Wall Street and the Bolshevik Revolution E-Book

Antony Cyril Sutton

• Herausgeber: Clairview Books
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2012

Beschreibung

Why did the 1917 American Red Cross Mission to Russia include more financiers than medical doctors? Rather than caring for the victims of war and revolution, its members seemed more intent on negotiating contracts with the Kerensky government, and subsequently the Bolshevik regime. In a courageous investigation, Antony Sutton establishes tangible historical links between US capitalists and Russian communists. Drawing on State Department files, personal papers of key Wall Street figures, biographies and conventional histories, Sutton reveals: The role of Morgan banking executives in funnelling illegal Bolshevik gold into the US; the co-option of the American Red Cross by powerful Wall Street forces; the intervention by Wall Street sources to free the Marxist revolutionary Leon Trotsky, whose aim was to topple the Russian government; the deals made by major corporations to capture the huge Russian market a decade and a half before the US recognized the Soviet regime; the secret sponsoring of Communism by leading businessmen, who publicly championed free enterprise. Wall Street and the Bolshevik Revolution traces the foundations of Western funding of the Soviet Union. Dispassionately, and with overwhelming documentation, the author details a crucial phase in the establishment of Communist Russia. This classic study - first published in 1974 and part of a key trilogy - is reproduced here in its original form. (The other volumes in the series include Wall Street and the Rise of Hitler and a study of Franklin D. Roosevelt's 1933 Presidential election in the United States.)

Leseprobe

ANTONY C. SUTTON, born in London in 1925, was educated at the universities of London, Gottingen and California. He was a Research Fellow at the Hoover Institution for War, Revolution and Peace at Stanford, California, from 1968 to 1973 and later an Economics Professor at California State University, Los Angeles. He is the author of 25 books, including the major three-volume study Western Technology and Soviet Economic Development. He died in 2002.

Wall Street and the Bolshevik Revolution

Cartoon by Robert Minor in St. Louis Post-Dispatch (1911). Karl Marx surrounded by an appreciative audience of Wall Street financiers: John D. Rockefeller, J. P. Morgan, John D. Ryan of National City Bank, and Morgan partner George W. Perkins. Immediately behind Karl Marx is Teddy Roosevelt, leader of the Progressive Party.

PUBLISHER’S NOTE

Wall Street and the Bolshevik Revolution was first published in 1974. Sadly, the author was not able to update it in his lifetime. It is reproduced here in its original form, as a classic study of the subject.

WALL STREET AND THE BOLSHEVIK REVOLUTION

ANTONY C. SUTTON

Clairview Books Hillside House, The Square Forest Row, RH18 5ES

www.clairviewbooks.com

Published by Clairview 2012

First published in 1974 by Arlington House, New York

© Antony C. Sutton 1974

The moral right of the author has been asserted under the Copyright, Designs and Patents Act, 1988

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying or otherwise, without the prior permission of the publishers

A catalogue record for this book is available from the British Library

ISBN 978 1 905570 61 4

Cover by Andrew Morgan Design

TO

those unknown Russian libertarians, also known as Greens, who in 1919 fought both the Reds and the Whites in their attempt to gain a free and voluntary Russia.

CONTENTS

Preface

CHAPTER 1 The Actors on the Revolutionary Stage

CHAPTER 2 Trotsky Leaves New York to Complete the Revolution

Woodrow Wilson and a Passport for Trotsky

Canadian Government Documents on Trotsky’s Release

Canadian Military Intelligence Views Trotsky

Trotsky’s Intentions and Objectives

CHAPTER 3 Lenin and German Assistance for the Bolshevik Revolution

The Sisson Documents

The Tug-of-War in Washington

CHAPTER 4 Wall Street and World Revolution

American Bankers and Tsarist Loans

Olof Aschberg in New York, 1916

Olof Aschberg in the Bolshevik Revolution

Nya Banken and Guaranty Trust Join Ruskombank

Guaranty Trust and German Espionage in the United States, 1914-1917

The Guaranty Trust-Minotto-Caillaux Threads

CHAPTER 5 The American Red Cross Mission in Russia—1917

American Red Cross Mission to Russia, 1917

American Red Cross Mission to Rumania

Thompson in Kerensky’s Russia

Thompson Gives the Bolsheviks $1 Million

Socialist Mining Promoter Raymond Robins

The International Red Cross and Revolution

CHAPTER 6 Consolidation and Export of the Revolution

A Consultation with Lloyd George

Thompson’s Intentions and Objectives

Thompson Returns to the United States

The Unofficial Ambassadors: Robins, Lockhart, and Sadoul

Exporting the Revolution: Jacob H. Rubin

Exporting the Revolution: Robert Minor

CHAPTER 7 The Bolsheviks Return to New York

A Raid on the Soviet Bureau in New York

Corporate Allies for the Soviet Bureau

European Bankers Aid the Bolsheviks

CHAPTER 8 120 Broadway, New York City

American International Corporation

The Influence of American International on the Revolution

The Federal Reserve Bank of New York

American-Russian Industrial Syndicate Inc.

John Reed: Establishment Revolutionary

John Reed and the Metropolitan Magazine

CHAPTER 9 Guaranty Trust Goes to Russia

Wall Street Comes to the Aid of Professor Lomonossoff

The Stage Is Set for Commercial Exploitation of Russia

Germany and the United States Struggle for Russian Business

Soviet Gold and American Banks

Max May of Guaranty Trust Becomes Director of Ruskombank

CHAPTER 10 J. P. Morgan Gives a Little Help to the Other Side

United Americans Formed to Fight Communism

United Americans Reveals “Startling Disclosures” on Reds

Conclusions Concerning United Americans.

Morgan and Rockefeller Aid Kolchak

CHAPTER 11 The Alliance of Bankers and Revolution

The Evidence Presented: A Synopsis

The Explanation for the Unholy Alliance

The Marburg Plan

APPENDIX 1 Directors of Major Banks, Firms, and Institutions Mentioned in This Book (as in 1917-1918)

APPENDIX 2 The Jewish-Conspiracy Theory of the Bolshevik Revolution

APPENDIX 3 Selected Documents from Government Files of the United States and Great Britain

Selected Bibliography

PREFACE

Since the early 1920s, numerous pamphlets and articles, even a few books, have sought to forge a link between “international bankers” and “Bolshevik revolutionaries.” Rarely have these attempts been supported by hard evidence, and never have such attempts been argued within the framework of a scientific methodology. Indeed, some of the “evidence” used in these efforts has been fraudulent, some has been irrelevant, much cannot be checked. Examination of the topic by academic writers has been studiously avoided; probably because the hypothesis offends the neat dichotomy of capitalists versus Communists (and everyone knows, of course, that these are bitter enemies). Moreover, because a great deal that has been written borders on the absurd, a sound academic reputation could easily be wrecked on the shoals of ridicule. Reason enough to avoid the topic.

Fortunately, the State Department Decimal File, particularly the 861.00 section, contains extensive documentation on the hypothesized link. When the evidence in these official papers is merged with nonofficial evidence from biographies, personal papers, and conventional histories, a truly fascinating story emerges.

We find there was a link between some New York international bankers and many revolutionaries, including Bolsheviks. These banking gentlemen—who are here identified—had a financial stake in, and were rooting for, the success of the Bolshevik Revolution.

Who, why—and for how much—is the story in this book.

ANTONY C. SUTTON

March 1974

Wall Street and the Bolshevik Revolution

Chapter 1

THE ACTORS ON THE REVOLUTIONARY STAGE

Dear Mr. President:

I am in sympathy with the Soviet form of government as that best suited for the Russian people ...

Letter to President Woodrow Wilson (October 17, 1918) from William Lawrence Saunders, chairman, Ingersoll-Rand Corp.; director, American International Corp.; and deputy chairman, Federal Reserve Bank of New York

The frontispiece in this book was drawn by cartoonist Robert Minor in 1911 for the St. Louis Post-Dispatch. Minor was a talented artist and writer who doubled as a Bolshevik revolutionary, got himself arrested in Russia in 1915 for alleged subversion, and was later bankrolled by prominent Wall Street financiers. Minor’s cartoon portrays a bearded, beaming Karl Marx standing in Wall Street with Socialism tucked under his arm and accepting the congratulations of financial luminaries J. P. Morgan, Morgan partner George W. Perkins, a smug John D. Rockefeller, John D. Ryan of National City Bank, and Teddy Roosevelt—prominently identified by his famous teeth—in the background. Wall Street is decorated by Red flags. The cheering crowd and the airborne hats suggest that Karl Marx must have been a fairly popular sort of fellow in the New York financial district.

Was Robert Minor dreaming? On the contrary, we shall see that Minor was on firm ground in depicting an enthusiastic alliance of Wall Street and Marxist socialism. The characters in Minor’s cartoon— Karl Marx (symbolizing the future revolutionaries Lenin and Trotsky), J. P. Morgan, John D. Rockefeller—and indeed Robert Minor himself, are also prominent characters in this book.

The contradictions suggested by Minor’s cartoon have been brushed under the rug of history because they do not fit the accepted conceptual spectrum of political left and political right. Bolsheviks are at the left end of the political spectrum and Wall Street financiers are at the right end; therefore, we implicitly reason, the two groups have nothing in common and any alliance between the two is absurd. Factors contrary to this neat conceptual arrangement are usually rejected as bizarre observations or unfortunate errors. Modern history possesses such a built-in duality and certainly if too many uncomfortable facts have been rejected and brushed under the rug, it is an inaccurate history.

On the other hand, it may be observed that both the extreme right and the extreme left of the conventional political spectrum are absolutely collectivist. The national socialist (for example, the fascist) and the international socialist (for example, the Communist) both recommend totalitarian politico-economic systems based on naked, unfettered political power and individual coercion. Both systems require monopoly control of society. While monopoly control of industries was once the objective of J. P. Morgan and J. D. Rockefeller, by the late nineteenth century the inner sanctums of Wall Street understood that the most efficient way to gain an unchallenged monopoly was to “go political” and make society go to work for the monopolists— under the name of the public good and the public interest. This strategy was detailed in 1906 by Frederick C. Howe in his Confessions of a Monopolist.1 Howe, by the way, is also a figure in the story of the Bolshevik Revolution.

Therefore, an alternative conceptual packaging of political ideas and politico-economic systems would be that of ranking the degree of individual freedom versus the degree of centralized political control. Under such an ordering the corporate welfare state and socialism are at the same end of the spectrum. Hence we see that attempts at monopoly control of society can have different labels while owning common features.

Consequently, one barrier to mature understanding of recent history is the notion that all capitalists are the bitter and unswerving enemies of all Marxists and socialists. This erroneous idea originated with Karl Marx and was undoubtedly useful to his purposes. In fact, the idea is nonsense. There has been a continuing, albeit concealed, alliance between international political capitalists and international revolutionary socialists—to their mutual benefit. This alliance has gone unobserved largely because historians—with a few notable exceptions—have an unconscious Marxian bias and are thus locked into the impossibility of any such alliance existing. The open-minded reader should bear two clues in mind: monopoly capitalists are the bitter enemies of laissez-faire entrepreneurs; and, given the weaknesses of socialist central planning, the totalitarian socialist state is a perfect captive market for monopoly capitalists, if an alliance can be made with the socialist powerbrokers. Suppose—and it is only hypothesis at this point—that American monopoly capitalists were able to reduce a planned socialist Russia to the status of a captive technical colony? Would not this be the logical twentieth-century internationalist extension of the Morgan railroad monopolies and the Rockefeller petroleum trust of the late nineteenth century?

Apart from Gabriel Kolko, Murray Rothbard, and the revisionists, historians have not been alert for such a combination of events. Historical reporting, with rare exceptions, has been forced into a dichotomy of capitalists versus socialists. George Kennan’s monumental and readable study of the Russian Revolution consistently maintains this fiction of a Wall Street-Bolshevik dichotomy.2Russia Leaves the War has a single incidental reference to the J. P. Morgan firm and no reference at all to Guaranty Trust Company. Yet both organizations are prominently mentioned in the State Department files, to which frequent reference is made in this book, and both are part of the core of the evidence presented here. Neither self-admitted “Bolshevik banker” Olof Aschberg nor Nya Banken in Stockholm is mentioned in Kennan yet both were central to Bolshevik funding. Moreover, in minor yet crucial circumstances, at least crucial for our argument, Kennan is factually in error. For example, Kennan cites Federal Reserve Bank director William Boyce Thompson as leaving Russia on November 27, 1917. This departure date would make it physically impossible for Thompson to be in Petrograd on December 2, 1917, to transmit a cable request for $1 million to Morgan in New York. Thompson in fact left Petrograd on December 4, 1918, two days after sending the cable to New York. Then again, Kennan states that on November 30, 1917, Trotsky delivered a speech before the Petrograd Soviet in which he observed, “Today I had here in the Smolny Institute two Americans closely connected with American Capitalist elements. ...” According to Kennan, it ”is difficult to imagine” who these two Americans “could have been, if not Robins and Gumberg.” But in fact Alexander Gumberg was Russian, not American. Further, as Thompson was still in Russia on November 30, 1917, then the two Americans who visited Trotsky were more than likely Raymond Robins, a mining promoter turned do-gooder, and Thompson, of the Federal Reserve Bank of New York.

The Bolshevization of Wall Street was known among well informed circles as early as 1919. The financial journalist Barron recorded a conversation with oil magnate E. H. Doheny in 1919 and specifically named three prominent financiers, William Boyce Thompson, Thomas Lamont and Charles R. Crane:

Aboard S. S. Aquitania, Friday Evening, February 1, 1919. Spent the evening with the Dohenys in their suite. Mr. Doheny said: If you believe in democracy you cannot believe in Socialism. Socialism is the poison that destroys democracy. Democracy means opportunity for all. Socialism holds out the hope that a man can quit work and be better off. Bolshevism is the true fruit of socialism and if you will read the interesting testimony before the Senate Committee about the middle of January that showed up all these pacifists and peace-makers as German sympathizers, Socialists, and Bolsheviks, you will see that a majority of the college professors in the United States are teaching socialism and Bolshevism and that fifty-two college professors were on so-called peace committees in 1914. President Eliot of Harvard is teaching Bolshevism. The worst Bolshevists in the United States are not only college professors, of whom President Wilson is one, but capitalists and the wives of capitalists and neither seem to know what they are talking about. William Boyce Thompson is teaching Bolshevism and he may yet convert Lamont of J. P. Morgan & Company. Vanderlip is a Bolshevist, so is Charles R. Crane. Many women are joining the movement and neither they, nor their husbands, know what it is, or what it leads to. Henry Ford is another and so are most of those one hundred historians Wilson took abroad with him in the foolish idea that history can teach youth proper demarcations of races, peoples, and nations geographically.3

In brief, this is a story of the Bolshevik Revolution and its aftermath, but a story that departs from the usual conceptual straitjacket approach of capitalists versus Communists. Our story postulates a partnership between international monopoly capitalism and international revolutionary socialism for their mutual benefit. The final human cost of this alliance has fallen upon the shoulders of the individual Russian and the individual American. Entrepreneurship has been brought into disrepute and the world has been propelled toward inefficient socialist planning as a result of these monopoly manoeuvrings in the world of politics and revolution.

This is also a story reflecting the betrayal of the Russian Revolution. The tsars and their corrupt political system were ejected only to be replaced by the new powerbrokers of another corrupt political system. Where the United States could have exerted its dominant influence to bring about a free Russia it truckled to the ambitions of a few Wall Street financiers who, for their own purposes, could accept a centralized tsarist Russia or a centralized Marxist Russia but not a decentralized free Russia. And the reasons for these assertions will unfold as we develop the underlying and, so far, untold history of the Russian Revolution and its aftermath.4

1. “These are the rules of big business. They have superseded the teachings of our parents and are reducible to a simple maxim: Get a monopoly; let Society work for you: and remember that the best of all business is politics, for a legislative grant, franchise, subsidy or tax exemption is worth more than a Kimberly or Comstock lode, since it does not require any labour, either mental or physical, for its exploitation” (Chicago: Public Publishing, 1906), p. 157.

2. George F. Kennan, Russia Leaves the War (New York: Atheneum, 1967); and Decision to Intervene: Soviet-American Relations, 1917-1920 (Princeton, N.J.: Princeton University Press, 1958).

3. Arthur Pound and Samuel Taylor Moore, They Told Barron (New York: Harper & Brothers, 1930), pp. 13-14.

4. There is a parallel, and also unknown, history with respect to the Makhanovite movement that fought both the “Whites” and the “Reds” in the Civil War of 1919-20 (see Voline, The Unknown Revolution [New York: Libertarian Book Club, 1953]). There was also the “Green” movement, which fought both Whites and Reds. The author has never seen even one isolated mention of the Greens in any history of the Bolshevik Revolution. Yet the Green Army was at least 700,000 strong!

Chapter 2

TROTSKY LEAVES NEW YORK TO COMPLETE THE REVOLUTION

You will have a revolution, a terrible revolution. What course it takes will depend much on what Mr. Rockefeller tells Mr. Hague to do. Mr. Rockefeller is a symbol of the American ruling class and Mr. Hague is a symbol of its political tools.

Leon Trotsky, in New York Times, December 13, 1938. (Hague was a New Jersey politician)

In 1916, the year preceding the Russian Revolution, internationalist Leon Trotsky was expelled from France, officially because of his participation in the Zimmerwald conference but also no doubt because of inflammatory articles written for Nashe Slovo, a Russian-language newspaper printed in Paris. In September 1916 Trotsky was politely escorted across the Spanish border by French police. A few days later Madrid police arrested the internationalist and lodged him in a “first-class cell” at a charge of one-and-one-half pesetas per day. Subsequently Trotsky was taken to Cadiz, then to Barcelona finally to be placed on board the Spanish Transatlantic Company steamer Monserrat. Trotsky and family crossed the Atlantic Ocean and landed in New York on January 13, 1917.

Other Trotskyites also made their way westward across the Atlantic. Indeed, one Trotskyite group acquired sufficient immediate influence in Mexico to write the Constitution of Querétaro for the revolutionary 1917 Carranza government, giving Mexico the dubious distinction of being the first government in the world to adopt a Soviet-type constitution.

How did Trotsky, who knew only German and Russian, survive in capitalist America? According to his autobiography, My Life, “My only profession in New York was that of a revolutionary socialist.” In other words, Trotsky wrote occasional articles for Novy Mir, the New York Russian socialist journal. Yet we know that the Trotsky family apartment in New York had a refrigerator and a telephone, and, according to Trotsky, that the family occasionally travelled in a chauffered limousine. This mode of living puzzled the two young Trotsky boys. When they went into a tearoom, the boys would anxiously demand of their mother, “Why doesn’t the chauffeur come in?”1 The stylish living standard is also at odds with Trotsky’s reported income. The only funds that Trotsky admits receiving in 1916 and 1917 are $310, and, said Trotsky, “I distributed the $310 among five emigrants who were returning to Russia.” Yet Trotsky had paid for a first-class cell in Spain, the Trotsky family had travelled across Europe to the United States, they had acquired an excellent apartment in New York—paying rent three months in advance—and they had use of a chauffered limousine. All this on the earnings of an impoverished revolutionary for a few articles for the low-circulation Russian-language newspaper Nashe Slovo in Paris and Novy Mir in New York!

Joseph Nedava estimates Trotsky’s 1917 income at $12.00 per week, “supplemented by some lecture fees.”2 Trotsky was in New York in 1917 for three months, from January to March, so that makes $144.00 in income from Novy Mir and, say, another $100.00 in lecture fees, for a total of $244.00. Of this $244.00 Trotsky was able to give away $310.00 to his friends, pay for the New York apartment, provide for his family—and find the $10,000 that was taken from him in April 1917 by Canadian authorities in Halifax. Trotsky claims that those who said he had other sources of income are “slanderers” spreading “stupid calumnies” and “lies,” but unless Trotsky was playing the horses at the Jamaica racetrack, it can’t be done. Obviously Trotsky had an unreported source of income.

What was that source? In The Road to Safety, author Arthur Willert says Trotsky earned a living by working as an electrician for Fox Film Studios. Other writers have cited other occupations, but there is no evidence that Trotsky occupied himself for remuneration otherwise than by writing and speaking.

Most investigation has centred on the verifiable fact that when Trotsky left New York in 1917 for Petrograd, to organize the Bolshevik phase of the revolution, he left with $10,000. In 1919 the U.S. Senate Overman Committee investigated Bolshevik propaganda and German money in the United States and incidentally touched on the source of Trotsky’s $10,000. Examination of Colonel Hurban, Washington attaché to the Czech legation, by the Overman Committee yielded the following:

COL. HURBAN: Trotsky, perhaps, took money from Germany, but Trotsky will deny it. Lenin would not deny it. Miliukov proved that he got $10,000 from some Germans while he was in America. Miliukov had the proof, but he denied it. Trotsky did, although Miliukov had the proof.

SENATOR OVERMAN: It was charged that Trotsky got $10,000 here.

COL. HURBAN: I do not remember how much it was, but I know it was a question between him and Miliukov.

SENATOR OVERMAN: Miliukov proved it, did he?

COL. HURBAN: Yes, sir.

SENATOR OVERMAN: Do you know where he got it from?

COL. HURBAN: I remember it was $10,000; but it is no matter. I will speak about their propaganda. The German Government knew Russia better than anybody, and they knew that with the help of those people they could destroy the Russian army.

(At 5:45 o’clock p.m. the subcommittee adjourned until tomorrow, Wednesday, February 19, at 10:30 o’clock a.m.)3

It is quite remarkable that the committee adjourned abruptly before the source of Trotsky’s funds could be placed into the Senate record. When questioning resumed the next day, Trotsky and his $10,000 were no longer of interest to the Overman Committee. We shall later develop evidence concerning the financing of German and revolutionary activities in the United States by New York financial houses; the origins of Trotsky’s $10,000 will then come into focus.

An amount of $10,000 of German origin is also mentioned in the official British telegram to Canadian naval authorities in Halifax, who requested that Trotsky and party en route to the revolution be taken off the S.S. Kristianiafjord. We also learn from a British Directorate of Intelligence report4 that Gregory Weinstein, who in 1919 was to become a prominent member of the Soviet Bureau in New York, collected funds for Trotsky in New York. These funds originated in Germany and were channelled through the Volkszeitung, a German daily newspaper in New York and subsidized by the German government.

While Trotsky’s funds are officially reported as German, Trotsky was actively engaged in American politics immediately prior to leaving New York for Russia and the revolution. On March 5, 1917, American newspapers headlined the increasing possibility of war with Germany; the same evening Trotsky proposed a resolution at the meeting of the New York County Socialist Party “pledging Socialists to encourage strikes and resist recruiting in the event of war with Germany.”5 Leon Trotsky was called by the New York Times “an exiled Russian revolutionist.” Louis C. Fraina, who cosponsored the Trotsky resolution, later—under an alias—wrote an uncritical book on the Morgan financial empire entitled House of Morgan.6 The Trotsky-Fraina proposal was opposed by the Morris Hillquit faction, and the Socialist Party subsequently voted opposition to the resolution.7

More than a week later, on March 16, at the time of the deposition of the tsar, Leon Trotsky was interviewed in the offices of Novy Mir. The interview contained a prophetic statement on the Russian revolution:

“. . . the committee which has taken the place of the deposed Ministry in Russia did not represent the interests or the aims of the revolutionists, that it would probably be shortlived and step down in favor of men who would be more sure to carry forward the democratization of Russia.”8

The “men who would be more sure to carry forward the democratization of Russia,” that is, the Mensheviks and the Bolsheviks, were then in exile abroad and needed first to return to Russia. The temporary “committee” was therefore dubbed the Provisional Government, a title, it should be noted, that was used from the start of the revolution in March and not applied ex post facto by historians.

WOODROW WILSON AND A PASSPORT FOR TROTSKY

President Woodrow Wilson was the fairy godmother who provided Trotsky with a passport to return to Russia to “carry forward” the revolution. This American passport was accompanied by a Russian entry permit and a British transit visa. Jennings C. Wise, in Woodrow Wilson: Disciple of Revolution, makes the pertinent comment, “Historians must never forget that Woodrow Wilson, despite the efforts of the British police, made it possible for Leon Trotsky to enter Russia with an American passport.”

President Wilson facilitated Trotsky’s passage to Russia at the same time careful State Department bureaucrats, concerned about such revolutionaries entering Russia, were unilaterally attempting to tighten up passport procedures. The Stockholm legation cabled the State Department on June 13, 1917, just after Trotsky crossed the Finnish-Russian border, “Legation confidentially informed Russian, English and French passport offices at Russian frontier, Torneo, considerably worried by passage of suspicious persons bearing American passports.”9

To this cable the State Department replied, on the same day, “Department is exercising special care in issuance of passports for Russia"; the department also authorized expenditures by the legation to establish a passport-control office in Stockholm and to hire an “absolutely dependable American citizen” for employment on control work.10 But the bird had flown the coop. Menshevik Trotsky with Lenin’s Bolsheviks were already in Russia preparing to “carry forward” the revolution. The passport net erected caught only more legitimate birds. For example, on June 26, 1917, Herman Bernstein, a reputable New York newspaperman on his way to Petrograd to represent the New York Herald, was held at the border and refused entry to Russia. Somewhat tardily, in mid-August 1917 the Russian embassy in Washington requested the State Department (and State agreed) to “prevent the entry into Russia of criminals and anarchists . . . numbers of whom have already gone to Russia.”11

Consequently, by virtue of preferential treatment for Trotsky, when the S.S. Kristianiafjord left New York on March 26, 1917, Trotsky was aboard and holding a U.S. passport—and in company with other Trotskyite revolutionaries, Wall Street financiers, American Communists, and other interesting persons, few of whom had embarked for legitimate business. This mixed bag of passengers has been described by Lincoln Steffens, the American Communist:

The passenger list was long and mysterious. Trotsky was in the steerage with a group of revolutionaries; there was a Japanese revolutionist in my cabin. There were a lot of Dutch hurrying home from Java, the only innocent people aboard. The rest were war messengers, two from Wall Street to Germany . . . ,12

Notably, Lincoln Steffens was on board en route to Russia at the specific invitation of Charles Richard Crane, a backer and a former chairman of the Democratic Party’s finance committee. Charles Crane, vice president of the Crane Company, had organized the Westinghouse Company in Russia, was a member of the Root mission to Russia, and had made no fewer than twenty-three visits to Russia between 1890 and 1930. Richard Crane, his son, was confidential assistant to then Secretary of State Robert Lansing. According to the former ambassador to Germany William Dodd, Crane “did much to bring on the Kerensky revolution which gave way to Communism.”13 And so Steffens’ comments in his diary about conversations aboard the S.S. Kristianiafjord are highly pertinent: “... all agree that the revolution is in its first phase only, that it must grow. Crane and Russian radicals on the ship think we shall be in Petrograd for the re-revolution.”14

Crane returned to the United States when the Bolshevik Revolution (that is, “the re-revolution") had been completed and, although a private citizen, was given firsthand reports of the progress of the Bolshevik Revolution as cables were received at the State Department. For example, one memorandum, dated December 11, 1917, is entitled “Copy of report on Maximalist uprising for Mr Crane.” It originated with Maddin Summers, U.S. consul general in Moscow, and the covering letter from Summers reads in part:

I have the honor to enclose herewith a copy of same [above report] with the request that it be sent for the confidential information of Mr. Charles R. Crane. It is assumed that the Department will have no objection to Mr. Crane seeing the report. . . . 15