Record of Events Placing Finland and the Ukraine More Fully Under Teutonic Control

During the month ended May 15, 1918, the German advance in the territory of the former Russian Empire continued uninterruptedly. While minor military operations were conducted in the Province of Kursk, in Russia proper, the main body of the invading army occupied the Crimea and penetrated into the Donetz coal basin. On April 24 the German troops, under General Kosch, reached the City of Simferopol, in the Crimea. A week later they occupied Sebastopol, the great military and commercial seaport, famous in Russian history. A portion of the Russian Black Sea fleet fell into the hands of the Germans. On May 3 the invaders seized Taganrog, on the Sea of Azov. On May 9 they took Rostov, at the mouth of the River Don, but two days later the city was again in Russian hands. The Germans are apparently intent on occupying the seacoast from Bessarabia, on the west, to the Caucasus, on the east.

The Bolshevist régime gave signs of undergoing a process of reorganization. It sought to enlist the services of officials who had served under the Provisional Government and of Generals of the old army. A new War Department was formed. Trotzky, the Minister of War and Marine, advocated universal conscription of labor. The Central Executive Committee, at his suggestion, decreed compulsory military service. Workmen and peasants from 18 to 40 years old were to be trained for eight consecutive weeks, for a weekly minimum of eight hours. Women were accepted into the army as volunteers.

The Bolshevist authorities made several attempts to suppress rioting and street looting. Early in May the Red Guards fought a pitched battle with the Moscow anarchists, who refused to surrender their munitions, and stamped out their organization. The Soviets passed resolutions and took measures against the anti-Jewish massacres which occurred in numerous cities. Disorder and mob rule, however, continued to prevail in Russia, while hunger and unemployment were daily increasing.

INDUSTRY CRIPPLED

On April 16 M. Gukovsky, the Commissary for Finance, reported to the Central Executive Committee of the Soviets on Russia's financial and industrial condition. He said that the semi-yearly expenditure would amount to 4,000,000,000 rubles, while the income expected was only 3,300,000,000 rubles. The railroads had lost 70 per cent. of their freight capacity, and the cost of operation had increased ten times, (120,000 against 11,600 rubles per versta.) The Central Government, he stated, derived no revenue from taxes, as the local Soviets used the sums they collected for their own purposes. To illustrate the industrial conditions the Commissary cited the example of the Sormov locomotive works, whose daily output is two locomotives, instead of eighteen as formerly. M. Gukovsky recommended strict economy in expenditures and urged the necessity of securing the services of financial and industrial experts for the purpose of organizing an efficient State machinery.

Among the recent legislative measures of the Moscow Government must be mentioned the nationalization of foreign trade, which is a part of the general Bolshevist scheme of Socialist reforms. A special board has been created to regulate the prices of all exports and imports.

In the middle of April hostilities were reopened between the newly collected troops of General Korniloff, former Russian Commander in Chief, and the Bolshevist forces. It was reported that the Bolsheviki heavily defeated the anti-Soviet troops, capturing Novocherkask and wounding the Cossack General. It was also stated that General Dutoff, another anti-Bolshevist leader, was captured by the Soviet troops, and that General Semyonov, the leader of the Cossack movement against the Bolsheviki in Siberia, was killed.

The incident of the Japanese landing at Vladivostok was near closing, when further interest in the Far Eastern situation was aroused in Russia by a number of documents seized on the person of a member of the anti-Soviet "Siberian Government." According to a note addressed on April 26 by M. Chicherin to diplomatic representatives in Moscow, these documents proved that the Consuls of Great Britain, France, and America—and the diplomatic representatives of these powers in Peking—sought to interfere in the internal affairs of Russia by participating in the counter-revolutionary movement for an autonomous Government in Siberia. A similar charge was laid to the Japanese officials. The Russian Government, therefore, demanded the recall of the allied Consular officers at Vladivostok, also asking the Allies to define their attitude toward the Soviet Government. Neither Ambassador Francis nor the French Ambassador, M. Noulens, made any official reply to the Russian charges. M. Noulens had previously drawn upon himself the wrath of the Bolsheviki by declaring that the armed intervention of the Allies in Russia would be an act of friendly assistance. Mr. Francis informally notified the Moscow Government that, in his opinion, the documents failed to involve the American officials. On May 9 Secretary Lansing instructed him to present informally to the Russian Foreign Office a denial of its charge against the American Consul at Vladivostok.

ENEMY PROPAGANDA