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AMERICA'S SECRET ESTABLISHMENT -- AN INTRODUCTION TO THE ORDER OF SKULL AND BONES

Memorandum Number Three: Thesis -­ The Order Creates The Soviet Union 

In an earlier book, published in 1974, we presented major evidence of Wall Street assistance for the Bolshevik Revolution. This assistance was mainly cash, guns and ammunition, and diplomatic support in London and Washington, D.C. Wall Street And The Bolshevik Revolution also introduced the concept which Quigley described, i.e., that Morgan and other financial interests financed and influenced all parties from left to right in the political spectrum.

This Memorandum continues the story, but now links The Order to the earlier evidence of Wall Street involvement.

On the following pages we reproduce a map of the Wall Street area and a list of firms connected with the Bolshevik Revolution and financing of Hitler located in this area. We can now identify the influence, in fact the dominant influence, of The Order in these firms.

Revolutionary activity was centered at Equitable Trust Building, 120 Broadway, in the building in the photograph on page 139. This had been E.H. Harriman's address. The American International Corporation was located at 120 Broadway. The Bankers' Club, where Wall Street bankers met for lunch, was at the very top of the building. It was in this plush club that plans were laid by William Boyce Thompson for Wall Street participation in the 1917 Russian Revolution. Guaranty Securities was in 120 Broadway, while Guaranty Trust was next door at 140 Broadway (the building can be seen to the left of 120).

I. THE ORDER PUSHES FOR ASSISTANCE TO THE SOVIET ARMY

Fortunately we have a copy of the memorandum written by a member of The Order, summarizing intentions for the 1917 Bolshevik Revolution. The memorandum was written by Thomas D. Thacher (The Order '04), a partner in the Wall Street law firm of Simpson, Thacher & Bartlett. Thacher's address was 120 Broadway. Today this law firm, now in Battery Plaza, has the largest billing on Wall Street and has former Secretary of State Cyrus Vance (Scroll & Key) as a partner.

In 1917 Thacher was in Russia with William Boyce Thompson's Red Cross Mission. After consultations in New York, Thacher was then sent to London to confer with Lord Northcliffe about the Bolshevik Revolution and then to Paris for similar talks with the French Government.

The Thacher memorandum not only urges recognition of the barely surviving Soviet Government, which in early 1918 controlled only a very small portion of Russia, but also military assistance for the Soviet Army and intervention to keep the Japanese out of Siberia until the Bolsheviks could take over.

New York Headquarters for Revolution:  120 Broadway, 1915

FIRMS WITH LINKS TO THE ORDER AT, OR NEAR, 120 BROADWAY IN 1917

120 Broadway:  Edward H. Harriman (before his death)
59 Broadway: W.A. Harriman Company
120 Broadway: American International Corporation
23 Wall: J.P. Morgan firm
120 Broadway: Federal Reserve Bank of New York
120 Broadway: Bankers Club (top floor)
120 Broadway: Thomas D. Thacher (of Simpson, Thacher & Bartlett)
14 Wall: William Boyce Thompson
120 Broadway: Guggenheim Exploration
15 Broad: Stetson, Jennings & Russell
120 Broadway: C.A.K. Martens of Weinberg & Posner (the first Soviet "ambassador")
110 W. 40th Street: Soviet Bureau
60 Broadway: Amos Pinchot's office
120 Broadway: Stone & Webster
120 Broadway: General Electric
120 Broadway: Sinclair Gulf Corp.
120 Broadway: Guaranty Securities
140 Broadway: Guaranty Trust Company
233 Broadway: Anglo-Russian Chamber of Commerce

INDIVIDUAL MEMBERS OF THE ORDER AT 120 Broadway: George Webster Adams (The Order '04); Allen Wallace Ames (The Order '18); Philip Lyndon Dodge (The Order '07)

Here are the main sections from the Thacher memorandum:

"First of all ... the Allies should discourage Japanese intervention in Siberia. In the second place, the fullest assistance should be given to the Soviet Government in its efforts to organize a volunteer revolutionary army. Thirdly, the Allied Governments should give their moral support to the Russian people in their efforts to work out their own political systems free from the domination of any foreign power ... Fourthly, until the time when open conflict shall result between the German Government and the Soviet Government of Russia there will be opportunity for peaceful commercial penetration by German agencies in Russia. So long as there is no open break, it will probably be impossible to entirely prevent such commerce. Steps should therefore be taken to impede, so far as possible, the transport of grain and raw materials to Germany from Russia." [1]

The reader should note in particular paragraph two: "In the second place, the fullest assistance should be given to the Soviet Government in its efforts to organize a volunteer revolutionary army." This assistance has been recorded in my National Suicide: Military Aid To The Soviet Union.

It was in fact the hidden policy adopted at the highest levels, in absolute secrecy, by the United States and to some extent by The Group (especially Milner) in Great Britain. Thacher apparently did not have too much success with the French Government.

When President Woodrow Wilson sent U.S. troops to hold the Trans-Siberian railroad, secret instructions were given by Woodrow Wilson in person to General William S. Graves. We have not yet located these instructions (although we know they exist), but a close reading of the available files shows that American intervention had little to do with anti-Bolshevik activity, as the Soviets, George Kennan and other writers maintain.

So grateful were the Soviets for American assistance in the Revolution that in 1920 -- when the last American troops left Vladivostok -- the Bolsheviks gave them a friendly farewell.

Reported the New York Times (February 15, 1920 7:4):

VLADIVOSTOK PRO-AMERICAN.

Revolutionist Staff Thanks Graves for Preserving Neutrality.

VLADIVOSTOK, Feb. 1 (Associated Press). -- Parades, street meetings and speechmaking marked the second day today of the city's complete liberation from Kolchak authority. Red flags fly on every Government building, many business houses and homes.

There is a pronounced pro-American feeling evident. In front of the American headquarters the revolutionary leaders mounted steps of buildings across the street, making speeches calling the Americans real friends, who at a critical time saved this present movement. The people insist upon an allied policy of no interference internationally in political affairs.

The General Staff of the new Government of Nikolak has telegraphed to the American commander, Major Gen. Graves, expressing its appreciation for efforts toward guaranteeing an allied policy of non-interference during the occupation of the city, also in aiding in a peaceful settlement of the local situation.

Note in particular the sentence:

"... calling the Americans real friends, who at a critical time saves this present movement."

Normally reports inconsistent with the Establishment line are choked, either by the wire services or by the rewrite desks at larger newspapers (small papers unfortunately follow New York Times). This is one report that got through intact.

In fact, the United States took over and held the Siberian Railroad until the Soviets gained sufficient power to take it over. Both British and French military missions in Siberia recorded the extraordinary actions of the United States Army, but neither mission made much headway with its own government.

So far as aiding the Soviet Army is concerned, there are State Department records that show guns and ammunition were shipped to the Bolsheviks. And in 1919, while Trotsky was making anti-American speeches in public, he was also asking Ambassador Francis for American military inspection teams to train the new Soviet Army. [2]

II. THE ORDER PUSHES FOR THE SOVIETS IN THE UNITED STATES

However, it was in Washington and London that The Order really aided the Soviets. The Order succeeded not only in preventing military actions against the Bolsheviks, but to so-muddy the policy waters that much needed vital raw materials and goods, ultimately even loans, were able to flow from the United States to the Soviets, in spite of a legal ban.

The following documents illustrate how members of The Order were able to encourage Soviet ambitions in the United States. While the Department of Justice was deporting so-called "Reds" to Russia, a much more potent force was at work WITHIN the U.S. Government to keep the fledgling Soviet Union intact.

Publisher's Note: To assist readers with the very poor reproductions of the following two letters we print our reading from the copies that we have.

211
May 29, 1919
Hon. William Kent,
U.S. Tariff Commission,
Washington, D.C.

Dear Billy:

This will introduce to you my friend, Professor Evans Clark, now associated with the Bureau of Information of the Russian Soviet Republic. He wants to talk with you about the recognition of Wolchak, the raising of the blockade, etc., and get your advice in regard to backing up the senators who would be apt to stand up and make a brave fight. Won't you do what you can for him.

As I see it, we are taking a (unreadable) Russia that will leave our, until now, mightily good reputation, badly damaged.

Hope to see you in Washington soon.

Faithfully yours,
A. P.

***

1543
November 22, 1918
Mr. Santeri Nourteva,
Finnish Information Bureau,
299 Broadway, City

Dear Mr. Nuorteva:

Let me thank you for your very kind letter of November 1st; I apologize for not answering sooner.

I have read your bulletin on the barrage of lies, and I am, needless to say, heartily sympathetic with your view of the situation and with the work you are doing. One of the most sinister things at present is the fact that governments are going into the advertising business. They are organized so that they can make or wreck movements. I am sending you, under separate cover, a copy of a letter I have written, which I hope will interest you.

With kindest regards, I am

Sincerely yours,
Amos Pinchot.

Exhibits 211 and 212 From The Lusk Committee Files, New York

U.S. State Department Decimal File, 851.516 / 140 Stockholm Legation October 13, 1922

The above letter is from Amos Pinchot (The Order '97). His brother, conservationist Gifford Pinchot (The Order '89) was also a member. Amos Pinchot was a founder of the American Civil Liberties Union and active in aiding the Soviets during the early days of the Bolshevik Revolution. The above letter, exemplifying this assistance, was sent to Santeri Nourteva, November 22, 1918, just a year after the 1917 Revolution. Pinchot was "heartily sympathetic with your view of the situation and the work you are doing." [3]

Who was Nourteva? This name was an alias for Alexander Nyberg, a Soviet representative in the United States. Nyberg worked for the Soviet Bureau (at first called the Finnish Information Bureau -- a cover name), along with Ludwig C.A.K. Martens, the first Soviet Ambassador and formerly a Vice President of Weinberg & Posner. The New York office of Weinberg & Posner was at -- 120 Broadway! Nyberg's assistant was Kenneth Durant, an American newspaperman, later TASS correspondent in the U.S. and one time aide to "Colonel" Edward House, mystery man of the Wilson Administration. Director of the Commercial Department in this Soviet Bureau was "Comrade Evans Clark." Clark later became Executive Director of the influential Twentieth Century Foundation, and at Twentieth Century Foundation we find a member of The Order -- in this case Charles Phelps Taft (The Order '18), nephew of President and Chief Justice William Howard Taft. In the coming volume on FOUNDATIONS, we shall see how Evans Clark and The Order, working together at Twentieth Century Foundation, had a significant role in the Hegelization of American education.

The document on page 147 is a brief biography of "Comrade Evans Clark", issued by the Soviet Bureau in 1919 on his appointment as Assistant, Director of the Commercial Department of the Bureau, with the task of establishing trade relations with the U.S. Note the Harvard and Princeton associations.

Trade was vital for the survival of the Soviet Union. In 1919 all Russian factories and transportation were at a standstill. There were no raw materials and no skills available.

For assistance Evans Clark turned to The Order. On May 29, 1919, Amos Pinchot wrote fellow Skull & Bones member and strong Republican William Kent about raising the blockade against the Soviets. William Kent (The Order '87) was on the U.S. Tariff Commission and in turn wrote Senator Lenroot to request an interview for "Professor" Evans Clark. (Albert Kent, his father, was a member [The Order '53] and he married the daughter of Thomas Thacher (The Order '35].

In brief, two members of The Order, Pinchot and Kent, cooperated to push a known Bolshevik operator onto an unsuspecting Senator. Neither member of The Order advised Senator Lenroot about Clark's affiliation with the Soviet Bureau.

Exhibit Number 1500 From the Lusk Committee Files, New York.

1500
BUREAU OF INFORMATION ON SOVIET RUSSIA
299 Broadway, Room 1812

Statement April 19th

Comrade Evans Clark has resigned his position as Director of the Bureau of Research of the Socialist Aldermanic Delegation in New York and has been appointed Assistant Director of the Commercial Department of the Bureau of the Representative of the Russian Socialist Federal Soviet Republic with headquarters at the World's Tower Building -- 110 West 40th Street.

Comrade Clark has been a member of the Socialist Party since 1911 and has taken an active part in the labor movement in the United States. He is a graduate of Amherst College, Harvard University and the Columbia Law-School. He has been instructor of politics in Princeton University and was one of the organizers of the Intercollegiate Socialist Society of which he was the first President. Comrade Clark will assist Comrade Heller in the task of establishing trade relations between the United States and Soviet Russia.

How the Order Controlled the Early Development of the Soviet Union

THE ORDER

BROWN BROTHERS, HARRIMAN (Pre-1933 W.A. Harriman and Company)

W. AVERELL HARRIMAN ('13)
E. ROLAND HARRIMAN ('17)
ELLERY S. JAMES ('17)
RAY MORRIS ('01)
PRESCOTT SHELDON BUSH ('17)
KNIGHT WOOLLEY ('17)
MORTIMER SEABURY ('09)
ROBERT A. LOVETT ('18)

POST WORLD WAR TWO PARTNERS:
Eugene Wm. Stetson, Jr. ('34)
Walter H. Brown ('45)
Stephen Y. Hord ('21)
John Beckwith Madden ('41)
Grange K. Costikyan ('29)

PARTNER NOT IN THE ORDER:
Matthew C. Brush (32° Mason)

AMERICAN INTERNATIONAL CORP.
Chairman: Matthew C. Brush

INTERNATIONAL BARNSDALL CORP.
Chairman: Matthew C. Brush

GEORGIAN MANGANESE COMPANY
Director: Matthew C. Brush

III. HOW THE ORDER DEVELOPED THE STAGNANT SOVIET UNION

Between 1917 and 1921 the Soviets pushed their control of Russia into Siberia and the Caucasus. As we have noted, the United States intervened in Siberia along the Trans-Siberian Railroad. Histories of U.S. Intervention by George Kennan and the Soviets maintain this was an anti-Soviet intervention. In fact, it was nothing of the kind. The U.S. spread troops along the Siberian railroad only to keep out the Japanese, not to keep out the Soviets. When they left through Vladivostok, the Soviet authorities gave American forces a resounding send-off. But this is yet another untold story, not in the textbooks.

The immediate problem facing the Soviets was to restore silent Russian factories. This needed raw materials, technical skills and working capital. The key to Russian reconstruction was the oil fields of the Caucasus. The Caucasus oil fields are a major segment of Russian natural resource wealth. Baku, the most important field, was developed n the 1870s. In 1900 it was producing more crude oil than the United States, and in 1901 more than half of the total world crude output. The Caucasus oil fields survived Revolution and Intervention without major structural damage and became a significant factor in Soviet economic recovery, generating about 20 percent of all exports by value; the largest single source of foreign exchange.

The Bolsheviks took over the Caucasus in 1920-1, but until 1923 oil field drilling almost ceased. During the first year of Soviet rule "... not one single new well has started giving oil" [4] and even two years after Soviet occupation, no new oil-field properties had been developed. In addition, deepening of old wells virtually ceased. As a result, water percolated into the wells, and the flow of crude oil became a mixture of oil and water. Drilling records are an excellent indicator of the state of oil field maintenance, development, and production. The complete collapse after the Soviet takeover is clearly suggested by the statistics. In 1900, Russia had been the world's largest producer and exporter of crude oil; almost 50,000 feet of drilling per month had been required in Baku alone to maintain this production. By early 1921, the average monthly drilling in Baku had declined to an insignificant 370 feet or so (0.7 percent of the 1900 rate), although 162 rigs were in working order.

Then, Serebrovsky, Chairman of Azneft (the Soviet oil production trust), put forward a program for recovery in a Pravda article. The plan for 1923 was to increase oil well drilling to 35,000 Sazhens per year (245,000 feet). This would require 35 rotary drills (to drill 77,000 feet) and 157 percussion drills (to drill 130,000 feet). Serebrovsky pointed out that Azneft had no rotary drills, and that Russian enterprise could not supply them. Rotary drilling, however, was essential for the success of the plan.

He then announced:

"But just here American capital is going to support us. The American firm International Barnsdall Corporation has submitted a plan ... Lack of equipment prevents us from increasing the production of the oil industry of Baku by ourselves. The American firm ... will provide the equipment, start drilling in the oil fields and organize the technical production of oil with deep pumps." [5]

During the next few years International Barnsdall, together with the Lucey Manufacturing Company and other major foreign oil well equipment firms, fulfilled Serebrovsky's program. Massive imports of equipment came from the United States. International Barnsdall inaugurated the rotary drilling program, initiated Azneft drilling crews into its operational problems, and reorganized oil well pumping with deep well electrical pumps.

The first International Barnsdall concession was signed in October 1921, and was followed in September of 1922 by two further agreements. There is no doubt that Barnsdall did work under the agreements. Pravda reported groups of American oil field workers on their way to the oil fields, and a couple of months previously the United States, Constantinople Consulate, had reported that Philip Chadbourn, the Barnsdall Caucasus representative, had passed through on his way out of Russia. The U.S. State Department Archives contain an intriguing quotation from Rykov, dated October 1922:

"The one comparatively bright spot in Russia is the petroleum industry, and this is due largely to the fact that a number of American workers have been brought into the oil fields to superintend their operation." [6]

Who, or what, was International Barnsdall Corporation?

The Chairman of International Barnsdall Corporation was Matthew C. Brush whom we previously identified as The Order's "front man."

Guaranty Trust, Lee, Higginson Company and W.A. Harriman owned Barnsdall Corporation, and International Barnsdall Corporation was owned 75% by the Barnsdall Corporation and 25% by H. Mason Day. The Guaranty Trust interest was represented by Eugene W. Stetson (also a Vice President of Guaranty Trust), whose son, Eugene W. Stetson Jr., was initiated into The Order in 1934. The Lee Higginson interest was represented by Frederick Winthrop Allen (The Order '00).

In brief, The Order controlled International Barnsdall Corporation.

The second potentially largest source of Soviet foreign exchange in the 1920s was the large Russian manganese deposits. In 1913, tsarist Russia supplied 52 percent of world manganese, of which about 76 percent, or one million tons, was mined from the Chiaturi deposits in the Caucasus. Production in 1920 was zero, and by 1924 had risen only to about 320,000 tons per year. The basic problem was:

"that further development was seriously retarded by the primitive equipment, which was considered grossly inadequate even according to prewar standards."

The Chiaturi deposits, situated on high plateaus some distance from Batum, were mined in a primitive manner, and the ore was brought on donkeys from the plateaus to the railroads. There was a change of gauge en route, and the manganese had to be transshipped between the original loading point and the port. When at the port, the ore was transferred by bucket: a slow, expensive process.

The Soviets acquired modern mining and transportation facilities for their manganese deposits, acquired foreign exchange, and finally shattered American foreign policy concerning loans to the U.S.S.R., in a series of business agreements with W.A. Harriman Company and Guaranty Trust. [7]

On July 12, 1925, a concession agreement was made between the W.A. Harriman Company of New York and the U.S.S.R. for exploitation of the Chiaturi manganese deposits and extensive introduction of modern mining and transportation methods.

Under the Harriman concession agreement, $4 million was spent on mechanizing the mines and converting them from hand to mechanical operation. A washer and reduction plant were built; and a loading Elevator at Poti, with a two-million ton capacity and a railroad system were constructed, together with an aerial tramway for the transfer of manganese ore. The expenditure was approximately $2 million for the railroad system and $1 million for mechanization of the mines.

The Chairman of the Georgian Manganese Company, the Harriman operating company on the site in Russia, was none other than The Order's "front man" Matthew C. Brush.

State Department Letter to U.S. Embassy in London (861.637/1)

In reply refer to __
November 14, 1924.

Dear Mr. Atherton:

Please accept my thanks for your letter of October 30, 1924, transmitting a clipping from the TIMES of October 28, giving an account of the Prime Minister's speech in which reference is made to a concession granted to Americans for the manganese ore in Russia, and enclosing a confidential memorandum respecting the nature of the concession.

I appreciate your courtesy and thoughtfulness in the matter. The memorandum transmitted by you embodies the first information received by the Department concerning the concession other than that which has appeared in the public press.

Sincerely yours,
Evan B. Young.

Ray Atherton, Esquire.
Secretary, American Embassy,
London

EEY:LSS

IV. THE ORDER TOO POWERFUL FOR STATE DEPARTMENT TO INVESTIGATE

While The Order carried out its plans to develop Russia, the State Department could do nothing. Its bureaucrats sat in Washington D.C. like a bunch of mesmerized jackrabbits.

Firstly, in the 1920s loans to the Soviet Union were strictly against U.S. law. While American citizens could enter Russia at their own risk, there were no diplomatic relations and no government support or sanction for commercial activity. Public and government sentiment in the United States was overwhelmingly against the Soviets -- not least for the widespread atrocities committed in the name of the Revolution.

Secondly, the Harriman-Guaranty syndicate, which reflected The Order, did not inform the State Department of its plans. As the attached letter (page 152) from Washington to the London Embassy describes, the first information of the Harriman manganese deposit came from the American Embassy in London, which picked it up from London newspaper reports.

In other words, Averell Harriman sneaked an illegal project past the U.S. Government. If this is not irresponsible behavior, then nothing is. And this was the man who was later to become the U.S. Ambassador to Russia.

The State Department letter to London is quite specific on this point: "The memorandum transmitted by you embodies the first information received by the Department concerning the concession other than that which has appeared in the public press."

A month or so later came a letter from Department of Commerce asking for confirmation and more information. Apparently, Harriman didn't bother to inform Commerce either.

Commerce Department To State Asking For Confirmation of Harriman Manganese Concession (861.637 / 5)

DEPARTMENT OF COMMERCE
BUREAU OF FOREIGN AND DOMESTIC COMMERCE
WASHINGTON

JANUARY 23, 1925.

Hon. Wilbur J. Carr,
Assistant Secretary of State
Department of State
Washington, D.C.

Dear Mr. Carr:

We have a copy of confidential despatch No. 2565 to the Secretary of State from Minister F.W.B. Coleman at Riga, Latvia, in regard to a conversation with a Mr. P.M. Friedlander on the subject of Russia.

On page 7 of this report there is a paragraph which reads as follows:

"Megraf is the Agent of the Imperial and Foreign Corporation, which represents its own, Harriman and Stinnes interest in the matter of the Chiaturi Manganese Concession. *********** It appears from Mr. Friedlander's account that they have pooled their interest and are presenting a united front."

The subject of the Chiaturi Manganese concession is of great interest to the American Mineral Industry and its control by an American concern will have a notable effect on the steel industry of this country. For this reason, we are interested in obtaining the most reliable information possible on this subject and therefore request that you obtain for us, if possible, confirmation of the above report. We would like to know something more as to the reliability of Mr. Friendlander's statements and any further facts in this case that are procurable.

Very truly yours,
R.C. Miller,
Liaison Officer

ADDRESS ALL COMMUNICATIONS TO
BUREAU OF FOREIGN AND DOMESTIC COMMERCE
WASHINGTON, D.C.

DEPARTMENT OF STATE
DIVISION OF EASTERN EUROPEAN AFFAIRS
January 29, 1925

Dear Mr. Carr:

With respect to the attached letter from Mr. Miller, Liaison Officer with the Department of Commerce, there are certain and very definite reasons why I consider it very unwise for the Department to initiate any investigation with respect to the reported manganese concession. I shall be glad to explain these reasons to you orally if you so desire.

Evan E. Young.

861.637 / 5

EEY: EBS

I defer to your judgment upon this.

Now we reach the truly extraordinary point. The U.S. Government was not informed by W.A. Harriman or Guaranty Trust that they intended to invest $4 million developing Soviet manganese deposits. Yet this was clearly illegal and a move with obvious strategic consequences for the U.S. Neither was the U.S. Government able to pick up this information elsewhere; in those days there was no CIA. Economic intelligence was handled by the State Department. It is also obvious that Government officials were interested in acquiring information, as they should have been.

The truly extraordinary point is THAT THE U.S. GOVERNMENT WAS NOT ABLE TO PURSUE AN INVESTIGATION.

We reproduce on page 155 a memorandum from Evan E. Young in Division of Eastern European Affairs to Assistant Secretary of State Carr. Note this is a memorandum at the upper levels of the State Department. Young specifically writes: "... there are certain and very definite reasons why I consider it very unwise for the Department to initiate any investigation with respect to the reported manganese concession."

And Assistant Secretary of State Carr scribbles on the bottom, "I defer to your judgment upon this" (presumably after the suggested oral communication).

The distinct impression is that some behind-the-scenes power was not to be challenged.

U.S. State Department Decimal File, 861.516 / 140 Stockholm Legation October 13, 1922

... Max May, of the Guaranty Trust Company, New York, will take part. In the present arrangement Mr. Max May is designated as director of the foreign division of the Moscow bank.

The above paper gives the following information in regard to the new bank:

"There is a board consisting of five members and five active directors. Among these we note Mr. Schlesinger, former Chief of Moscow's Merchant Bank, Mr. Kalaschkin, Chief of the Junker Bank, and Mr. Ternoffsky, former Chief of the Siberian Bank. Mr. Max May is designated as director of the foreign division of the bank. According to Mr. Aschberg, the Russian bank, through the Ekonomibolaget, Mr. Aschberg's bank in Stockholm, will be in closer contact with German and American financial institutions."

The "Svenska Dagbladet," of October 17th, reports that the above mentioned Mr. Scheinmann has succeeded in obtaining the consent of Professor Gustav Cassel to act as adviser to the Russian State Bank, which bank it appears has a representative in the administration of the new Commercial Bank of Moscow and has the right to exercise control of its activities. Professor Cassel is quoted as stating in part:

"That a bank has now been started in Russia to take care of purely banking matters is a great step forward, and it seems to me that this bank was established in order to do something to create a new economic life in Russia. What Russia needs is a bank to create internal and external commerce. If there is to be an business between Russia and other countries there must be a bank to handle it.

"This step forward should be supported in every way by other countries, and when I was asked my advice I stated that I was prepared to give it. I am not in favor of a negative policy and believe that every opportunity should be seized to help in a positive reconstruction.

"The great question is how to bring the Russian exchange back to normal. It is a complicated question and will necessitate thorough investigation. To solve this problem I am naturally more than willing to take part in the work. To leave Russia to her own resources and her own fate is folly."

I have the honor to be, Sir,
Your Obedient servant,

IRA N. MORRIS

S.R. Bertron (The Order '84*): Chairman of American-Russian Chamber of Commerce

THE AMERICAN-RUSSIAN CHAMBER OF COMMERCE
(MEMBER OF THE INTERNATIONAL CHAMBER OF COMMERCE)
WOOLWORTH BUILDING, 233 BROADWAY, NEW YORK

OFFICERS

WILLIAM C. REDFIELD, PRESIDENT
SAMUEL MCROBERTS, VICE-PRESIDENT
FRANKLIN REMINGTON, VICE-PRESIDENT
PETER O. DURYEL, TREASURER
EVELYN HYDE SIEGEL, SECRETARY
JOHN BOLINGER, VICE-PRESIDENT

BOARD OF DIRECTORS

S.R. BERTRON, BERTRON, GRISCOM & CO.
JOHN BOLINGER, VICE-PRES., NAT'L SHAWMUT BANK
WM. BUTTERWORTH, PRES. DEERE & COMPANY
C.P. COLEMAN, PRES. WORTHINGTON PUMP & MACHINERY CO.
W.F. DIXON, DIRECTOR, RUSSIAN GINGER CO.
PETER S. DURYEE, VICE-PRES., MERCANTILE TRUST CO.
PHILIP S. FOUKE, PRES., INTERNATIONAL FOR. EXCHANGE
R.G. HUTCHINS, JR., HALLGARTEN & CO.
DARWIN P. KINGSLEY, PRES. N.Y. LIFE INS. CO.
JEROME LANDFIELD, 233 BROADWAY
A.B. LEACH, A.B. LEACH & CO.
ALEXANDER LEGGE, VICE-PRES., INTERNATIONAL HARVESTER CO.
CAPT. J.F. LUCEY, PRES., LUCEY MFG COMPANY
SAMUEL MCROBERTS, _ NASSAU STREET
C.M. MUCHNIC, VICE-PRES., AMER. LOCOMOTIVE SALES CORP.
M.A.OUDIN, VICE-PRES., INTERNATIONAL GENERAL ELECTRIC CO.
FRANKLIN REMINGTON, CHAIRMAN BOARD OF DIRECTORS, FOUNDATION CO.
FRANCIS H. SISSON, VICE-PRES. GUARANTY TRUST CO.
E.P. THOMAS, PRES., U.S. STEEL PRODUCTS
HERMAN H. WESTINGHOUSE, CHAIRMAN BOARD OF DIRECTORS, WESTINGHOUSE AND BRAKE CO.
W.H. WOODIN, PRES., AMER. CAR & FOUNDRY CO.

EXECUTIVE COMMITTEE

S.R. BERTRON, CHAIRMAN
WILLIAM C. REDFIELD
C. PHILIP COLEMAN
W.F. DIXON
C.M. MUCHNIC
M.A. OUDIN
FRANKLIN REMINGTON
E.P. THOMAS
W.H. WOODIN

July 1st, 1921.

State Department,
Russian Division,
Washington, D.C.

Gentlemen:

Can you give us answers to the following questions?

1. What date the following banks in Russia were taken over by the Soviet Government:

Banque International de Commerce. A Petrograd
Banque Russe Pours La Commerce Etranger, Petrograd
Bank de Commerce De Volga Kama, Petrograd
Bank de Commerce De L'A Zoff Don, Petrograd

2. What date trading in Russian credits was prohibited in the United States by Federal Authorities.

Any assistance you may be able to render in this matter will be greatly appreciated.

Yours very truly,
THE AMERICAN-RUSSIAN CHAMBER OF COMMERCE
Evelyn Hyde Siegel
SECRETARY
EHS:HR

V. THE ORDER MAKES ITS OWN LAW

The Order kept a hold on every non-government strategic position related to the Soviet Union. Nothing appears to have escaped their attention. For example, the Anglo-Russian Chamber of Commerce was created in 1920 to promote trade with Russia -- desperately needed by the Soviets to restore idle Tsarist industry. The Chairman of its Executive Committee, the key post in the Chamber, was held by Samuel R. Bertron (The Order '85), a Vice President of Guaranty Trust and formerly a member of the 1917 Root Mission to Russia.  Elihu Root, Chairman of the Mission, was, of course, the personal attorney to William Collins Whitney (The Order '63), one of the key members of The Order. The letter from Bertron's Anglo-Russian Chamber of Commerce to State Department, printed on page 158 is noteworthy because it asks the question: "What date trading in Russian credits was prohibited in the United States by Federal authorities?"

This means that The Order was well aware in 1921 that "credits" to the U.S.S.R. were illegal and indeed were not made legal until President Roosevelt took office in 1933. However, illegal or not, within 18 months of this Bertron letter, Guaranty Trust established more than trading in Russian credits. Guaranty Trust made a joint banking agreement with the Soviets and installed a Guaranty Trust Vice President, Max May, as director in charge of the foreign division of this Soviet bank, the RUSKOMBANK (See document on page 157).

In brief, while the U.S. public was being assured by the U.S. Government that the Soviets were dastardly murderers, while "Reds" were being deported back to Russia by the Department of Justice, while every politician (almost without exception) was assuring the American public that the United States would have no relations with the Soviets -- while this barrage of lies was aimed at a gullible public, behind the scenes the Guaranty Trust Company was actually running a division of a Soviet bank! And American troops were being cheered by Soviet revolutionaries for helping protect the Revolution.

That, dear readers, is why governments need censorship. That's why even 50 years after some events, it is almost impossible for independent researchers (not the bootlickers) to get key documents declassified.

1927: Simpson Thacher & Bartlett Gets Around Non Recognition

SIMPSON THACHER BARTLETT
120 BROADWAY
NEW YORK

JULY 21, 1927

Hon. R. E. Olds,
Under-Secretary of State.
Washington, D.C.

Sir:

The State Bank of the U.S.S.R., although, as we are informed, its whole capital is owned by the Treasury Department (People's Commissariat of Finance) of the Soviet Government, is not itself the Soviet Government but a juridical entity, incorporated in November 1921 by edict of the Soviet Government, and capable of suing and being sued as an individual in the Soviet courts.

This Bank already has large sums on deposit in various banks in this country.

In view of the growing trade between companies in this country and the U.S.S.R. and the desire of the latter to increase this trade, the Bank would like to increase its deposits with banks in this country. Before advising the Bank to increase its deposits in the amounts it desires, we should like, if it is consistent for you so to favor us, to receive an expression of your opinion as to the traditional attitude of our Government with respect to such deposits. As a practical matter, if we understand your views correctly, it seems to us there can be no reason why the Bank should not so increase its deposits notwithstanding our Government has not recognized the U.S.S.R.

Very respectfully yours,

SIMPSON THACHER BARTLETT

VI. THE ORDER'S LAW FIRMS

New York establishment law firms, several founded by members of The Order, have close links to banks and specifically those operational vehicles for revolution already cited.

Take the example of Simpson, Thacher & Bartlett which in the 1920s was located at 120 Broadway, New York. The firm was founded by Thomas Thacher (The Order '71) in 1884. His son Thomas Day Thacher (The Order '04) worked for the family law firm after leaving Yale and initiation into The Order. The younger Thomas Thacher went to work for Henry L. Stimson (The Order '88), a very active member of The Order discussed in Volume One of this series. About this time Thacher, who wrote The Order's statement on the Bolshevik Revolution (page 138), became friendly with both Felix Frankfurter and Raymond Robins. According to extensive documentation in the Lusk Committee files, both Frankfurter and Robins were of considerable assistance to the Soviets.

Another link between the 1917 Revolution and Simpson, Thacher & Bartlett is through the daughter of Thomas Anthony Thacher (The Order '35) who married William Kent (The Order '87) who we have linked to member Amos Pinchot in the case of intervention on behalf of the Soviets in Washington, D.C.

Furthermore, readers of Wall Street And The Bolshevik Revolution will recall that member Samuel Bertron was on the Root Mission to Russia in 1917. Moreover, Thomas Thacher (The Order '04) was a member of the Red Cross Mission with Allan Wardwell, son of Thomas Wardwell, Standard Oil Treasurer and a partner in another Wall Street law firm, Statson, Jennings & Russell (the links of this firm to The Order will be described in a later volume). Eugene Stetson, Jr., for example, is in The Order ('34).

Simpson, Thacher & Bartlett represented the Soviet State Bank in the U.S. and was the vehicle used by The Order to inform State Department of activities that might otherwise be blocked by low level bureaucrats following the government rulebook.

For example, in 1927 Simpson, Thacher & Bartlett informed the U.S. Government that the Soviets were in the process of substantially increasing deposits in the U.S. This increase was in preparation for the enormous outlays to be channeled to a few favored U.S. firms to build the Soviet First Five Year Plan.

The letter read closely is definite; it puts words in the mouth of the State Department, i.e., this is what we are going to do and in spite of the U.S. Government, there is no reason why we should not go ahead. Note, for example, the last paragraph: "... it seems to us there is no reason why the Bank should not so increase its deposits notwithstanding our Government has not recognized the U.S.S.R."

RUSSIA

During the past four years the Government of the United States has maintained the position that it would be both futile and unwise to enter into relations with the Soviet Government so long as the Bolshevik leaders persist in aims and practices in the field of international relations which preclude the possibility of establishing relations on the basis of accepted principles governing intercourse between nations. It is the conviction of the Government of the United States that relations on a basis usual between friendly nations cannot be established with a governmental entity which is the agency of a group who hold it as their mission to bring about the overthrow of the existing political, economic and social order throughout the world and who regulate their conduct towards other nations accordingly.

The experiences of various European Governments which have recognized and entered into relations with the Soviet regime have demonstrated conclusively the wisdom of the policy to which the Government of the United States has consistently adhered. Recognition of the Soviet regime has not brought about any cessation of interference by the Bolshevik leaders in the internal affairs of any recognizing country, nor has it led to the acceptance by them of other fundamental obligations of international intercourse. Certain European states have endeavored, by entering into discussions with representatives of the Soviet regime, to reach a settlement of outstanding differences on the basis of accepted international practices. Such conferences and discussions have been entirely fruitless. No state has been able to obtain the payment of debts contracted by Russia under preceding governments or the indemnification of its citizens for confiscated property. Indeed, there is every reason to believe that the granting of recognition and the holding of discussions have served only to encourage the present rulers of Russia in their policy of repudiation and confiscation, as well as in their hope that it is possible to establish a working basis, accepted by other nations, whereby they can continue their war on the existing political and social order in other countries.

Current developments demonstrate the continued persistence at Moscow of a dominating world revolutionary purpose and the practical manifestation of this purpose in such ways as render impossible the establishment of normal relations with the Soviet government. The present rulers of Russia, while seeking to direct the evolution of Russia along political, economic and social lines in such manner as to make it an effective "base of the world revolution", continue to carry on, through the Communist International and other organizations with headquarters at Moscow, within the borders of other nations, including the United States, extensive and carefully planned operations for the purpose of ultimately bringing about the overthrow of the existing order in such nations.

A mass of data with respect to the activities carried on in the United States by various Bolshevik organizations, under the direction and control of Moscow, was presented by the Department of State to a subcommittee of the Senate Committee on Foreign Relations in January 1924.

VII. WHAT THE POLITICIANS TOLD AMERICAN CITIZENS

All this Soviet-building activity recorded in the Lusk Committee and State Department files was carefully concealed from the American public. What the public was told can only be described as a pack of lies, from beginning to end.

To demonstrate the degree of falsehood, we reprint here a page on "Russia" from a document "Excerpt from a statement entitled 'Foreign Relations' by the Honorable Frank B. Kellogg, Secretary of State, published by the Republican National Committee, Bulletin No. 5, 1928."

Among the falsehoods promoted by Secretary Kellogg is the following: "... the Government of the United States has maintained the position that it would be both futile and unwise to enter into relations with the Soviet Government."

In fact, at this very time the United States, with implicit government approval, was involved in planning the First Five Year Plan in Russia. The planning work was done actively by American firms. [8]

Construction of the Soviet dialectic arm continued throughout the 1930s up to World War II. In 1941 W.A. Harriman was appointed Lend Lease Administrator to assure the flow of United States technology and products to the Soviet Union. Examination of Lend Lease records shows that U.S. law was violated. The law required military goods only to be shipped. In fact, industrial equipment in extraordinary amounts was also shipped and Treasury Department currency plates so that the Soviets could freely print U.S. dollars.

Since World War II the United States has kept the Soviets abreast of modern technology. This story has been detailed elsewhere.

In brief, the creation of the Soviet Union stems from The Order. The early survival of the Soviet Union stems from The Order. The development of the Soviet Union stems from The Order.

But above all, this story has been concealed from the American public by politicians ... more of this later. Now let's turn to the financing of the Nazi Party in Germany.

_______________

1. The full document is in U.S. State Department Decimal File Microcopy 316, Roll 13, Frame 698.

2.  See Antony C Sutton, National Suicide (Arlington House, New York, 1974) and Wall Street And The Bolshevik Revolution (Arlington House, New York. 1974)

3.  Exhibit Number 1543 from the Lusk Committee files, New York.

4.  U.S. State Dept. Decimal File, 316-137-221.

5.  Pravda, September 21, 1922.

6.  U.S. State Department Decimal File, Microcopy 316, Roll 107, Frame 1167.

7.  The interested reader is referred to over 300 pages of documents in the U.S. State Dept. Decimal File 316-138-12/331, and the German Foreign Ministry Archives.  Walter Duranty described the Harriman contract as "utterly inept" and von Dirksen of the German Foreign Office as "a rubber contract." The full contract was published [Vysshii sovet nardnogo khoziaistva, Concession Agreement Between The Government Of The U.S.S.R and W.A. Harriman & Co. Inc. Of New York (Moscow, 1925)].

8. This story has been described in my Western Technology And Soviet Economic Development 1917-1930 and 1930-1945, published by the Hoover Institution at Stanford University.

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