From being penniless in Spain to his arrival in New York, Trotsky had arrived with $500 which Spence states is today’s equivalent to about $10,000, although Trotsky liked to depict himself as continuing in proletarian poverty. Immigration authorities also noted that his place of residence would be the less than proletarian Hotel Astor in Times Square.
In New York the Trotsky’s lived in a Bronx apartment with all the mod-cons of the day. He was employed by Novyi Mir, and was hosted by Dr Julius Hammer, a Bolshevik who combined revolution with an opulent lifestyle. Hammer was probably the mysterious ‘Dr M’ referred to by Trotsky in his memoirs, who provided the Trotskys with sightseeing jaunts in his chauffeured car.[266]
One of the main contacts for Trotsky was a maternal uncle, banker and businessman Abram Zhivotovskii. In 1915 Zhivotovskii was jailed in Russia for trading with Germany. The US State Department described Zhivotovskii as outwardly ‘very anti-Bolshevik’, but who had laundered money to the Bolsheviks and other socialist organizations.[267] He seems to have played a double role in moneymaking, working as a financial agent for both Germans and Allies. During the war he maintained an office in Japan under the management of a nephew Iosif Zhivotovskii, who had served as secretary to Sidney Reilly, the so-called ‘British Ace of Spies’ who nonetheless also seems to have been a duplicitous character in dealing with Germany. Spence mentions that Reilly, who had a business in the USA, had gone to Japan when Trotsky was in Spain, and arrived back in the USA around the time of Trotsky’s arrival, the possibility being that Reilly had acquired funds from Trotsky’s uncle to give to his nephew in New York. Another Reilly association with Zhivotovskii was via Alexander Weinstein, who had been Zhivotovskii’s agent in London, and had joined Reilly in 1916. He was supposedly a loyal Czarist but was identified by American Military Intelligence as a Bolshevik.[268] Of further interest is that Alexander’s brother Gregory was business manager of Novyi Mir, the newspaper that employed Trotsky while he was in New York. Reilly and Weinstein were also associated with Benny Sverdlov, a Russian arms broker who was the brother of Yakov Sverdlov, the future Soviet commissar.
These multiple connections between Trotsky and Reilly’s associates are significant here in that one of the accusations raised during the Moscow Trials was that the Trotskyists had had dealings with ‘British spy’ Sidney Reilly.
The dealings of Sir William Wiseman, British Military Intelligence chief in the USA, and his deputy Norman Thwaites, with Reilly and associates were concealed even from other British agencies.[269] Wiseman had kept Trotsky under surveillance in New York. Trotsky secured a visa from the British consulate to proceed to Russia via Nova Scotia and Scandinavia. The Passport Control Section of the British Consulate was under the direction of Thwaites. Trotsky was to remark on his arrival in Russia about the helpful attitude of consular officials, despite his detention as a possible German agent by Canadian authorities at Nova Scotia. Trotsky had been able to pay for tickets aboard the Kristianiafiord for himself and his family, and also for a small entourage. What is additionally interesting about Wiseman is that he was closely associated with banking interests, and around 1921 joined Kuhn, Loeb and Co.[270] In 1955 Wiseman launched his own international bank with investments from Kuhn, Loeb & Co.; Rothschild; Rockefeller; Warburg firms, et al.[271] He was thus very close to the international banking dynasties throughout much of his life.
To return to the Kristianiafiord however, on board with Trotsky and his entourage, first class, were Robert Jivotovsky (Zhivotovskii), likely to have been another Trotsky cousin; Israel Fundaminsky, whom Trotsky regarded as a British agent, and Andrei Kalpaschnikoff, who acted as translator when Trotsky was being questioned by British authorities at Nova Scotia. Kalpaschnikoff was closely associated with Vladimir Rogovine, who worked for Weinstein and Reilly. Kalpaschnikoff was also associated with John MacGregor Grant, a friend and business partner of both Reilly and Olof Aschberg. We can therefore see an intricate connection between British super-spy Reilly, and bankers such as Aschberg, who served as a conduit of funds to the Bolsheviks, and Zhivotovskii via Alexander Weinstein.
When Trotsky and several of his entourage were arrested on 29 March at Nova Scotia and questioned by authorities regarding associations with Germany this could well have been an act to dispel any suspicions that Trotsky might be serving British interests. The British had the option of returning him to New York but allowed him to proceed to Russia.[272]
The attitude of Wiseman towards the Bolsheviks once they had achieved nominal power was one of urging recognition, Wiseman cabling President Wilson’s principal adviser Col. Edward House on 1 May 1918 that the allies should intervene at the invitation of the Bolsheviks and help organise the Bolshevik army then fighting the White Armies during the Civil War.[273] This would accord with the aim of certain international bankers to secure recognition of the Bolshevik regime, as noted by both Gompers and Steed.
The financial interests in the USA that formed around the Council on Foreign Relations (CFR), founded by presidential adviser Col. Edward M House as a foreign policy think tank of businessmen, politicians and intellectuals, were clamouring for recognition of the Soviets. The CFR issued a report on Bolshevik Russia in 1923, prompted by Lenin’s ‘New Economic Policy’. The report repudiated anti-Bolshevik attitudes and fears that Bolshevism would be spread to other countries (although it had already had a brief but bloody reign in Hungary and revolts in German). CFR historian Peter Grosse writes that the report stated that, the Bolsheviks were on their way to ‘sanity and sound business practices,’ the Council study group concluded, but the welcome to foreign concessionaires would likely be short-lived…. Thus, the Council experts recommended in March 1923 that American businessmen get into Russia while Lenin’s invitation held good…[274]
Armand Hammer, head of Occidental Petroleum, son of the aforementioned Dr Julius Hammer who had been the Trotsky family’s host in New York, was a globetrotting plutocrat who mixed with the political and business elites of the world for decades. Hammer was in intimate contact with every Soviet leader from Lenin to Gorbachev◦– except for Stalin.[275] This omission is indicative of the rift that had occurred between the USSR and Western financial and industrial interests with the assumption of Stalin and the defeat of Trotsky. The CFR report on the USSR that advised American business to get in quick before the situation changed, was prescient. In 1921 Hammer was in the USSR sewing up business deals. Hammer met Trotsky, who asked him whether ‘financial circles in the USA regard Russia as a desirable field of investment?’ Trotsky continued:
268
Military Intelligence Division, 9140-6073, Memorandum # 2, 23 August 1918, 2. Cited by Spence, op. cit.
272
The foregoing on Trotsky’s associations from Spain to New York and his transit back to Russia are indebted to Spence, op. cit.
273
Edward M. House, ed. Charles Seymour, The Intimate Papers of Col. House (New York: Houghton, Mifflin Co.), Vol. III, 421.
274
Peter Grosse, Continuing The Inquiry: The Council on Foreign Relations from 1921 to 1996, (New York: Council on Foreign Relations, 2006), ‘Basic Assumptions’. The entire book can be read online at: http://www.cfr.org/about/history/cfr/index.html