STATUS OF SMALL TRADEMEN IN BUCHAREST/RESTRICTIONS/CHECKS, ETC.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00047R000400710005-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 6
• Document Creation Date: December 27, 2016
• Document Release Date: May 15, 2013
• Sequence Number: 5
• Publication Date: October 1, 1954
• Content Type: REPORT

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v N..' NA.'SJ I I I Vrl I I V I'I WA TI .YrNaw"n a6 JWMU/ MW OACg 4641 4666"01) VVJW,& If- V(/V"N IAr._'
CENTRAL 'INTELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY Ru>ia
SUBJECT Status of S
Checks., ate
PLACE
ACQUIRED
DATE
ACQUIRED
DATE OF INFORMATION
DATE DISTR. Oe-71954
adeemean in Buuch,Deet/Restrictions/ NO. OF PAGES Jr 50X1
TNIf 00 CUYENT COM TAINf INIORYATIOM AIIECTINS THE NATIONAL OFFENSE
OF THE UNITED STA Tf S, NITNIM TN[ YEAN SO I TITLE IN, SECTIONS 798
AMD T94, OF THE U.N. CODE, Al AMENDED. ITS TSASIY13910N OS R-
ILCD :,:E,,
CATION Of ITS CONTENTS TO ON REGCIIT fV AM UMAUTHD.
':4
If
I NOHIII TLO SV LAN. THE R[INODUCTIOH OI TMIf FOAM If INOMIII TE O.
NO. OF ENCLS.
(LISTED BELOW) 1
SUPPLEMENT TO
REPORT NO. 50X1
THIS IS UNEVALUATED INFORMATION 50X1
SwIl Tradeeiej -(Nicii ?er 9. In Bucharest,, there are still a
-a 'w
~,.~ wrsnv..WYL9tlH9WYYl DFHCGiI. ""~"r shoemakm t ti?amo a Tailoreg barbers (Teri few). aaechaanies
a shop have been ,tioa liaoed., rents are established by9the ILL Offices.
Activities of ill tradesman are supervised by the Local Industry Section
of t h e City Sector People?s BoardsO Tradesman are subjected to very rigid
controls, exercised by the various gov amt organs; they mast be in
- W- '~ uD**
lov Ray help as onp eamployee increases his tamer, by 50% None of
the-1 hag go workers because this eoui d place then in a poor light and
t tion would be i -oaeiible. Private ehcae or workshops still has out
a sign with the of the firm.' Since. in most cases the eamise f
a
-
a ef-
and a
i
ddree s of a clieant 9 the date work was done q type
of suit made material sullied by the tailor (if the tailor supplied
it; otherwise a of person supplying material), and amount of aaaoaaey
the tailor received from his client. This record is mde nonthly9 and
totals m mat tally with the annual figures. This registry serves the
Finance Section-in determining taxatian. Taxation is determined in
comparison to the activities of the other tradesmen, in the same
category, In the same city sector, with very little consideration being
given to the honesty of figures booked -in. (The Finance Sections know
CLASSIFICATION OO1WpM.'AIB/U 0>pzcl~s oNLT D 89142
ao Registru~ de Imtrare al F!ire (In and Oaut ~8egistry) o This is a normal
registry$ rc se 17 in liTsa r~ic Before using tae registry, the
tradesr most take it to the Finance Section of the local City Sector
People oa B dfl where the pages are-- mmberad, a co tereigned9 and the
last p ge is sealed., to ensure that the tradesman will not tear out any
page and replace it with another. In this registry amt be entered all
data regarding inc ng materials, all jobs d, and all expenses
in
red
(
renta electricity,, etc). For
le
a tailor books in the
OBEV
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are made by the Cooperative"
his debts are paid ctione frame his monthly wages. The dedt etio
that tra4vown do not book in all their operations). In the majority of eases,
taxation exceeds the amml net i . Ta , kxwotmg t - od of tam
det tin , do not book all their oper?ati . Any deviation in registering
e ensea, etc, mast be made on a jrb dome for a reliable friend. It is
difficult or t Funs Section to know vhwWwr the tailor or the client
actually, parc h d material for?'s summit. If the tailor Vorchaved it, be lust
include the invoice in his regiartry, as daemon ary proof.
Re istra de Salariati _JRffLqtr7 for RffjoZMs or Workers a dais registry
is req . ire Only of t a worlmr* It can parsed in
any library Lei27, and is cam-ti-,reigned and sealed by the Finance Section
of the City Sector People's Board. Upon emplofying a worker., the tradesman
must inform the Face Section, giving date of employment and monthly wage.
This aicda3 -the Finance Section in determining the amount of taxes which should
be deducted fr ' the worker's wages each month. The amount is decided by a
special board of the Finance Section. For example, a worker is nornally paid
400 :lei per aonth. By law, the tradesman is obliged to deduct f2 1 The
payment is made to the Fiaaannce Section by the tradesman before the 25th of
each nth. The payment is receigted.
"Through various fiscal pressula>zres, the State often obliges small business men
to close their operations. If a tradesman is unable to pay his taxes, he
receives a proportionate increase (according to length of delay). If, after
two or the legal order, a tradesman is still unable to meet bis debts, his
chop is closed. In this cascea the Finance Section seizes the shop and all
quipm it, and, puts it nip for awtimn. If gods sold cannot pay off the
amount owed by the cser, (oets of legal orders, etc, are added to the trades-
man's debt), he is convicted as a public debtor. If the cow Irt declares him a
'Rau platnic' (bad pier), aamd the court always does, the tradesman is sentenced
to the payment of debts ply all, judiciary expenses (tom defendant Is permitted
legal regresentatic), If the defendant is still unable to pay, the term is
changed to a term in prisoe, at labor0 Now the tradesman is forced to join a
Cooperative, which appropriates all eOi 'he may have left. The sole
compensation a tradasms "celvea fre this., is a revocation of all legal
proceedings instituted as is him. Sine a he is now employed by aCooperative,
3. "Below are a ; , prices, charges made by tradesmen in various categories
tailoring of one suit, client's;' aaarterial
tailoring of one suit, tailor's material
one pair of men's leather sites, leather sole,p
shoemakers as ,terial
blocking of en's hat
cleaning of one bat
aaaamiafactre of one 'Sapca' (proletarian cap),
milliner -0 s . 'material
Plumbing- (installatia m) of one bath tub
100-500
20
oual .y, all tradrown p chase raw materials on the black market, or in State
Stores, for they cwt get materials direct froma the State, Cooperatives
do. They always book jobs as -having used the client's material, since the
State cannot check the validity of this.
"Business a a ''C cianti.') a T S situation for private shop o ner^s is much
t same, except t these have no opportunity of joining Cooperatives.
Especially during 1951 and 1952, the persecution of b1 sines reached its
maxina intehs . ; laanrge- hers of to in s -mm were convicted of econe is
sabotages and sentenced to term a -lid labor at the Black Sea
Carlo As a resisit, the M 'e ecosomy fell to-pieces, for there was
practically no . g e of between producers and Mw Imes amen. - goods
The
State, which bad a-monopoly profteere (especially farmers) svLf-ea?ed, a
great loss. Farmers no longer cared about prodsciag, as it was the State
V)s1ch designated the official prices for a Bess-ofmota pre cts. Thus,
COIF T /BLS OT'FICIALS OEY
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Vow 1AL/* i Y
m3~
p ~ s was, Liam preaa Oa ( "atrLeti a; etc) bar*
fitly kindered a speedy ecoamo 2 a?e dome,
i cea said vurt z . df; cmsiftr tlkiok a forwarl it to kda*kwr officials.
r. I
Dmi
lee as vusbar of am Wkc bad
Never fie In as :( asp Stpeet M) P also Yis itat Dxce&,
# Ad accce ed; bdw c ti9 ft ths, 8tio ,. of private Bwaimeeaease
dived li?emsea9 amd opeat& private tDOPEA (P ly food co d,ities
a pe) In aad ieleaaa ltc n~ Wis. *nag these atop .- M"., Of
e s e 9 ffeffW b jM#ff MM W6 .. lbC fl : a> . W MM b fet'*D ,
aaza~. were' fled to ac? Pa y ? a c ti s is i Order to Empert
Lair fwffilles. ire a l ic~sac~a lasted U =ft" after-
'r Lich they halt ?~btal]~e at all.
Since that .tiftg t ec . c aitaaaation
the. IPR slowly beaded for the 1933 Sow parlad of f amain as ee o diis' aaater.
patter wed In the in 1933 v&a ap filed to tim > In 1.9 and 1952.
In',early 1953:, follvwimg a e , President of the Baha'e t` Ci ty
people-Is - , the PM did- two t hi a $ f fr t, it Vardariad and freed a great
saibir c i _ _ twz= of bard labor at the Cwal; somad# t
c age .tom of as private rkMps, especially format shops.
(tee: parftnod ware bu ime ss sass gailty cit ascImsg c aabc ge, asmd a of- asati-
State political actt ties a and this was prliahed i,m ]. ea], Papers), The PoMer
pea 1iebeL the fact that t1ve e Sections of. Pe 1e.'s leards, Was
granting new cm rce lieeMaaa for the Opening of privaatee mope. Applicants
wee grantead sbop space, f t ILL, and ai 10 t aM lei joun.9 to astar ?t
sia a 1 ae goods, f'ag' the Co a?ooopa (evoperatim Center). .
State fcr to do this .tea satisfy the on'a we ; it also-
forced to yviilt fammas , bar t 1 delivered their Vitae to the State
to 00, .ter ipoft im awe tw" rink cities. I%uy we ee pe ttesi to-
open ' ' mrkotep and sell ' fir goods di ctly to- cttiis 8i - at paxires
agreed gyp= by tke two ens. Ma, old. . *W:hmeas 8 Tka had. astarviv*d, Vat-
bad retl d f '+m1 asa aactiv tleas fm fear of p ecwti=i , slid 'Wt
trust the. as..a t1 w. ft a grimp of fararr ash pa ezt private
1 ;i a 'xwn called O Dmcea, _a ly rated that all
* r o v .s im o f l e a e t c a ; *itvtW and a cc . o 1
5 . e? 12 s c eat , the foil c ,i t ,a ` of pri' ate mope exit 8 '(col ale a i
t eea' (Coffee and. Seta shops) ,q ?d aaii?e Al ' (Food tiers shops ),
?pselarie ? (ate' Oil, Pam ahopsa fs" )p .V tiat i' ( is call
itessa akopa) 9 'Ateliig de l l,cli wi' (Sweets Via) 9 ash, 'Co@.?#taari,i'
(Sweets aka) a - ` acs s a cs a Jett to the same ccmmtrole :. arcs aaall
trades . ftm, each shop over is IM p aeaalo m of the f?. L img dozments:
w
a. l e latrM d l t i i L ami.
be a fiat Zee* - w'.
c a l$e ieta ~ ? U Re tat cl ed. f Pere) a this
z eg ry is &180 o e ealed by t iaaai oa Section the city
Sector People's Board. wegiat records all goods ppchaaed by a
business troy a'puadace. Z ?ept for owners of food- comeditles
abopa, vho were p stted to tAL7 tools from i tro , private bvsieess
aft were most p ttedl to pwc se goo from the State, %try co 1d
buy cheese from a f ar bat not from aa. private citizen goods obtained
from a private citisem, for ietanicea va~tld bi black as a?kst god. - The
procedure. fob .p haling S tsdioawQ. for a private bustaimaeaa
.man had to ?btaai n docunatary twof that goodie vare actually purchased
free 'a per- ftc?er a .t iced. to cell his pro eta.. For exmple: a bvffixes
a t t e d . to well hawy wcald by i t fro i a f who
t
h
e
e
c
i
o
shop. The ObjOP o~mos had to ascertain whether or not the fns was a
pro f 9 had to aster hie 'Ad verimta ? (issuaoasl
by the. People's Bed).. ch i icaated that be baA fTlfilled- his delivery
"t S to t h e State. 1 imoss -mom had to record all data farms the
'Ad ?inta", such as UM"', a s address, certificate musbar a etc $
and book it in hie iatrxm a = data from t fa r'e
]M cad. This detailedL reco d. felt to be necessary., as the fang
CONFMZWIAL/
MICZALS ONLY
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was unable to submit an official invoice on. a letterhead. 'Reoordh d also was
the date of sale, quantity of honey, ice, per kg aid total t of buns ness .
every 10 days the shop owner took the .'regiet to theiace section of the
People's Board., paid. taxes goody purchased from farmers and. other prodimcers,
received a receipts an&,,4d.the registry eig ed. This duty..tax paid for .goods
purchased from producers, ? ffi, called a.Tax .de Cons ie ' ei Cifra, d.e gaceri'
(doneumption Tax, and Bumsiaaese Figu ?e ~'iJ~
d K . Bonier (Ticket s) - Li-see Endlos ire E f a A, bonier-could be purchased in any library;
it is a book of ? 100 tickets, n u mbered.; orne to 100. tach,bonier,>wae counter-
signed and stamped on the last page by the Finance Sectip ', of. the People's
Board. In any sale the shop weir masked the quanntity, :date aad..price on the
bonier, one half , of which ,'was retained ian hie .files, and the ot];ner half of
which was given to the customer ae ?bij receipt. All quantities sold bad' to .
be registered in the in aAd oant registry every day.. At.any given time the
shop owner had to have on ha# just the materials indicated to' ;be on 'band by
the in and out going registry. If ?be;had less, he bed sold without a.bonier.
If he had more, 'he had puzehased,goode on the black market. .without a proper
invoice, and had committed: ? economio' sabotage o
"Payment of yearly taxes by a. private business man. (other than the taxes paid
every 10 days ? on goods purchased ? f roma producers) was made at the, end of the
year. But at the beginning of ?a year, the Finance. Section established a
provisional duty tax, the estimation oft wch wa.s.made without .reasonable
basis. During the spring, the business: man reported to, the Finance ?Section,
with all. hie registries, for the !Baf imnit ,varea `:Impozitu]lu ii ? (mottling of
duty-taxation). The total tax was doubla?;or even triple~the'annual net
income, a state of affairs which forced. business men to resort to illegal
practices, not to register aIIL.activitiee to purchase goody on the black
market, and to sell without?'a bon ,er, in ordcer to realize a minimum of
earnings o Taxes were figured by a' special board of the Finance Section,
which examined and audited the buaeineee . mmmn? e booke`,, naturally) everything.
is in order. A man's books .might- be read:!ae. follows a 'Total goods purchased;
3Q ,thousand lei; total expeid,ituuree a 3 5' th ,ouoan.. gei; Bouusehold goods sold a
10 thoueand lei. Net total, five thaoueand; i 0, (which is a very email
income with which to support a family, or ';even a single person). Sometimes
a business man adds, in a separate paragraph 3 'Sold at Talcioc, household goods,
furs ,% a etc, for various amounts of cash. No invoice is required for this sale.
Taxes are also figured on .the basis of the earnings of other private business
men in the same categorry~ their books may 'be doubled or even quadrupled, so
there is no sound basis on which to operate tax ' application.
"Cono2 Lion Tax and Buaeineee Figu ree fa-11a: Money was bought frrom far~mere
a$ ' e price of l l.ei gar lp kg of honey, . hea?el ore 9 cost. 60. lei o The
Finance ,Section of the People ?e Board applied a 20% consumption tax, which
increased the price per kg by ,3.2012ei By law, a bunsitese : Gann was: , entitled
to a 10% profits therefore, honey-4as sold to the public at 20x80 Lei per kg.
Coffee vas not obtainable from producers', 'because there were no private onee
With the end of 19528 privat? citizettns rcecceiving food parcels from abroad,
Bold. their coffee to business mna Buts' the h law probibitin g .receipt of
parcels from abroad, out off, any access to coffee other than through the State.
Whenever coffee is available in State Stores, a' private business man purchaeee
a certain quantity of it fry,- thse State' at? thce official pi Lei of 160 'lei per
kg, in order to cover his black r rket aotee purchases. .(So" of the best
coffee dealers now, are State ?Inspectore, f'riend?s of bueineaa men, who .go on
official 'tripe to Constants, wiere. they purchase -seven or eight kg of coffee).
The receipt for puurcchaee ?of coffee from' State Storer, is taken to the Customs
Office, where a 30% import tax ie `paid. The duty customs tax is high, because
coffee is cconeiderrel a luxury itc o Sod a; kg of coffee costs 160 Lei, plus
48 lei m customs tax,, pl 16 Vai profit; i e, coffee retails for 224 lei
per ' kg . Coffee already roaete`d; is reduced` in weight by 29$; in this case a
shop owner is entitled to a 2 price incorreaee per U. T9 us, one kg of
roasted coffee retailed. fore,1ei plum "080 lei,'. or 26880 lei. R
a Turkish sweet, was available o from privats producers but, in this case
F /HIS XCIA ONLY
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the duty tax of 10% was paid by the prodaoer, not the shop ov r. A kg of Rahat
coat 12.00 lei, plane 1.20 lei - tax, and so, sold for 11.20 lei per, kg. jam t
a type of walnut., sold for 8.00 lei per kg, plus .96 lei - 1. aaoaemcption tax,
plane .80 lei - profit or 9.76 Iasi per kg. Oaaaad was purchased fraxan private
producers for 14.00 lei per 1 , plus 1.68 le-r-_ aaonaenaa ption tax, pie 1.4,0 lei
profit, so sold for 17.08 lei per Sam.
"As stated before, very strict a o ctrale and heavy taxation, exceeding the net
ear?ninage of a owners w1pAV forded tvaeinees -mm into illegalities. Coffee p ed
fzon illegal sources had to be hidden caa*efally, since at any tinge, a check of
the goods on hand could be made. Zone setkod of swindling the State is sho on Enclo-
sure {A)' ., A business ma'm never made a sale withomt using a bonnier, beat he
often falsified) the bonnier, when deali with a reliable friend. Another method
of min a little profit, was to purchase goods from a farmer without
registering the quantity a ely. 1 Ions tY - vas yoraba,sed vas registered,
the shop er netted a profits but he had to be extraisly ca ?ul. both with
clients and producers. Iven - m , true purchased goods from- a private pro in.
the city, goods carried im thae stra ste had to be aaoc ed an invoice showing] n
the enact quantity of ode ra~ahamad,F_
if a n 1itia agent L, h business , asks directly to see his
papers, a bribe is- in oeeible~ it "'6 to axwtim a packages not -neationing
ID papera, this-is an indication that a bribe- will be aaacepted.- Militia man are
afraid of denunciation bueinaane afrai4 of being accused of offering a bribe.
Uf no Papers are checked fl n eithr .ply can identify the other . )
Q? The Government u which have active central over bvaauimc s. men?e activities,
are n Finance zurpactors a frame-. the Finance section of the People..? s Boards
Finance aaa peatorre, from. the 1 ,retry ofF`i ceg sanitary pastors, from
the Sanitary c~ticn Of t le ? e BoCrU g sae lnspecctors, fro n the
0 rcae . Section of tine Phople ? s ) g Ojfa" of the Bc a Vilitia ~ Sal"
Social inspectors fromthe Social Sea tin! m of the People ? e Ba ?dte, (for cases :-
where a v,~orker4 is employed). Ties, inep&ctora, especially in tie _l st two or
t' tie yeaarh, ha a greatly loosened controls. Thin is partly fte to *npaerie r
s, bosses private bnmsi-ness is aaamc nc end pertly due to the
fact that all Impactors have reverted to ter all of accepting
'bribe*. When two Impactors eater the shop, as that it be closed for
a ahaaan,se inspection, the ' own t tie polite and friendly. Jatnraallly,
his backs are in perfect ordar.~it is v=T difficult to catch a bvueinnees' n'e
illlaega1 dealings) . Ap of . e 543 aF lei t or both, _ pl 200-
of coftee9 etmffi,ces to off further Investigation. The bribe is
necessary only the first timme, after that, Inspqatarr comae to purchase coffee,
for which the-owner-accepts m nerve . The fear all ' private bnaineso za n have,
bas not de aas.ed. I%W stiff. feaa ? evitry visit ate' the ltt , restrict
conta,ctsD anal are careful stout conversations.
Enclosure (A)a nple of bonier shoving changes, sa.e by shop owner after sale is
convleted a
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No. 1
171-
- 10400CI4~A-
AA#
No. 1
l7-V /5 7L
CONFIDENTIAL
US OFFICIALS ONLY ENCLO3
This is. a boniee;.
A is the eounterfoil; B is the ticket detached
and retained by the client.
Boniers are white; numbers are printed by the
the library where purchased.
In the left hand corner, on both A and I3, a shop-
owner could affix the stamp of his shopo
This sample shows the manner of registering the
sale of 1000 grams of coffee.,
This is the shop owners?bicket.
After the sale, usually during the
evening, he changed the figures, as
shown at the right. He booked only
1.00 grams sold, instead of 1000 grams,
as were actually sold. The additional
coffee required to fill in the Bo
stock, was black market coffee,
/7-Ir-19.E
.2a- so AZ
CONFIDENTIAL
US OFFICIALS ONLY
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