirit may soon return to all peoples. Ho concludes by expressing his ardent hope that among all nations justice and peace may exchange a ltiss.