VIII INDUSTRY UNDER SOVIET CONTROL |
For the student of the evolution of Bolshevism in Russia there is, perhaps, no task more difficult than to unravel the tangled skein of the history of the first few weeks after the coup d’État. Whoever attempts to set forth the development of events during those weeks in an ordered and consecutive narrative, and to present an accurate, yet intelligible, account of the conditions that prevailed, must toil patiently through a bewildering snarled mass of conflicting testimony, charges and counter-charges, claims and counter-claims. Statements concerning apparently simple matters of fact, made by witnesses whose competence and probity are not to be lightly questioned, upon events of which they were witnesses, are simply irreconcilable. Moreover, there is a perfect welter of sweeping generalizations and an almost complete lack of such direct and definite information, statistical and other, as can readily be found relating to both the earlier and the later stages of the Revolution. Let us first set down the facts concerning which there is substantial agreement on the part of the partizans of the Bolsheviki and the various factions opposed to them, ranging from the Constitutional-Democrats to such factions as the Socialists-Revolutionists of the Left and the “Internationalist” section of the Menshevist Social Democrats, both of which were quite closely allied to the Bolsheviki in sympathy and in theory. At the time when the Bolsheviki raised the cry, “All power to the Soviets!” in October, 1917, arrangements were well under way for the election, upon the most democratic basis imaginable, of a great representative constitutional convention, the Constituent Assembly. Not only had the Bolsheviki nominated their candidates and entered upon an electoral campaign in advocacy of their program; not only were they, in common with all other parties, pledged to the holding of the Constituent Assembly; much more important is the fact that they professed to be, and were by many regarded as, the special champions and defenders of the Constituent Assembly, solicitous above all else for its convocation and its integrity. From June onward Trotsky, Kamenev, and other Bolshevist leaders had professed to fear only that the Provisional Government would either refuse to convoke the Constituent Assembly or in some manner prevent its free action. No small part of the influence possessed by the Bolsheviki immediately prior to the overthrow of Kerensky was due to the fact that, far from being suspected of hostility to the Constituent Assembly, they were widely regarded as its most vigorous and determined upholders. To confirm that belief the Council of the People’s Commissaries issued this, its first decree: In the name of the Government of the Russian Republic, chosen by the All-Russian Congress of Soviets of Workers’ and Soldiers’ Deputies with participation of peasant deputies, the Council of People’s Commissars decrees: 1. The elections for the Constituent Assembly shall take place at the date determined upon—November 12th. 2. All electoral commissions, organs of local self-government, Soviets of Workers’, Soldiers’, and Peasants’ Deputies, and soldiers’ organizations on the front should make every effort to assure free and regular elections at the date determined upon. In the name of the Government of the Russian Republic, The President of the Council of People’s Commissars, Vladimir Ulianov—Lenin. That was in November, 1917—and the Constituent Assembly has not yet been convoked. In Pravda, December 26, 1917, Lenin published a series of propositions to show that the elections, which had taken place since the Bolsheviki assumed power, did not give a clear indication of the real voice of the masses! The elections had gone heavily against the Bolsheviki, and that fact doubtless explains Lenin’s disingenuous argument. Later on Lenin was able to announce that no assembly elected by the masses by universal suffrage could be accepted! “The Soviet Republic repudiates the hypocrisy of formal equality of all human beings,” he wrote in his Letter to American Workmen. It is quite certain that the political power and influence of the Soviets was never so small at any time since the birth of the Revolution in March as it was when the Bolsheviki raised the cry, “All power to the Soviets!” The reasons for this, if not obvious, are easily intelligible: the mere facts that the election of a thoroughly democratic constitutional convention at an early date was assured, and that the electoral campaign had already begun, were by themselves sufficient to cause many of those actively engaged in the revolutionary struggle to turn their interest from the politics of the Soviets to the greater political issues connected with the campaign for the Constituent Assembly elections. There were other factors at work lessening the popular interest in and, consequently, the political influence of, the Soviets. In the first place, the hectic excitement of the early stages of the Revolution had passed off, together with its novelty, and life had assumed a tempo nearer normal; in the second place, city Dumas and the local Zemstvos, which had been elected during the summer, upon a thoroughly democratic basis, were functioning, and, naturally, absorbing much energy which had hitherto been devoted to the Soviets. Concerning these things there is little room for dispute. The Izvestia of the Soviets again and again called attention to the waning power and influence of the Soviets, always cheerfully and with wise appreciation. On September 28, 1917, it said: At last a truly democratic government, born of the will of all classes of the Russian people, the first rough form of the future liberal parliamentary rÉgime, has been formed. Ahead of us is the Constituent Assembly, which will solve all questions of fundamental law, and whose composition will be essentially democratic. The function of the Soviets is at an end, and the time is approaching when they must retire, with the rest of the revolutionary machinery, from the stage of a free and victorious people, whose weapons shall hereafter be the peaceful ones of political action. On October 23, 1917, Izvestia published an important article dealing with this subject, saying: We ourselves are being called the “undertakers” of our own organization. In reality, we are the hardest workers in constructing the new Russia.... When autocracy and the entire bureaucratic rÉgime fell, we set up the Soviets as barracks in which all the democracy could find temporary shelter. Now, in place of barracks we are building the permanent edifice of a new system, and naturally the people will gradually leave the barracks for the more comfortable quarters. Dealing with the lessening activity of the local Soviets, scores of which had ceased to exist, the Soviet organ said: This is natural, for the people are coming to be interested in the more permanent organs of legislation—the municipal Dumas and the Zemstvos. Continuing, the article said: In the important centers of Petrograd and Moscow, where the Soviets were best organized, they did not take in all the democratic elements.... The majority of the intellectuals did not participate, and many workers also; some of the workers because they were politically backward, others because the center of gravity for them was in their unions.... We cannot deny that these organizations are firmly united with the masses, whose every-day needs are better served by them.... That the local democratic administrations are being energetically organized is highly important. The city Dumas are elected by universal suffrage, and in purely local matters have more authority than the Soviets. Not a single democrat will see anything wrong in this.... ... Elections to the municipalities are being conducted in a better and more democratic way than the elections to the Soviets.... All classes are represented in the municipalities.... And as soon as the local self-governments begin to organize life in the municipalities, the rÔle of the local Soviets naturally ends.... ... There are two factors in the falling off of interest in the Soviets. The first we may attribute to the lowering of political interest in the masses; the second to the growing effort of provincial and local governing bodies to organize the building of new Russia.... The more the tendency lies in this latter direction the sooner disappears the significance of the Soviets.... It seems to be hardly less certain, though less capable of complete demonstration, perhaps, that the influence of the Soviets in the factories was also on the wane. Perhaps it would be fairer to say that there was an increasing sense of responsibility and a lessening of the dangerous recklessness of the earlier stages of the Revolution. The factory Soviets in the time of the Provisional Government varied so greatly in their character and methods that it is rather difficult to accurately represent them in a brief description. Many of them were similar, in practice, to the shop meetings of the trades-unions; others more nearly resembled the Whitley Councils of England. There were still others, however, which asserted practically complete ownership of the factories and forced the real owners out. On March 20, 1917, Izvestia said: If any owner of an undertaking who is dissatisfied with the demands made by the workmen refuses to carry on the business, then the workmen must resolutely insist on the management of the work being given over into their hands, under the supervision of the Commissary of the Soviets. That is precisely what happened in many cases. We must not forget that the Bolsheviki did not introduce Soviet control of industry. That they did so is a very general belief, but, like so many other beliefs concerning Russia, it is erroneous. The longest trial of the Soviet control of industry took place under the rÉgime of the Provisional Government, in the pre-Bolshevist period. Many of the worst evils of the system were developed during that period, though as a result of Bolshevist propaganda and intrigue to a large degree. Industrial control by the workers, during the pre-Bolshevist period of the Revolution, and especially during the spring and early summer, was principally carried on by means of four distinct types of organization, to all of which the general term “Soviet” was commonly applied. Perhaps a brief description of each of these types will help to interpret the history of this period: (1) Factory Councils. These may be called the true factory Soviets. They existed in most factories, large and small alike, their size varying in proportion to the number of workers employed. In a small factory the Council might consist of seven or nine members; in a large factory the number might be sixty. The latter figure seems rarely to have been exceeded. Most of the Councils were elected by the workers directly, upon a basis of equal suffrage, every wage-worker, whether skilled or unskilled, male or female, being entitled to vote. Boys and girls were on the same footing as their elders in this respect. Generally the voting was done at mass-meetings, held during working-hours, the ordinary method being a show of hands. While there were exceptions to this rule, it was rare that foremen, technical supervisors, or other persons connected with the management were permitted to vote. In some cases the Council was elected indirectly, that is to say, it was selected by a committee, called the Workshop Committee. The Factory Council was not elected for any specified period of time, as a rule, and where a definite period for holding office was fixed, the right of recall was so easily invoked, and was so freely exercised, that the result was the same as if there had been no such provision. As a result of the nervous tension of the time, the inevitable reaction against long-continued repression, there was much friction at first and recalls and re-elections were common. The present writer has received several reports, from sources of indubitable authority, of factories in which two, and even three, Council elections were held in less than one month! Of course, this is an incidental fact, ascribable to the environment rather than to the institution. The Councils held their meetings during working-hours, the members receiving full pay for the time thus spent. Usually the Council would hold a daily meeting, and it was not uncommon for the meetings to last all day, and even into the evening—overtime being paid for the extra hours. Emile Vandervelde, the Belgian Socialist Minister of State—a most sympathetic observer—is authority for the statement that in one establishment in Petrograd, employing 8,000 skilled workers, the Factory Council, composed of forty-three men who each earned sixteen rubles per day of eight hours, sat regularly eight hours per day.24 To describe fully the functions of the Factory Councils would require many pages, so complex were they. Only a brief synopsis of their most important rights and duties is possible here. Broadly speaking, they possessed the right of control over everything, but no responsibility for successful management and administration. In their original form, and where the owners still remained at the head, the Councils did not interfere in such matters as the securing of raw materials, for example. They did not interest themselves in the financial side of the undertaking, at least not to see that its operations were profitable. Their concern was to control the working conditions and to “guard the interests of the workers.” They sometimes assumed the right to refuse to do work upon contracts of which they disapproved. Jealous in their exercise of the right to control, they would assume no responsibility for direction. At the same time, however, they asserted—and generally enforced—their right to determine everything relating to the engaging or dismissal of workers, the fixing of wages, hours of labor, rules of employment, and so on, as well as the selection of foremen, superintendents, technical experts, and even the principal managers of the establishments. Professor Ross quotes the statement made by the spokesman of the employers at Baku, adding that the men did strike and win: They ask that we grant leave on pay for a certain period to a sick employee. Most of us are doing that already. They stipulate that on dismissal an employee shall receive a month’s pay for every year he has been in our service. Agreed. They demand that no workman be dismissed without the consent of a committee representing the men. That’s all right. They require that we take on new men from a list submitted by them. That’s reasonable enough. They know far better than we can whether or not a fellow is safe to work alongside of in a dangerous business like ours. But when they demand control over the hiring and firing of all our employees—foremen, superintendents, and managers as well as workmen—we balk. We don’t see how we can yield that point without losing the control essential to discipline and efficiency. Yet if we don’t sign to-night, they threaten to strike.25 (2) Workshop Committees. This term was sometimes used instead of “Factory Councils,” particularly in the case of smaller factories, and much confusion in the published reports of the time may be attributed to this fact. Nothing is gained by an arbitrary division of Factory Councils on the basis of size, since there was no material difference in functions or methods. The term “Workshop Committee” was, however, applied to a different organization entirely, which was to be found in practically every large industrial establishment, along with, and generally subordinated to, the Factory Council. These committees usually carried out the policies formulated by the superior Factory Councils. They did the greater part of the work usually performed by a foreman, and their functions were sometimes summed up in the term “collective foremanship.” They decided who should be taken on and who employed; they decided when fines or other forms of punishment should be imposed for poor work, sabotage, and other offenses. The foreman was immediately responsible to them. Appeals from the decisions of these committees might be made to the Councils, either by the owners or the workers. Like the Councils, the committees were elected by universal, equal voting at open meetings; indeed, in some cases, only the Workshop Committee was so elected, being charged with the task of selecting the Factory Council. (3) Wages Committees. These committees existed in the large establishments, as a rule, especially those in which the labor employed was of many kinds and varying degrees of skill. Like all other factory organizations, they were elected by vote of the employees. Responsible to the Factory Councils, though independently elected, the Wages Committees classified all workers into their respective wage-groups, fixed prices for piece-work, and so on. They could, and frequently did, decide these matters independently, without consulting the management at all. (4) Committees of Arbitration and Adjustment. These seem to have been less common than the other committees already described. Elected solely by the workers, in the same manner as the other bodies described, they were charged with hearing and settling disputes arising, no matter from what cause. They dealt with the charges brought by individual employees, whether against the employers or against fellow-employees; they dealt, also, with complaints by the workers as a whole against conditions, with disputes over wages, and so on. In all cases of disputes between workers and employers the decision was left entirely to the elected representatives of the workers. The foregoing gives a very fair idea of the proletarian machinery set up in the factories under the Provisional Government. In one factory might be found operating these four popularly elected representative bodies, all of them holding meetings in working-hours and being paid for the time consumed; all of them involving more or less frequent elections. No matter how moderate and restrained the description may be, the impression can hardly fail to be one of appalling wastefulness and confusion. As a matter of fact, there is very general agreement that in practice, after the first few weeks, what seems a grotesque system worked reasonably well, or, at least, far better than its critics had believed possible. Of course, there was much overlapping of functions; there was much waste. On the other hand, wasteful strikes were avoided and the productive processes were maintained. Of course, the experiment was made under abnormal conditions. Not very much in the way of certain conclusion can be adduced from it. Opponents of the Soviet theory and system will always point to the striking decline of productive efficiency and say that it was the inevitable result of the Soviet control; believers in the theory and the system will say that the inefficiency would have been greater but for the Soviets. That there was an enormous decline in productive efficiency during the early part of the period of Soviet control cannot be disputed. The evidence of this is too overwhelmingly conclusive. As early as April, 1917, serious reports of this decline began to be made. It was said that in some factories the per capita daily production was less than a third of what it was a few weeks before. The air was filled with charges that the workers were loafing and malingering. On April 11th Tseretelli denounced these “foul slanders” at a meeting of the Petrograd Soviet and was wildly cheered. Nevertheless, one fact stood out—namely, the sharp decline in productivity in almost every line. There were not a few cases in which the owners and highly trained managers were forced out entirely and their places filled by wholly incompetent men possessing no technical training at all. An extreme illustration is quoted by Ross:26 In a factory in southern Russia the workers forced the owner out and then undertook to run the plant themselves. When they had used up the small supply of raw material they had they began to sell the machines out of the works in order to get money to buy more raw material; then, when they obtained the raw material, they lacked the machinery for working it up. Of course, the incident is simply an illustration of extreme folly, merely. Men misuse safety razors to commit suicide with in extreme cases, and the misuse of Soviet power in isolated cases proves little of value. On the other hand, the case cited by Ross is only an extreme instance of a very general practice. Many factories were taken over in the same way, after the competent directors had been driven out, and were brought to ruin by the Soviets. It was a general practice or, at any rate, a common one, which drew from Skobelev, Minister of Labor, this protest, which Izvestia published at the beginning of May: The seizure of factories makes workmen without any experience in management, and without working capital, temporarily masters of such undertakings, but soon leads to their being closed down, or to the subjugation of the workmen to a still harder taskmaster. On July 10th Skobelev issued another stirring appeal to the workers, pointing out that “the success of the struggle against economic devastation depends upon the productivity of labor, and pointing out the danger of the growing anarchy. The appeal is too long to quote in its entirety, but the following paragraphs give a good idea of it, and, at the same time, indicate how serious the demoralization of the workers had become: Workmen, comrades, I appeal to you at a critical period of the Revolution. Industrial output is rapidly declining, the quantity of necessary manufactured articles is diminishing, the peasants are deprived of industrial supplies, we are threatened with fresh food complications and increasing national destitution. The Revolution has swept away the oppression of the police rÉgime, which stifled the labor movement, and the liberated working-class is enabled to defend its economic interests by the mere force of its class solidarity and unity. They possess the freedom of strikes, they have professional unions, which can adapt the tactics of a mass economic movement, according to the conditions of the present economic crisis. However, at present purely elemental tendencies are gaining the upper hand over organized movement, and without regard to the limited resources of the state, and without any reckoning as to the state of the industry in which you are employed, and to the detriment of the proletarian class movement, you sometimes obtain an increase of wages which disorganizes the enterprise and drains the exchequer. Frequently the workmen refuse all negotiations and by menace of violence force the gratification of their demands. They use violence against officials and managers, dismiss them of their own accord, interfere arbitrarily with the technical management, and even attempt to take the whole enterprise into their own hands. Workmen, comrades, our socialistic ideals shall be attained not by the seizure of separate factories, but by a high standard of economic organization, by the intelligence of the masses, and the wide development of the country’s productive forces.... Workmen, comrades, remember not only your rights, but also your duties; think not only of your wishes, but of the possibilities of granting them, not only of your own good, but of the sacrifices necessary for the consolidation of the Revolution and the triumph of our ideals. In July the per capita output in the munition-works of Petrograd was reported as being only 25 per cent. of what it was at the beginning of the year. In August Kornilov told the Moscow Democratic Conference that the productivity of the workers in the great gun and shell plants had declined 60 per cent., as compared with the three months immediately prior to the Revolution; that the decline at the aeroplane-factories was still greater, not less than 70 per cent. No denial of this came from the representatives of the Soviets. In Petrograd, Nijni-Novgorod, Saratov, and other large centers there was an estimated general decline of production of between 60 and 70 per cent. The representatives of the workers, the Soviet leaders, said that the decline, which they admitted, was due to causes over which the Soviets had no control to a far greater degree than to any conscious or unconscious sabotage by the workers. They admitted that many of the workers had not yet got used to freedom; that they interpreted it as meaning freedom from work. There was a very natural reaction, they said, against the tremendous pace which had been maintained under the old rÉgime. They insisted, however, that this temporary failing of the workers was a minor cause only, and that far greater causes were (1) deterioration of machinery; (2) withdrawal for military reasons and purposes of many of the most capable and efficient workers; (3) shortage and poor quality of materials. There is room here for an endless controversy, and the present writer does not intend to enter into it. He is convinced that the three causes named by the Soviet defenders were responsible for a not inconsiderable proportion of the decline in productivity, but that the Soviets and the impaired morale of the workers were the main causes. In the mining of coal and iron, the manufacture of munitions, locomotives, textiles, metal goods, paper, and practically everything else, the available reports show an enormous increase in production cost per unit, accompanied by a very great decline in average per capita production. It is true that there were exceptions to this rule, that there were factories in which, after the first few days of the revolutionary excitation in March, production per capita rose and was maintained at a high level for a long time—until the Bolsheviki secured ascendancy in those factories, in fact. The writer has seen and examined numerous reports indicating this, but prefers to confine himself to the citation of such reports as come with the authority of responsible and trusted witnesses. Such a report is that of the Social Democrat, the workman Menshekov, concerning the Ijevski factory with its 40,000 workmen, and of the sales department of which he was made manager when full Soviet control was established. In that position he had access to the books showing production for the years 1916, 1917, and 1918, and the figures show that under the Provisional Government production rose, but that it declined with the rise of Bolshevism among the workers and declined more rapidly when the Bolsheviki gained control. Such another witness is the trades-unionist and Social Democrat, Oupovalov, concerning production in the great Sormovo Works, in the Province of Nijni-Novgorod, which during the war employed 20,000 persons. Not only was production maintained, but there was even a marked improvement. The writer has been permitted to examine the documentary evidence in the possession of these men and believes that it fully confirms and justifies the claim that, where there was an earnest desire on the part of the workers to maintain and even to improve production, this proved possible under Soviet control. The fact seems quite clear to the writer (though perhaps impossible to prove by an adequate volume of concrete evidence) that the impaired morale of the workers which resulted in lessened production was due to two principal causes, namely, Bolshevist propaganda and the lack of an intelligent understanding on the part of masses of workers who were not mentally or morally ready for the freedom which was suddenly thrust upon them. The condition of these latter is readily understood and appreciated. The disciplines and self-compulsions of freedom are not learned in a day. When we reflect upon the conditions that obtained under czarism, we can hardly wonder that so many of the victims of those conditions should have mistaken license for liberty, or that they should have failed to see the vital connection between their own honest effort in the shop and the success of the Revolution they were celebrating. All through the summer the Bolsheviki were carrying on their propaganda among the workers in the shops as well as among the troops at the front. Just as they preached desertion to the soldiers, so they preached sabotage and advocated obstructive strikes among the workers in the factories. This was a logical thing for them to do; they wanted to break up the military machine in order to compel peace, and a blow at that machine was as effective when struck in the factory as anywhere else. For men who were preaching mass desertion and mutiny at the front, sabotage in the munition-works at the rear, or in the transportation service on which the army depended, was a logical policy. It is as certain as anything can be that the Bolshevist agitation was one of the primary causes of the alarming decrease in the production during the rÉgime of the Provisional Government. On the other hand, the Socialist leaders who supported the Provisional Government waged a vigorous propaganda among the workers, urging them to increase production. Where they made headway, in general there production was maintained, or the decline was relatively small. The counterpart of that patriotism which Kerensky preached among the troops at the front with such magnificent energy was preached among the factory-workers. Here is what Jandarmov says: It is a mistake to suppose that output was interfered with, for, to do our working-class justice, nowhere was work delayed for more than two days, and in many factories this epoch-making development was taken without a pause in the ordinary routine. I cannot too strongly insist upon the altogether unanimous idealism of those early days. There was not an ugly streak in that beautiful dawn where now the skies are glowering and red and frightful. I say that output was speeded up. I, as chairman of the first Soviet,27 assure you that we received fifty-seven papers from workmen containing proposals for increasing the efficiency of the factory; and that spirit lasted three months, figures of output went well up and old closed-down factories were reopened. New Russia was bursting with energy—the sluice-gates of our character were unlocked. That is, “first Soviet” at the Lisvinsk factory, about seventy miles from Perm. There must have been a great deal of that exalted feeling among the intelligent working-men of Russia in those stirring times. No one who has known anything of the spiritual passion, of sacrificial quality, which has characterized the Russian revolutionary movement can doubt this. Of course, Jandarmov is referring to the early months before Bolshevism began to spread in that district. Then there was a change. It was the old, old story of rapidly declining production: But after the first few months the workers as a whole began to fall under the spell of catchwords and stock phrases. Agitation began among the lower workers. Bolshevism started in the ranks of unskilled labor. They clamored for the reduction of hours and down went the output. The defenders of the idea of the shortest possible working-day were the same men who afterward turned out very fiends of Bolshevism and every disorder. I watched the growing of their madness and the development of their claims, each more impossible than the last. In the Kiselovski mines the output of 2,000,000 poods monthly dropped to 300,000, and the foundries of Upper Serginski produced 1,200 poods of iron instead of 2,000. Why such a fall? The engineers wondered how workers could reduce output to such an extent if they tried, but one soon ceased to wonder at the disasters that followed in quick succession. There was anarchy in the factories and a premium on idleness became the order of the day. It was a positive danger to work more than the laziest unskilled laborer, because this was the type of man who always seemed to get to the top of the Soviet. “Traitor to the interests of Labor” you were called if you exceeded the time limit, which soon became two hours a day.28 By September, 1917, a healthy reaction against the abuses of Soviet industrial control was making itself felt in the factories. The workers were making less extravagant demands and accepting the fact that they could gain nothing by paralyzing production; that reducing the quantity and the quality of production can only result in disaster to the nation, and, most of all, to the workers themselves. In numerous instances the factory Soviets had called back the owners they had forced out, and the managers and technical directors they had dismissed, and restored the authority of foremen. In other words, they ceased to be controlling authorities and became simply consultative bodies. While, therefore, they were becoming valuable democratic agencies, the economic power and influence of the Soviets was waning. On the day of the coup d’État, November 7, 1917, the Bolshevist Military Revolutionary Committee issued a special proclamation which said, “The goal for which the people fought, the immediate proposal of a democratic peace, the abolition of private landed property, labor control of industry, the establishment of a Soviet Government—all this is guaranteed.” Seven days later, November 14th, a decree was issued, giving an outline of the manner in which the control of industry by the Soviets was to be organized and carried out. The principal features of this outline plan are set forth in the following paragraphs: (1) In order to put the economic life of the country on an orderly basis, control by the workers is instituted over all industrial, commercial, and agricultural undertakings and societies; and those connected with banking and transport, as well as over productive co-operative societies which employ labor or put out work to be done at home or in connection with the production, purchase, and sale of commodities and of raw materials, and with conservation of such commodities as well as regards the financial aspect of such undertakings. (2) Control is exercised by all the workers of a given enterprise through the medium of their elected organs, such as factories and works committees, councils of workmen’s delegates, etc., such organs equally comprising representatives of the employees and of the technical staff. (3) In each important industrial town, province, or district is set up a local workmen’s organ of control, which, being the organ of the soldiers’, workmen’s, and peasants’ council, will comprise the representatives of the labor unions, workmen’s committees, and of any other factories, as well as of workmen’s co-operative societies. (5) Side by side with the Workmen’s Supreme Council of the Labor Unions, committees of inspection comprising technical specialists, accountants, etc. These committees, both on their own initiative or at the request of local workmen’s organs of control, proceed to a given locality to study the financial and technical side of any enterprise. (6) The Workmen’s Organs of Control have the right to supervise production, to fix a minimum wage in any undertaking, and to take steps to fix the prices at which manufactured articles are to be sold. (7) The Workmen’s Organs of Control have the right to control all correspondence passing in connection with the business of an undertaking, being held responsible before a court of justice for diverting their correspondence. Commercial secrets are abolished. The owners are called upon to produce to the Workmen’s Organs of Control all books and moneys in hand, both relating to the current year and to any previous transactions. (8) The decisions of the Workmen’s Organs of Control are binding upon the owners of undertakings, and cannot be nullified save by the decision of a Workmen’s Superior Organ of Control. (9) Three days are given to the owners, or the administrators of a business, to appeal to a Workmen’s Superior Court of Control against the decisions filed by any of the lower organs of Workmen’s Control. (10) In all undertakings, the owners and the representatives of workmen and of employees delegated to exercise control on behalf of the workmen, are responsible to the government for the maintenance of strict order and discipline, and for the conservation of property (goods). Those guilty of misappropriating materials and products, of not keeping books properly, and of similar offenses, are liable to prosecution. It was not until December 27, 1917—seven weeks after their arbitrary seizure of the reins of government—that the Bolsheviki published the details of their scheme. Both the original preliminary outline and the later carefully elaborated scheme made it quite evident that, no matter how loudly and grandiloquently Lenin, Trotsky, Miliutin, Smedevich, and others might talk about the “introduction” of workers’ control, in point of fact they were only thinking of giving a certain legal status to the Soviet system of control already in operation. That system, as we have already seen, had been in their hands for some time. They had used it to destroy efficiency, to cripple the factories and assist in paralyzing the government and the military forces of the nation. Now that they were no longer an opposition party trying to upset the government, but were themselves the de facto government, the Bolsheviki could no longer afford to pursue the policy of encouraging the factory Soviets to sabotage. Maximum production was the first necessity of the Bolshevist Government, quite as truly as it had been for the Provisional Government, and as it must have been for any other government. Sabotage in the factories had been an important means of combating the Provisional Government, but now it must be quickly eliminated. So long as they were in the position of being a party of revolt the Bolshevist leaders were ready to approve the seizure of factories by the workers, regardless of the consequences to industrial production or to the military enterprises dependent upon that production. As the governing power of the nation, in full possession of the machinery of government, such ruinous action by the workers could not be tolerated. For the same reasons, the demoralization of the army, which they had laboriously fostered, must now be arrested. In the instructions to the All-Russian Council of Workers’ Control, published December 27, 1917, we find no important extension of the existing Soviet control; we do, however, find its legalization with important limitations. These limitations, moreover, are merely legalistic formulations of the modifications already developed in practice and obtaining in many factories. A comparison of the full text of the instructions with the account of the system of factory control under the Provisional Government will demonstrate this beyond doubt.29 The control in each enterprise is to be organized “either by the Shop or Factory Committee or by the General Assembly of workers and employees of the enterprise, who elect a Special Commission of Control” (Article I). In “large-scale enterprises” the election of such a Control Commission is compulsory. To the Commission of Control is given sole authority to “enter into relations with the management upon the subject of control,” though it may give authorization to other workers to enter into such relations if it sees fit (Article III). The Control Commission must make report to the general body of workers and employees in the enterprise “at least twice a month” (Article IV). The article (No. 5) which deals with and defines the “Duties and Privileges of the Control Commission” is so elaborate that it is almost impossible to summarize it without injustice. It is, therefore, well to quote it in full. V. The Control Commission of each enterprise is required: 1. To determine the stock of goods and fuel possessed by the plant, and the amount of these needed respectively for the machinery of production, the technical personnel, and the laborers by specialties. 2. To determine to what extent the plant is provided with everything that is necessary to insure its normal operation. 3. To forecast whether there is danger of the plant closing down or lowering production, and what the causes are. 4. To determine the number of workers by specialties likely to be unemployed, basing the estimate upon the reserve supply and the expected receipts of fuel and materials. 5. To determine the measures to be taken to maintain discipline in work among the workers and employees. 6. To superintend the execution of the decisions of governmental agencies regulating the buying and selling of goods. 7. (a) To prevent the arbitrary removal of machines, materials, fuel, etc., from the plant without authorization from the agencies which regulate economic affairs, and to see that inventories are not tampered with. (b) To assist in explaining the causes of the lowering of production and to take measures for raising it. 8. To assist in elucidating the possibility of a complete or partial utilization of the plant for some kind of production (especially how to pass from a war to a peace footing, and what kind of production should be undertaken), to determine what changes should be made in the equipment of the plant and in the number of its personnel, to accomplish this purpose; to determine in what period of time these changes can be effected; to determine what is necessary in order to make them, and the probable amount of production after the change is made to another kind of manufacture. 9. To aid in the study of the possibility of developing the kinds of labor required by the necessities of peace-times, such as the methods of using three shifts of workmen, or any other method, by furnishing information on the possibilities of housing the additional number of laborers and their families. 10. To see that the production of the plant is maintained at the figures to be fixed by the governmental regulating agencies, and until such time as these figures shall have been fixed to see that the production reaches the normal average for the plant, judged by a standard of conscientious labor. 11. To co-operate in estimating costs of production of the plant upon the demand of the higher agency of workers’ control or upon the demand of the governmental regulating institutions. It is expressly stipulated that only the owner has “the right to give orders to the directors of the plant”; that the Control Commission “does not participate in the management of the plant and has no responsibility for its development and operation” (Article VII). It is also definitely stated that the Control Commission has no concern with financial management of the plant (Article VIII). Finally, while it has the right to “recommend for the consideration of the governmental regulating institutions the question of the sequestration of the plant or other measures of constraint upon the plant,” the Control Commission “has not the right to seize and direct the enterprise” (Article IX). These are the principal clauses of this remarkable document relating to the functions and methods of the Soviet system of control in the factory itself; other clauses deal with the relations of the factory organizations to the central governmental authority and to the trades-unions. They prescribe and define a most elaborate system of bureaucracy. So much for the imperium in imperio of the Soviet system of industrial control conceived by the Bolsheviki. In many important respects it is much more conservative than the system itself had been under Kerensky. It gives legal form and force to those very modifications which had been brought about, and it specifically prohibits the very abuses the Bolshevist agitators had fostered and the elimination of which they had everywhere bitterly resisted. Practically every provision in the elaborate decree of instructions limiting the authority of the workers, defining the rights of the managers, insisting upon the maintenance of production, and the like, the Kerensky government had endeavored to introduce, being opposed and denounced therefor by the Bolsheviki. It is easy to imagine how bitterly that decree of instructions on Workers’ Control would have been denounced by Lenin and Trotsky had it been issued by Kerensky’s Cabinet in July or August. Let us not make the mistake, however, of assuming that because the Bolsheviki in power thus sought to improve the system of industrial control, to purge it of its weaknesses—its reckless lawlessness, sabotage, tyranny, dishonesty, and incompetence—that there was actually a corresponding improvement in the system itself. The pro-Bolshevist writers in this country and in western Europe have pointed to these instructions, and to many other decrees conceived in a similar spirit and couched in a similar tone, as conclusive evidence of moderation, constructive statesmanship, and wise intention. Alas! in statesmanship good intention is of little value. In politics and social polity, as in life generally, the road to destruction is paved with “good intentions.” The Lenins and Trotskys, who in opposition and revolt were filled with the fury of destruction, might be capable of becoming builders under the influence of a solemn recognition of the obligations of authority and power. But for the masses of the people no such change was possible. Such miracles do not happen, except in the disordered imaginations of those whose minds are afflicted with moral Daltonism and that incapacity for sequential thinking which characterizes such a wide variety of subnormal mentalities. By their propaganda the Bolsheviki had fostered an extremely anti-social consciousness, embracing sabotage, lawlessness, and narrow selfishness; the manner in which they had seized the governmental power, and brutally frustrated the achievement of that great democratic purpose which had behind it the greatest collective spiritual impulse in the history of the nation, greatly intensified that anti-social consciousness. Now that they were in power these madmen hoped that in the twinkling of an eye, by the mere issuance of decrees and manifestoes, they could eradicate the evil thing. Canute’s command to the tide was not one whit more vain than their verbose decrees hurled against the relentless and irresistible sequence of cause and effect. Loafing, waste, disorder, and sabotage continued in the factories, as great a burden to the Bolshevist oligarchs as they had been to the democrats. Workers continued to “seize” factories as before, and production steadily declined to the music of an insatiable demand on the part of the workers for more pay. There was no change in the situation, except in so far as it grew worse. The governmental machine grew until it became like an immense swarm of devastating locusts, devouring everything and producing nothing. History does not furnish another such record of industrial chaos and ruinous inefficiency. Five days after the seizure of power by the Bolsheviki, the Commissar of Labor, Shliapnikov, issued a protest against sabotage and violence. Naturally, he ascribed the excesses of the workers to provocation by the propertied classes. That “proletarian consciousness” upon which the Bolsheviki based their faith must have been sadly lacking in the workers if, at such a time, they were susceptible to the influence of the “propertied classes.” The fact is that the destructive anarchical spirit they had fostered was now a deadly menace to the Bolsheviki themselves. Shliapnikov wrote: The propertied classes are endeavoring to create anarchy and the ruin of industry by provoking the workmen to excesses and violence over the question of foremen, technicians, and engineers. They hope thereby to achieve the complete and final ruin of all the mills and factories. The revolutionary Commission of Labor asks you, our worker-comrades, to abstain from all acts of violence and excess. By a joint and creative work of the laboring masses and proletarian organizations, the Commission of Labor will know how to surmount all obstacles in its way. The new revolutionary government will apply the most drastic measures against all industrials and those who continue to sabotage industry, and thereby prevent the carrying out of the tasks and aims of the great proletarian and peasant Revolution. Executions without trial and other arbitrary acts will only damage the cause of the Revolution. The Commission of Labor calls on you for self-control and revolutionary discipline. In January, 1918, Lenin read to a gathering of party workers a characteristic series of numbered “theses,” which Izvestia published on March 8th of that year. In that document he said: 1. The situation of the Russian Revolution at the present moment is such that almost all workmen and the overwhelming majority of the peasants undoubtedly are on the side of the Soviet authority, and of the social revolution started by it. To that extent the success of the socialistic revolution in Russia is guaranteed. 2. At the same time the civil war, caused by the frantic resistance of the propertied classes which understand very well that they are facing the last and decisive struggle to preserve private property in land, and in the means of production, has not as yet reached its highest point. The victory of the Soviet authority in this war is guaranteed, but inevitably some time yet must pass, inevitably a considerable exertion of strength will be required, a certain period of acute disorganization and chaos, which always attend any war and in particular a civil war, is inevitable, before the resistance of the bourgeoisie will be crushed. 3. Further, this resistance takes less and less active and non-military forms: sabotage, bribing beggars, bribing agents of the bourgeoisie who have pushed themselves into the ranks of the Socialists in order to ruin the latter’s cause, etc. This resistance has proved stubborn, and capable of assuming so many different forms, that the struggle against it will inevitably drag along for a certain period, and will probably not be finished in its main aspects before several months. And without a decisive victory over this passive and concealed resistance of the bourgeoisie and its champions, the success of the socialistic revolution is impossible. 4. Finally, the organizing tasks of the socialistic reorganization of Russia are so enormous and difficult that a rather prolonged period of time is also required to solve them, in view of the large number of petty bourgeois fellow-travelers of the socialistic proletariat, and of the latter’s low cultural level. 5. All these circumstances taken together are such that from them result the necessity, for the success of Socialism in Russia, of a certain interval of time, not less than a few months, in the course of which the socialistic government must have its hands absolutely free, in order to triumph over the bourgeoisie, first of all in its own country, and in order to adopt broad and deep organizing activity. The greatest significance of Lenin’s words lies in their recognition of the seriousness of the non-military forms of resistance, sabotage, and the like, and of the “low cultural level” of the “socialistic proletariat.” Reading the foregoing statements carefully and remembering Lenin’s other utterances, both before and after, we are compelled to wonder whether he is intellectually dishonest, an unscrupulous trickster playing upon the credulity of his followers, or merely a loose thinker adrift and helpless on the swift tides of events. “For the success of Socialism ... not less than a few months” we read from the pen of the man who, in June of the previous year, while on his way from Switzerland, had written “Socialism cannot now prevail in Russia”; the same man who in May, 1918, was to tell his comrades “it is hardly to be expected that the even more developed coming generation will accomplish a complete transition to Socialism”; who later told Raymond Robins: “The Russian Revolution will probably fail. We have not developed far enough in the capitalist stage, we are too primitive to realize the Socialist state.”30 And yet—“the success of Socialism ... not less than a few months!” By the latter part of February, 1918, it was quite clear that the Soviet control of industry was “killing the goose that laid the golden eggs”; that it was ruining the industrial life of the nation. The official press began to discuss in the most serious manner the alarming decline in production and the staggering financial losses incurred in the operation of what formerly had been profitable enterprises. At the Extraordinary Congress of Soviets, in March, 1918, the seriousness of the situation caused great alarm and a desperate appeal was made to the workers to increase production, refrain from sabotage, and practise self-discipline. The congress urged “a merciless struggle against chaos and disorganization.” Lenin himself pointed out that confiscation of factories by the workers was ruining Russia. The very policy they had urged upon the workers, the seizure of the factories, was now seen as a menace. On April 28, 1918, Lenin said: “If we are to expropriate at this pace, we shall be certain to suffer a defeat. The organization of production under proletarian control is notoriously very much behind the expropriation of big masses of capital.”31 He had already come to realize that the task of transforming capitalist society to a Socialist society was not the easy matter he had believed shortly before. In September he had looked upon the task of realizing Socialism as a child might have done. It would require a Freudian expert to explain the silly childishness of this paragraph from The State and Revolution, published in September, 1917: Capitalist culture has created industry on a large scale in the shape of factories, railways, posts, telephones, and so forth; and on this basis the great majority of the functions of the old state have become enormously simplified and reduced in practice to very simple operations, such as registration, filing, and checking. Hence they will be quite within the reach of every literate person, and it will be possible to perform them for the usual “working-man’s wages.”32 Thus it was in September, before the overthrow of the Provisional Government. Then Lenin was at the head of a revolting faction and presented the task of reorganizing the state as very simple indeed. In April he was at the head of a government, confronted by realities, and emphasizing the enormous difficulty and complexity of the task of reorganization. The Soviets at Work and the later booklet, The Chief Tasks of Our Times, lay great emphasis upon the great difficulties to be overcome, the need of experienced and trained men, and the folly of expecting anything like immediate success. “We know all about Socialism,” he said, “but we do not know how to organize on a large scale, how to manage distribution, and so on. The old Bolshevist leaders have not taught us these things, and this is not to the credit of our party.”33
The same man who had urged the workers to “take possession of the factories” now realized how utterly unfitted the mass of the workers must be for undertaking the management of modern industrial establishments: To every deputation of workers which has come to me complaining that a factory was stopping work, I have said, “If you desire the confiscation of your factory the decree forms are ready, and I can sign a decree at once. But tell me: Can you take over the management of the concern? Have you reckoned what you can produce? Do you know the relations of your work with Russian and foreign markets?” Then it has appeared that they are inexperienced in these matters; that there is nothing about them in the Bolshevist literature, in the Menshevist, either.34 Lenin and his associates had been brought face to face with a condition which many Marxian Socialist writers had foreseen was likely to exist, not only in Russia, but in far more highly developed industrial nations, namely, a dangerous decline of production and of the average productivity of the workers, instead of the enormous increase which must be attained before any of the promises of Socialism could be redeemed. A few figures from official Bolshevist sources will serve to illustrate the seriousness of the decline in production. The great Soromovo Works had produced fifteen locomotives monthly, even during the last months of the Kerensky rÉgime. By the end of April, 1918, it was pointed out, the output was barely two per month. At the Mytishchy Works in Moscow, the production, as compared with 1916, was only 40 per cent. At this time the Donetz Basin was held by the Bolsheviki. The average monthly output in the coal-fields of this important territory prior to the arrival of the Bolsheviki was 125,000,000 poods. The rule of the Bolsheviki was marked by a serious and continuous decline in production, dropping almost at once to 80,000,000 poods and then steadily declining, month by month, until in April-May, 1918, it reached the low level of 26,000,000 poods.35 When the Bolsheviki were driven away, the production rose month by month, until, in December, 1918, it had reached 40,000,000 poods. Then the Bolsheviki won control once more and came back, and at once production declined with great swiftness, soon getting down to 24,000,000 poods.36 These figures, be it remembered, are official Bolshevist figures. So serious was the decline of production in every department that a commission was appointed to investigate the matter. The commission reported in January, 1919, and from its report the following facts are quoted: in the Moscow railway workshops the number of workmen in 1916 was 1,192; in 1917 the number was 1,179; in 1918 it was 1,772—an increase of 50 per cent. The number of holidays and “off days” rose from 6 per cent. in 1916 to 12 per cent. in 1917 and 39.5 per cent. in 1918. At the same time, each car turned out per month represented the labor of 3.35 men in 1918 as against 1 in 1917 and .44 in 1916. In the Mytishchy Works, Moscow, the loss of production was enormous. Taking the eight-hour day as a basis, and counting as 100 the production of 1916, the production in 1917 amounted to 75, and only 40 in 1918. In the coal-mines of the Moscow region the fall of labor productivity was equally marked. The normal production per man is given as 750 poods per month. In 1916 the production was 614 poods; in 1917 it was 448 poods, and in 1918 it was only 242 poods. In the textile industries the decline in productivity was 35 per cent., including the flax industry, which does not depend upon the importation of raw materials.37 In the Scherbatchev factory the per-capita production of calico was 68 per cent, lower than in 1917, according to the Economicheskaya Zhizn (No. 50). It is not necessary to quote additional statistics from the report of the investigating commission. The figures cited are entirely typical. The report as a whole reveals that there not only had been no arrest of the serious decline of the year 1917, but an additional decline at an accelerated rate, and that the condition was general throughout all branches of industry. The report attributes this serious condition partly to loss of efficiency in the workers due to under-nutrition, but more particularly to the mistaken conception of freedom held by the workers, their irresponsibility and indifference; to administrative chaos arising from inefficiency; and, finally, the enormous amount of time lost in holding meetings and elections and in endless committees. In general this report confirms the accounts furnished by the agent of the governments of Great Britain and the United States of America and published by them,38 as well as reports made by well-known European Socialists. As early as April, 1918, Lenin and other Bolshevist leaders had taken cognizance of the enormous loss of time consumed by the innumerable meetings which Soviet control of industry involved. Lenin claimed, with much good reason, that much of this wasteful talking was the natural reaction of men who had been repressed too long, though his argument is somewhat weakened by the fact that there had been eight months of such talk before the Bolshevist rÉgime began: The habit of holding meetings is ridiculed, and more often wrathfully hissed at by the bourgeoisie, Mensheviks, etc., who see only chaos, senseless bustle, and outbursts of petty bourgeoisie egoism. But without the “holding of meetings” the oppressed masses could never pass from the discipline forced by the exploiters to conscious and voluntary discipline. “Meeting-holding” is the real democracy of the toilers, their straightening out, their awakening to a new life, their first steps on the field which they themselves have cleared of reptiles (exploiters, imperialists, landed proprietors, capitalists), and which they want to learn to put in order themselves in their own way; for themselves, in accord with the principles of their, “Soviet,” rule, and not the rule of the foreigners, of the nobility and bourgeoisie. The November victory of the toilers against the exploiters was necessary; it was necessary to have a whole period of elementary discussion by the toilers themselves of the new conditions of life and of the new problems to make possible a secure transition to higher forms of labor discipline, to a conscious assimilation of the idea of the necessity of the dictatorship of the proletariat, to absolute submission to the personal orders of the representatives of the Soviet rule during work.39 There is a very characteristic touch of Machiavellian artistry in this reference to “a secure transition to higher forms of labor discipline,” in which there is to be “absolute submission to the personal orders of the representatives of the Soviet rule during work.” The eloquent apologia for the Soviet system of industrial control by the workers carries the announcement of the liquidation of that system. It is to be replaced by some “higher forms of labor discipline,” forms which will not attempt the impossible task of conducting factories on “debating-society lines.” The “petty bourgeois tendency to turn the members of the Soviets into ‘parliamentarians,’ or, on the other hand, into bureaucrats,” is to be combated. In many places the departments of the Soviets are turning “into organs which gradually merge with the commissariats”—in other words, are ceasing to function as governing bodies in the factories. There is a difficult transition to be made which alone will make possible “the definite realization of Socialism,” and that is to put an end to the wastefulness arising from the attempt to combine the discussion and solution of political problems with work in the factories. There must be a return to the system of uninterrupted work for so many hours, with politics after working-hours. That is what is meant by the statement: “It is our object to obtain the free performance of state obligations by every toiler after he is through with his eight-hour session of productive work.” Admirable wisdom! Saul among the prophets at last! The romancer turns realist! But this program cannot be carried out without making of the elaborate system of workers’ control a wreck, a thing of shreds and patches. Away goes the Utopian combination of factory and forum, in which the dynamos are stilled when there are speeches to be made—pathetic travesty of industry and government both. The toiler must learn that his “state obligations” are to be performed after the day’s work is done, and not in working-time at the expense of the pay-roll. More than this, it is necessary to place every factory under the absolute dictatorship of one person: Every large machine industry requires an absolute and strict unity of the will which directs the joint work of hundreds, thousands, and tens of thousands of people.... But how can we secure a strict unity of will? By subjecting the will of thousands to the will of one.40
If the workers are properly submissive, if they are “ideally conscious and disciplined,” this dictatorship may be a very mild affair; otherwise it will be stern and harsh: There is a lack of appreciation of the simple and obvious fact that, if the chief misfortunes of Russia are famine and unemployment, these misfortunes cannot be overcome by any outbursts of enthusiasm, but only by thorough and universal organization of discipline, in order to increase the production of bread for men and fuel for industry, to transport it in time, and to distribute it in the right way. That, therefore, responsibility for the pangs of famine and unemployment falls on every one who violates the labor discipline in any enterprise and in any business. That those who are responsible should be discovered, tried, and punished without mercy.41 Not only must the workers abandon their crude conception of industrial democracy as requiring the abolition of individual authority, but they must also abandon the notion that in the management of industry one man is as good as another. They must learn that experts are necessary:42 “Without the direction of specialists of different branches of knowledge, technique, and experience, the transformation toward Socialism is impossible.” Although it is a defection from proletarian principles, a compromise, “a step backward by our Socialist Soviet state,” it is necessary to “make use of the old bourgeois method and agree to a very high remuneration for the biggest of the bourgeois specialists.” The proletarian principles must still further be compromised and the payment of time wages on the basis of equal remuneration for all workers must give place to payment according to performance; piece-work must be adopted. Finally, the Taylor system of scientific management must be introduced: “The possibility of Socialism will be determined by our success in combining the Soviet rule and Soviet organization of management with the latest progressive measures of capitalism. We must introduce in Russia the study and the teaching of the Taylor system, and its systematic trial and adaptation.”43 In all this there is much that is fine and admirable, but it is in direct and fundamental opposition to the whole conception of industrial control by factory Soviets. No thoughtful person can read and compare the elaborate provisions of the Instructions on Workers’ Control, already summarized, and Lenin’s Soviets at Work without reaching the conclusion that the adoption of the proposals contained in the latter absolutely destroys the former. The end of the Soviet as a proletarian industry-directing instrument was already in sight. Bolshevism was about to enter upon a new phase. What the general character of that phase would be was quite clear. It had already been determined and Lenin’s task was to justify what was in reality a reversal of policy. The essential characteristics of the Soviet system in industry, having proved to be useless impedimenta, were to be discarded, and, in like manner, anti-Statism was to be exchanged for an exaggerated Statism. In February, 1918, the Bolshevist rulers of Russia were confronted by a grave menace, an evil inherent in Syndicalism in all its variant forms, including Bolshevism—namely, the assertion of exorbitant demands by workers employed in performing services of immediate and vital importance in the so-called “key industries.” Although the railway workers were only carrying the Bolshevist theories into practice, acquiescence in their demands would have placed the whole industrial life of Russia under their domination. Instead of a dictatorship of the proletariat, there would have been dictatorship by a single occupational group. Faced by this danger, the Bolshevist Government did not hesitate to nationalize the railways and place them under an absolute dictator, responsible, not to the railway workers, but to the central Soviet authority, the government. Wages, hours of labor, and working conditions were no longer subject to the decision of the railway workers’ councils, but were determined by the dictators appointed by the state. The railway workers’ unions were no longer recognized, and the right to strike was denied and strikes declared to be treason against the state. The railway workers’ councils were not abolished at first, but were reduced to a nominal existence as “consultative bodies,” which in practice were not consulted. Here was the apotheosis of the state: the new policy could not be restricted to railways; nationalization of industry, under state direction, was to take the place of the direction of industry by autonomous workers’ councils. In May, 1918, Commissar of Finances Gukovsky, staggered by the enormous loss incurred upon every hand, in his report to the Congress of Soviets called attention to the situation. He said that the railway system, the arterial system of the industrial life of the nation, was completely disorganized and demoralized. Freight-tonnage capacity had decreased by 70 per cent., while operating expenses had increased 150 per cent. Whereas before the war operating expenses were 11,579 rubles per verst, in May, 1918, wages alone amounted to 80,000 rubles per verst, the total working expenses being not less than 120,000 rubles per verst. A similar state of demoralization obtained, said Gukovsky, in the nationalized marine transportation service. In every department of industry, according to this highly competent authority, waste, inefficiency, idleness, and extravagance prevailed. He called attention to the swollen salary-list; the army of paid officials. Already the menace of what soon developed into a formidable bureaucracy was seen: “The machinery of the old rÉgime has been preserved, the ministries remain, and parallel with them Soviets have arisen—provincial, district, volost, and so forth.” In June, 1918, after the railways had been nationalized for some time, Kobozev, Bolshevist Commissar of Communications, said: “The eight-hour workday and the payment per hour have definitely disorganized the whole politically ignorant masses, who understand these slogans, not as an appeal to the most productive efficiency of a free citizen, but as a right to idleness unjustified by any technical means. Whole powerful railway workshops give a daily disgraceful exhibition of inactivity on the principle of ‘Why should I work when my neighbor is paid by time for doing no work at all?’” Although nationalization of industry had been decided upon in February, and a comprehensive plan for the administration and regulation of nationalized enterprises had been published in March, promulgated as a decree, with instructions that it must be enforced by the end of May, it was not until July that the Soviet Government really decided upon its enforcement. It should be said, however, that a good many factories were nationalized between April and July. Many factories were actually abandoned by their owners and directors, and had to be taken over. Many others were just taken in an “irregular manner” by the workers, who continued their independent confiscations. For this there was indeed some sort of authority in the decree of March, 1918.44 Transportation had broken down, and there was a lack of raw materials. It was officially reported that in May there were more than 250,000 unemployed workmen in Moscow alone. No less than 224 machine-shops, which had employed an aggregate of 120,000 men, were closed. Thirty-six textile factories, employing a total of 136,000 operatives, were likewise idle. To avert revolt, it was necessary to keep these unemployed workers upon the pay-roll. Under czarism the policy of subsidizing industrial establishments out of the government revenues had been very extensively developed. This policy was continued by the Provisional Government under Kerensky and by the Bolsheviki in their turn. Naturally, with industry so completely disorganized, this led toward bankruptcy at a rapid rate. The following extract from Gukovsky’s report to the Central Executive Committee in May requires no elucidation: See text of the decree—Appendix. Our Budget has reached the astronomical figures of from 80 to 100 billions of rubles. No revenue can cover such expenditure. Our revenue for the half-year reaches approximately 3,294,000,000 rubles. It is exceedingly difficult to find a way of escape out of this situation. The repudiation of state loans played a very unfavorable part in this respect, as now it is impossible to borrow money—no one will lend. Formerly railways used to yield a revenue, and agriculture likewise. Now agriculturists refuse to export their produce, they are feeding better and hoarding money. The former apparatus—in the shape of a Government Spirit Monopoly and rural police officers—no longer exists. Only one thing remains to be done—to issue paper money ad infinitum. But soon we shall not be able to do even this.
At the Congress of the Soviets of People’s Economy in May, Rykov, the president of the Superior Council of the National Board of Economy, reported, concerning the nationalization of industries, that so far it had been carried out without regard to industrial economy or efficiency, but exclusively from the point of view of successfully struggling against the bourgeoisie. It was, therefore, a war measure, and must not be judged by ordinary economic standards. Miliutin, another Bolshevist Commissar, declared that “nationalization bore a punitive character.” It was pointed out by Gostev, another Bolshevist official, that it had been carried out against the wishes of many of the workers themselves quite as much as against the wishes of the bourgeoisie. “I must laugh when they speak of bourgeois sabotage,” he said. “We have a national people’s and proletarian sabotage. We are met with enormous opposition from the labor masses when we start standardizing.” For good or ill, however, and despite all opposition, Bolshevism had turned to nationalization and to the erection of a powerful and highly centralized state. What the results of that policy were we shall see.
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