But this was only the start of a summer of political retreat for the Tsar. Calls for reform by the Duma and public organizations were soon joined by those from the liberal business community. The shells crisis and the military defeats of the spring forced the government to set up a Special Council for the Improvement of Artillery Supplies in June. It included three Octobrists from the Duma and the owners of Petrograd’s biggest arms firms, as well as officials from the War Ministry. For the liberal business leaders of Moscow this was a slap in the face. Since 1908 they had campaigned aggressively to increase their role in the nation’s economy and political life (‘The merchant on the move,’ as Riabushinsky put it). They had financed their own national newspaper (Utro Rossii), established their own political party (the Progressists) and lavishly spent money on the arts (the Tretyakov Gallery and Shekhtel’s magnificent style moderne buildings, for example, were both commissioned by these industrialists) to advance their own Muscovite version of liberal Manchesterism. The Special Council, from their point of view, was a small coterie of the Petrograd industrial barons and their patrons in government (what would one day come under the title of a ‘military-industrial complex’) designed to exclude the smaller businesses in the provinces from the lucrative contracts for military production. There was much in the set-up to justify the resentment of the Moscow industrialists. Far too many orders were given to big Petrograd metal firms friendly to the government, while the smaller provincial firms were not properly used. The huge Putilov plant, for example, received 113 million roubles worth of orders for shells — far more than it could deliver on time — at a price six times higher than the average market price. Putilov used the cash to subsidize the loss-making parts of his business, including his own fabulous lifestyle, so that his company eventually went bankrupt and had to be sequestered by the state in 1916. Medium-sized producers were meanwhile going out of business because, without government orders, they could not afford to buy fuel or raw materials. The Petrograd bureaucracy was indifferent to their fate, as one businessman discovered when he wrote to the War Ministry offering the services of his family factory. A few weeks later he received his letter back with a short note saying it had not been furnished with the required government stamp.
To break down the monopoly of the big munitions producers Moscow’s business leaders organized the War Industries Committees. Through their central office, established in July 1915, they succeeded in winning a modest but life-saving share of the government’s military orders for their provincial firms. But the committees’ real significance was less economic than political. The leaders of the Central War Industries Committees were all liberal critics of the autocracy. Half the ministers of the First Provisional Government of 1917 were to come from their ranks. They sought a greater voice for themselves in the wartime regulation of industry, and more say for their allies in the Duma and other public organizations in the structure of government. There were close connections between these different bodies. Lvov, for example, was the head of the Zemstvo Union, an ex-Duma deputy and a member of the Central War Industries Committee. Through their combined initiatives, these public bodies were able to form an effective political force. They enjoyed the support of several of the more liberal-minded ministers, who had come to realize the need for political change, as well as a number of senior generals, such as Brusilov, who knew from experience the value of their work.34 Together they embarked on a struggle for power.
