SUBJECT TO STATE

Dominion, Volume 31, Issue 96, 18 January 1938, Page 9

SUBJECT TO STATE

Capital In Fascist Italy

MUSSOLINI’S DICTUM

Control of Shares In All Great Industries

By Telegraph.—Press Assn.—Copyright.

London, January 16.

The Rome correspondent of the “Daily Telegraph” states that Signor Mussolini’s interpretation of his dictum in October that “in Fascist Italy capital must be subject to the State’s orders” is already indicated by the State taking over the control of shares in all great industries. Nevertheless, the financial oligarchy still exists, consisting of some 20 families who till and control the directorates of shipping, textile, metallurgical, chemical trusts, and companies. Now an article in the “Popolo d’ltalia,” which belongs to the Mussolini family, is regarded as significant, as it declares that the State shortly will control the boards of all companies. . “DEBTS UNPAID” Soviet’s Charge Against Italy Moscow, January 16. An official announcement states that last year some Italian institutions and firms did not pay Soviet organisations for goods delivered to Italy, especially oil, despite the existence of legal machinery for the purpose. ♦ Thus the Italian Naval Ministry, despite repeated demands, had not paid the Naptha Syndicate, and similarly one of the largest Italian firms had not paid its accounts. Moreover, Soviet vessels were detained at Italian ports, violating the Russian-Italian agreement regarding State property. . Consequently the Soviet has suspended all direct payments to Italian firms and ordered the money due to be deposited to a special account at the Soviet State Bank.

ITALY DENIES DEFAULT

Rome, January 16. It is denied that Italy has defaulted to Russia. Soviet circles do not reveal the amount owing.