United States Minister Morris at Stockholm cabled to the State Department on May 14:

Swedish press reports from Moscow state that Count von Mirbach recently transmitted to the Commissariat of the People a note formulated as an ultimatum and demanding the immediate effecting of certain financial measures which would practically make Russia a German colony. The chief points of the note were the immediate solution of the question regarding the exchange of prisoners, the complete abolishment of armaments, and the dissolution of units formed recently; also the occupation of Moscow and some other large Russian cities.

On the same date it was reported from Moscow that the Germans had captured Rostov-on-Don, thus gaining control of the Caucasus, the grain districts in the Donnetz Basin, and the coal, iron, and oil fields. Northern Russia was thus cut off from the Caucasus, excepting for a single railroad running through Tsaritsin, in the southern part of the Government of Saratov, which the Germans were threatening.

The dispatch continued as follows:

The Governmental power in its entire Government, with which it had made peace, is regarded by North Russia as a step toward its occupation. Within a few weeks the future of Petrograd and Moscow probably will be determined, as it is considered that the Soviet Government either must submit to German domination or retreat eastward and prepare for a defense against the invaders. Effective resistance will be difficult without outside assistance, because of the lack of technical experts and supplies. The bitter feeling against Germany is intensified by the ruthless seizures in Ukraine, and a growing disposition to accept allied aid if the Entente Allies will recognize the Bolshevist Government is evident.

RUSSIA'S LOSSES

The Commissariat of Commerce on April 10 gave the following summary of what Russia lost by the Treaty of Brest-Litovsk:

Inhabitants56,000,000
(About one-third total European Russia.)
Territory300,000square miles
(About one-sixth total European area.)
Railways13,000miles
(About one-third total mileage.)
Coal89per cent.
Iron73per cent.
Machinery1,073factories.
Textiles918factories.
Paper615factories.
Chemicals244factories.
Tobacco133factories.
Spirits1,685distilleries.
Beer574breweries.
Sugar268refineries.

The lost territories used to yield an annual revenue of nearly $425,000,000 and boasted 1,800 savings banks.