Russia: Down at Kursk Station

Private enterprise is rather fiercely discouraged in Russia. Nevertheless, a thriving underground capitalism persists. It is carried on by daring entrepreneurs who—often with astounding ease—divert materials from government factories, turn out products in clandestine shops and sell to luxury-starved consumers on the black market. In 1961 Khrushchev decreed death as the penalty for such "economic crimes," and at least 163 accused violators have died before firing squads.

Last week another herd of defendants, 23 in all, faced a Moscow court —charged with having organized the biggest wheeler-dealer operation yet reported, a flourishing textile business that netted $3,300,000 in four years. The...

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