DUPED BY SOVIET

Nelson Evening Mail, Volume LXI, 27 October 1928, Page 5

DUPED BY SOVIET

AMERICANS’ CONCESSION ALLEGATIONS OF AGENT LONDON, 17th October. The Harriman Company of America, which in 1925 secured a Soviet manganese concession in the republic of Georgia, was duped of £1,000,000 as the result of three years of trickery, according fo its agent, who is now in London. The agent says the company abandoned the field on 10th October, receiving £3,500.000 in 7 per cent, iouhlo debentures to offset a colossal outlay in hard cash. ' “The Soviet regards foreign companies as milch cows sent to Russid for the special purpose of providing funds for foreign propaganda,” ho said. Their estimate of the railway which

Hai’riiriftri’s had to construct under the terms' of the concession was £200,000. Actually,-.- when the demands of th© unions' were met, the cost was £2,400,000. Furthermore, a compulsory - rate of • exchange was imposed, by which the Soviet, took, a “rake-off” amounting to £690.000. The company was forced to pay £IIO,OOO in social insurance, and no overtime was although the adjoining Soviet mines were working night and day.