n conditions as restrictive as these, it is well-nigh impossible for
Russian industry to hold its own, much less prosper and grow. And only
the most vigorous and best-organized enterprises in the Empire, like
that of the Morozoffs in Moscow, managed to pursue their way
unscathed. In Russian Poland, where textile industries flourished, and
the total annual production was valued at 294,000,000 roubles, over
one-third of these industries belonged to the Germans, whose yearly
output amounted to more than one-half of the grand total, _i.e._, to
150,000,000 roubles.[39] In all these industrial and commercial
campaigns the German prime movers had carried out their operations
more or less openly. But where interests affecting the defences of the
Empire were concerned, caution was the first condition of success,
and, as usual, the Teutons proved supple and adaptable. By way of
levying an attack against the shipbuilding industry, they pushed shaky
Russian concerns into the foreground, while studiously keeping
themselves out of view. Thus in one case new Russian banks were
founded, and old ones in a state of decay were revived by means of
German capital and encouraged to form a syndicate with the
Nikolayeffsky shipbuilding works and certain foreign banks. An
official inquiry, presided over by Senator Neidhardt, lately revealed
the significant fact that each firm of this syndicate had bound itself
to demand identical prices for the construction of Russian ships, and
under no circumstances to abate an iota of the demand. And it was
further agreed that these prices _should be so calculated as to yield
to the members of the syndicate one hundred per cent. profit_.

[39] Cf. Duma debates of August 1914.

This allegation is not a mere inference, nor a rumour. It is an
established fact. Neither is the proof circumstantial; it consists of
the original agreement in writing signed by the authorized
representatives of the institutions concerned. The data were laid
before the members of the Russian Duma by A. N. Khvostoff.[40] Thus
the Russian peasant is taxed for the creation of a fleet, and the Duma
votes an initial credit of, say, 500,000,000 roubles for the purpose.
And if the shipbuilding companies and their financial bankers were
honest the aim could be achieved. But in the circumstances what it
comes to is that the nation must pay 500,000,000 more, in order to get
what it wants. And this tax of a hundred per cent. is levied by Ger