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But Frederick remained unaffected by these problems and was making so much money that he began to search for new ways to invest it. His vehicle of choice was real estate. During the summer of 1915, news had begun to spread that the Ciniselli Circus in Petrograd was going to be put up for auction. This was an exciting possibility, because for all of Moscow’s economic and cultural importance, it was still the country’s second city. Ciniselli Circus was a prestigious and potentially very lucrative venue. It was the oldest permanent building of its kind in Russia as well as one of the most famous in all of Europe. It was also very popular with the cream of Petrograd society, from the imperial family on down.

The auction was scheduled for December 7 and Frederick traveled to Petrograd to take part in it. A motley array of other major players also participated, including Fyodor Chaliapin, the famous operatic bass whom Frederick had met at Yar several years before, and who was represented by an agent. The stakes were for the highest of rollers: bidding would start at an annual rent of 60,000 rubles (approximately $2 million today) and all participants had to provide a deposit of 30,000 rubles to show they were serious.

The minimum was quickly left behind. An entrepreneur from Petrograd bid 73,000 rubles; another one from Moscow offered 76,000; then Frederick topped him with 78,000. But someone quickly offered 80,000 and Frederick decided that he was out. It is possible that he had gotten wind of something underhanded in the entire affair. Several months later, when the old leaseholder unexpectedly emerged as the winner, rumors began to circulate that the auction had been rigged from the start.

But Frederick still had money to invest and turned his attention to the south and to Odessa. He went there initially to search for new acts to put on Aquarium’s and Maxim’s stages. Because the war had made it difficult to travel to and from Western Europe, the only ready source of new talent was what could be found in other Russian cities. Odessa was polyglot and cosmopolitan and had a very lively theatrical life. On the eve of the war, its population was 630,000, a third of them Jewish and thirty thousand of them foreigners, including Greeks, Armenians, Germans, Romanians, Italians, and many others. During two trips in February and July 1916 Frederick booked a variety of catchy acts—a singing duet, a female impersonator, an actress who was a local star, a ten-year-old moppet who belted out Gypsy romances—and also negotiated with entrepreneurs who wanted to lease his Aquarium theater for the following season. Frederick must have liked the city itself very much, because during his second trip he also bought a fancy villa there for 100,000 rubles, around $3 million in today’s money.

The climate was a bit milder in Odessa than in Moscow, but the city’s chief appeal was its location on the shore of the Black Sea. With its wide, straight, tree-shaded streets and elegant stone buildings, it would not have looked out of place on the Mediterranean. In Frederick’s time Odessa was an important commercial center and despite its distance from the two capitals was neither quiet nor provincial. Fashionable hotels and restaurants, elegant shops, popular cafés, and several theaters attracted an urbane and moneyed crowd to its famous thoroughfares. Sailors from exotic ports mixed with the city’s criminals in the raucous, beer-smelling dives near the commercial harbor. On the city’s outskirts, the banks of the lagoons were dotted with villas facing the shimmering expanse of the sea. In 1916, Frederick could not have anticipated the role that Odessa would play in his life in just two years.

During the war’s second year, its effects were becoming harder to ignore in Moscow. The city started to be overwhelmed by trainloads of wounded soldiers being evacuated from the European and southern fronts. As with most other Russian military preparations, the number of hospitals proved to be inadequate, and the authorities were forced to look for private property that could be requisitioned until dedicated new facilities could be arranged. Yar was closed to the public for nearly a year and its restaurant transformed into a hospital, with the tables replaced by neat rows of cots occupied by meek and stoically suffering, mostly peasant soldiers. Military commissions also examined Aquarium and Maxim with a view toward using the spacious theaters as clinics or storage depots for medical supplies. But Frederick was characteristically deft in the deals he made, and only part of each of his large properties was taken over for military needs in 1915 and again in 1916.

Other wartime impositions on entrepreneurs began to accumulate as well. Starting in late 1915, fuel and electricity shortages forced the commander of the Moscow military district to announce that all theaters would have to observe shorter hours, starting at 8 p.m. and ending at midnight. New taxes to support the war effort, and coercive “donations” to the official imperial charities, known collectively as “Empress Maria’s Department of Institutions,” were also imposed on theatrical entertainments. In some cases, taxes were estimated to be as high as 30 percent of an establishment’s gross income.

The news from Petrograd was also becoming progressively more unnerving and there was a growing sense that the empire’s center was not holding. Nicholas II was at the army’s headquarters in Mogilyov, four hundred miles south of Petrograd, and effectively removed from direct control of his government. Russia’s nascent parliament had tried to build on the genuine surge in patriotism accompanying the outbreak of the war and could have mediated between the government and an increasingly anxious public. But because Nicholas was unwilling to consider any form of cooperation with it, he left a dangerous power vacuum in the capital. It was partially filled by his wife, Tsaritsa Alexandra, a narrow-minded and credulous woman, who intervened in government affairs while being herself under the influence of Grigory Rasputin, imperial Russia’s extraordinary evil genius. As a result, during the year and a half following Nicholas’s departure from the capital a process that came to be labeled “ministerial leapfrog” took place: in quick succession, it gave Russia four different prime ministers, five ministers of internal affairs, three ministers of foreign affairs, three ministers of war, three ministers of transport, and four ministers of agriculture. A few were competent; most were craven and inept.

As the country’s mood darkened, a febrile atmosphere began to creep into the entertainments and distractions that were sought by civilians and military men. On the eve of the war, a new dance craze had emerged from Argentina, leaped to Paris, and swept around the world—the tango. Its popularity in Russia was so immediate and so great that Frederick, who was always alert to novelty, decided to capitalize on it by refurbishing large spaces in his theaters and naming them after the dance, leading a journalist to proclaim that Maxim had become Moscow’s “kingdom of the tango.” During the war, the tango’s popularity increased, with some professional dancers and singers adding macabre overtones to its elegant, stylized eroticism. One couple became famous for their “Tango of Death,” in which the man, who was otherwise impeccably dressed in evening clothes, had his face made up to look like a skull. It was a melodramatic echo of the lurid news arriving from the fronts, as were such other popular tunes as “Wilhelm’s Bloody Tango” (named after the German kaiser) and “The Last Tango,” in which a jilted lover stabs the woman to death.

The emotional abandon that Russians sought from the tango during the war, and the elation that they got from vodka and wine, found a new blood relative in drugs, especially cocaine. In certain urban circles cocaine became the path of choice to euphoric oblivion in the face of the hopeless problems swirling all around. And it quickly emerged as an emblem of decadence, of failing national spiritual health: the tides of battle on the fronts ebbed and flowed; ministers and courtiers intrigued; profiteers schemed. For many, daily life was becoming more difficult, and for others it seemed pointless.