Nadegenska is the extreme north-west point of the Ural system of railways, and is famous because of its great privately-owned steelworks. These works were originated by a poor peasant woman, who developed the whole district until it has become the most northerly Asiatic industrial centre in the Russian Empire. The contrast in treatment at these privately-owned works compared with those owned by the Government is significant. The Soviet Commissar knew nothing about the business himself, and appointed Works Commissars, still more ignorant of their duties, to control the establishment. The result was that production fell to such a point that the experts refused to work under such incompetents and gradually escaped to other outlandish districts. The manager stuck to his post during the battle of Perm, and by a judicious distribution among the Bolshevik Commissars of the surplus roubles of the Tsar remaining in his possession got them out of the works without damage. This was an unheard-of situation, for nowhere else have the Soviet Commissars left anything they could destroy. It was interesting to notice that nearly the whole of the machinery in these works was either of German or American make, the latter always predominating; there was some English and some Belgian, about an equal amount of each. I heard a curious statement at Kushva to the effect that the German firms were always prepared to build and fit out a big works, and run it for one year, without asking for a penny. Of course they always first carefully examined the possibilities of the locality, but the managers assured me that it was rare for German machinery to be equal, either for use or wear and tear, to the English, nor was it as cheap; but they could always get long credit from German firms, and that was most important in developing new enterprises. We set off for Perm, with a stop on our way at the Vackneah Turansky Works. These works employed from four to five thousand men, doing everything from smelting to the making of engines, carriages, shells, guns, etc., and were the best equipped workshops I saw in the Urals. The only complaint was lack of orders. The old régime did everything--nearly all this great mineral district was developed under the personal care of the Tsars. The Bolsheviks have destroyed the State control of these establishments, and already the _bourgeoisie_ are casting hungry eyes upon this great industry and the Omsk Ministers are rubbing hands over the loot they hope to collect during this transfer. How vain the hopes of those who looked to the Revolution to develop public control of all natural resources! Already the State lands are parcelled out amongst the wealthy peasants, who as a result of this robbery will establish a great landed aristocracy, and, if I do not misread the signs, a similar fate is about to overtake the great State industries with the creation of an aristocracy of wealth.