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Authors: Andrew Cook

Tags: #M15’S First Spymaster

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Expenditure for a second typewriter was sanctioned (in the new year of 1911, there would be ‘a lady type-writer', Miss D. Westmacott, at £5 a month)
38
and a telephone line was installed for SSB purposes at Melville's home in Clapham. The Bureau was becoming a force to reckon with.

In January 1911, Kell joined Melville on the City borders. Cumming was now working out of his wife's flat at Ashley Mansions in the Vauxhall Bridge Road.
39
Kell and his assistant Captain Stanley-Clarke would henceforth work from 3 Paper Buildings, just a stone's throw from Melville's office and within the security of the Inner Temple. As an empire-building ploy the Central Registry was a work of genius. After all, it would take not only bigger better offices but an awful lot of M's time to investigate 30,000 people. But the need for dozens of underlings does not seem to have occurred to Kell at first. It was March before he had a long talk with Melville and ‘impressed upon him the necessity of our being more energetic in the future, and that I expected him to think out new schemes for getting hold of intelligence'.
40
The slightly panicky call to action is unsurprising. An important friend of Kell's had recently informed him that there were 20,000 German agents in Britain ready to arise within twenty-four hours.
41
Four more days passed, reason prevailed, and he suggested to Melville that pressure of work demanded two more detectives. Melville wasn't keen. Detectives talk to each other, he pointed out, ‘and consequently all our business would become common property at the Yard'; and it would be almost impossible to find men with ‘knowledge and experience of the world, and full of discretion and tact'. He talked Kell into looking, instead, for retired men not above the rank of sergeant. In June, only weeks before the Schultz investigation began, the first man was hired: his name was Regan. He was to be known as R.

The law was about to be adjusted in SSB's favour. July 1911 was the month of the Agadir crisis, when a German gunboat off Morocco made German hostility towards France only too apparent. Taking advantage of the nervous mood, Viscount Haldane (whose briefing material included a report by Kell) spoke on the Amendment to the Official Secrets Act in the Lords on 25 July:

The main change which the Bill made was a change of procedure. In order to convict anyone under the Official Secrets Act of 1889 it was necessary to prove a purpose of wrongfully obtaining information… That was often very difficult to prove.
42

The Amendment represented more than ‘a change of procedure'; under its provisions someone sketching a fort, for instance, would have to prove his innocence – for guilt could legitimately be deduced ‘from the circumstances of the case or his conduct or his known character as proved'.
43
Haldane pre-empted criticism by citing a precedent for this in the Prevention of Crimes Act 1871: ‘loitering with intent'. Objectors could have pointed out that treason and espionage were capital offences in time of war, and therefore different in degree, but such arguments would not wash when the threat of invasion seemed so vivid. Haldane also asserted that currently

the places which were barred from public access were too few… Therefore it was proposed to widen the definition of those places and to give the Secretary of State power to be exercised in times of emergency to proscribe other places.
44

Finally, if the Bill were passed, warrants for search and arrest would be available from a magistrate – not only from the Attorney General as at present and as still pertained during the Schultz case. The Amendment went through in due course. In the following year at the Newington Sessions William Melville took the oath as a Justice of the Peace for the County of London.

ELEVEN
D
RIFT TO
W
AR

James Melville was a surprising young man. He was an impressive barrister, well liked, and interesting work came his way.

Like his father, he was proud of his Irish background. Unlike his father, he had an ambivalent relationship with the Establishment. This extended beyond his professional life. It was true that Sarah Tugander, the girl he was seeing, was private secretary to the next leader of the Conservative party, but she was neither Irish nor Conservative; she was the daughter of Russian Jewish immigrants and both she and James Melville were, of all things, Fabian socialists. Twenty-five years before, his father would have been lurking outside their homes making notes in a little black book.

James was beginning to find work through his left-wing contacts, and he was part of the legal team that defended two refugees accused after the Houndsditch Murders. The murders, in December 1910, had been followed by a pursuit that ended in the Siege of Sidney Street. This notorious siege, despite its political overtones and the newsworthy presence of Winston Churchill at the showdown, appears to have been a City Police and Special Branch affair in which the infant SSB played a comparatively minor role. Years later, MI5 wished it had paid more attention.
1

Special Branch was still headed by Melville's old colleague Superintendent Patrick Quinn. The public believed it to be Britain's only, and rock solid, line of defence from insurgents of all kinds, be they German spies or striking miners. Kell and his superiors liked it that way; they wanted SSB to remain unknown. After all, there was not much use in a Secret Service that wasn't. So Special Branch handled arrests, court appearances, and state ments to the press in cases that SSB had in fact investigated and brought to the point where charges could be preferred.

Special Branch retained a separate internal political role of its own. It kept an eye on suffragettes, Indian nationalists and trade-union agitators and watched the few remaining ‘anarchists', although these last were now more likely to be anarcho- syndicalists, breakaways from socialist or communist groups, disapproved of by the majority but nonetheless dedicated to empowering the working class by force if necessary.

The Siege of Sidney Street originated in an ordinary police investigation, when, as Harold Brust, a former Special Branch officer, gasped:

…a strange concatenation of circumstances spewed to the surface the dregs of London's Underworld, when police and soldiers armed with rifles battled with infuriated alien gunmen, when Mr Winston Churchill, as Home Secretary rushed to the scene of the fight to direct in person the operations of the Scots Guards and artillery.
2

The facts were these: on 16 December 1910, at a jeweller's shop in Exchange Buildings, Houndsditch, which had been closed for the night, some robbers were disturbed. They ran away and holed up in a house close to the scene of the crime. The police surrounded the house; there was a shoot-out; the men fired, killing two police constables and accidentally wounding one of their own party, who later died.
3

In the ensuing confusion several suspects escaped. A man-hunt was mounted to find anyone who had been in the Houndsditch house and survived. Witnesses reported having seen a man carried, wounded, through the alleyways of the quarter. Girlfriends were questioned. Two men in their early twenties, Yourka Dubov and Jacob Peters, were among those taken into custody. Special Branch files showed that both were political refugees from Latvia (then under Russian rule). Dubov was a member of the Lettish Social Democratic Party who had come to England less than a year ago; Jacob Peters was a fellow member, as well as belonging to the British Social Democratic Federation and the Working Men's Federated Union.
4
They remained in custody over Christmas and the New Year.

That these young men might be politically involved refugees was nothing new: crime was a favourite way of raising money for the desperate underground back home in Russia and the occupied lands of the Baltic. The local (H Division) Metropolitan Police did not necessarily take the political angle seriously. In 1931 one of them, Frederick Porter Wensley, reminisced:

Nothing… that I learned during or after the investigation has ever led me to think that there was any political significance about the affair. The Houndsditch plot was hatched and carried out by a bunch of foreign thieves who happened to find the so-called Anarchist Club in Jubilee Street – which was simply a meeting-place for foreigners, some of whom, no doubt, held revolutionary opinions – a convenient rendezvous.
5

He was right in a way; yet there was a political background to the affair and documents found at the Houndsditch hide-out, and retained for many years in the files of the City police, confirm this. ‘Most of the documents found consisted of letters, accounts, or in the case of Gardstein, recipes for manufacturing explosive'.
6
Houndsditch was still occupied mostly by immigrants from eastern Europe, swelled after 1905 by Russians fleeing from retribution after the attempted revolution. Lenin's Bolsheviks, desperate for funds, had proclaimed a readiness to seize funds from ‘the enemy, the autocracy'. This was discussed at the 1906 Stockholm Congress. One result was a drift towards violent anarchy on the part of a renegade group from the Lettish Social Democratic Party in London.

Following the rise to power of the Bolsheviks in 1917, MI5 (as MO5 had subsequently been renamed) opened reconstituted files on Sidney Street and Jacob Peters. In the files is a letter from a man who was part of the Whitechapel émigré community at the time; by 1932 he was interested in being naturalised and was perfectly happy to help MI5 in any way he could. Having enumerated eight separate groups of Russians, Poles, Jews and Letts, he goes on:

Besides these fractions there were several groups of anarchists with their headquarters in Jubilee Street, London E.

Although discussions about general political changes in Russia between these various groups took place daily, the fractions worked more or less separately, especially the anarchists who worked in groups of three or four persons, but as their tendency was leaning towards expropriation of other people's property, they did not get any sympathy from the Social Democrats and Revolutionaries and generally speaking they were looked upon as social outcasts and expropriators.
7

The little group that included the robbers was only about a dozen strong. The police were hunting especially for an anarchist (as distinct from a Social Democrat) known as Piatkov, or Peter the Painter.

On 3 January 1911, some other members wanted for questioning about the Houndsditch affair were traced to nearby 100 Sidney Street. The police surrounded the house but the occupants held their ground. The Home Secretary Winston Churchill arrived; so did journalists, photographers and troops. The house was fired upon by the overwhelmingly superior body of soldiers and set alight. Cruelly the observers allowed it to burn to the ground. Two charred bodies were found. One dead man was Fritz Svaars. He was a cousin of Jacob Peters, the man in custody. The other was Jacob Vogel, also known as Sokolov. Of Peter the Painter there was no sign.
8

When the case against Peters, Dubov and the others opened at the Guildhall on 23 January, the Prosecutor asserted that Gardstein, the man who had been injured and later died, had been responsible for the death of the first policeman on 16 December. But at committal in March and at the Old Bailey in May, Peters and Dubov were charged with murder. A witness appeared who swore to having seen them, before the Houndsditch shoot-out, with pistols.

Neither their association with socialist political views, nor their foreign-ness, would play well with an English jury: they were on trial for their lives. Peters claimed that he was an ordinary, hard-working man, not an armed robber at all, who had been mistaken for his notorious revolutionary cousin. Indeed Svaars, Peters' dead cousin, had borne such a strong resemblance to him that the case rested on unsatisfactory evidence. Melville was eloquent in pointing out, also, that both Peters and Dubov had assisted the police since their arrest.
9
They were acquitted. Peters, ironically echoing the gifts of the Tsar to William Melville, in his gratitude gave his young barrister an inscribed cigarette case.
10

James Melville made news again in March of 1912, when he defended some printers and a writer from
The Syndicalist
against charges of incitement to mutiny. They were remanded on bail and their sureties (who were in court) included George Lansbury, Will Thorne and Josiah Wedgwood. The accused men had published an article purporting to represent a call from working men to servicemen. It began:

Boys! Don't do it! Act the man! Act the brother! Act the human being! Property can be replaced! Human life never!

The prosecution was led by the chief Treasury Solicitor, Mr (later Sir) Archibald Bodkin. Bodkin would appear for the Government at every pre-war spy trial; his brief would come directly from Kell and would include detective work by Melville. The Okhrana had a comprehensive file on the Sidney Street affair that included material supplied by and to Melville, and gives the strong impression that he knew a great deal more about the case than came out at the time. Among the surveillance reports are several on Piotr Piatkov, the gang leader known to posterity as ‘Peter the Painter'. These include reports from Riga, Irkutsk and Mitava (1910) and from London and Paris (1911).

MO5 was concerned, not just with spies, but with subversion by ‘the enemy within'. Melville had always been good at snooping on outfits like
The Syndicalist
and following up suspicions about where their money was coming from, and Kell was ever-vigilant in case dissidents were being funded from abroad. The Government was particularly suspicious of pacifist and trade-union organisations from about 1910 onwards. Late that year a series of strikes, persisting through the summer of 1911, led to civil disorder and a few rioters were killed by troops in Liverpool and North Wales.
11
Syndicalist unionism, should it get mass support, would make a dangerous alternative power-base. In case of war the dockers, transport workers and miners acting in unison could paralyse the country. And such a syndicate of unions could ultimately make common cause with the working classes abroad. Workers of the world would unite. This would undermine nationalism, imperialism and everything the Government stood for.

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