■-IQii I 'I 1 !! I I !i ! Ml I Price Jonas. and BookJl^— Cofyright, Internationa! Film Service Count Johann von Bernstorff . the responsible director of Ger- many's secret policies in America THE GERMAN SECRET SERVICE IN AMERICA 1914-1918 BY JOHN PRICE JONES AUTHOR OF "AMERICA ENTANGLED" AND PAUL MERRICK HOLLISTER BOSTON SMALL, MAYNARD & COMPANY PUBLISHERS Copyright, 1918, By small, MAYNAKD & COMPANY (inooepobatbd) VS") ^ ^ '1^6 "It is plain enough how we were forced into the war. The extraordinary insuUs and aggressions of the Imperial German Government left us no self-respecting choice but to take up arms in defense of our rights as a free people and of our honor as a sovereign government. The mili- tary masters of Germany denied us the right to be neu- tral. They filled our unsuspecting communities with vicious spies and conspirators and sought to corrupt the opinion of our people in their own behalf. When they found they could, not do that, their agents diligently spread sedition amongst us and sought to draw our own citizens from their allegiance — and some of these agents were men connected with the official embassy of the Ger- man Government itself here in our own capital. They sought by violence to destroy our industries and arrest our commerce. They tried to incite Mexico to take up arms against us and to draw Japan into a hostile alliance with her — and that, not by indirection but by direct sug- gestion from the Foreign Office in Berlin. They impu- dently denied us the use of the high seas and repeatedly executed their threat that they would send to their death any of our people who ventured to approach the coasts of Europe. And many of our own people were cor- rupted. Men began to look upon their neighbors with suspicion and to wonder in their hot resentment and surprise whether there was any community in which hos- tile intrigue did not lurk. What great nation in such circumstances would not have taken up arms? Much as we have desired peace, it was denied us, and not of our our own choice. This flag under which we serve would have been dishonored had we withheld our hand." — WooDROw Wilson, Flag Day Address June 14, 1917 INTRODUCTION A nation at war wants nothing less than com- plete information of her enemy. It is hard for the mind to conceive exactly what "complete in- formation" means, for it includes every fact which may contain the lightest indication of the enemy strength, her use of that strength, and her intention. The nation which sets out to obtain complete information of her enemy must pry into every neglected corner, fish every innocent pool, and collect a mass of matter concerning the indus- trial, social and military organization of the enemy which when correlated, appraises her strength — and her weakness. Nothing less than full information will satisfy the mathematical maker of war. Germany was always precociously fond of in- ternational statistics. She wanted — the present tense is equally applicable — full information of America and her allies so as to attack their vul- nerable points. She got a ghastly amount of it, and she attacked. This book sets forth how se- cret agents of the Teutonic governments acting under orders have attacked our national life, both before and after our declaration of war ; how men and women in Germany's employ on American INTRODUCTION soil, planned and executed bribery, sedition, ar- son, the destruction of property and even mur- der, not to mention lesser violations of American law ; how they sought to subvert to the advantage of the Central Powers the aims of the Govern- ment of the United States; how, in short, they made enemies of the United States immediately the European war had broken out. The facts were obtained by the writer first as a reporter on the New York Sun who for more than a year busied himself with no other con- cern, and afterwards in an independent investi- gation. Some of them he has cited in a previous work. This book brings the story of Germany's secret agencies in America up to the early months of 1918. Because the writer during the past six months has devoted his entire time to the Lib- erty Loan, it became necessary for him to leave the rearrangement of the work entirely in the hands of the co-author, and he desires to acknowl- edge his complete indebtedness to the co-author for undertaking and carrying out an assignment for which the full measure of reward will be de- rived from a sharper American consciousness of the true nature of our enemy at home and abroad. So we dedicate this chronicle to our country. John Price Jones. New York, June i, 19 18. CONTENTS CHAPTER PAGE I The Organization i The economic, diplomatic and military aspects of secret warfare m America— Germany's peace-time or- ganization—von Bernstorff, the diplomat— Albert, the economist— von Papen and Boy-Ed, the men of war. II The Conspirators' Task 19 The terrain — Lower New York — The consulates — The economic problem of supplying Germany and checking supplies to the Allies — The diplomatic prob- lem of keeping America's friendship — The military problem in Canada, Mexico, India, etc.— Germany's denial. III The Raiders at Sea 28 The outbreak of war — Mobilization of reservists — The Hamburg-American contract — The Berwind— The Marina Quczada—'The Sacramento — Naval battles. IV The Wireless System .43 The German Embassy a clearing house — Sayville — German's knowledge of U. S. wireless — Subsidized electrical companies — Aid to the raiders — ^The Emden —The Gf'iVr- Charles E. Apgar— The German code. V Military Violence 60 The plan to raid Canadian ports — The first Welland Canal plot— Von Papen, von der Goltz and Tauscher — The project abandoned— Goltz's arrest — The Tauscher trial— Hidden arms— Louden's plan of inva- sion. CONTENTS CHAPTER PAGE VI Paul Koenig y^ Justice and Metzler — Koenig's personality — von Pa- pen's checks — The "little black book" — Telephone codes — Shadowing — Koenig's agents — His betrayal. VII False Passports 82 Hans von Wedell's bureau — The traffic in false passports — Carl Ruroede — Methods of forgery — Adams' coup — von Wedell's letter to von Bernstorff — ■ Stegler — Lody — Berlin counterfeits American passports • — von Breechow. VIII Incendiarism 100 Increased munitions production — The opening ex- plosions — Orders from Berlin — Von Papen and Se- attle—July, 191 5 — The Van Koolbergen affai"- — The Autumn of 1915 — The Pinole explosion. IX More Bomb Plots 117 Kaltschmidt and the Windsor explosions — The Port Huron tunnel — Werner Horn — Explosions embarrass the Embassy — Black Tom — The second Welland affair — Harry Nevirton — The damage done in three years — Waiter spies. X Franz Von Rintelen 138 The leak in the National City Bank — The Minnehaha — Von Rintelen's training — His return to America — His aims — His funds — Smuggling oil — The Krag- Joergensen rifles — Von Rintelen's flight and capture. XI Ship Bombs 154 Mobilizing destroying agents — The plotters in Ho- boken — Von Kleist's arrest and confession — The Kirk Oswald trial — Further explosions — The Arabic — Robert Fay — His arrest — The ship plots decrease. CONTENTS CHAPTER PAGE XII Laror 171 David Lamar — Labor's National Peace Council — The embargo conference — The attempted longshoremen's strike — Dr. Dumba's recall. XIII The Sinking of the Lusitania .... 190 The mistress of the seas — Plotting in New York — The Lusitania s escape in February, 1915 — The adver- tised warning — The plot — May 7, 1915 — Diplomatic correspondence — Gustave Stahl — The results. XIV Commercial Ventures 203 German law in America — Waetzoldt's reports — The British blockade — A report from Washington — Stop- ping the chlorine supply — Speculation in wool — Dye- stuffs and the Dcutschland — Purchasing phenol — The Bridgeport Projectile Company — The lost portfolio — The recall of the attaches — A summary of Dr. Albert's efforts. XV The Public Mind 225 Dr. Bertling — The Staats-Zeitung— George Sylves- ter Viereck and The Fatherland — Eft'orts to iDuy a press association — Bernhardi's articles — Marcus Braun and Fair Play — Plans for a German news syndicate — San- der, Wunnenberg, Bacon and motion pictures—The German-American Alliance — Its purposes — Political activities — Colquitt of Texas — The "Wisconsin Plan" — Lobbying — Misappropriation of German Red Cross funds — Friends of Peace — The American Truth So- ciety. XVI Hindu-German Conspiracies .... 252 The Society for Advancement in India — "Gaekwar Scholarships" — Har Dyal and Gadhr — India in 1914 — Papen's report — German and Hindu agents sent to the Orient — Gupta in Japan — The raid on von Igel's of- fice — Chakravarty replaces Gupta— The Annie Larsen and Maverick filibuster — .Von Igel's memoranda — Har Dyal in Berlin — A request for anarchist agents — Ram Chandra — Plots against the East and West In- dies — Correspondence between Bernstorff and Berlin, 1916 — Designs on China, Japan and Africa — Chakra- varty arrested — The conspirators indicted. CONTENTS CHAPTER PAGE XVII Mexico, Ireland, and Bolo 228 Huerta arrives in New York — The restoration plot — German intrigue in Central America — The Zimmer- mann note — Sinn Fein — Sir Roger Casement and the Easter Rebellion — Bolo Pacha in America and France — A warning. XVIII America Goes to War 320 Bernstorff's request for bribe-money — The Presi- dent on German spies — Interned ships seized — Enemy- aliens — Interning German agents — The water-front and finger-print regulations — Pro-German acts since April, 1917 — A warning and a prophecy. Appendix A German Propagandist. 335 List of Illustrations Count Johann von Bernstorff , . Frontispiece The German Embassy in Washington 2 Captain Franz von Papen .... 12 Captain Karl Boy-Ed .... i6 William J. Flynn 22 Thomas J. Tunney . . . . 26 Dr. Karl Buenz ..... . 32 Passport given to Horst von der Goltz 64 Paul Koenig ...... • 74 Hans von Wedell and his wife . 84 Franz von Rintelen ..... 138 Robert Fay ...... 166 Dr. Constantin Dumba . , . . , 184 The Ltisitania ...... 190 Advertisement of the German Embassy 194 Checks signed by Adolf Pavenstedt . 230 George Sylvester Viereck .... 234 Letter from Count von Bernstorff 236 Check from Count von Bernstorff 238 Letter-paper of "The Friends of Peace" . 250 Dr. Chakravarty ...... 284 Jeremiah A. O'Leary ..... 302 Paul Bolo Pacha 310 THE GERMAN SECRET SERVICE IN AMERICA 1914-1918 THE GERMAN SECRET SERVICE IN AMERICA CHAPTER I THE ORGANIZATION The economic, diplomatic and military aspects of se- cret warfare in America — Germany's peace-time organi- zation — von Bernstorff, the diplomat — Albert, the econ- omist — von Papen and Boy-Ed, the men of war. When, in the summer of 1914, the loaded dice fell for war, Germany began a campaign over- seas as thoughtfully forecasted as that first head- long flood which rolled to the Marne. World- domination was the Prussian objective. It is quite natural that the United States, whose in- fluence affected a large part of the world, should have received swift attention from Berlin. America and Americans could serve Germany's purpose in numerous ways, and the possible assets of the United States had been searchingly assayed in Berlin long before the arrival of *'Der Tag." The day dawned — and German}?- found herself 2 The German Secret Service in America hemmed in by enemies. Her navy did not con- trol the oceans upon which she had depended for a large percentage of her required food and raw materials, and upon which she must continue to depend if her output were to keep pace with her war needs. If surprise-attack should fail to bring the contest to a sudden and favorable con- clusion, Germany was prepared to accept the more probable alternative of a contest of eco- nomic endurance. Therefore, she reasoned, sup- plies must continue to come from America. Of importance scarcely secondary to the eco- nomic phase of her warfare in the United States was the diplomatic problem. Here was a nation of infinite resources, a people of infinite resource. This nation must be enlisted on the side of the Central Powers; failing that, must be kept friendly; under no circumstances was she to be allowed to enlist with the Allies. One funda- mental trait of Americans Germany held too lightly — their blood-kinship to Britons — and it is a grimly amusing commentary upon the con- fidence of the German in bonds Teutonic that he believed that the antidote to this racial "weak- ness" of ours lay in the large numbers of Ger- mans who had settled here and become Americans of sorts. But the German was alarmingly if not absolutely correct in his estimate, for upon the bfl a •c 03 (U , O 0) +J -rt.ti CI5! nj ^ W 0) OJ .^ 4J t/2 *-. 4J 03 :3 :3 o"— \i 'O t^ ojt: M , OS 03 C X! "l^ BO w- s ^ c stated. Thus the United States, by innocently JiL-p(/ ihff^ issuing false papers, made herself, on the third ^jLc^/ ^^ day of the war, a party to German navaljopera- ^, ''^^'^^,. // / tions. -' ' CL- L^uU^ h ""The steamship Lorenzo dropped down the har- y pwJLJUx bor, ostensibly for Buenos Aires, on the follow- J a ing day, August 6, cleared by a false manifest, L ^^^ , and bearing coal and food for German sailors. I^hj/14M<^^ On these ships, and on the Thor (from Newport ^/^jj / News for Fray Bentos, Uruguay), on the Heine ^/ ai ^ > (from Philadelphia on August 6 for La Guayra), //y' ' on the /. vS. Mowinckel and the Nepos (out of Philadelphia for Monrovia) and others Boy-Ed and Buenz had placed supercargoes bearing secret instructions. These men had authority to give navigating orders to the captains once they were outside the three-mile limit — orders to keep a ren- dezvous with German battleships by wireless somewhere in the Atlantic wastes. The Bervuind approached the island of Trini- dad and Herr Poeppinghaus, who was her super- cargo, directed the captain to lie to. Five Ger- man ships, the Kap Trafalgar, Pontus, Elinor Woerman, Santa Lucia and Eher, approached and the transfer of supplies started. It was in- terrupted by the British converted cruiser Car- 34 The German Secret Service in America mania. She engaged in a brisk two-hour duel with the Kap Trafalgar which ended only when the latter sank into the tropical ocean. The Ber- wind meanwhile put the horizon between herself and the Carmania. Few of the chartered ships carried out their intentions, although their adventures were vari- ous. Hear the story of the Unlta: Her skipper was Eno Olsen, a Canadian citizen born in Nor- way. Urhitzler, the German spy placed aboard, made the mistake of assuming that Olsen was friendly to Germany. He gave him his "orders," and the skipper balked. *' 'Nothing doing,' I told the supercargo," Captain Olsen testified later, with a Norwegian twist to his pronunciation. "She's booked to Cadiz, and to Cadiz she goes! So the supercargo offered me $500 to change my course. 'Nothing doing — nothing doing for a million dollars,' I told him. The third day out he offered me $10,000. Nothing doing. So," announced Captain Olsen with finality, 'T sailed the Unita to Cadiz and after we got there I sold the cargo and looked up the British consul." One picturesque incident of the provisioning enterprise was the piratical cruise of the good ship Gladstone, rechristened, with a German bene- diction, Marina Quesada. Under the name of Gladstone, the ship had flown the Norwegian flag The U aiders at Sea 35 on a route between Canada and Australia, but shortly after the outbreak of war she put into Newport News. Simultaneously a sea captain, Hans Suhren, a sturdy German formerly of the Pacific coast, appeared in New York, called upon Captain Boy-Ed, who took kindly interest in him, and then departed for Newport News. Here he assumed charge of the Marina Quezada. ''I paid $280,000 in cash for her," he told First Officer Bentzen. After hiring a crew, he hur- ried back to New York, where he received mes- sages in care of "Nordmann, Room 801, 11 Broadway, N. Y. C." — Captain Boy-Ed's office. Captain Boy-Ed had already told him to erect a wireless plant on his ship — the equipment having been shipped to the Marina Quezada — and to hire a wireless operator. He then handed Suhren a German naval code book, a chart with routes drawn, and sailing instructions for the South Seas, there to await German cruisers. Food sup- plies, ordered for the steamer Unit a (which at that time had been unable to sail) were wasting on the piers at Newport News and Captain Boy- Ed ordered them put in the Marina Quezada. Two cases of revolvers also were sent to the boat. Again Suhren went back to the ship and kept his wireless operators busy and speeded up the 36 The German Secret Service in America loading of the cargo, which was under the super- vision of an employee of the North German Lloyd. Needing more money before sailing in December, 1914, he drew a draft for $1,000 on the Hamburg- American Line, wiring Adolf Hachmeister, the purchasing agent, to communicate with "Room 801, II Broadway." Then trouble arose over the ship's registry. Though Suhren insisted that he owned her, a corporation in New York whose stockholders were Costa Ricans were laying claim to owner- ship, for they had christened her and had se- cured provisional registration from the Costa Ri- can miinister in Washington. Permanent regis- try, however, required application at Port Limon, Costa Rica. So hauling down the Norwegian ensign that had fluttered over the ship as the Gladstone, Captain Suhren ran up the Costa Rican emblem. He had obtained false clearance papers stating his destination as Valparaiso. They were based upon a false manifest, and he sailed for Port Limon. The Costa Rican au- thorities declined to give Suhren permanent papers, and he found himself master of a ship without a Hag, and in such status not permitted under international law to leave port. He waited for a heavy storm and darkness, then quietly slipping his anchor, he sped out into the high seas. The Haiders at Sea 37 a pirate. Off Pernambuco he ran up the Nor- wegian flag, put into port and got into such diffi- culties with the authorities that his ship and he were interned. His suppHes never reached the raiders and Boy-Ed learned of another fiasco. The Lorenzo, Thar and Heine were seized at sea. The Bangor was captured in the Straits of Magellan. Out of twelve shiploads of supplies, only some $20,000 worth were ever transshipped to German war vessels. This involved a consid- erable loss, as the following statement of expendi- tures for those vessels made by the Hamburg- American Line will show : Steamer Total payment Thor $1 13,879.72 Berwind 73,221.85 Lorenzo 430,182.59 Heine 288,142.06 Nepos 119,037.60 M oivinckel 113,367.18 Unita 67,766.44 Somerstad 45,826.75 Pram 55.053-23 Craecia 29,143.59 Macedonia 39jI39-98 Navarra 44,133.50 Total $1,419,394.49 Where did the money come from ? The Ham- 38 The German Secret Service in America burg-American Line, under the ante-bellum con- tract, placed at Captain Boy-Ed's disposal three payments of $500,000 each from the Deutsches Bank, Berlin; the Deutsches Bank forwarded through Wessells, Kulenkampff & Co., credit for $750,000 more. "I followed the instructions of Captain Boy-Ed," Kulenkampff testified. ''He instructed me at different times to pay over cer- tain amounts either to banks or firms. I trans- ferred $350,000 to the Wells-Fargo Nevada Na- tional Bank in San Francisco, $150,000 to the North German Lloyd, then $63,000 to the North German Lloyd. The balance of $160,000 I placed to the credit of the Deutsches Bank with Gontard & Co., successors to my former firm. That was reduced to about $57,000 by payments drawn at Captain Boy-Ed's request to the order of the Hamburg-American Line." The North German Lloyd was serving as the Captain's Pacific operative, which* accounts for the transfer of the funds to the West. (The same line, through its Baltimore agent, Paul Hilken, was also cooperating at this time, but not to an extent which brought the busy Hilken into promi- nence as did his later connection with the mer- chant submarine, Deutschland.) Following the course of the funds, federal agents eventually uncovered the operations of Germans on the Pa- The B aiders at Sea 39 cific coast, and secured the arrest and convictions of no less personages than the consular staff in San Francisco. The steamship Sacramento left San Francisco with a water-line cargo of supplies. A firm of customs brokers in San Francisco was given a fund of $46,000 by the German consulate to pur- chase supplies for her ; a fictitious steamship com- pany was organized to satisfy the customs offi- cials; on September 23 an additional $100,000 was paid by the Germans for her cargo; a false valuation was placed on her cargo, and she was cleared on October 3. Two days later Benno Klocke and Gustav Traub, members of the crew, broke the v/ireless seals and got into communica- tion with the Dresden. Klocke usurped the posi- tion of master of the vessel, and steered her to a rendezvous on November 8 with the Scharnhorst, off Masafueros Island, in the South Pacific; six days later she provisioned and coaled the German steamship Baden. She reached Valparaiso empty. Captain Anderson said he could not help the fact that her supplies were swung outboard and into the Scharnhorst and Dresden. Captain Fred Jebsen, who was a lieutenant in the German Naval Reserve, took out a cargo of coal, properly bonded in his ship, the Mazatlan, •for Guaymas, Sonora, Mexico. Off the mouth 40 The German Secret Service in America of Magdalena Bay the Mazatlan met the Leipzig, a German cruiser, and the cargo of coal was transferred to the battleship. One of Jebsen's men, who had signed on as a cook, was an expert wireless operator, and he went to the Leipzig with three cases of "preserved fruits" — wireless ap- paratus forwarded by German agents in Cali- fornia. Jebsen, after an attempt to smuggle arms into India, which will be discussed later, made his way to Germany in disguise, and was reported to have been drowned in a submarine. The Nurnherg and Leipzig lay off San Francisco for days in August, the former finally entering the Golden Gate for the amount of coal allowed her under international law. The Olson and Mahoney, a steam schooner, was laden with sup- plies for the German vessels and prepared to sail, but after a considerable controversy with the cus- toms officials, was unloaded. Perhaps the most bizarre attempt to spirit sup- plies to the Imperial navy was that in which the little barkentine Retriever figured as heroine. Wide publicity was given the announcement that she was to be sailed out to sea and used as the locale of a motion picture drama. The Govern- ment found out, however, that her hull was well down with coal, which did not seem vital to the scenario, and she was not permitted to leave port. The Haiders at Sea 41 The major portion of Germany's naval strength lay corked in the Kiel Canal, where, except for a few indecisive sorties, Germany's visible fleet was destined to remain for more than three years. At the outbreak of war, the Emden, Dresden, Scharnhorst, Gneisenau and Nurnberg were at larere in the southern oceans. On November i the German cruisers met the British Monmouth, Good Hope, Glasgow and Otranto off Coronel, the Chilean coast. The Monmouth and Good Hope were struck a mortal blow and sunk. The Glasgow and Otranto barely escaped. In a battle off the Falkland Islands on December 7, as the German army was being thrown back from Ypres, the Scharnhorst, Leipzig, Gneisenau and Nurn- berg were sunk by a reinforced British fleet. (Walter Peters, one of the crew of the Leipzig, floated about for six hours after the engagement, was picked up, made his way to Mexico, and for more than three years was employed by a German vice-consul in Mexico in espionage in the United States, Peters was arrested as a dangerous en- emy alien in Crockett, California, in April, 1918.) The Dresden and Karlsruhe escaped, and the for- mer hid for two months in the fjords of the Straits of Magellan. On February 26, 191 5, an Ameri- can tourist vessel, the Kroonland, passed east through the Straits and into Punta Arenas har- 42 The German Secret Service in America bor, while out of the harbor sneaked the Httle Glasgow, westward bound. The Dresden, after the American had passed, had run for the open Pacific; the Glasgow, hot on her trail, engaged her off the Chilean coast five days later and sank her, leaving only the Emden and Karlsruhe at large. The Karlsruhe disappeared. The last lone member of the pack was hunted over the seas for months, and finally was beached, but long before her activities became public the necessity for supplying the German ships expired, from the simple elimination of German ships to supply. Captain Boy-Ed's first enterprise had been frustrated by the British navy and he turned to other and more sinister occupations. Buenz, Koetter and Hachmeister were sentenced to eight- een months in Atlanta, and Poeppinghaus to a year and a day — terms which they did not begin to serve until 1918.^ 1 Dr Buenz' case is an enlightening example of the use made by German agents in America of the law's delays. He was sentenced in December, 191 5, for an offence committed in Sep- tember, 1914. He at once appealed his case to the higher courts, going freely about meanwhile on bail furnished by the Ham- burg American Line. In March, 1918, the Supreme Court of the United States, to which his case had finally been pressed, denied his appeal. His attorneys at once placed before Presi- dent Wilson, through Attorney-General Gregory, a request for a respite, or commutation of his sentence, which the Presi- dent, on April 23, 1918, denied. Buenz pleaded the frailty of his 79 years — which had not prevented him from keeping his social engagements while his appeal was pending. CHAPTER IV THE WIRELESS SYSTEM The German Embassy a clearing house — Sayville — Germany's knowledge of U. S. wireless — Subsidized elec- trical companies — Aid to the raiders — The Emden — The Geier — Charles E. Apgar — The German code. The coordination of a nation's fighting forces depends upon that nation's system of communica- tion. In no previous war in the world's history has a general staff known more of the enemy's plans. We look back almost patronizingly across a century to the semaphore which transmitted Napoleon's orders from Paris to the Rhine in three hours; we can scarcely realize that if the report of a scout had ever got through to Gen- eral Hooker, warning him that a suspicious wagon train had been actually sighted a few miles away, Stonewall Jackson's flanking march at Chancellorsville would have been checked in its first stages. In this greatest of all wars a Brit- ish battery silences a German gun within two minutes after the allied airman has ''spotted" the Boche. The air is "Any Man's Land." What 43 44 The German Secret Service in America lies beyond the hill is no longer the great hazard, for the wireless is flashing. If the Allied general staffs had been provided with X-ray field-glasses, and had trained those glasses on a certain brownstone house in Massa- chusetts Avenue, between Fourteenth and Fif- teenth Streets, in Washington, they would have been interested in the perfection of the German system of communication. They would have ob- served the secretarial force of the Imperial Em- bassy opening and sorting letters from confeder- ates throughout the country, many so phrased as to be quite harmless, others apparently meaning- less. The Embassy served as a clearing-house for all German and Allied air messages. Long before the war broke out the German government had seen the military necessity for a complete wireless system. Subsidies were se- cretly granted to the largest of the German elec- trical manufacturers to establish stations all over the globe. Companies were formed in America, ostensibly financed with American funds, but on plans submitted to German capitalists and through them to the German Foreign Office for approval. Thus was the Sayville station erected. As early as 1909 a German captain, Otto von Fossberg, had been sent to America to select a site on Long Island for the station. 'The Ger- The Wireless System 45 man government is backing the scheme," he told a friend, although the venture was publicly sup- posed to be under the auspices of the ''Atlantic Communication Company," in which certain prominent German- Americans held stock and of- fice. In 191 1 an expert, Fritz von der Woude, paid Sayville a visit long enough to install the apparatus; he came under strict injunctions not to let his mission become generally known, Boy-Ed watched the progress of the Sayville station with close interest and considerable au- thority, and his familiarity with wireless threw him into frequent and cordial relationship with the United States naval wireless men and the De- partment of Commerce. On one occasion the Department requested a confidential report from a radio inspector of the progress made by foreign interests in wireless; the report prepared went to Germany before it came to the hands of the United States government. Again: the German government was informed in 19 14 by Boy-Ed in Washington that the United States intended to erect a wireless station at a certain point in the Philippines ; full details, as the Navy Department had developed them, were forwarded, and the German government immediately directed a large electrical manufacturer in Berlin to bid for the work. The site the United States had selected 46 The German Secret Service in America was not altogether satisfactory to Germany, for some reason, so the German government added this delicious touch: a confidential map of the Philippines was turned over to the electrical house, with orders to submit a plan for the con- struction of the American station on a site which had been chosen by the German General War Staff! The Providence Journal claims to have discov- ered an interesting German document — probably genuine — which reveals the scope of the Teutonic wireless project. It was a chart, bearing a rect- angle labeled in German with the title of the Ger- man Foreign Office. From this "trunk" radiated three "branches," each bearing a name, and each terminating in the words "Telefunken Co." The first branch was labeled "Gesellschaft fiir Draht- lose Telegraphic, Berlin"; the second, "Siemens & Flalske, Siemens-Schuckert-Werke, Berlin"; the third, "Allgemeine Elektrizitats-Gesellschaft, Berlin." From each branch grew still further subdivi- sions, labeled with the names of electrical firms or agents all over the world, and all subject to the direction of the German government. These names follow: From No. i : Atlantic Communication Co. (Sayville), New York; Australasian Wireless The Wireless System 47 Co., Ltd., Sydney (Australia) ; Telefunken East Asiatic Wireless Telegraph Co., Ltd., Shanghai; Maintz & Co. (of Amsterdam, Holland), Batavia (Java) ; Germann & Co. (of Hamburg), Manila; B. Grimm & Co., Bangkok; Paetzold & Eppinger, Havana; Spiegelthal, La Guayra; Kruger & Co., Guayaquil; Brahm & Co., Lima; E. Quicke, Mon- tevideo; R. Schulbach, Thiemer & Co. (of Ham- burg), Central America; Sesto Sesti, Rome; A. D. Zacharion & Cie., Athens; J. K. Dimitrijievic, Belgrade. From No. 2: Siemens Bros. & Co., Ltd., London; Siemens & Halske, Vienna; Siemens & Halske, Petrograd; Siemens & Halske (K. G. Frank), New York; Siemens-Schuckert-Werke, Sofia ; Siemens-Schuckert-Werke, Constantino- ple; Siemens-Schuckert-Werke (Dansk Aktsiel- skab), Copenhagen; Siemens-Schuckert-Werke (Denki Kabushiki Kaishe), Tokio; Siemens- Schuckert-Werke (Companhia Brazileira de Electricidade), Rio de Janeiro; Siemens-Schuck- ert, Ltd., Buenos Ayres; Siemens-Schuckert, Ltd., Valparaiso. From No. 3: A. E. G. Union Electrique, Brussels ; Allgemeine Elektrizitats-Gesellschaf t, Basel; A. E. G. Elecktriska Aktiebolaget, Stock- holm ; A. E. G. Electricitats Aktieselskabet, Chris- tiania; A. E. G. Thomson-Houston Iberica, Ma- 48 The^ Germa7i Secret Service in America drid; A. E. G. Compania Mexicana, Mexico; A. E. G. Electrical Company of South Africa, Jo- hannesburg. The German manufacturers evinced a keen interest in the project of a wireless plant in Nica- ragua, laying special stress on the point that "per- manent stations in this neighborhood" would be valuable "if the Panama Canal is fortified." From Sayviile station the German plan projected powerful wireless plants in Mexico, at Para, Brazil; at Paramaribo, Dutch Guiana; at Carta- gena, Colombia, and at Lima, Peru. A point in which Captain H. Retzmann, the German naval attache in 191 1, was at one time interested was whether signals could be sent to the German fleet in the English Channel from America without England's interference. German naval wireless experts supervised the construction, and although the stations were nominally civilian-manned, and purely commercial, in reality the operators were often men of unusual scientific intellect, whose talents were sadly underpaid if they received no more than operators' salaries. Gradually and quietly, Germany year by year spread her system of wireless communication over Central and South America, preparing her machinery for war. Over her staff of operators and mechanics she appointed an expert in the full The Wireless System 49 confidence of the Embassy at Washington, and in close contact with Captain Boy-Ed. To the sys- tem of German-owned commercial plants in the United States he added amateur stations of more or less restricted radius, as auxiliary apparatus. When the war broke out, and scores of German merchantmen were confined to American ports by the omnipresence of the British fleet at sea, the wireless of the interned ships was added to the system. Thus in every port lay a source of infor- mation for the Embassy. The United States presently ordered the closing of all private wire- less stations, and those amateurs who had been listening out of sheer curiosity to the air con- versation cheerfully took down their antennae. Not so, however, a prominent woman in whose residence on Fifth Avenue lay concealed a pow- erful receiving apparatus. Nor did the in- terned ships obey the order : apparatus apparently removed was often rigged in the shelter of a fun- nel, and operated by current supplied from an apparently innocent source. And the secret service discovered stations also in the residences of wealthy Hoboken Germans, and in a German- American "mansion" in Hartford, Connecticut. The operators of these stations made their re- ports regularly through various channels to the 50 The German Secret Service in America Embassy. There the messages were sorted, and it is safe to say that Count von Bernstorff was cognizant of the position of every ship on the oceans. He was in possession of both the French and British secret admiralty codes. In the hght of that fact, the manoeuvres of the British and German fleets in the South Atlantic and Pacific became simply a game of chess, Germany follow- ing every move of the British fleet under Admiral Cradock, knowing the identity of his ships, their gun-power, and their speed. When she located the Good Hope, Monmouth, Glasgozv and Otranto off Coronel, Berlin, through von Bernstorff, gave Admiiral von Spec the word to strike, with the results Vv^hich we have observed: the sinking of the Monmouth and Good Hope, and the crippling of the Glasgow and Otranto. Throughout August, September and October, 19 14, the system operated perfectly. Bernstorff and Boy-Ed were confronted with the problem of keeping the German fleet alive as long as possible, and inflicting as much damage as possible on en- emy shipping. Allied merchantmen left port al- most with impunity, and were gathered in by Ger- man raiders who had been informed from Wash- ington of the location of their prey. But the defeat off Chile apparently was conclusive proof to England that Germany knew her naval code, The Wireless System 51 and the events of November and December indi- cate that England changed her code. It was while engaged in escort duty to the first transport fleet of the Australian Expeditionary Force that the Australian crusier Sydney re- ceived wireless signals from Cocos Island shriek- ing that the Emden was near by. The Emden, having been deprived for some time of news of enemy ships, had gone there to destroy the wire- less station, having in the past three months sunk some $12,500,000 of British shipping. Even while the island's distress signals were crashing out, the Emden had her own wireless busy in an effort to drown the call for help, or "jam" the air. On the following morning, November 9, the Syd- ney came up with the enemy. A sharp action followed. The Sydney's gunfire was accurate enough to cause the death of 7 officers and 108 men; her own losses were 4 killed and 12 wounded ; the Emden fled, ran aground on North Keeling Island, one of the Cocos group, and ulti- mately became a total wreck. In the same month the cruiser Geier fled the approach of the British and found refuge in Honolulu harbor. Her commander. Captain Karl Grasshof, made the mistake of keeping a diary. That document, which later fell into the hands of the Navy Intelligence Service, revealed 52 The German Secret Service in America a complete disrespect for the hospitality which the American government afforded the refugees. The Geier's band used to strike up for an after- noon concert, and under cover of the music, the wireless apparatus sent out messages to raiders at sea or messages in English so phrased as to start rumors of trouble between Japan and the. United States. The Geier was the source of a rumor to the effect that Japanese troops had landed in Mexico; the Geier gave what circula- tion she could to a report that Germans in the United States were planning an invasion of Can- ada and was ably assisted in this effort by George Rodiek, German consul at Honolulu; the Geier caught ail trans-Pacific wireless messages, and in- tercepted numerous United States government despatches. Captain Grasshof also spread a re- port quoting an American submarine commander as saying he would ''like to do something to those Japs outside" (referring to the Japanese Pacific patrol) provided he (the American commander) and the German could reach an agreement. This report Grasshof attributed to von Papen, and later retracted, admitting that it was a lie. Grasshof's courier to the consulate in San Fran- cisco was A. V. Kircheisen, a quartermaster on the liner China, a German secret service agent bearing the number K-17. Kircheisen frequently The Wireless System 53 used the China's wireless to send German mes- sages. On December 8 occurred the engagement off the Falklands, which resulted in the defeat of the German fleet. The Karlsruhe within a short time gave up her aimless wanderings and disap- peared. In February the Glasgoiv avenged her- self on the Dresden, and the Prins Eitel Fried- rich and the Kronprinz Wilhelm fled into the se- curity of Hampton Roads for the duration of war. The United States' suspicions had been aroused by the activity of the German wireless plants, but the arm of the law did not remove at once the German operators at certain commercial stations. They were the men who despatched communica- tions to Berlin and to the raiders. Interspersed in commercial messages they sprinkled code phrases, words, numbers, a meaningless and inno- cent jargon. The daily press bulletin issued to all ships at sea was an especially adaptable vehi- cle for this practice, as any traveler who has been forced to glean his news from one of these bulle- tins will readily appreciate. There were Ameri- cans shrewd enough, however, to become exceed- ingly suspicious of this superficially careless send- ing, and their suspicions were confirmed through the invention of another shrewd American, 54 Tlie German Secret Service in America Charles E. Apgar. He combined the principles of the phonograph and the wireless in such a way as to record on a wax disc the dots and dashes of the message, precisely as it came through the receiver. The records could be studied and ana- lyzed at leisure. And the United States govern- ment has studied them. At three o'clock every morning, the great wire- less station at Nauen, near Berlin, uttered a hash of language into the ether. It was apparently not directed to any one in particular, nor did it contain any known coherence. Unless the oper- ator in America wore a DeForest audian detector, which picks up waves from a great distance, he could not have heard it, and certainly during the early part of the war he paid no attention to it. The United States decided, however, that it might be well to eavesdrop, and so for over two years every utterance from Nauen was tran- scribed and filed away, or run off on the phono- graph, in the hope that repetition might reveal the code. Until the code was discovered else- where, the phonographic records told no tales, but then the State Department found that it had a priceless library of Prussian impudence. The diplomatic code was a dictionary, its pages designated by serial letters, its words by serial numbers. Thus the message The Wireless System 55 "12-B-15-C-7" signified the twelfth and fifteenth words on the second page, and the seventh word on the third page. This particular dictionary was one of a rare edition. To complement the diplomatic code the Deutches Bank, the German Foreign Office, and their commercial representatives, Hugo Schmidt and Dr. Albert, had agreed upon an arbitrary code which proved one of the most difficult which the American authorities have ever had to deci- pher. Solution would have been impossible with- out some of the straight English or German con- firmations which followed by mail, but as most of these documents were lost or destroyed, the deciphering had to be done by astute construction of testimony taken from Schmidt as late as the fall of 191 7. He had made the work doubly dif- ficult by burning the cipher key and most of his important papers in the furnace of the German Club. Simple phrases, such as might readily pass any censor without arousing suspicion, passed fre- quently through Sayville station. The message "Expect father to-morrow" meant "The political situation between America and Germany grows worse. It is imperative that you take care of 56 The German Secret Service in America your New York affairs." ''Depot" meant "Se- curities"; "Depot Pritchard" meant "Securities to be held in Germany"; "Depot Cooper" meant "Securities to be forwarded to some neutral coun- try in Europe." Schmidt himself had the follow- ing aliases: "John Maley," "Roy Woolen," "Sidney Pickford," "George Brewster," "175 Congress Street, Brooklyn," "James Frasier," or "Andrew Brodie." Dr. Albert was mentioned as "John Herbinsen," "Howard Ackley," "Leon- ard Hadden," or "Donald Yerkes." James W. Gerard, the American ambassador at Berlin, was "Wilbur McDonald"; America was "Fremessi" or "Alfred Lipton." To throw any suspicion off the scent, the phrase "Hughes recovered" was translatable simply as "agreed," whereas "Percy died" meant "disagreed." Amounts of money were to be multiplied by one thousand. This cipher code, so far as it had any system at all, showed a skilful choice of arbitrary proper names, than which there is nothing less sugges- tive or significant when the name is backed up by no known or discoverable personality. These names met two requirements: they carefully avoided any names of personages, and they sounded English or American. Following is a table of the commoner symbols used: The Wireless System 57 Code Alcott Andeo John Hazel : Chapman ; Thos. Hadley Pythagoras Errflint Lawrence McKay John Hastings ; Fred Holden; Wm. Lounsbury Flagside ; Chas. Hall Henry Galloway Frenchlike ; Blake Flammigere Percy Bloomfield Gobber Milbank or John Childs George Mallery Charles Thurston: Caffney Richard Ernest Whiskard Frederick Chappell, Walter Harris ; Edmund Hutton Mills Edgar Albert Hardwood Herbert Hastings, Langman Howard, Luckett Ernest Eversleigh Sidney Farmer and others Francis Hawkins Francis Manuel ; Edward Gary Fleshquake Clarence Hadden Floezanbel Floezuise Wm. Gerome Fluitkoker Translation Hugo Reisinger Payments are G. Amsinck & Co. Argentine Finance Minister Austrian Ambassador at Washington. Bankers Trust Co. Belgium Berlin Bethlehem Steel Co. Reichsbank Capt. Boy- Ed British Ambassador at Wash- ington British Government Central Bank of Norway The Submarine Deutschland Chase National Bank Dr. Dernberg Empire Trust Co. Equitable Trust Co. New York Speyer & Co. Farmers Loan & Trust Co. German Government Kuhn, Loeb & Co. First National Bank George J. Gould J. P. Morgan J. P. Morgan & Co. Wm. Barclay Parsons 58 The German Secret Service in America Code Fleuxerimus Fogarizers John Hayward Franklin Giltrap Theodore Hooper 15 Code names represented the Paul Overton ; Robt. Hopkins George Hedding Hugh Sturges Clarence Marsh Howard Howe Flerbert Miller Andrew Mills Theodore Mitchell Robert Moffatt Frank Monroe Walter Montgomery Dolling Robert London Steven Morgan Frank Mountcastle Steven Lawson Gafento Translation High Official of Bethlehem Steel Co. Chas. M. Schwab Norwegian Government Hamburg- American Line Capt. von Papen Guaranty Trust Co. Hanover Nat. Bank Standard Mercantile Agency Paul Hilken (Deutschland) Japanese Ambassador at Washington Irving Nat. Bank President of U. S. Secretary of Commerce and Labor Secretary of Agriculture Secretary of State Secretary of Treasury Secretary of Navy London North German Lloyd United States Congress The name of the Deutsches Bank is not to be mentioned Royal Bank of Canada Toluol (High explosive) The chief significance of the discovery of the two codes is their conclusive proof that while von Bernstorff was protesting to the American gov- ernment that he could not get messages through to Berlin, nor replies from the foreign office, he was actually in daily, if not hourly, communica- The Wireless System 59 tion with his superiors. Messages were sent out by his confidential operators under the very eyes of the American naval censors. After the break of diplomatic relations with Berlin, in February, 19 1 7, the authorities set to work decoding the messages, and the State Department from time to time issued for publication certain of the more brutal proofs of Germany's violation of Ameri- can neutrality. The ambassador and his Wash- ington establishment had served for two years and a half as the ''central exchange" of German affairs in the western world. After his depart- ure communication from German spies here was handicapped only by the time required to forward information to Mexico ; from that point to Berlin air conversation continued uninterrupted. CHAPTER V MILITARY VIOLENCE The plan to raid Canadian ports — The first Welland Canal plot — Von Papen, von der Goltz and Tauscher — ■ The project abandoned— Goltz's arrest — The Tauscher trial — Hidden arms — Louden's plan of invasion. Underneath the even surface of American life seethed a German volcano, eating at the upper crust, occasionally cracking it, and not infre- quently bursting a great gap. When an eruption occurred, America stopped work for a moment, stared in surprise, sometimes in horror, at the external phenomena, discussed them for a few days, then hurried back to work. More often than not it saw nothing sinister even in the phe- nomena. Less than ten hours from German headquar- ters in New York lay Canada, one of the richest possessions of Germany's bitter enemy England. Captain von Papen had not only full details of all points of military importance in the United States, but had made practical efforts to utilize 60 Military Violence 61 them. He knew where his reservists could be found in America. When the Government, shortly after the outbreak of war, forbade the recruiting of belligerents within its boundaries, and then refused to issue American passports for the protection of soldiers on the way to their com- mands. Captain von Papen planned to mobilize and employ a German army on American soil in no less pretentious an enterprise than a military invasion of the Dominion. The first plan was attributed to a loyal German named Schumacher, whose ambiguous address was ''Eden Bower Farm, Oregon." He outlined in detail to von Papen the feasibility of obtaining a number of powerful motor-boats, to be manned by German-American crews, and loaded with German-American rifles and machine guns. From the ports on the shores of the Great Lakes he considered it practicable to journey under cover of darkness to positions which would com- mand the waterfronts of Toronto, Sarnia, Wind- sor and Kingston, Ontario, find the cities defense- less, and precipitate upon them a fair storm of bullets. A few Canadian lives might be lost, which did not matter; an enormous hue and cry would be raised to keep the Canadian troops at home to guard the back door. Von Papen entertained the plan seriously, and 62 The German Secret Service in America submitted it to Count von Bernstorff, who for obvious diplomatic reasons did not care to sponsor open violence when its proponent's references were unreliable, its actual reward was at best doubtful, and when subtle violence was equally practicable. Von Papen then produced an alter- native project. Cutting through the promontory which sepa- rates Lake Erie from the western end of Lake Ontario runs the Welland Canal, through which all shipping must pass to avoid Niagara Falls. This waterway is one of Canada's dearest proper- ties, and is no mean artery of supply from the great grain country of the Northwest. Its economic importance, however, was second- ary in the German mind to the psychological effect upon Canada which a dynamite calamity to the Canal would certainly cause. The first expedi- tionary force of Canadian troops was training frantically at Valcartier, Quebec. They must be kept at home. Whether or not the idea origin- ated with Captain von Papen is of little conse- quence (it may be safely assumed that Berlin had long had plans for such an enterprise) ; the fact is that it devolved upon him as military com- mander to crystallize thought in action. The plot is ascribed to "two Irishmen, prominent members of Irish associations, who had both Military Violence 63 fought during the Irish rebeUion," and was to indude destruction of the main railway junctions and the grain elevators in the vicinity of Toronto. The picturesque renegade German spy com- monly known as Plorst von der Goltz is respon- sible for the generally accepted version of inci- dents which followed his first interview with von Papen on August 22 at the German Consulate in New York. He was sent to Baltimore under the assumed name of Bridgeman H. Taylor, with a letter to the German Consul there, Karl Lued- eritz, calling for v/hatever cooperation Goltz might need. He was to recruit accomplices from the crew of a German ship then lying at the North German Lloyd docks in the Patapsco River. With a man whom he had hired in New York, Charles Tucker, alias "Tuchhaendler," he visited the ship and selected his men. He then returned to New York, where Papen placed three more men at his disposal, one of them being A. A. Fritzen, of Brooklyn, a discharged purser on a Russian liner; another Frederick Busse, an '^im- porter," with offices in the World Building, New York; and the third man Constantine Covani, a private detective, of New York. After a few days the sailors from Baltimore reported for duty, but were sent back, as Goltz noticed that his movements were being watched. 64 The German Secret Service in America Papen sent Goltz to Captain Tauscher's office at 320 Broadway for explosives. On September 5, Captain Tauscher ordered 300 pounds of 60 per cent, dynamite to be delivered by the E. I. du Pont de Nemours Company to Mr. Bridgeman Taylor. In a motor-boat Goltz applied at a du Pont barge near Black Tom Island and the Statue of Liberty and took away his three hundred pounds of dynamite in suitcases. The little craft made its way up the river to 146th Street. The conspirators then carried their burden to the Ger- man Club in Central Park South and later in a taxicab to Goltz's home, where it was stored with a supply of revolvers and electrical apparatus for exploding the charges. A passport for facile entrance into Canada had been applied for by one of Luederitz's henchmen in Baltimore in the name of "Bridgeman Taylor," and had been forwarded in care of Karl W. Buck, who lived at 843 West End Avenue, New York. With this guerdon of American protection Goltz set out for Buffalo about September 10 — the last day of the Battle of the Marne — Busse and Frit- zen carrying the dynamite and apparatus, and Covani, as Goltz naively related, "attending to me." He found rooms at 198 Delaware Avenue, in the heart of Buffalo. He learned of the ter- rain for the enterprise from a German of myste- ■ Air/////'///u'/// ////^ ///■/: jf///i j/u/// f /■////■ //^r/r/u^ A„./^„y,„..„/^,. I., ./ b , ."/'^y ///^,„ / ' XVimi. ''ESEHEN. B8RLIK, •^^<^^I^"'>f- '^' ^^^^ '^^^AOSWAttTIOfiSAJlff I'D nESDElTSniCN rivTira i'AKr.-i:i;;;; -.i:/ Passport given to Horst von der Goltz under the alias of Bridgeman H. Taylor Military Violc7ice 65 rious occupation, who had lived in Buffalo for several years. Within a few days Goltz and his companions moved on to Niagara Falls — a move made easier Ijy an exchange of telegraphic com- munications between Papen and himself. It is only necessary to quote, from the British Secret Service report to Parliament, those messages which Goltz received from the attache, or "Stef- fens," as Papen chose to sign himself: New York, N. Y. Sept. 15, 14 Mr. Taylor, 198 Delaware Ave. Buffalo Sent money today. Consult lawyer John Ryan six hundred thirteen Mutual Life Building Buffalo not later than seventeenth. Steffens, 112 Central Park South 12.45 p. New York, N. Y. Sept. 16-14 Mr. Taylor, 198 Delaware Avenue, Bflo. Ryan got money and instructions. Steffens, 1. 14 p. Goltz and Covani "consulted" Mr. Ryan, who had received $200 on September 16 from Papen through Knauth, Nachod & Kuhne. Then Goltz claimed that he made two aeroplane flights over Niagara Falls, and "reconnoitered the ground." Something went wrong, for after a week arrived the following telegrams : 66 The German Secret Service in America New York, N. Y. Sept. 24-14. John T. Ryan, 613 Mutual Life Bldg. Buffalo. Please instruct Taylor cannot do anything more for him. Steffens. 12:51 p. New York, N. Y. Sept. 26-14. Mr. Taylor, care Western Union, Niagara Falls, N. Y. Do what you think best. Did you receive dollars two hundred Ryan 9-45 A. These messages are open to several construc- tions. They do not contradict Goltz's claim that he "learned that the first contingent of Canadian troops had left the camp." They could indicate that his chief was not fully satisfied with his tech- nique. Perhaps the most intriguing feature of the telegrams is their presence in a safe-deposit vault in Holland when Goltz was captured months later. It may be assumed that if (as he main- tained) he was being watched constantly in Buf- falo by the United States Secret Service, one of the first things he would have done is to destroy any messages received. We leave the reader to decide — after he has traced Goltz's history a step or two further. Whatever the occasion, the Welland enterprise Military Violence 67 was dismissed; the dynamite was left with an aviator in Niagara Falls ; Fritzen and Busse were discharged from service, and Covani and Goltz left for New York. In a letter dated December 7, from Buffalo, poor Busse wrote to Edmund Pavenstedt, at 45 William Street, New York, pleading that he had been left without any money in Niagara Falls; that he had written to von Papen and had been compelled to wait two weeks before he got $20. His expenses had accumu- lated during the fortnight, he could not find work, he even had sold his overcoat, and he begged Pavenstedt to send him money to come back to New York. "My friend Fritzen," he added, ''was sent back some weeks ago by a gentleman in the German-American Alliance. ... I would appreciate anything you can do for me, especially since I enlisted in such a task . . . Von Papen signs himself Stevens." The military attache was frankly disgusted at the failure of the undertaking. Goltz claims to have explained everything satisfactorily, and to have been given presently a new commission — that of returning to Germany for further instruc- tions from Abteilung III of the General Staff, the intelligence department of the Empire. On October 8 Goltz sailed for Europe, armed with his false passport, and a letter of introduc- 68 The German Secret Service in America tion to the German Consul-General in Genoa. He reached BerHn safely, received his orders, returned to England, and was arrested on Novem- ber 13. The public was not informed of his ar- rest, yet in Busse's letter from Buffalo of Decem- ber 7, he mentioned Goltz's capture in London. News traveled fast in German channels. Examination of his papers resulted in a pro- tracted imprisonment, which daily grew more painful, and finally Goltz agreed to turn state's evidence against his former confreres. It was not until March 31, 19 16, that Captain Tauscher was interrupted at his office by the arrival of agents of the Department of Justice, who placed him under arrest. He was held in $25,000 bail on a charge of having furthered a plot to blow up the Welland Canal. Meanwhile Goltz's confession had implicated him in something more than a casual acquaint- ance with the plot; stubs in the check-book of Captain von Papen established payment made by the latter to Tauscher of $31.13, which happened to be the exact total of two bills from the du Pont Company to Captain Tauscher for dynamite and hemp fuses delivered on September 5 and 13 to "Bridgeman Taylor." Prior to the trial in June and July, 191 6, Tauscher offered to plead guilty for a promise of the maximum fine without im- Military Violence 69 prisonment, but his offer was rejected by the United States attorneys. A letter was intro- duced as testimony to his good character from General Crozier, the then head of the Ordnance Department at Washington. Goltz made an un- impressive witness, and Captain Tauscher, pro- testing his innocence as a mere intermediary in the affair, was acquitted of the charge. Of the smaller fry Fritzen was arrested in Los Angeles in March, 191 7. He stated then to of- ficers that he had made trips to Cuba after the outbreak of war in 1914, had traveled over southern United States in two attempts to reach Mexico City, and had finally found employment on a ranch. He was sentenced to 18 months in prison. Tucker and Busse were witnesses at the Tauscher trial and were treated leniently. Co- vani turned from his previous occupation as hunter to that of quarry, and was not appre- hended. Information gathered by the Federal authori- ties and produced in court proved that Captain von Papen and reservist German army officers in the country planned a second mobilization of Ger- man reservists to attack Canadian points. That the project was seriously considered for a time is evidenced by a note in the diary found on the commander of the Geier, in Honolulu, in which 70 Tlie German Secret Service in America he said that the German consul in Honohilu, George Rodiek, had had orders from the San Francisco consulate to circulate a report to that effect. Hundreds of thousands of rifles and hun- dreds of rounds of ammunition that were to be available for German reservists were stored in New York, Chicago and other cities on the bor- der. Many a German-American brewery con- cealed in the shadows of its storehouses crates of arms and ammunition. Tauscher stored in 200 West Houston Street, New York, on June 21, 191 5, 2,000 45-calibre Colt revolvers, 10 Colt automatic guns, 7,000 Springfield rifles, 3,000,000 revolver cartridges and 2,500,000 rifle cartridges. When the New York police questioned him about this arsenal, he said he had purchased them in job lots, for speculation. As a matter of fact they had been intended for use in India, but had been diverted on the Pacific coast and returned to New York. A bolder version of the plot of invasion came from Max Lynar Louden, known to the Federal authorities as "Count Louden." He was a man of nondescript reputation, who had secret com- munications with the Germans in the early part of the war. He confessed that he was party to a scheme for the quick mobilization and equip- ment of a full army of German reservists. Lou- Military Violence 71 den was consistently annoying to the Secret Serv- ice in that he refused openly to violate the neu- trality laws, but the moment the authorities learned of the fact that he was supposed to have two or three wives they made an investigation which resulted in his imprisonment. His story, if not altogether reliable, is interesting. Through German-American interests, the plans were made in 1914, he said, and a fund of $16,000,000 was subscribed to carry out the de- tails. Secret meetings were held in New York, Buffalo, Philadelphia, Detroit, Milwaukee, and other large cities, and at these meetings it was agreed that a force of 150,000 reservists was available to seize and hold the Welland Canal, strategic points and munitions centers. "We had it arranged," said Louden, '"to send our men from large cities following announce- ments of feasts and conventions, and I think we could have obtained enough to carry out our plans had it not been for my arrest on the charge of bigamy. The troops were to have been divided into four divisions, with six sections. The first two divisions were to have assembled at Silver- creek, Mich. The first was to have seized the Welland Canal. The second was to have taken Wind Mill Point, Ontario. The third was to go from Wilson, N. Y., to Port Hope. The fourth 72 The German Secret Service in America was to proceed from Watertown, N. Y,, to Kings- ton, Ontario. The fifth was to assemble near Detroit and land near Windsor. The sixth sec- tion was to leave Cornwall and take possession of Ottawa. 'Tt had been planned to buy or charter eighty- four excursion and small boats to use in getting into Canada. All of the equipment was to have been put aboard the boats, and when quarters for 120,000 men had been found it would have been easy to continue the expedition. The German government was cognizant of the plan and maps, etc., were to have been furnished by the German government. A representative of the British Ambassador offered $20,000 for our plans." But none of the first German- American expe- ditionary forces left for their destinations. Their project was innocently foiled by Amelia Wendt, Rose O'Brien and Nella Florence Allen- dorf. These ladies were Louden's wives. CHAPTER VI PAUL KOENIG Justice and Metzler — Koenig's personality — von Pa- pen's checks — The "little black book" — Telephone codes — Shadowing — Koenig's agents — His betrayal. In a narrative which attempts so far as possi- ble to proceed chronologically, it becomes neces- sary at this point to introduce Paul Koenig. For, on September 15, 1914, he sent an Irishman, named Edmund Justice, who had been a dock watchman, and one Frederick Metzler to Quebec for information of the number of Canadian troops in training. On September 18 Koenig left New York and met Metzler in Portland, Maine. He received his report, and on September 25 was in Burlington, Vt., where he conferred with Jus- tice, and learned that the two spies had inspected the fortifications in Quebec, and had visited the training camps long enough to estimate the num- ber and condition of the men. (Their informa- tion Koenig reported at once to von Papen, and it is possible that it dictated Papen's recall of Goltz from Buffalo the next day.) 73 74 The German Secret Service in America Who was Paul Koenig? His underlings knew him as 'T, K.," and called him the "bull-headed Westphalian" behind his back. He had a dozen aliases, among them Wegenkamp, Wagener, Kelly, Winter, Perkins, Stemler, Rectorberg, Boehm, Kennedy, James, Smith, Murphy, and W. T. Munday. He was a product of the "Kaiser's Own" — the Hamburg- American Line. He had been a detec- tive in the service of the Atlas Line, a subsidiary of the Hamburg-American, and for some years before the war was superintendent of the latter company's police. In that capacity he bossed a dozen men, watching the company's laborers and investigating any complaints made to the line. His work threw him into constant contact with sailors, tug-skippers, wharf-rats, longshoremen, and dive-keepers of the lowest type, and there was little of the criminal life of the waterfront that he had not seen. He had arms like an ape, and the bodily strength of one. His expression, suggested craft, ferocity, and brutality. Altogether his powerful frame and lurid vocabulary made him a figure to avoid or respect. Waterfront society did both —and hated him as well. Von Papen saw in Koenig's little police force the nucleus of just such an organization as he Copyright^ International lilm Se. Paul Koenig, the Hamburg-American emlpoye, who supplied and directed agents of German violence in America Paul Koenig 75 needed. The Line put Koenig at the attache's disposal in August, 1914, and straightway von Papen connected certain channels of information with Koenig's own system. He supplied reserv- ists for special investigations and crimes, and presently Koenig became in effect the foreman of a large part of Germany's secret service in the East. As his activities broadened, he was called upon to execute commissions for Bernstorff, Al- bert, Dr. Dumba, the Austro-Hungarian ambas- sador, and Dr. Alexander von Nuber, the Aus- trian consul in Nev/ York, as well as for the at- taches themselves. He acted as their guard on occasion, served as their confidential messenger, and made himself generally useful in investiga- tion work. The guilt-stained check-book of the military attache contained these entries: March 29, 1915. Paul Koenig (Secret Service Bill) $509,11 April 18, Paul Koenig (Secret Service Bill) $90.94 May II, Paul Koenig (Secret Service) $66.71 July 16, Paul Koenig (Compensation for F. J. Busse) $150.00 August 4, Paul Koenig (5 bills secret service) $118.92 Those entries represent only the payments made Koenig by check for special work done for von Papen. Koenig received his wages from the 76 The German Secret Sei'vice in America Line. When he performed work for any one else he rendered a special bill. This necessitated his itemizing his expenditures, and this Germanly thorough and thoroughly German system of petty accounting enabled our secret service later to trace his activities with considerable success. Koenig and von Papen used to haggle over his bills — on one occasion the attache felt he was being overcharged, and accordingly deducted a half-dollar from the total. "P. K." also had an incriminating book — a carefully prepared notebook of his spies and of persons in New York, Boston and other cities who were useful in furnishing him information. In another book he kept a complete record of the purpose and cost of assignments on w^hich he sent his men. He listed in its pages the names of several hundred persons — army reservists, Ger- man-Americans and Americans, clerks, scientists and city and Federal employees — showing that his district was large and that his range for get- ting information and for supervising other pro- German propaganda was broad. For his own direct staff he worked out a system of numbers and initials to be used in communication. The numbers he changed at regular intervals and a S3^stem of progression was devised b}^ which each agent would know when his number changed. Paul Koenig 77 He provided them with suitable aHases. These men had alternative codes for writing letters and for telephone communication to be changed au- tomatically by certain fixed dates. Always alert for spies upon himself, Koenig suspected that his telephone wire was tapped and that his orders were being overheard. So he instructed his men in various code words. If he told an agent to meet him "at 5 o'clock at South Ferry" he meant: "Meet me at 7 o'clock at Forty-second Street and Broadway." His sus- picions were well-grounded, for his wire was tapped, and Koenig led the men who were spying on him an unhappy dance. For example: he would receive a call on the telephone and would direct his agent, at the other end of the wire, to meet him in fifteen minutes,at Pabst's, Harlem. It is practically impossible to make the journey from Koenig's office in the Hamburg- American Building to 125th Street in a quarter of an hour. After a time his watch- ers learned that "Pabst's, Harlem" meant Bor- ough Hall, Brooklyn. He never went out in the daytime without one or two of his agents trailing him^ to see whether he was being shadowed. He used to turn a cor- ner suddenly and stand still so that an American detective following came unexpectedly face to 7B The German Secret Service in America face with him and betrayed his identity. Koe- nig would laugh heartily and pass on. Thus he came to know many agents of the Department of Justice and many New York detectives. When he started out at night he usually had three of his own men follow him and by a pre- arranged system of signals inform him if any strangers were following him. The task of keeping watch of Koenig's move- ments required astute guessing and tireless work on the part of the New York police. So elusive did he become that it was necessary for Captain Tunney to evolve a new system of shadowing him in order to keep him in sight without betraying that he was under surveillance. One detective, accordingly, would be stationed several blocks away and would start out ahead of Koenig. The "front shadow" was signaled by his confed- erates in the rear whenever Koenig turned a cor- ner, so that the man in front might dart down a cross-street and manoeuvre to keep ahead of him. If Koenig boarded a street car the man ahead would hail the car several blocks beyond, thus avoiding suspicion. In more than one in- stance detectives in the rear, guessing that he was about to take a car, would board it several blocks before it got abreast of Koenig. His Paul Koenig 79 alertness kept Detectives Barnitz, Coy, Terra, and Corell on edge for months. It was impossible to overhear direct conversa- tion between Koenig and any man to whom he was giving instructions. Some of his workers he never permitted to meet him at all, but when he kept a rendezvous it was in the open, in the parks in broad daylight, or in a moving-picture theatre, or in the Pennsylvania Station, or the Grand Central Terminal. There he could make sure that nobody was eavesdropping. If he met an agent in the open for the first time he gave him some such command at this : ''Be at Third Avenue and Fifty-ninth Street at 2 130 to-morrow afternoon beside a public tele- phone booth there. When the telephone rings answer it." The man would obey. On the minute the tele- phone would ring and the man would lift the receiver. A strange voice told him to do cer- tain things — either a definite assignment, or in- structions to be at a similar place on the follow- ing day to receive a message. Or he might be told to meet another man, who would give him money and further orders. The voice at the other end of the wire spoke from a public tele- phone booth and was thus reasonably sure that the wire was not tapped. 80 The German Secret Service in America And Koenig trusted no man. He never sent an agent out on a job without detailing another man to shadow that man and report back to him in full the operations of the agent and of any persons whom he might deal with. He was bru- tally severe in his insistence that his men do ex- actly what he told them without using their own initiative. Koenig had spies on every big steamship pier. He had eavesdroppers in hotels, and on busy telephone switchboards. He employed porters, window-cleaners, bank clerks, corporation em- ployees and even a member of the Police Depart- ment. This last, listed in his book as "Special Agent A. S.," was Otto F. Mottola, a detective in the warrant squad. The notebook revealed Mottola as "Antonio Marino," an alias later changed to Antonio Salvatore. Evidence was produced at Mottola's trial at Police Headquarters that Koe- nig paid him for investigating a passenger who sailed on the Bergensfjord; that he often called up Mottola, asked questions, and received an- swers which Koenig's stenographer took down in shorthand. Through him Koenig sought to keep closely informed of developments at Police Headquarters in the inquiry being made by the police into the activities, of the Germans. Mot- Paul Koenig 81 tola was dismissed from the force because of false statements made to his superiors when they questioned him about Koenig. Koenig's very caution was the cause of his undoing. The detectives who shadowed him learned that he ''never employed the same man more than once," which meant simply that he was careful to place no subordinate in a position where blackmail and exposure might be too easy. To this fact they added another trifling observa- tion; they noticed that as time went on he was seen less in the company of one George Fuchs, a relative with whom he had been intimate early in the war. They cultivated the young man's acquaintance to the extent that he finally burst out with a recitation of his grievances against Koenig, and betrayed him to the authorities. "P. K." was defiant always. "They did get Dr. Albert's portfolio," he said one day, "but they won't get mine. I won't carry one." CHAPTER VII FALSE PASSPORTS Hans von Wedell's bureau — The traffic in false pass- ports — Carl Ruroede — Methods of forgery — Adams' coup — von Wedell's letter to von Bernstorff — Stegler — Lody — Berlin counterfeits American passports — Von Bree- chow. Throughout August, 19 14, it was compara- tively easy for Germans in America who wished to respond to the call of the Fatherland to leave American shores. A number of circumstances tended swiftly to make it more hazardous. The British were in no mind to permit an influx of reservists to Germany while they could block- ade Germany. The cordon tightened, and soon every merchant ship was stopped at sea by a British patrol and searched for German suspects. German spies here took refuge in the protection afforded by an American passport. False pass- ports were issued by the State Department in considerable quantities during the early weeks of war — issued unwittingly, of course, for the 82 False Passports 83 applicant in most cases underwent no more than the customary peace-time examination. We have already seen that von der Goltz easily secured a passport. The details of his apphca- tion were these: Karl A. Luederitz, the Ger- man consul at Baltimore, detailed one of his men to supply Goltz with a lawyer and an application blank (then known as Form 375). The lawyer was Frederick F. Schneider, of 2 East German Street, Baltimore. On that application Goltz swore that his name was Bridgeman H. Taylor, his birthplace San Francisco, his citizenship American, his residence New York City, and his occupation that of export broker. Charles Tucker served as witness to these fantastic sen- timents. Two days later (August 31) the State Department issued passport numl^er 40308 in the name of Taylor, and William Jennings Bryan signed the precious document. It was not necessary at that time to state the countries which the applicant intended to visit. Within a few weeks, however, that information was required on the passport. Each additional precaution taken by the Gov- ernment placed a new obstacle in the way of un- limited supply of passports. The Goltz method was easy enough, but it soon became impossible to employ it. The necessity for sending news 84 The German Secret Service in America through to Berlin by courier was increasingly urgent and it devolved upon Captain von Papen to systematize the supply of passports. The military attache in November selected Lieutenant Hans von Wedell, who had already made a trip as courier to Berlin for his friend, Count von Bernstorif. Von Wedell was married to a Ger- man baroness. He had been a newspaper repor- ter in New York, and later a lawyer. He opened an office in Bridge Street, New York, and began to send out emissaries to sailors on interned German liners, and to their friends in Hoboken, directing them to apply for passports. He sent others to the haunts of tramps on the lower East Side, to the Mills Hotel, and other gathering places of the down-and-outs, offering ten, fifteen or twenty dollars to men who would apply for and deliver passports. And he bought them! He spent much time at the Deutscher Verein, and at the Elks' Club in 43rd Street where he often met his agents to give instructions and receive passports. His bills were paid by Captain von Papen, as revealed by the attache's checks and check stubs ; on November 24, 19 14, a payment in his favor of $500; on December 5, $500 more and then $300, the latter being for "journey money." Von Wedell's bills at the Deutscher Verein in November, 1914, came to $38.05, according to Copyright, International Film Service Hans von Wedell and his wife. He was an important member of the false-passport bureau and she a messenger from von Papen to Germany False Passports 85 another counterfoil. The Captain in the mean- time employed Frau von Wedell as courier, send- ing her with messages to Germany. On Decem- ber 22, 19 14, he paid the baroness, according to his check-book, $800. The passports secured by von Wedell, and by his successor, Carl Ruroede, Sr., a clerk in Oel- richs & Co., whom he engaged, were supplied by the dozens to officers whom the General Staff had ordered back to Berlin. Not only American passports, but Mexican, Swiss, Swedish, Nor- wegian and all South American varieties were seized eagerly by reservists bound for the front. Germans and Austrians, who had been captured in Russia, sent to Siberia as prisoners of war, escaped and making their way by caravan through China, had embarked on vessels bound for Amer- ica. Arriving in New York they shipped for neutral European countries. Among them was an Austrian officer, an expert aeroplane observer whose feet were frozen and amputated in Siberia, but who escaped to this country. He was or- dered home because of his extreme value in ob- servation, and after his flight three-fourths of the way round the world, the British took him off a ship at Falmouth to spend the remainder of the war in a prison camp. Captain von Papen used the bureau frequently 86 The Ger'man Secret Service in America for passports for spies whom he wished to send to England, France, Italy or Russia. Anton Kuepferle and von Breechow were two such agents. Both were captured in England with false passports in their possession. Both con- fessed, and the former killed himself in Brixton Jail. Von Wedell and Ruroede grew reckless and boastful. Two hangers-on at the Mills Hotel called upon one of the writers of this volume one day and told him of von Wedell's practices, re- lated how they had blackmailed him out of $50, gave his private telephone numbers and set forth his haunts. When this and other information reached the Department of Justice, Albert G. Adams, a clever agent, insinuated himself into Ruroede's confidence, and offered to secure pass- ports for him for $50 each. Posing as a pro- German, he pried into the inner ring of the pass- port-buyers, and was informed by Ruroede just how the stock of passports needed replenishing. Though in the early days of the war it had not been necessary for the applicant to give more than a general description of himself, the cry of "German spies!" in the Allied countries became so insistent that the Government added the re- quirement of a photograph of the bearer. The Germans, however, found it a simple matter to False Pass points 87 give a general description of a man's eyes, color of hair, and age to fit the person who was actually to use the document; then forwarded the pic- ture of the applicant to be affixed. The appli- cant receiving the passport, would sell it at once. Even though the official seal was stamped on the photograph the Germans were not dismayed. Adams rushed into Ruroede's office one day waving a sheaf of five passports issued to him by the Government. Adams was ostensibly proud of his work, Ruroede openly delighted. "I knew I could get these passports easily," he boasted to Adams. *'VVhy, if Lieutenant von Wedell had kept on here he never could have done this. He always was getting into a muddle." "But how can you use these passports with these pictures on them?" asked the agent. "Oh, that's easy," answered Ruroede. "Come in the back room. I'll show you." And Ru- roede, before the observant eyes of the Depart- ment of Justice, patted one of the passports with a damp cloth, then with adhesive paste fastened a photograph of another man over the original bearing the imprint of the United States seal. "We wet the photograph," said Ruroede, "and then we affix the picture of the man who is to use it. The new photograph also is dampened, but when it is fastened to the passport there still 88 The German Secret Service in America remains a sort of vacuum in spots between the new picture and the old because of ridges made by the seal. So we turn the passport upside down, place it on a soft ground — say a silk hand- kerchief — and then we take a paper-cutter with- a dull point, and just trace the letters on the seal. The result is that the new photograph dries ex- actly as if it had been stamped by Uncle Sam. You can't tell the difference." Adams never knew until long afterward that when he met Ruroede by appointment in Bowling Green, another German atop ii Broadway was scrutinizing him through field-glasses, and ex- amining every one who paused nearby, who might arouse suspicion of Adams' ingenuous part in the transaction. Through Adams' efforts Ruroede and four Germans, one of them an officer in the German reserves, were arrested on January 2, on the Scandinavian-American liner Bergensfjord out- ward bound to Bergen, Norway. They had pass- ports issued through Adams at Ruroede's request under the American names of Howard Paul Wright, Herbert S. Wilson, Peter Hanson and Stanley F. Martin. Their real names were Ar- thur Sachse, who worked in Pelham Heights, N. Y., and who was returning to become a lieutenant in the German Army; Walter Miller, August R. False Passports 89 Meyer and Herman Wegener, who had come to New York from Chile, on their way to the Father- land. On the day when Ruroede, his assistant, and the four men for whom he obtained passports were arrested, Joseph A. Baker, assistant superintend- ent of the Federal agents in New York, took pos- session of the office at ii Bridge Street. As he was sorting piapers and making a general inves- tigation, a German walked in bearing a card of introduction from von Papen, introducing him- self as Wolfram von Knorr, a German officer who up to the outbreak of the war had been naval attache in Tokio. The officer desired a passport. Baker, after a conversation in which von Knorr revealed von Papen's connection with the pass- port bureau, told him to return the next day. When the German read the next morning's news- papers he changed his lodging-place and his name. Von Wedell himself was a passenger on the Bergensfjord, but when he was lined up with the other passengers, the Federal agents, who did not have a description of him, missed him and left the vessel. He was later (January ii) taken off the ship by the British, however, and trans- ferred to another vessel for removal to a prison camp. She struck a German mine and sank, and von Wedell is supposed to have drowned. 90 The German Secret Service in America A few days before he sailed, he wrote a letter to von Bernstorff which fixes beyond question the responsibilit}^ for his false passport activities. The letter, dated from Nyack, where he was hid- ing, on December 26, 1914, follows: "His Excellency The Imperial German Ambassador. Count von Bernstorff, Washington, D. C. Your Excel- lency : Allow me most obediently to put before you the following- facts : It seems that an attempt has been made to produce the impression upon you that I prematurely abandoned my post, in New York. That is not true. "I — My work was done. At my departure I left the service, well organized and worked out to its minutest details, in the hands of my successor, Mr. Carl Ruroede, picked out by myself, and, despite many warnings, still tarried for several days in New York in order to give him the necessary final directions and in order to hold in check the blackmailers thrown on my hands by the Ger- man officers until after the passage of my travelers through Gibraltar; in which I succeeded. Mr. Ruroede will testify to you that without my suitable preliminary labors, in which I left no conceivable means untried and in which I took not the slightest consideration of my personal weal or woe, it would be impossible for him, as well as for Mr. von Papen, to forward officers and 'as- pirants' in any number whatever, to Europe. This merit I lay claim to and the occurrences of the last days have unfortunately compelled me, out of sheer self-respect, to emphasize this to your Excellency. 'TI — The motives which induced me to leave New False PassiJorts 91 York and which, to my astonishment, were not communi- cated to you, are the following: "i. I knew that the State Department had, for three weeks, withheld a passport application forged by me. Why? "2. Ten days before my departure I learnt from a telegram sent me by Mr. von Papen, which stirred me up very much, and further through the omission of a cable, that Dr. Stark had fallen into the hands of the English. That gentleman's forged papers were liable to come back any day and could, owing chiefly to his lack of caution, easily be traced back to me. "3. Officers and aspirants of the class which I had to forward over, namely the people, saddled me with a lot of criminals and blackmailers, whose eventual revelations were liable to bring about any day the explosion of the bomb. "4. Mr. von Papen had repeatedly urgently ordered me to hide myself. " 5. Mr. Igel had told me I was taking the matter alto- gether too lightly and ought to — for God's sake — dis- appear. "6. My counsel . . . had advised me to hastily quit New York, inasmuch as a local detective agency was or- dered to go after the passport forgeries. "7. It had become clear to me that eventual arrest might yet injure the worthy undertaking and that my disappearance would probably put a stop to all investi- gation in this direction. "How urgent it was for me to go away is shown by the fact that, two days after my departure, detectives, who had followed up my telephone calls, hunted up my 92 The German Secret Service in America wife's harmless and unsuspecting cpusin in Brooklyn, and subjected her to an interrogatory. "Mr. von Papen and Mr. Albert have told my wife that I forced myself forward to do this work. That is not true. When I, in Berlin, for the first time heard of this commission, I objected to going and represented to the gentleman that my entire livelihood which I had created for myself in America by six years of labor was at stake therein. I have no other means, and although Mr. Albert told my wife my practice was not worth talking about, it sufficed, nevertheless, to decently sup- port myself and wife and to build my future on. I have finally, at the suasion of Count Wedell, undertaken it, ready to sacrifice my future and that of my wife. I have, in order to reach my goal, despite infinite difficulties, de- stroyed everything that I built up here for myself and my wife. I have perhaps sometimes been awkward, but always full of good will, and I now travel back to Ger- many with the consciousness of having done my duty as well as I understood it, and of having accomplished my task. "With expressions of the most exquisite consideration, I am, your Excellency, "Very respectfully, "(Signed) Hans Adam von Wedell." Ruroede was sentenced to three years in At- lanta prison. The four reservists, pleading guilty, protested they had taken the passports out of patriotism and were fined $200 each. The arrest of Ruroede exposed the New York bureau, and made it necessary for the Germans False Passports 93 to shift their base of operations, but it did not put an end to the fraudulent passport conspira- cies. Captain Boy-Ed assumed the burden, and hired men to secure passports for him. One of these men was Richard Peter Stegler, a Prussian, 2,S years old, who had served in the German Navy and afterward came to this country to start on his life work. Before the war he had applied for his first citizenship papers but his name had not been removed from the German naval reserve list. "After the war started," Stegler said, "I re- ceived orders to return home. I was told that everything was in readiness for me. I was as- signed to the naval station at Cuxhaven. My uniform, my cap, my boots and my locker would be all set aside for me, and I was told just where to go and what to do. But I could not get back at that time and I kept on with my work." He became instead a member of the German secret service in New York. "There is not a ship that leaves the harbor, not a cargo that is loaded or unloaded, but that some member of this secret organization watches and reports every detail," he said. "All this information is trans- mitted in code to the German Government." In January, 191 5, if not earlier, Stegler was sent by the German Consulate to Boy-Ed's office, 94 The German Secret Service in America where he received instructions to get a passport and make arrangements to go to England as a spy. Boy-Ed paid him $178, which the attache admitted. Stegler immediately got in touch with Gustave Cook and Richard Madden, of Hoboken, and made use of Madden's birth certificate and citizenship in obtaining a passport from the American Government. Stegler paid $100 for the document. Stegler pleaded guilty to the charge and served 60 days in jail; Madden and Cook were convicted of conspiracy in connection with the project, and were sentenced to 10 months' imprisonment. "I was told to make the voyage to England on the Lusitania/' continued Stegler. "My instruc- tions were as follows : 'Stop at Liverpool, exam- ine the Mersey River, obtain the names, exact locations and all possible information concerning warships around Liverpool, ascertain the amount of munitions of war being unloaded on the Liver- pool docks from the United States, ascertain their ultimate destination, and obtain a detailed list of all the ships in the harbor.' "I was to make constant, though guarded in- quiries, of the location of the dreadnought squad- ron which the Germans in New York understand was anchored somewhere near St. George's Channel. I was to appear as an American citi- False Passports 95 zen soliciting trade. Captain Boy-Ed advised me to get letters of introduction to business firms. He made arrangements so that I received such letters and in one letter were enclosed some rare stamps which were to be a proof to certain per- sons in England that I was working for the Ger- mans. "After having studied at Liverpool I was to go to London and make an investigation of the Thames and its shipping. From there I was to proceed to Holland and work my way to the German border. While my passport did not in- clude Germany, I was to give the captain of the nearest regiment a secret number which would indicate to him that I was a reservist on spy duty. By that means I was to hurry to Eisendal, head of the secret service in Berlin." Stegler did not make the trip because his wife learned of the enterprise and begged him not to go. He too had run afoul of the vigilant Adams, and was placed under arrest in February, 191 5, shortly after he decided to stay at home. In his possession were all the letters and telegrams ex- changed between him and Boy-Ed, and one tele- gram from "Winkler," Captain Boy-Ed's serv- ant. Stegler also said that he had been told by Dr. Karl A. Fuehr, one of Dr. Albert's assistants, 96 The German Secret Service in America that Boy-Ed previously had sent to England Karl Hans Lody, the German who in November, 1915, was put to death as a spy in the Tower of London, Lody had been in the navy, had served on the Kaiser's yacht and then had come to this country and worked as an agent for the Ham- burg-American Line, going from one city to an- other. Shortly after the war started Lody had gone on the mission of espionage which cost him his life. Captain Boy-Ed authorized the commander of the German cruiser Geier, interned in Honolulu, to get his men back to Germany as best he could, by providing them with false passports. Still another of Boy-Ed's proteges was a naval re- servist, August Meier, who shipped as a hand on the freighter Evelyn with a cargo of horses for Bermuda. On the voyage practically all of the horses were poisoned. Meier, however, was ar- rested by the Federal authorities on the charge of using the name of a dead man in order to get an American passport. In supplying passports and in handling spies. Captain Boy-Ed was more sub- tle than his colleague, von Papen. Nevertheless the Government officials succeeded in getting a clear outline of his activities. The exposure of Boy-Ed's connection with Stegler made it neces- False Passports 97 sary for the German Government to change its system once more. The Wilhelmstrasse had a bureau of its own. Reservists from America reported in BerHn for duty in Belgium and France, and their passports ceased to be useful, to them. The intelligence department commandeered the documents for agents whom they wished to send back to Amer- ica. Tiny flakes of paper were torn from the body of the passport and from the seal, in order that counterfeiters might match them up. On January 14, 191 5, an American named Reginald Rowland obtained a passport from the State De- partment for safe-conduct on a business trip to Germany. While it was being examined at the frontier every detail of the document was closely noted by the Germans. Some months later Cap- tain Schnitzer, chief of the German secret service in Antwerp, had occasion to send a spy to Eng- land. He chose von Breechow, a German whom von Papen had forwarded from New York, and who had his first naturalization papers from the United States. To Breechow he gave a facsimile of Rowland's passport identical with the original in every superficial respect except that the spy's photograph had been substituted for the original, and the age of the bearer set down as 31 — ten years older than Rowland. 98 The German Secret Service in America Von Breechow passed the English officials at Rotterdam and at Tilbury. He soon fell under suspicion, however, and his passport was taken away. When the British learned that the real Rowland was at home in New Jersey, and in pos- session of his own passport, they sent for it, and compared the two. Breechow's revealed a false watermark, stamped on in clear grease, which made the paper translucent, but which was soluble in benzine. The stamp, ordinarily used to coun- tersign both the photograph and the paper in a certain way, had been applied in a different posi- tion. With those exceptions, and the suspicious Teutonic twist to a *'d" in the word ''dark," the counterfeit was regular. The Rosenthal case was the first to bring to light the false passport activities in Berlin. Ro- senthal, posing as an agent for gas mantles, trav- eled in England successfully as a spy under an emergency passport issued by the American Em- bassy in Berlin. Captain Prieger, the chief of a section in the intelligence department of the Gen- eral Staff, asked Rosenthal to make a second trip. The spy demurred, doubting whether his pass- port might be accepted a second time. The Cap- tain turned to a safe, extracted a handful of false American passports, and said: "1 can fit you out with a passport in any name you wish." Ro- False Passports 99 senthal decided to employ his own. He was ar- rested and imprisoned in England. As the State Department increased its vigil- ance the evil began to expire. It was further stifled by concerted multiplication by the Allies of the examinations which the stranger had to undergo. But during its course it made per- sonal communication between Berlin and lower Broadway almost casual. CHAPTER VIII INCENDIARISM Increased munitions production — The opening explo- sions — Orders from Berlin — Von Papen and Seattle — July, 191 5 — The Van Koolbergen affair — The autumn of 1 91 5 — The Pinole explosion. A bomb is an easy object to manufacture. Take a section of lead pipe from six to ten inches long, and solder into it a partition of thin metal, which divides the tube into two compartments. Place a high explosive in one compartment and seal it carefully (the entire operation requires a gentle touch) and in the other end pour a strong acid ; cap it, and seal it. If you have chosen the proper metal for the partition, and acid of a strength to eat slowly through it to the explosive, you have produced a bomb of a type which Ger- man destroying agents were fond of using in America from the earliest days of their opera- tion. When the first panic of war had passed, the Allied nations took account of stock and sent their purchasing agents to America for war ma- 100 Incendiarism 101 terials. Manufacturers of explosives set to work at once to fill contracts of unheard-of size. They built new factories almost overnight, hired men broadcast, and sacrificed every other considera- tion to that of swift and voluminous output. Accidents were inevitable. Probably we shall never know what catastrophes were actually wrought by German sympathizers, for the very nature of the processes and the complete ruin which followed an explosion guarded the secret of guilt. No doubt carelessness was largely to blame for the earlier explosions, but instead of diminishing as the new hands became more skill- ful, and as greater vigilance was employed every- where, the number of disasters increased. The word "disaster" is used advisedly. Powder, gun- cotton, trinitrotoluol (or TNT, as it is better known), benzol (one of the chief substances used in the manufacture of TNT) and dynamite were being produced in great volume for the Allies in American plants within a comparatively short time — all powerful explosives even in mi- nute quantity. At sea the German navy was losing control daily. It therefore behooved the German forces in America to stop the production of munitions at its source. It may be well, for the force which such presentation carries, to recount very briefly 102 The German Secret Service in America the major accidents which occurred in America in the first few months after August, 1914. On August 30 one powder mill of the du Pont Powder company (strictly speaking the E. I. du Pont de Nemours Company) at Pompton Lakes, New Jersey, blew up. In September a guncotton explosion in the Wright Chemical Works caused the death of three people, and a large property damage. In October the factory of the Pain Fire- works Display Company was destroyed, and sev- eral people were killed. In the same month the fireworks factory of Detwiller and Street in Jer- sey City suffered an explosion and the loss of four lives. These explosions were the opening guns. Throughout August and September most of these accidents may be attributed to the inexpe- rience and confusion which followed greatly in- creased production in the powder mills. But a circular dated November 18, issued by German Naval Headquarters to all naval agents through- out the world, ordered mobilized all ''agents who are overseas and all destroying agents in ports where vessels carrying war material are loaded in England, France, Canada, the United States and Russia." Followed these orders : 'Tt is indispensable by the intermediary of the Incendiarism 103 third person having no relation with the official representatives of Germany to recruit progres- sively agents to organize explosions on ships sailing to enemy countries in order to cause de- lays and confusion in the loading, the departure and the unloading of these ships. With this end in view we particularly recommend to your at- tention the deckhands, among whom are to be found a great many anarchists and escaped crim- inals. The necessary sums for buying and hir- ing persons charged with executing the project^ will be put at your disposal on your demand." Equally incriminating proof that the "destroy- ing agents" were active in and about the fac- tories lies in a circular intercepted by the French secret service in Stockholm, in a letter addressed by one Dr. Klasse in Germany to the Pan-German League in Sweden, in which he said : "Inclosed is the circular of November 22, 1914, for information and execution upon United States territory. We draw your attention to the possibility of recruiting destroying agents among the anarchist labor organization." This circular was signed by Dr. Fischer, Councillor General of the German Army. In the first six months of 191 5 the du Pont factories at Haskell, N. J., Carney's Point, N. J., Wayne, Pa., and Wilmington, Del., experienced 104 The German Secret Service in America explosions and fires; a chemical explosion oc- curred in a factory in East 19th Street, New York ; the Anderson Chemical Company, at Wal- lington, N. J., was rocked on May 3 by an explo- sion of gmicotton which cost three lives; five more lives were flashed out in a similar accident in the Equitable powder plant at Alton, 111. On New Year's Day, the Buckthorne plant of the John A. Roebling Company, manufacturers of shell materials, at Trenton, was completely de- stroyed by fire, the property loss estimated at $1,500,000. And on June 26, the yEtna Powder plant at Pittsburgh suffered a chemical explosion which killed one man and injured ten others. Most of these "accidents" had taken place near the Atlantic seaboard. Yet Germany was active in the far West. On May 30 a barge laden with a large cargo of dynamite lay in the harbor of Seattle, Washington. The dynamite was con- signed to Russia and was about to be transferred to a steamer, when it exploded with a shock of earthquake violence felt many miles inland, and comparable to the explosion in the harbor of Halifax in December, 1917. Two counterfoils in von Papen's check-book cast some light on the activities of the consulate in Seattle, the first dated February 11, 1915, the amount $1,300, the payee "German Consulate, Seattle," the penned Incendiarism 105 notation "Angelegenheit" (affair) preceded by a mysterious "C"; the second dated May ii, 19 15, for $500, payable to one "Schulenberg" ^ through the same consulate. The month of July was a holocaust. A tank of phenol exploded in New York, the benzol plant of the Semet Solvay Company was destroyed at Solvay, N. Y. ; on the 7th serious explosions oc- curred at the du Pont plant at Pompton Lakes and at the Philadelphia benzol plant of Harrison Brothers (the latter causing $500,000 damage) ; on the 1 6th five employees were killed in an ex- plosion and fire at the ^tna plant at Sinnema- honing. Pa., three days later there was another at the du Pont plant in Wilmington ; on the 25th a munitions train on the Pennsylvania line was wrecked at Metuchen, N. J. ; on the 28th the du Pont works at Wilmington suffered again; and ^ Franz Schulenberg was a deserter from the German anny who advertised in the Spokane newspapers in February, 1915, for land on which to colonize a number of Spanish families. These families turned out to be Hindus, whom he proposed to employ in obtaining information of Canadian shipping, to be relayed by secret wireless to German raiders in the Pacific. Schulenberg was captured on December 5, 1917, in an auto- mobile on the road from Santa Cruz to San Francisco, two days after he had left a woman spy who was associated with von Papen's office, and who directed Schulenberg's movements in the United States. He admitted having bought, in 1915, a ton of dynamite, fifty Maxim silencers, fifty rifles, and a quantity of fuse for shipment to Hindus near the Canadian border, be- tween Victoria and Vancouver. 106 The German Secret Service in America the month came to a fitting close with the de- struction of a glaze mill in the American Powder Company at Acton, Mass., on the 29th. (The British army in Mesopotamia had just entered Kut-el-Amara at this time, and far to the north- ward Germany was prosecuting a successful cam- paign to force a Russian retirement from Po- land.) Each incident raised havoc in its immediate vicinity. Each represents a carefully worked-out plan involving a group of destroying agents. There is not space here to describe the plots in detail, nor to picture the horror of their re- sults. But the affidavit of Johannes Hendrikus Van Koolbergen, dated San Francisco, August 27, 191 5, may serve to show typical methods of operation, as well as to provide a story more than usually melodramatic. Van Koolbergen was a Hollander by birth, and a British subject by naturalization. In April, 191 5, he met in the Heidelberg Cafe, in San Fran- cisco, a man named Wilhelm von Brincken, who lived at 303 Piccadilly Apartments, and who asked Van Koolbergen to call on him there. The latter, however, was leaving for Canada, and it was not until some five weeks later that he re- turned and found that in his absence von Brincken Incendiarism 107 had twice telephoned him to pursue the acquaint- ance. ,Van Koolbergen called. Von Brincken ex- plained that he was a German army officer, on se- cret service, and employed directly by Franz Bopp, the German consul in San Francisco. Flis visitor's identity and personality was apparently well known to him, for he offered Van Kool- bergen $i,ooo for the use of his passport into Canada, "to visit a friend, to assist him in some business matters." Van Koolbergen refused to rent his passport, but volunteered to go himself on any mission. This offer was discussed at a later meeting at the consulate with Herr Bopp, and accepted, after, as Koolbergen said, "I be- came suspicious, and upon different questions be- ing asked me ... I became very pro-German in the expression of my sentiments." He was shown into an adjoining office, and von Brincken popped in, and "asked me if I would do something for him in Canada . . . and I an- swered: 'Sure, I will do something, even blow up bridges, if there is any money in it.' (This struck my mind because of what I had read of what had been done in Canada of late — some- thing about a bridge being blown up — ) And he said : Tf that is so, you can make good money.' " 108 The German Secret Service in America Von Brincken made an appointment with his newly engaged destroying agent for the follow- ing day. On the window-sill of 303 Piccad'lly Apartments sat a flower pot with a tri-colored band aromid its rim. If the red was turned out- ward towards Van Koolbergen as he came along the street, he was to come right upstairs. If he saw the blue, he was to loiter discreetly about until the red was turned ; if the white area showed, he was to return another day. The red invitation signaled him to come up, and the two bargained for some time over Van Koolbergen's Canadian mission, without coming to an understanding. Once safely out of von Brincken's sight, the "destroying agent" pattered to the British Consulate and betrayed to Carnegie Ross, the consul, what was afoot. Ross urged him to advise Canada at once, so Van Koolbergen retold his story in a letter to Wallace Orchard, in the freight department of the Canadian Pacific Railway at Vancouver, B. C. Orchard telegraphed back demanding Van Koolbergen's presence at once, and furnished money and transportation. Meanwhile the latter had pretended to accept von Bricken's commission to go to Canada and blow up a military train, bridge, or tunnel on the Canadian Pacific line be- tween Revelstoke and Vancouver, for which he Incendiarism 109 was to receive a fee of $3,000. The German ex- hibited complete maps of the railroad, told when a dynamite train might be expected to pass over that section of the road, and outlined to Van Koolbergen just where and when he could pro- cure dynamite for the job. So on a Sunday morning in early May Van Koolbergen arrived in Vancouver, and lost no time in getting in touch with Orchard and the British Secret Service, with whom he framed the following plan : Van Koolbergen was to send a letter to von Brincken warning him that something would hap- pen in a day or two. The Vancouver newspapers would then carry a prepared story to the effect that a tunnel had caved in in the Selkirk moun- tains, whereupon Van Koolbergen was to collect for his services, and to secure incriminating evi- dence in writing from von Brincken if possible. The plot worked well. The news story ap- peared, and cast a mysterious air over the acci- dent. Van Koolbergen at once wrote a postcard to von Brincken: "On the front page of Vancouver papers of (date) news appears of a flood in Japan. Our system may be ^«^«itl trouble, so wire here at the Elysium Hotel." A few days later Van Koolbergen returned to San Francisco and met von Brincken, who told 110 The German Secret Service in America him that he had repHed to the postcard by tele- gram : "Would like to send some flowers to your wife but do not know her address," which meant simply that he had wished to com- municate with Van Koolbergen through the lat- ter's wife. (These messages, by the way, were despatched from Oakland by Charles C. Crow- ley, who will appear again.) And von Brincken paid Van Koolbergen $200 in bills, and asked him to come to the consulate for the balance of his fee. Franz Bopp was skeptical. For some reason he mistrusted Van Koolbergen. He produced a map of British Columbia and asked him to de- scribe what he had accomplished. Van Kool- bergen, confused for a moment, suggested that he would be unwise to go into detail before three witnesses (Bopp, von Brincken, and von Schack, the vice-consul). Bopp rose indignantly and said that his secret was safe with three who had been sworn to serve the Vaterland. So Van Koolbergen invented and related the story of The Dynamiting That Never Was, supporting it with copies of the Vancouver newspapers. Bopp wanted more proof; at Van Koolbergen's sug- gestion, he wrote one Van Roggenen, the Dutch Incendiarism 111 vice-consul at Vancouver, asking him to "inquire of the General Superintendent of the Canadian Pacific Railway Company why a car of freight which I expected from the East had not arrived yet, and to kindly wire me at my expense." Van Roggenen happened to be a friend of Van Kool- bergen's, and of course any inquiry made of the railroad for Van Koolbergen's car of freight would have been tactfully construed and prop- erly answered. But to make assurance doubly sure, Van Koolbergen wired Orchard in Van- couver to send him the following telegram : "Superintendent refuses information. Found out however that freight has been delayed eleven days on account of accident. Signed V. R." Armed with this fictitious reply, which Orchard soon sent him. Van Koolbergen called at the con- sulate, and was paid $300 more in cash. In order to get as much money as possible as soon as possi- ble, the "destroying agent" agreed to cut his price from $3,000 to $1,750, and was promised the money the next day. The next day came, but no money. Van Koolbergen sent a sharp note to the Consul, suggesting blackmail, and the Ger- man Empire in San Francisco capitulated; von Brincken met Van Koolbergen at the Palace Hotel and paid him $1,750, (of which he extracted $250 112 The German Secret Service in America as commission !) . He made Koolbergen sign a re- ceipt for $700, as he said a payment of $1,750 would look bad on the books, was much too high — even seven hundred was high, but could be justified if any one higher up complained. "And," concluded the thrifty Van Koolbergen in his affidavit written August 27, ''I have some of the greenbacks given me by von Brincken now in my possession." The San Franciscan participants in the epi- sode were finally brought to justice. Bopp, Baron Eckhardt, von Schack, Lieutenant von Brincken, Crowley, and Mrs. Margaret Cornell, Crowley's secretar)^, were indicted, tried, and convicted. The men received sentences of two years and fines of $10,000 each; Mrs. Cornell was sentenced to a year and a day. The three mem- bers of the consulate, thanks to their other ac- tivities, involved themselves in a series of charges for which the maximum punishment was some- thing more than the average man's lifetime in prison. Certain of their adventures will appear in other phases of German activity to be dis- cussed. They may be dismissed here, however, with the statement that the California consulate also planned the destruction of munitions plants at .:^tna, Indiana, and at Ishpeming, Michigan. The State Department released on October 10, Incendiarism 113 1917, a telegram from the Foreign Office in Ber- lin, addressed to Count von Bernstorff, which established beyond question the chief's familiar- ity with these operations, and more especially the continued desire of the Foreign Office to in- terrupt transcontinental shipping in Canada. It is dated January 2, 191 6. Its text follows : "Secret. General staff desires energetic action in re- gard to proposed destruction of the Canadian Pacific Railroad at several points, with a view to complete and protracted interruption of traffic. Captain Boehm, who is known on your side, and is shortly returning, has been given instructions. Inform the military attache and pro- vide the necessary funds. *'ZlMMERMANN." The factory explosions continued. The Mid- vale Steel Company suffered incendiary fires; a Providence warehouse containing a consignment of cotton for Russia was burned; there were fires in the shell plant of the Brill Car Company, in the Southwark Machinery Company, and in the shell department of the Diamond Forge and Steel Company. For August the ghastly recitation proceeds somewhat as follows : Bethlehem Steel Company, powder flash, ten killed ; League Island Navy Yard, Philadelphia, fire on battleship Ala- bama; Newport News Navy Yard, three fires in three weeks. In September an explosion in the 114 The German Secret Service in America aeroplane factory of the Curtiss plant at Depew, New York, a German suspected; explosions in the shell factory of the National Cable and Con- duit Company at Hastings, New York ; an explo- sion of benzol and wax in the plant of Smith and Lenhart, New York, in which two people were seriously injured; an explosion in a fireworks fac- tory at North Bergen, N. J., in which two people were killed ; an explosion which cost two lives in the shell factory of the Westinghouse Electric Company at Pittsburgh. Scarcely a week went by during the autumn without an explosion and fire which wiped out from one to a dozen lives, and from one hundred thousand to a million dol- lars. Munitions plants were blown to atoms in a moment, and hardly before the charred ground had cooled, were being rebuilt, for the guns in France were hungry. Out of the mass of munitions accidents in the year 191 5 stands sharp and clear the Bethlehem Steel fire of November 10 — of which all Ger- many had had warning, and on which the Ger- man press was forbidden to comment — when 800 big guns were destroyed. The du Pont and ^tna organizations suffered again and again; a chemical plant had two fires which cost three- quarters of a million dollars; two explosions in the Tennessee Coal and Iron Works at Binning- Incendiarism 115 ham, Alabama, did considerable property dam- age, and assisted Germany further by frighten- ing labor away from work. Suspects were ar- rested here and there, and always their trails led back to German or Austrian nationality or sym- pathy. Their chiefs were elusive. Captain von Papen sauntered out of the Ritz-Carlton into Madison Avenue, New York, one afternoon. He idled down to Forty-second Street, and paused, as if un- decided where to promenade. He turned east, walked a block, and turned again down the ramp into the Grand Central Station. Quickening his pace — he had only a minute more — he crossed the great waiting-room, presented a ticket at the train gate, and a moment later was in the Twen- tieth Century Limited, the last passenger aboard. He was seen next day in Chicago. And for a month thereafter he was completely lost to the authorities, while, as they found out later, he made a grand tour of the country, going first to Yellowstone Park, then down the Pacific Coast to Mexico, where he joined Boy-Ed, and finally returning to New York through San Francisco. He had ample opportunity to confer with his con- sular deputies, and his destroying agents. In August a train loaded with 7,000 pounds of dyna- mite from the du Pont works at Pinole, Cali- 116 The German Secret Service in America fornia, was destroyed; in the evidence against von Papen is this letter concerning the price to be paid for the Pinole job : "Dear S. : Your last letter with clipping today, and note what you have to say. I have taken it up with them and 'B' " (who was Franz Bopp) "is awaiting decision of 'P' " (who was von Papen) "in New York, so cannot advise you yet, and will do so as soon as I get word from you. You might size up the situation in the mean- time." Glancing back over the record of 191 5 — which was hardly mitigated in the succeeding years of war — one is inclined to marvel at the hardy perennial pose of the deported attache, who said as he left the United States : "I leave my post without any feeling of bitterness, because I know that when history is once written, it will establish our clean record despite all the misrepresenta- tions and calumnies spread broadcast at present." CHAPTER IX MORE BOMB PLOTS Kaltschmidt and the Windsor explosions — Tine Port Huron tunnel — Werner Horn — Explosions embarrass the Embassy — Black Tom — The second Welland affair — Harry Newton — The damage done in three years — Waiter spies. In the check-book of the military attache was a counterfoil betraying- a payment of $1,000 made on March 2J, 1915, to "W. von Igel (for A. Kaltschmidt, Detroit)," That stub was part of a bomb plot. A young German named Charles Francis Respa was employed in 1908 by Albert Carl Kaltschmidt in a Detroit machine shop. Seven years later Kaltschmidt had occasion to hire Respa again. To a group which included Respa, his brother- in-law Carl Schmidt, Gus .Stevens and Kalt- schmidt's own brother-in-law, Fritz Neef, he out- lined a plan for destroying factories in Canada. Neef was the Detroit agent for the Eisemann magneto, and had a machine shop of his own. "We are not citizens of this country," Kalt- 117 118 The German Secret Service in America Schmidt reiterated to his accomplices. "It is our duty to stand by the Fatherland. The Americans would throw us out of work after war started." (The Americans, on the contrary, gave the ring- leaders of the conspiracy plenty of hard labor after the v/ar started.) To seal the bargain Kaltschmidt paid the men a retainer, and sent Stevens and Respa to Winnipeg to see whether it might not be feasible to blow up the railroad bridge there. Respa reported back. His next assignment was to go to Port Huron and determine whether enough dynamite might be attached to the rear of a passenger train bound through the interna- tional tunnel under the St. Clair River to de- stroy the tube. Respa came to the conclusion that it was not practicable, for the authorities were taking precautions against just such an operation. Respa and Stevens were then des- patched to Duluth, where they met Schmidt and a fourth member of the group, each carrying a suitcase containing numerous sticks of dynamite, and the quartette returned with its explosives to Detroit. Kaltschmidt then hired him for $i8 a week. Respa had left Germany before his term of mili- tary service came due; Kaltschmidt used this in- formation as a club over his head, for he knew More Bomb Plots 119 the young man could not return to the Father- land. On June 21 Kaltschmidt called Respa to his office in the Kresge Building, and showed him two elaborate time-clock devices which could be so set as to fire bombs at any specified hour, and Respa, at Kaltschmidt's command, carried the clocks across the Detroit River to Windsor, On- tario, late that afternoon. His sister, Mrs. Schmidt, went with him, and together they wan- dered about until the hour when they knew that William Lefler, the night watchman of the Pea- body Overall Company factory in Walkerville, would go on duty. Under cover of darkness, the brother and sis- ter met Lefler, who gave Respa two suitcases full of dynamite which Kaltschmidt had smuggled piecemeal into Canada under the front seat of his automobile. Respa attached the clocks to the charges, set one of the infernal machines near the factory, and planted the other in the rear of the Windsor armory, in which Canadian troops were asleep, and near which was a Catholic girls' school. Then he and Mrs. Schmidt scurried back to the ferry and took the last boat to Detroit. At three o'clock in the morninp" thev heard a muffled roar from the Canadian side ; the factory bomb had gone off. The other charge failed to explode : Respa said he deliberately set the per- 120 The German Secret Service in America cussion cap at the wrong angle, because he knew that soldiers were sleeping in the armory, and he had no stomach for murder. One of the gang was presently arrested, and Respa was spirited away to the retirement of a mechanic's job in a West Hoboken garage. But he grew restless, and spent his money, and Kalt- schmidt refused him more. He pawned his watch and his ring, bought a ticket to Detroit, and presented himself before Kaltschmidt with a demand for money, in default of which Respa proposed to "squeal." He was immediately re- turned to the payroll. The Canadian provincial detectives had be- gun to search for the night watchman, Lefler. They found him., and from him they extracted a full confession. Respa's arrest was easy, and the United States willingly returned him, al- though Kaltschmidt did attempt to establish a false alibi for his underling. Respa was sen- tenced to life imprisonment, Lefler to ten years, for the destruction of the factory. The dragnet closed in on Kaltschmidt. Wil- liam M. Jarosch, a German-born, who later en- listed in the United States Army, had been intro- duced to Kaltschmidt in Chicago in 191 5 by a former German consul there, Gustav Jacobsen. Jacobsen recruited two other men, and Kalt- More Bomb Plots 121 Schmidt took the three to Detroit. Jarosch was directed to secure employment at the plant of the Detroit Screw Works, but he was rejected, so Kaltschmidt told him to watch the plant for a good opportunity to set a bomb there. In the course of his sojourn in Detroit he went to the Respa home in the placid little village of Romeo and returned with a generous quantity of dyna- mite. This he delivered to Neef, and in a con- ference at the magneto shop Kaltschmidt ex- plained the operation of the time-clock, and or- dered Jarosch to set the device at the Detroit Screw factory that night. He and his Chicago confederates set out for the scene, but there were guards about, and Jarosch had no desire for ar- rest, so he took the bomb to his hotel room, dis- engaged the trigger, and calmly went to sleep. Next morning Kaltschmidt reproached him, and Jarosch resigned, to return months later to show Federal officers where he had buried some 80 pounds of dynamite, nitroglycerine, and a bomb. Kaltschmidt also conspired to destroy the Port Huron tunnel. For this enterprise he contrived a car which he proposed to load with dynamite set to explode with a time fuse. Fritz Neef, the Stuttgart graduate and expert mechanical en- gineer, was his able assistant and adviser in this project. The car was of standard railway 122 The German Secret Service in America gauge. It was to be set on the Grand Trunk tracks at the mouth of the Port Huron end of the tunnel and released, to roll down into tlie darkness under the river. At the low point in the tunnel's curve the charge would explode, bursting the walls of the tube, and completely in- terrupting the heavy international freight traffic at that point. The "devil car" never was released. Kalt- schmidt was arrested, and finally, in December, 1 91 7, tried and convicted on three counts. He was given the maximum sentence, of four years' imprisonment and $20,000 fine. His sister, Mrs. Neef, who had been an active intermediary, was sentenced to three years' imprisonment and was fined $15,000; Carl Schmidt and his wife were each condemned to two years in prison, and as- sessed a fine of $10,000 each, and only old Franz Respa, the father of the dynamiter, was ac- quitted. The activities of this group received tangible approval from the German Embassy. Even be- fore von Papen drew the check on March 27 for Kaltschmidt, the attache's secretary, von Igel, had transferred $2,000 to the Detroit German from the banking firm of Knauth, Nachod and Kuhne (January 23). On October 5, long after the Walkerville explosion, but while the More Bomb Plots 123 Port Huron venture was still a possibility, the Chase National Bank of New York transferred to Knauth, Nachod and Kuhne $25,000 from the joint account maintained there by Count von Bernstorff and Dr. Albert, and next day the money was placed to Kaltschmidt's credit. The Port Huron tunnel was the object of Ger- man attentions from the active San Francisco consulate. Crowley, who had been von Brinck- en's messenger in the Van Koolbergen affair, and one Louis J. Smith, were hired by Herr Bopp to go east on a destroying mission. They ran out of money in New York, and called at the New York consulate for assistance. They were told that the New York consulate had nothing to do with Pacific coast activities, so they wired von Schack for funds. He replied, chiding them for not having called on von Papen. Late in June Smith left New York and joined Crowley at the Normandy Hotel in Detroit. ''Then we went to Port Huron," he said, "where we planned to dynamite a railroad tunnel and a horse train. We didn't do it, though. "Then we went to Toronto, and Crowley told me to plant a bomb under a horse train in the West Toronto yards. But I saw a policeman, and I got out quick. Then we took some nitro- glycerine, cotton, sawdust, and a tin pan and 124 The German Secret Service in America some other things to Grosse Isle, Ontario, and went out back of a cemetery and made some bombs. ''Well, we got back to San Francisco late in July, and Crowley and I cooked up an expense account of $1,254.80, and took it up to the con- sulate. Von Schack locked the door behind us, and then he said: 'I don't want any statement. Tell me how much you want ?' We told him, and he said he would get it the following day. Then all of a sudden he asked : 'How do I know you fellows did any jobs in Canada?' " Wire the mayor of Toronto and ask him !' Crowley answered." On one occasion at least the Germans respected American property, for the protection America might afford. Werner Horn, a former lieuten- ant in the Landwehr, was in Guatemala when the war broke out. He made an attempt to re- turn to his command, but got no farther than New York, where he placed himself at the dis- posal of Captain von Papen. On January 18 the military attache paid him $700. On February 2 Horn exploded a charge of dynamite on the Canadian end of the international bridge at Vanceboro, Maine, spanning the St. Croix River to New Brunswick. The explosion caused a slight damage to the Canadian half of the bridge. More Bomb Plots 125 A few hours later Horn was arrested in Vance- boro, and admitted the crime. When the Canadian authorities appHed for his extradition, the warrant which Judge Hale issued was not executed, the United States Marshal for Maine having received word from Washington that a well-preserved treaty between Great Brit- ain and the United States would cover just such a case, and Horn was indicted on a charge of having transported explosives from New York City to Vanceboro. His attorneys naively at- tempted to secure his liberty by casting a pro- tective mantle of international law about his shoulders : Werner Horn, they said, was a First Lieutenant of the West- Prussian Pioneer Bat- talion Number 17, and as such was sworn by His Royal Majesty of Prussia to ". . . discharge the obligations of his office in a becom- ing manner, . . . execute diligently and loyally whatever is made his duty to do and carry out, and whatever is commanded him, by day and by night, on land and on sea, and . . . conduct himself bravely and irreproachably in all wars and military events that may occur ..." Yet he was tried, and that without much delay, and convicted, and sentenced to imprisonment. Although the destruction of railways was an attractive means of stopping the progress of mu- nitions to the seaboard, and although it was a 126 The German Secret Service in America recognized practice during 191 5, it made the Em- bassy at Washington uneasy. Bernstorff pro- tested to the Foreign Office in Berlin that if a German agent should be caught in the act of dynamiting a railroad it would be exceedingly embarrassing for him, and increase the difficulties of his already ticklish role of apologist and ex- plainer-extraordinary. The Foreign Office ac- cordingly sent a telegram to von Papen : "January 26 — For Military Attache. . . . Railway em- bankments and bridges must not be touched. Embassy must in no circumstances be compromised." (Signed) "Representative of General Staff." And thereafter American railway bridges and embankments were safe, though their owners may not have been aware of the fact at the time. It is no mere metaphor to say that during 1915 and 1 91 6 the smoke of German explosions in fac- tories in the United States was spreading across the sun, casting the deepening shadow of war over America. There was dynamite found in the coal tender of a munitions train on the Bal- timore and Ohio Railroad at Gallery Junction, Pa., on December 10, 1915, the day on which enormous quantities of wheat were destroyed by fire in grain elevators at Erie. A few hours More Bomb Plots 127 earlier a two-million-dollar explosion had oc- curred at the Hopewell plant of the du Pont works. Shortly before Christmas a ton and a half of nitroglycerine exploded at Fayville, Illi- nois. During 191 6 there were a dozen major explo- sions in the du Pont properties alone and liter- ally dozens of lives were lost. Two arms plants at Bridgeport, Conn., were blown up. An ex- plosion in May wiped out a large chemical plant in Cadillac, Michigan. A munitions works of the Bethlehem Steel Company at Newcastle, Pa., was destroyed. The climax in violence came, however, in the sultry night of August 1-2. Shortly after midnight the rocky island of Man- hattan trembled, and the roar of a prodigious blast burst over the harbor of New York. Two million pounds of munitions were being trans- ported in freight trains and on barges near the island of Black Tom, a few hundred yards from the Bartholdi Statue of Liberty. Some one, somehow, supplied the spark. The loss of Hfe was inconsiderable, for that neighborhood was not inhabited, but the confusion was complete. Heavy windows in the canyons of lower Manhat- tan were shivered, and for a few moments many of the streets rained broken glass. Shell-laden barges near the original explosion set up a scat- 128 The German Secret Service in America tering fire which continued for some time, most of the projectiles losing their power through lack of a substantial breech-block. But the immigra- tion station on Ellis Island was in panic, and its position became more rmpleasant as one of the blazing barges drifted down upon it. The shock was felt far out in Jersey, and northward in Con- necticut. An estimate of damage was placed at thirty millions of dollars, probably as accurate as such an estimate need be; the event was ut- terly spectacular, and from the point of view of the unknown destroying agent, effective. Exactly one year after von Papen gave up the first attempt upon the Welland Canal, a second enterprise began with the same objective. Cap- tain von Papen felt that von dcr Goltz had bun- gled. This time he intrusted the mission to the doughty and usually reliable Paul Koenig. On September 27, 191 5, Koenig, with Richard Emil Leyendecker, a "hyphenated American" who dealt during the daytime in art woods at 347 Fifth Avenue, New York, and Fred Metzler, of Jersey City, Koenig's secretary, wxnt to Buft'alo and Niagara Falls, accompanied by Mrs. Koenig. They had no trouble in crossing the border and making a thorough investigation of the canal, its vulnerable points, its guards and the patrol routes of those guards. Koenig selected men whom he More Bomb Plots 129 detailed to watch the guards, and he fixed on sat- isfactory storage places for his explosives. The party then returned to Niagara Falls and later to New York. They did not know that they were being trailed. All three men had been under surveillance for nearly a year, and after their migrations near the canal, the guard was reenf orced. It became im- possible to carry out the plan. A few weeks later the detectives who were shadowing Koenig no- ticed that George Fuchs, a relative whom he em- ployed at a meagre salary, was seldom seen in his company. They sought Fuchs out and plied him with refreshment. A few glasses of beer drew out his story: Koenig owed him $15, and he therefore bore no affection for Koenig. The detectives turned him over to Superintendent Off- ley of the Department of Justice, who sympa- thized with Fuchs to such an extent that the lat- ter retailed enough evidence of the Welland plot to secure Koenig's indictment on five counts. Thus did a debt of thirty pieces of silver — in this case half-dollars — rob the Hamburg-American Line of a six-foot, 200-pound detective, and the German spy system in America of one of its roughest characters, for, thanks to Fuchs' revela- tions, Koenig was indicted for a violation of Sec- tion 13 of the Penal Code. 130 The German Secret Service in America Herald Square, New York, was the center of open-air oratory every evening until after Amer- ica entered the war. Those who had stood and fought their verbal battles during the day about the bulletin board of the New York Herald re- mained at night to bellow to the idle passersby along Broadway, and one night Felix Galley, a leather-lunged contractor, gave an impassioned discourse justifying Germany's entrance into the war. When the meeting broke up he was fol- lowed home by one who rather passed his ex- pectations as a convert. The stranger was Harry Newton. He had been employed in a munitions plant in St. Cath- arine's, Ontario. He suggested to Galley that he would take any orders for arson which the Ger- mans had in mind, and recommended that as proof of his ability he would oblige with a dynamiting of the Brooks Locomotive Works at Dunkirk, N. Y., for a retainer of $5,000. Or, he said, he could arrange to destroy the Federal building or Police Headquarters. This was more than the German had bargained for, and assuring Newton that he would first have to consult the ''chief," he ran straightway to the police and in great agita- tion told what had happened. Captain Tunney, of the Bomb Squad, assigned Detective Sergeant George Barnitz to the case. More Bomb Plots 131 The detective, posing as a German agent, found Newton at Mills Hotel No. 3, and opened negotiations with him. After several talks, they met on the afternoon of April 19, 1916, at Grand Street and the Bowery. Barnitz said: ''Now, I'm in a hurry — haven't much time to discuss all this. You say you're in the business strictly for the money. The chief is willing to pay you $5,000 if you will smash the Welland Canal or blow up the Brooks Locomotive Works or burn the McKinnon, Dash Company's plant at St. Catharine's. But how do we know you won't de- mand more from us after you are paid? Maybe you'll want more cash for your assistants." Newton was quick to reply that he worked alone and wouldn't trust any assistant. He was anxious to start with the Brooks "job" at Dun- kirk and told Barnitz he had left in the baggage- room of the New York Central Railroad at Buf- falo a suitcase containing powerful bombs. (The suitcase actually contained a loaded 4-inch shell, with percussion cap and fuse.) It would be nec- essary only for him to go to Buffalo, get the suit- case, hasten to Dunkirk and blow up the locomo- tive works. *'Fine," said Barnitz. ''You are under arrest." Newton stared a moment, then laughed. "You New York cops are a damned sight smarter than 132 The German Secret Service in America I ever thought you were," he said, "and you made me think you were a German !" At PoHce Headquarters he described his plan for blowing up the Welland Canal. Having worked in a town located on the canal, he was familiar with the position of the locks. "It would be a simple matter," he said. "You see these buttons I am wearing on my watch chain and in my coat lapel. The plain gilt one reads 'On His Majesty's Service.' The blue and white one reads 'McKinnon, Dash Company, Munitions. On Service.' Those buttons are passes that would let me into any munitions plant in Canada or this country. They would pass me through the guards of the canal. It would be easy for me to pretend to be a workman, get a boat and, car- rying a dinner pail, filled with explosives, to pick out a weak spot in the canal works and destroy the whole business. "It would be a cinch to burn the McKinnon, Dash plant. I could go back to work there as foreman. Any Saturday night I could be the last to leave. Before going I could saturate flooring with benzine and put a lighted candle where within a half hour or so the flame would reach the benzine." Newton also suggested his willingness to dyna- mite the banking house of J. P. Morgan & Co., More Bomb Plots 133 at 2^ Wall Street, or to dynamite the banker's automobile. He had a series of postcards in his own handwriting, which, in case he was hired for a dynamiting, were to be mailed from distant points every day while he was on the assignment, in order to establish an alibi. He was an irresponsible person, and one who could not be said to be under orders from the attaches in lower Broadway. Yet he is typical of the restless and lawless floating population of which the Germans made excellent tools. When he heard Galley he promptly offered his services ; his boldness would have made him a capital de- stroying agent, and it was fired by the speech in Herald Square, a speech inspired from Berlin. Here was his opportunity to make money. Thus, by a word of encouragement, by the whisper of "big money" to discharged, dissatisfied or dis- loyal employees of munitions plants, the seed of German violence was sown everywhere. Men who were well dressed and of good appearance would be remarked if they prowled about fac- tory districts ; men must be employed who would fade into the drab landscape by the very common- placeness of their clothing and action. They could be hired cheaply and swiftly disowned, these Newtons! The New York Times on November 3, 19 17, 134 The German Secret Service in America recapitulated the damage wrought by German incendiarism as follows: "A graphic idea of what the fire losses in the United States owe to the work of war incendia- ries may be gained from consideration of the fact that the total fire insurance paid in the United States in 191 5, according to the figures of the National Board of Fire Underv/riters, was $153,000,000. It is estimated that 60 per cent, of the loss by fires in this country is represented in insurance. Therefore, the total fire loss in the United States in 1915 was something over $200,- 000,000. Of the $153,000,000 paid out by the in- surance companies, $6,200,000 was represented by incendiary fires. A total of $62,000,000 was charged to fires from unknown causes. "In 1916 the total jumped by 20 per cent., meaning an increase of about $40,000,000. The biggest items in this loss were those sustained in munition fires and explosions. Black Tom holds the record with a loss of $11,000,000; there was the Kingsland explosion, the Penn's Grove explo- sion, and others, all generally admitted to be the work of spies, which caused losses running into millions. "It was estimated yesterday by an insurance official that the incendiary loss in 19 16 was easily $25,000,000, or $15,000,000 above normal. And More Bomb Plots 185 these figures take into consideration only fires where the origin was proved to be incendiary. On the books of the underwriters the Black Tom munitions fire is not listed as incendiary, because it was never legally proved that a German spy set it going. "This increase in losses for 1916 when the big munition explosions occurred, derives significance in the discussion of losses by spy fires since this country entered the war, because the figures of fire losses in the United States for 19 17 may reach $300,000,000, or a larger increase over 19 16 than 1916 losses showed over 1915. An estimate made yesterday by the head of a fire insurance company shows that if the average of the losses in the first seven months of the year is maintained until Jan. i the total would reach well above $250,000,000, and with the increases of the past few months might easily total $300,000,000 as the cost of the American ash heaps for 1917." How did the Germans know where munitions were being manufactured? Rumor fled swiftly through the labor districts, and the news was re- ported through the regular channels of espionage, cleared through the consulates and German busi- ness ofBces, and forwarded to the attaches and the Embassy. But the collection of information did not stop there; it was verified from another 136 The German Secret Service in America source — a serviceable factor in the general system of espionage. The American manufacturer shared his na- tion's predilection for talking at meal-time. As the war contracts were distributed about the coun- try, every machine shop worthy of the name be- came a "munitions plant" and the romance of hav- ing a part in the war strained the discretion of most of America's war bridegrooms ; they simply "had to tell some one" ; not infrequently this some one was a reliable intimate, sitting across a res- taurant table at lunch. There was in America an organization bearing a title which suggested a neutral origin, but whose officers' names, down even unto the official physician, were undeniably German. It was ostensibly for the mutual benefit of the foreign- born waiters, chefs and pantrymen who com- posed its membership. But its real significance was indicated by the location of its branches (its headquarters were in New York). Trenton, New Jersey, for example, was not a ''good hotel town," and foreign waiters usually are to be found in a town which boasts a hotel managed by metropolitan interests, and supplied with a for- eign staff; but Trenton was a munitions center, and there was a branch of this association there. Schenectady, the home of the General Electric More Bomb Plots 137 Company, had no first-class hotel; there was a branch of the association in Schenectady. Con- versely, numerous cities whose hotels were manned by foreign waiters and cooks had no branches. The organization was founded in Dresden in 1877. Many a confidence passed across a table was intercepted by the acute ears of a German spy. Members of the Anglo-French Loan Commission who were staying at the Biltmore in 1914 were served by a German agent in a waiter's uniform. It would have gone well for America and the preparations of supplies for her later Allies if there had been posted in every hotel dining-room the French admonition, "Taisez-vous ! lis s'ecoutent!" CHAPTER X FRANZ VON RINTELEN The leak in the National City Bank — The Minnehaha — ^Von Rintelen's training — His return to America — His aims — His funds — Smuggling oil — The Krag-Joergensen rifles — Von Rintelen's flight and capture. There was a suggestion in the newspapers of dates immediately following Paul Koenig's arrest that the authorities had been lax in allowing the Germans to have later access to the safe in his private office in the Hamburg- American building. As a matter of fact the contents of the safe were well known to the authorities — how, it is not nec- essary to say. The multitudinous notes and ref- erence data kept by the industrious "P. K." un- covered a plentiful German source of information of munitions. They knew the factories in which war materials were being turned out. They knew the numbers of the freight cars into which the materials were loaded for shipment to the waterfronts. They knew the ships into which those cargoes were consigned. How they knew was revealed by 138 Franz Von Rintelen 139 Koenig's secretary, Metzler, after he had been arrested in the second Welland episode. Down in Wall Street, in the foreign depart- ment of the National City Bank, there was a young German named Frederick Schleindl. He had been in the United States for several years, and had been employed by various bankers, one of whom recommended him to the National City Bank shortly after the outbreak of war. In the foreign department he had access to cables from the Allies concerning the purchase of munitions. It was customary to pay manufacturers for their completed orders when the bank received a bill of lading showing their shipment by railroad or their delivery at points of departure. Close familiarity with such bills of lading and cable- grams gave Schleindl an up-to-the-minute survey of the production of supplies. In late 1914 Schleindl registered with the Ger- man consul in New York, setting down his name and address as liable to call for special service. In May, 191 5, he was directed by the consul to meet a certain person at the Hotel Manhattan; the unknown proved to be Koenig, who had been informed of Schleindl's occupation by the alert German consul. Playing on the youth's patriot- ism and greed, Koenig agreed to pay him $25 a week for confidential information from the bank. 140 The German Secret Service in America From that time forward Schleindl reported regu- larly to Koenig. Nearly every evening a meet- ing occurred in the office in the Hamburg-Ameri- can building, and Koenig and Metzler would spend many hours a night in copying the letters, cables and shipping documents. In the morning they would return the originals to Schleindl on his way to work — he made it his custom to arrive early at the bank — and the papers would be re- stored to their proper files when the business day began. On December 17, 191 5, Schleindl was arrested. In his pocket were two documents, enough to convict him of having stolen information : one a duplicate of a cablegram from the Banque Beige pour Etrangers to the National City Bank relat- ing to a shipment of 2,000,000 rifles which was then being handled by the Hudson Trust Com- pany; the other a cablegram from the Russian Government authorizing the City Bank to place some millions of dollars to the credit of Colonel Golejewski, the Russian naval attache and pur- chasing agent. From a German standpoint, of course, both were highly significant. Schleindl's arrest caused considerable uneasiness in Wall, Street, and other banking houses who had been dealing in munitions "looked unto themselves" lest there be similar cracks through which infor- Franz Von Hintelen 141 mation might sift to Berlin. There had been many such. Koenig was tried on the charge of having bought stolen information, and convicted, but sentence was suspended, although the United States already looked back on two years of water- front conspiracies to destroy Allied shipping. The City Bank episode gave a clue to the source of those conspiracies, by the white light which it cast upon an explosion in hold number 2 of the steamship Minnehaha on July 4, 191 5. Thou- sands of magnetos were stored there destined for automobiles at the front. The only person be- sides the officers of the bank and of the magneto factory who could have known of the ship in which they were transported was the man who wrote the letter to the bank enclosing the bill of lading for the shipment. Naturally the officers were not suspected of circulating the news; the leak therefore must have occurred in handling the letter. That theory was a strong scent, made no less pungent by the activities in America of one Franz von Rintelen. Rumor has credited Franz von Rintelen with relationship to the house of Hohenzollern. Back- stairs gossip called him the Kaiser's own son — a stigma which he hardly deserved, as his face bore no resemblance to the architecture of the Hohen- zollern countenance. It was one of strong aqui- 142 The German Secret Service in America line curves; with a coat of swarthy grease paint he would have made an acceptable Indian, except for his tight, thin lips. The muscles of his jaws were forever playing under the skin — he had a tense, nervous habit of gritting his teeth. From under his pale eyebrows came a sharp look; it contrasted strangely with the hollow, burnt-out ferocity and fright which peered out of the tired eyes of his fellow prisoners when he was finally tried. He had a wiry strength and easy carriage. If he had not been a spy, von Rintelen would have made an excellent athlete. Like Boy-Ed he had a thorough gymnasium training. He specialized in finance and econom- ics, entered the navy, and became captain-lieuten- ant. At the end of his period of service he went to London and obtained employment in a banking house. He then went to New York, where he was admitted to Ladenburg, Thalmann & Co., and found time during his first stay in America to serve as Germany's naval representative at the ceremonies commemorating John Paul Jones. The German Embassy gave him entree wherever he turned. He was a member of the New York Yacht Club, was received at Newport and in Fifth Avenue as a polished and agreeable person who spoke English, French and Spanish as fluently as his native tongue, and he acquired a broad first- Franz Von Rintelen 143 hand knowledge of American financial principles and methods. He left New York long before the war, saying he was going to open Mexican and South American branches of a German bank. When he returned to Berlin in 1909, he was well qualified to sit in council with Tirpitz and the navy group and advise them on the development of the German Secret Service in America. American acquaintances who visited Berlin he received with marked hospitality, and some he even introduced to his august friend, the Crown Prince. In January, 191 5, von Rintelen, then a director of the Deutsche Bank, and the National Bank fiir Deutschland, and a man of corresponding wealth, was commissioned to go to America, to buy cot- ton, rubber and copper, and to prevent the Allies from receiving munitions. So he went to Amer- ica. And from his arrival in New York until his departure from that port, he threw sand in the smooth-running machinery of the organized Ger- man spy system. He eluded the vigilance of the Allies by using a false passport. His sister Emily had married a Swiss named Gasche. Erasing the ''y" on her passport he journeyed in safety to England as ^'Emil V. Gasche," a harmless Swiss, who ob- served a great deal about England's method of 144 The German Secret Service in America receiving munitions. Then he evaporated to Norway. His arrival in the United States was forecast by a wireless message which he addressed from his ship on April 3, 191 5, asking an Ameri- can friend of his to meet him at the pier. The American owned a factory in Cambrai, France, which had been closed by the German invasion on August 29, 19 1 4. The American had hastened to Berlin in late 1914 and asked his friend Rintelen to see that the plant be opened. Rintelen had succeeded, and was come novv^ to break the good news, knowing perfectly well that the American would be under deep obligation and would secure any introductions for him which he might need. When the ship docked, the friend was not there, for some casual reason. But Rintelen, always suspicious, hired a detective, who spent a week investigating; then the friend was discovered, and became Rintelen's grateful assistant. So it happened that "Emil V. Gasche," the harmless Swiss, dropped out of sight for the time being, and von Rintelen assumed the parts of "Dr. Jekyll and Mr. Hyde." "Dr. Jekyll" visited the Yacht Club and called upon wealthy friends, prov- ing a more charming, more delightful von Rin- telen than ever. He met influential business men who were selling supplies to the Allies. He was presented to society matrons and debutantes Franz Von Eintelen 145 whom he had use for. To these he was Herr von Rintelen, in America on an important financial mission. "Mr. Hyde" sought information from von Bernstorff, Dr. Albert, von Papen, Boy-Ed, Captain Tauscher and George Sylvester Viereck about the production of war supplies. Astounded by what he learned from them and had corrobo- rated from other sources, he began to realize how utterly he had misjudged America's potential re- sources and what a blunder he had made in his predictions to the General War Staff. He saw with a chilling vividness the capacity of America to hand war materials to the Allies, and her rap- idly increasing facilities to turn out greater quan- tities of ammunition and bullets. The facts he obtained struck him with especial force because of his knowledge of the greater strategy. It is upon a basis of the supplies of munitions in the Allied countries, particularly Russia, as von Rin- telen knew them, that his acts are best judged and upon this basis only can sane motives be as- signed to the rash projects which he launched. When he arrived in New York the German drive on Paris had failed because in two months the Germans had used up ammunition they con- fidently expected to last three times as long; the English and French in the west could not take up the offensive because ammunition was not being 146 The German Secret Service in America turned out fast enough; the Russian drive into Germany and Austria would soon fail for lack of arms and bullets. In the winter and spring of 191 5 the Russians had made a drive into Galicia and Austria, hurling the Austro-German armies back. They advanced victoriously through the first range of the Carpathian mountains until May. Meantime the German General Staff, as von Rintelen knew, was preparing for a retaliat- ing offensive. The War Staff knew Russia's limited capacity to produce arms and ammunition, knew that during the winter, with the port of Archangel closed by ice, her only source for new supplies lay in the single-track Siberian railway bringing materials from Japan. Rintelen real- ized that by spring the Russian resources had been well nigh exhausted and he resolved that they must be shut off completely. He knew that Eng- land and France could not help. But spring had already come, and the ships were sailing for Arch- angel laden with American shells. Von Rintelen's reputation was at stake. The work for which he had been so carefully trained was bound to fail unless he acted quickly. He exchanged many wireless communications with his superiors in Berlin — messages that looked like harmless expressions between his wife and him- self, messages in which the names of American Franz Von Rintelen 147 officers who had been in Berlin were used both as code words and as a means to impress their genu- ineness upon the American censor. He received in reply still greater authority than he had on the eve of his departure from Germany. In his quick, staccato fashion he often boasted (and there is foundation for part of what he said) that he had been sent to America by the General Staff, backed by "$50,000,000, yes $100,000,000"; that he was an agent plenipotentiary and extraordi- nary, ready to take any measure on land and sea to stop the making of munitions, to halt their transportation at the factory or at the seaboard. He mapped out a campaign, remarkable in its detail, scope, recklessness and utter disregard of American institutions. Germany made her first mistake in giving him a roving commission. Germany was desperate, or she would have restricted von Rintelen to cer- tain well-defined enterprises. Instead he ran afoul of the military and naval attaches on more than one occasion, offended them, and did more to hinder than to help their own plans. In early April he made his financial arrange- ments with the Trans-Atlantic Trust Company, where he was known by his own name. Money was transferred from Berlin through large Ger- man business houses, and he deposited $800,000 148 The German Secret Service in America in the Trans-Atlantic and millions among other banks. He rented an office in the trust company building, and had his telephone run through the trust company switchboard. He registered with the county clerk to do business as the "E. V. Gib- bon Company; purchasers of supplies" and signed his name to the registry as ''Francis von Rinte- len." In the office of the E. V. Gibbon Company he received the forces whom he proceeded to mo- bilize; he was known to them as "Fred Hansen." If he wanted a naval reservist he called on Boy- Ed ; if an army reservist was required von Papen sent him to "Hansen." Boy-Ed gave him data on ship sailings, von Papen on munitions plants, Koenig on secret service. His first task was to buy supplies and ship them to Germany. He boasted that there was no such thing as a British blockade. Using his pseudo- nyms of Gibbon and Hansen he made large pur- chases and with the aid of Captain Gustave Stein- berg, a naval reservist, he chartered ships and dis- patched them under false manifests to Italy and Norway, where their cargoes could be readily smuggled into Germany. Through Steinberg he importuned a chemist, Dr. Walter T. Scheele, to soak fertilizer in lubricating oil for shipment to the Fatherland, where the valuable oil could be easily extracted. Through the same intermedi- Franz Von Rintelen 149 ary von Rintelen gave Dr. Scheele $20,000 to ship a cargo of munitions under a false manifest as "farm implements" ; Dr. Scheele kept the $20,000 and actually shipped a cargo of farm machinery. Rintelen's-next venture attracted some unpleas- ant attention. The United States Government had condemned some 350,000 Krag-Joergensen rifles, which it refused to sell to any of the bellig- erents. Rintelen cast a fond eye in their direc- tion. President Wilson had told a banker: ''You will get those rifles only over my dead body." Rintelen heard, however, that by bribing certain officials he could obtain the guns, so he sent out agents to learn what they would cost, and found a man who said he could buy them for $17,826,000, part of which was to be used for effective bribery. "So close am I to the Presi- dent," said the intermediary, "that two days after I deposit the money in the bank you can dandle his grandchild on your knee!" But just when the negotiations were growing bright, Rintelen was told that the man who proposed to sell him the rifles was a secret agent from another govern- ment. A certain "Dr. Alfred Meyer" was known to have been groping for those rifles, and the newspapers and government officials became sud- denly interested in his real identity. A dowdy woman's implication reached a reporter's ears; 150 The German Secret Service in America presently the newspapers burst out in the "dis- covery" that "Dr. Alfred Meyer" was none other than Dr. Meyer-Gerhardt, a German Red Cross envoy then in the United States. Like the pop- ping of a machine gun, "correct versions of the facts" were published: "Dr. Meyer-Gerhardt denied vigorously that he was 'Dr. Alfred Meyer/ " then " 'Dr. Alfred Meyer' was known to have left the United States on the same ship with Dr. Meyer-Gerhardt/' then "an American citizen came forward anonymously and said that he had posed as 'Dr. Alfred Meyer' in order to test the good faith of the Government." This last announcement may have been true. It was made to a New York Sun reporter by a German, Karl Schimmicl, who professed his alle- giance to the United States, and by the "Ameri- can citizen" who said he had posed as "Dr. Al- fred Meyer." It may have been made to shield Rintelen himself, for the "American citizen" was an employe of a German newspaper in New York, a friend of Rintelen's, a friend of Schimmel's and Schimmel himself was in von Rintelen's pay. Let a pack of reporters loose on a half dozen tangents and they will probably scratch the truth. A Tribune man heard a whisper of the facts and set out on a hunt for "two Germans, Meyer and Hansen, who have been acting funny." He Franz Von Rintelen 151 frightened the personnel right out of the office of the E. V. Gibbon Company. Captain Steinberg fled to Germany with a trunkful of reports on the necessity of concerted action to stop the ship- ment of munitions to the Allies, and Rintelen mi- grated to an office in the Woolworth Building. Some one heard of his activities there and he was evicted, taking final refuge in the Liberty Tower, in the office of Andrew M. Meloy, who had been in Germany to interest the German government in a scheme similar to Rintelen's own. In Me- loy's office Rintelen posed as "E. V. Gates" — preserving the shadow of his identity as "Emil V. Gasche." So effective was his disappearance from the public view, that he was reported to have gone abroad as a secretary, and he sat in the tower and chuckled, and sent messages by wireless to Berlin through Sayville, and cable- grams to Berlin through England and Holland, and enjoyed all the sensations of a man attending a triple funeral in his honor. ''Meyer," "Han- sen" and "Gasche" were all dead, and yet, here was Rintelen! Although his sojourn in New York covered a period which was the peak of the curve of Ger- man atrocities in the United States, Rintelen was a fifth wheel. No man came to America to ac- complish more, and no man accomplished less. 152 The German Secret Service in America No German agent had his boldness of project, and no German executive met a more ignominious fate. Whatever he touched with his golden wand turned to dross. He was hoodwinked here and there by his own agents, and frustrated by the vigilance of the Allied and the United States gov- ernments. He has been introduced here because of his connection with subsequent events, and yet this picturesque figure played the major part in not one successful venture. Four months he passed in America, until it be- came too small for him. In August the capture of Dr. Albert's portfolio and the publication of certain of its contents frightened Rintelen, and he applied for a passport as "Edward V. Gates, an American citizen of Millersville, Pa.," but he did not dare claim it. Though he had bought tickets under the alias, and had had drafts made payable in that name, he did not occupy the "Gates" cabin on the Noordam, but at the last minute engaged passage under the renascent name of "Emil V. Gasche," the harmless Swiss. He eluded the Federal agents, and sailed safely to Falmouth, England, where, after a search of the ship, and an excellent attempt to bluff it through, he finally surrendered to the British au- thorities as a prisoner-of-war. Meloy and his secretary were captured with him. Franz Von Rintelen 153 Rintelen was returned to the United States in 1916. He was convicted in 1917 and 1918 on successive charges of conspiracy to violate the Sherman Anti-Trust law, to obtain a fraudulent passport, and to destroy merchant ships — which combined to sentence him to a year in the Tombs and nine years in a Federal prison. CHAPTER XI SHIP BOMBS Mobilizing destroying agents — -The plotters in Hoboken — Von Kleist's arrest and confession — The Kirk Oswald trial — Further explosions — The Arabic — Robert Fay — His arrest — The ship plots decrease. The reader will recall a eircular quoted in Chapter VIII, and issued November i8, 1914, from German Naval Headquarters, mobilizing all destroying agents in harbors overseas. On January 3, 1915, there was an explosion on board the munitions ship Orion, lying in Erie Basin, a part of New York harbor. On Febru- ary 6 a bomb was found in the cargo of the Han- nington. On February 27 the Carlton caught fire at sea. On April 20 two bombs were found in the cargo of the Lord Erne. One week later the same discovery was made in the hold of the Devon City. All of which accounts for the fol- lowing charge : "George D. Barnitz, being duly sworn, deposes and says ... on information and belief that on the first day 154 Ship Bombs 155 of January, 191 5, and on every day thereafter down to and including the 13th day of April, 1916, the defendants Walter T. Scheele, Charles von Kleist, Otto Wolpert, Ernst Becker, (Charles) Karbade, the first name Charles being fictitious, the true first name of defendant being unknown, (Frederick) Praedel . . . (Wilhelm) Paradis . . , Eno Bode and Carl Schmidt . . . did unlawfully, feloniously and corruptly conspire ... to manufacture bombs filled with chemicals and explosives and to place said bombs . . . upon vessels belonging to others and laden with moneys, goods and merchandise. . . ." Ninety-one German ships were confined to American harbors by the activities of the British fleet, ranging from the Neptun, of 197 tons, in ,San Francisco Bay, to the Vaterland, of 54,000 tons, the largest vessel on the seven seas, tied up to accrue barnacles at her Hoboken pier, and later, as the Leviathan, to transport American troops to France. Every one of the ninety-one ships was a nest of German agents. Only a mod- erate watch was kept on their crews, and there were many restless men among them. Every man aboard was liable to command from Captain Boy-Ed, for the German merchant marine was part of the formal naval organization. The in- terned sailors found shortly that they could be of distinct service to their country without stir- ring from their ships. Not far from the North German Lloyd piers 156 The German Secret Service in America in Hoboken lived Captain Charles von Kleist, 67 years old, a chemist and former German army- officer. One day there came to him one who spoke the German tongue and who said he came from Wolf von Igel, in von Papen's office. Those were good credentials, especially since the gentle- man was inquiring on von Igel's behalf whether Kleist needed any money in the work he was doing. The polite caller returned a few days later with another man, who spoke no German. Von Kleist asked whether he was also from the Fatherland, and was told no, but "we have to use all kinds of people in our business — that's how we fool these Yankees!" Von Kleist laughed heart- ily, and wagged his head, and went out in the garden and dug up a bomb-case and showed the visitors how it had been made. The visitors were Detectives Barth and Barnitz. They assured Kleist that von Igel wanted to know precisely what he and his associates were doing, so no money might be paid to the wrong parties. The aged captain wrote out a memo- randum of his activities, which he signed, and the detectives proposed a trip to Coney Island as an evidence of good faith, so the three had a pleas- ant afternoon at the Hotel Shelburne, and the officers then suggested : "Let's go up and see the chief." "Chief" to von Kleist meant von Igel; Ship Bombs 15'?' he agreed, and was taken gently into the arms of the chief of detectives. He implicated, as he sat there answering questions, Captain Eno Bode, pier superintendent of the Hamburg-American Line, Captain Otto Wolpert, pier superintendent of the Atlas Line, and Ernst Becker, an electrician on the North German Lloyd liner Fricdrich der Grosse, tied up at Hoboken. The other conspirators were in- duced to come to New York, and were arrested at once. Bode and Wolpert, powerful bullies of Paul Koenig's own stamp, proved defiant in the extreme. Becker, knowing no word of English, was pathetically courteous and ready to answer. But it remained for von Kleist to supply the nar- rative. Becker, working on the sunny deck of the Friedrich der Grosse, had made numerous bomb cases, rolling sheet lead into a cylinder, and in- serting in the tube a cup-shaped aluminum parti- tion. These containers he turned over to Dr. Walter Scheele at his "New Jersey Agricultural Company," where he filled one compartment with nitroglycerine, the other with sulphuric acid. Scheele supplied the mechanics with sheet lead for the purpose. The bombs were then sealed and packed in sand for distribution to various German gathering places, such as, for example, 158 The German Secret Service in America the Turn Verein in the Brooklyn Labor Lyceum. Wolpert appeared there at a meeting one night and berated the Germans present for talking too much and acting too little ; he wanted results, he said. Eugene Reister, the proprietor of the place, said that shortly afterward Walter Uhde and one Klein (who died before the police reached him) had taken away a bundle of bombs from the Turn Verein and had placed them on the Lusi- tania, just before her last voyage, and added that Klein, when he heard of the destruction of the ship, expressed regret that he had done it. Karl Schimmel — the same who had negotiated for the Krag rifles — said later to Reister: 'T really put bombs on that boat, but I don't believe that fellow Klein ever did." Following Kleist's information, agents of the Department of Justice and New York police in- spected the Friedrich der Grosse, and found quan- tities of chlorate of potash and other chemicals. They brought back with them also Garbode (men- tioned in the charge as "Karbade"), Paradis and Praedel, fourth engineers on the ship, who had assisted in making the bombs, and Carl Schmidt, the chief engineer. All of the group were impli- cated in the plot to the complete satisfaction of a jury which concluded their cases in May, 19 17, by convicting them of "conspiracy to destroy ships Ship Bombs 159 through the use of fire bombs placed thereon." Kleist and Schmidt received sentences of two years each in Atlanta Penitentiary and were each fined $5,000; Becker, Karbade, Praedel and Para- dis were fined $500 apiece and sentenced to six months in prison. Dr. Scheele fled from justice, and was arrested in March, 1918, in Havana. A liberal supply of vicious chemicals and explo- sives discovered in his "New Jersey Agricultural Company" implicated him thoroughly, if the evi- dence given by his fellows had not already done so. When he was finally captured he faced two federal indictments : one with Steinberg and von Igel for smuggling lubricating oil out of the coun- try as fertilizer, under false customs manifests; the other the somewhat more criminal charge of bombing. On April 29, 191 5, the Cressington caught fire at sea. Three days later, in the hold of the Kirk Oswald, a sailor found a bomb tucked away in a hiding place where its later explosion would have started a serious fire. So it came about that when the four lesser conspirators of the fire-bomb plot had served their six months' sentences, they were at once rearrested on the specific charge of having actually planted that bomb in the Kirk Oswald. The burly dock captains, Bode and Wolpert, who had blustered their innocence in i.60 The German Secret Service in America the previous trial, and had succeeded in securing heavy bail from the Hamburg-American Line pending separate trials for themselves, were nipped this time with evidence which let none slip through. Rintelen was haled from his cell to answer to his part in the Kirk Oszvald affair, and the jury, in January, 191 8, declared the nine plot- ters "guilty as charged" and Judge Howe sen- tenced them to long terms in prison. Rintelen, alone of the group, as they sat in court, had an air of anything but wretched fanatic querulous- ness. He followed the proceedings closely, and once took the trial into his own hands in a flash of temper when the State kept referring to the loss of the Lusitania. It went hard with the nobleman to be herded into a common American court with a riff-raff of hireling crooks and treated with impartial justice. In Germany it never could have happened! If those trials had occurred in May, 19 15, the history of the transport of arms and shells would not have been marred by such entries as these : May 8 — Bankdale; two bombs found in cargo. May 13 — Samland; afire at sea. A^ay 21 — Anglo-Saxon; bomb found aboard. June 2 — Strathway; afire at sea. July 4 — Minnehaha; bomb exploded at sea. (The magnetos.) Ship Bombs 161 July 13 — Touraine; afire at sea. July 14 — Lord Dozvnshire; afire. July 20 — Knutford; afire in hold. July 24 — Craig side; five fires in hold. July 27 — Arabic; two bombs found aboard. Aug. 9 — Asuncion de Larrinaga; afire at sea. Aug. 13 — Williston; bombs in cargo. Aug. 27 — Lighter Dixie; fire while loading. On August 31 the White Star liner Arabic, nine- teen hours out of Liverpool was torpedoed by a German submarine and sank in eleven minutes, taking 39 lives, of which two were American. Germany, on September 9, declared that the U-boat commander attacked the Arabic without warning, contrary to his instructions, but only after he was convinced that the liner was trying to ram him; the Imperial Government expressed regret for the loss of American lives, but dis- claimed any liability for indemnity, and sug- gested arbitration. On October 5, however, the government in Berlin had changed its tune to the extent of issuing a note expressing regret for having sunk the ship, disavowing the act of the submarine commander, and assuring the United States that new orders to submarines were so strict that a recurrence of any such action was "considered out of the question." If the cargoes could be fired at sea, no submarine issue need be 162 Tlie German Secret Service in America raised. And so fires and bombs continued to be discovered on ships just as consistently as before. The log, resumed, runs thus : Sept. I — Rotterdam; fire at sea. Sept. 7 — Santa Anna; fire at sea. Sept. 29 — Sa7i Guglielmo ; dynamite found on pier. Now von Rintelen's handiwork was revealed in the adventures of Robert Fay, or "Fae," as he was known in the Fatherland. In spite of the imaginative quality of the enterprise, and the additional guilt which it heaped upon the execu- tives of the spy system, it was not successful. There were vibrant moments, though, when only the mobilization of police from two states and special agents from the Secret Service and De- partment of Justice averted what would have developed into a profitable method of destroying ships. Lieutenant Robert Fay was born in Cologne, where he lived until 1902. In that year he mi- grated to Canada, where he worked on a farm, and later to Chicago, where he was employed as a bookkeeper until 1905. He then returned to Germany for his military service, and went to work again in Cologne, in the office of Thomas Cook & Sons. After a period in a Mannheim machine shop he went home and devoted himself Ship Bombs 163 to certain mechanical inventions, and was at work upon them when he was called out for war serv- ice on August I, 1 9 14. His regiment went into the trenches, and the lieutenant had some success in dynamiting a French position. Conniving with a superior of- ficer, he deserted his command, and was sent to America by a German reputed to be the head of the secret service, one Jonnersen. Jonnersen gave Fay 20,000 marks for expenses in carrying out a plan to stop shipments of munitions from America, and Fay arrived in New York April 23, 191 5, on the Rotterdam. Dr. Herbert Kienzle, a clock-maker, of 309 West 86th Street, had written to his father in Germany bitterly assailing the United States for shipping munitions, and enclosed in his letters information of certain American firms, such as Browne & Sharp, of Providence, and the Chal- mers Motor Car Company, of Detroit, who were reputed to be manufacturing them. These let- ters had been turned over to Jonnersen, who showed them to Fay as suggestions. Upon his arrival in New York, then, Fay called on Kienzle, who, though he was friendly enough, was reluc- tant to know of the details Fay had planned. Dr. Kienzle introduced Fay to von Papen, and later 164 The German Secret Service in America to Max Breitung, from whom he purchased a quantity of potassium chlorate. The deserter found his brother-in-law, Walter Scholz, working as a gardener on an estate near Waterford, Connecticut, and brought him to New York on a salary of $25 a week. The two crossed the Hudson to Weehawken, N. J., and set to work to make bombs. Fay had a theory that a bomb might be attached to the rudder of a ship, and so set as to explode when the rudder, swinging to port, wound a ratchet inside the device vs^hich would release a hammer upon a percussion cap. Their plan was to have the parts manufactured at machine shops, assemble and fill them them- selves, and then steal up the waterfront in the small hours and attach the infernal machines to outward bound vessels. Fay even counted on disarming the police boats before setting out. It took the two some three months to get the parts made and properly adjusted. Meanwhile they employed their spare hours in cruising about the harbor in a motor-boat. A machinist in West 42nd Street, New York, made the zinc tank which they used as a model, and the tv/o conspirators shortly opened a garage in Weehawken where they could duplicate the bomb cases unmolested. There came a time when the devices were satis- factory, and Fay actually attached one to the Ship Bombs 165 rudder of a ship to make sure that his adjust- ments were correct. The next move was to obtain explosives. Fay's prejudice against bombs placed in a ship's hold was that they rarely succeeded in sinking the craft ; seventy or eighty pounds of high explosive detonated at the stern of a vessel, however, would blow the rudder away and not only cripple the ship but would probably burst a hole in the stern, mangle the screw, and split the shaft. Captain Tunney, of the Bomb Squad, heard in October that two Germans were trying to buy pic- ric acid from a man who stopped at the Hotel Breslin, and who called himself Paul Seib and Karl F. Oppegaarde, as the occasion demanded. Tunney's men located the two Germans, and some days later learned that they had placed an order for fifty-two pounds of TNT, to be delivered at the Weehawken garage. The delivery was inter- cepted, a similar but harmless substance substi- tuted for the explosive, and two detective-truck- men took the package away on their truck to de- liver it to Fay and Scholz. While they were in New Jersey, Detectives Coy, Sterrett and Walsh found Fay at the Breslin, and followed him back to Weehawken. As he left the garage in the evening in his automobile, the automobile of Po- lice Commissioner Woods followed at a discreet 166 The German Secret Service in America distance. Up the Palisades the two cars paraded, until in a grove near Grantwood, Fay and Scholz got out of their car and disappeared into the woods with a lantern. After a time they re- appeared, and returned to the garage, the police following. Next morning Chief Flynn was called into the hunt — the morning of Saturday, October 23 — and he assigned two special agents to the case. The police department directed two detectives to watch the woods at Grantwood where the con- spirators had gone the night before. Detectives Murphy and Fennelly, each equipped with line- men's climbers, arrived at the wood-road about noon, and spent the next eleven hours in the branches of a great oak tree which commanded the road. The perch was high and the night wind chilly, but the watchers were rewarded at last by the twin searchlights of an approaching car. Out of it stepped Fay and Scholz. The men in the branches saw by the light of the lan- tern which Scholz carried that Fay placed a pack- age underneath a distant tree, walked to a safe distance, exploded a percussion cap, watched the tree topple over and went away, apparently satis- fied with the power of his explosives. Meanwhile other detectives were watching the rooming house at Union Hill where Fay and Copyright. Inlernationat Film Srr Robert Fay, who made bombs with which he hoped to cripple the shipment of munitions to Europe Ship Bombs 167 Scholz lived, and they saw the two come in about 4 o'clock in the morning. Scholz had very little sleep, for there was a ship leaving next day for Liverpool. He left the house at 7 a. m. and went to the garage. Thereupon three detectives re- turned to the great oak tree at Grantwood. About noon Fay and his brother-in-law drove up, and unlocking the door of a rude hut in the wood, took out a bag, from which they poured a few grains of powder on the surface of a rock. Fay struck the rock with a hammer; a loud report followed, and the hammer broke in his hand. A moment later he heard a twig snap behind him. He turned, and saw a small army of detectives with drawn revolvers closing in on him. Fay protested and pleaded, and offered to bribe the detectives for his freedom, but he Vv^as locked up with Scholz. The two had stored in a ware- house several cases containing their completed bomb mechanisms; the police confiscated from their various caches five new bombs, 25 pounds of TNT, 25 sticks of dynamite, 150 pounds of chlo- rate of potash, two hundred bomb cylinders, 400 percussion caps, one motor-boat, one chart of New York harbor showing all its fortifications and piers, one foreign automobile, two German automatic pistols and a long knife — a consider- able arsenal. 168 The German Secret Service in America Their confessions caused the arrest of Paul Daeche, who had furnished them with explosives, Dr. Kienzle, Breitung, and Engelbert Bronk- horst. Fay received a sentence of eight years in the penitentiary, but after America went to war, Atlanta became too confining for his adventurous spirit, and he escaped the prison, and is believed to have crossed the Mexican border to safety. Scholz was sentenced to four years, and Daeche of three. Kienzle, Breitung and Bronkhorst were not tried, their apparent ignorance of Fay's de- signs outweighing in the jury's mind their obvi- ous German sympathies. Kienzle, upon the dec- laration of war of April 6, 191 7, became an en- emy alien, and was interned. So Lieutenant Fay never qualified in active service as a destroying agent. Yet he was profli- gate in his intentions. Fie offered two men $500,000 if they could intrigue among the ship- pers in order that a ship laden with copper for England might wander from the path of convoy into German hands, and he even entertained the fantastic hope, with his chart and his motor-boat and his bombs, of stealing out of the harbor to the cordon of British cruisers who hung outside the three-mile limit and attaching his bombs to their rudders, that the German merchantmen might escape into the open sea. Ship Bombs 169 On October 26 the Rio Lages caught fire at sea ; fire broke out in the hold of the Euterpe on No- vember 3 ; three days later there was fire aboard the Rochamheau at sea ; the next day an explosion occurred aboard the Ancona. And so the list runs on : Dec. 4 — Tymiingham, two fires on ship. Dec. 24 — Alston, dynamite found in cargo. Dec. 26 — Inchmoor, fire in hold. 1916 Jan, 19 — Sygna, fire at sea. Jan. 19 — Ryndam, bomb explosion at sea. Jan. 22 — Rosebank, two bombs in cargo. Feb. 16 — Dalton, fire at sea. Feb. 21 — Tennyson, bomb explosion at sea. Feb. 26 — Livingston Court, fire in Gravesend Bay. April saw the round-up of the group who had been Vv^orking under the Hamburg- American cap- tains, and although numerous fires occurred dur- ing May, 1916, in almost every case they were traced to natural accidents. The number mounted more slowly as the year advanced. With the entrance of America into the war, and the tightening of the police cordon along the waterfront, the chance of planting bombs was still further reduced, but waterfront fires kept re- curring, and until the day of ultimate judgment in Berlin, when each of Germany's arsonists in 170 The German Secret Service in America America comes to claim his reward, none will know the total of loss at their hands. It was enormous in the damage it inflicted upon cargo, but it is improbable that it had any perceptible efifect upon the whole export of shells for Flan- ders and France. CHAPTER XII LABOR David Lamar — Labor's National Peace Council — The embargo conference — The attempted longshoremen's strike — Dr. Dumba's recall. Labor produced munitions. The hands of labor could be frightened away from work by- explosions, their handiwork could be bombed on the railways, the wharves, the lighters, and the ships, but a surer method than either of those was the perversion of the hearts of labor. So thought Count von Bernstorff and Dr. Albert, who dealt in men. So thought Berlin — the Gen- eral Staff sent this message to America : "January 26 — For Military Attache. You can obtain particulars as to persons suitable for carr3ang on sabot- age in the United States and Canada from the following persons: (i) Joseph McGarrity, Philadelphia; (2) John P. Keating, Michigan Avenue, Chicago; (3) Jere- miah O'Leary, 16 Park Row, New York. "One and two are absolutely reliable and discreet. Three is reliable, but not always discreet. These persons were indicated by Sir Roger Casement. In the United 171 172 The German Secret Service in America States sabotage can be carried out on every kind of factory for supplying munitions of war." (Signed) "Representative of General Staff." ^ So too thought von Rintelen, who hired men — usually the wrong ones. Full of his project, he cast about for an inter- mediary. No sly chemist or muscular wharf-rat would do for this delicate task of anesthetizing men with the gas of German propaganda while it tied their hands and amputated their centres of right and wrong; the candidate must be a man of affairs, intimate with the chiefs of labor, skillful in execution, and the abler the better. Von Rin- telen would pay handsomely for the right man. Whereupon David Lamar, the *'Wolf of Wall Street," appeared on the scene and applied for the job — an entrance auspicious for the United States, for the newcomer's philosophy (if one could judge from his previous career) was "Me First.'"' In an attempt to defraud J. P. Morgan & Co., and the United States Steel Corporation Lamar had once impersonated Representative A. Mit- chell Palmer in certain telephone interviews. (Palmer became custodian of alien property after 1 McGarrity, Keating, and O'Leary, upon the publication of this despatch, uttered vigorous denials of any connection with or knowledge of the despatch or the affairs mentioned. Lahor 173 the United States entered the war.) He was con- victed and sentenced to two years' imprisonment in Atlanta Penitentiary. He appealed the case, and while he was out on bail pending the appeal, he fell in with Rintelen. In April, 191 5, a New Yorker who dealt in pub- licity was introduced to Rintelen, or ''Hansen," by Dr. Schimmel. Rintelen offered the publicity man $25,000 to conduct a campaign of propa- ganda for more friendly relations with Germany, to offset the commercial power Great Britain bade fair to have at the end of the war, and assured him that he would go to any extreme to prevent shipments of munitions to the Allies. The war, he said, would be decided not in Europe but in America. There must be strikes in the munitions factories. When the publicity man heard also that Rin- telen was trying to stir up trouble with Mexico, he wrote on May 13 to Joseph Tumulty, Presi- dent Wilson's secretary, informing him of the German's intentions. He was referred to the Department of Justice, and at their dictation con- tinued in contact with Rintelen. Shortly there- after David Lamar and his friend Henry Martin took a trip to Minneapolis, where they met Con- gressm.an Frank Buchanan and Ex-Congressman Robert Fowler, both of Illinois. Out of that con- 174 Tlie^ German Secret Service in America f erence grew a plan for forming a labor organiza- tion the object of which was ostensibly peace, and actually an embargo upon the shipment of muni- tions abroad, but whether Buchanan and Fowler knew of von Rintelen's connection with the scheme remains to be proved. It can be readily seen that such a labor organization, if it had ac- tually represented organized labor, could have forced such a stoppage, either by its collective potential voting power and influence, or by fos- tering a nation-wide strike of munitions workers. The nucleus formed in Chicago, about one William F. Kramer. ^'Buchanan and Fowler came to me in June here in Chicago," said Kramer, ''and told me about their plan to form a council. We opened headquarters, and we en- gaged two organizers, James Short and J. J. Cun- diff, who got $50 a week apiece, a secretary, L. P. Straube, who got $50 a week, and a stenographer. I was a vice-president, but I didn't get anything. We were known then as Labor's Peace Council of Chicago, and we were supposed to be in it because of our convictions against the shipment of muni- tions. And I'll say that organized labor was made the goat." Buchanan had no idea of restricting the coun- cil to one city. He called upon Samuel Gompers, head of the American Federation of Labor, at Labor 175 Atlantic City on June 9 and tried to induce him to back a movement in Washington for an em- bargo. Gompers refused flatl}^ and completely to have anything to do with the plan, especially v^hen Buchanan made known his associates. Those associates were busy meanwhile lobbying in Congress, representing themselves as friends o'f organized labor, and pressing the embargo question. About a week later Congressman Bu- chanan inflated the Chicago organization into Labor's National Peace Council, with headquar- ters at Washington, to recommend the convoca- tion of a special session of Congress at once to ''promote universal peace," which meant simply ''to promote the introduction and enactment of an embargo." Its members met f requentl}^, and an- noyed the President and other important men, — even Andrew Carnegie, — with their importunings for attention, and got exactly what they wanted — wide publicity. About July 10 Andrew D. Meloy, whose office in New York Rintelen was sharing at the time, noticed that his German associate began to keep a clipping-file of news of the Council. Meloy learned of the project, and assured Rintelen that he was foolhardy to attempt, by bribery of labor officials, to divert common labor from earn- ing high wages. To which Rintelen replied 176 The German Secret Service in America brusquely : "Thanks. You come into this busi- ness about 1 1 :45 o'clock." Rintelen sent a telegram to Lamar in Chicago on July 1 6, the text of which follows: "E. Ruskay, Room 700 B, Sherman Hotel, Chicago. "Party who receives $12,500 monthly from competi- tors is now interfering with business in hand. Do you know of any way and means to check him? Wire. "F. Brown." "Ruskay" was Lamar. Later in the day the German sent this message: "Twelve thousand five hundred now at capitol. Con- ference here today plans to guarantee outsiders and settle- ment possible within few days. New issue urgently needed. Notify B." The "party" mentioned in the first despatch was the code designation for Gompers, and he was indicated in the second message as "Twelve thousand five hundred." "B" was Buchanan, upon whose connection with labor Rintelen told Meloy the success of the plan rested. Lamar hurried to New York, arriving July 19, and met Rintelen in a limousine at the looth Street en- trance to Central Park; on the ride which fol- lowed the "Wolf" told Rintelen that a strike then going on among the munitions workers at Bridge- port was "only a beginning of his efforts," and Labor 177 that within thirty days the industry would be paralyzed throughout the country. Meloy ad- vanced the information that Gompers had just gone to Bridgeport to stop the strike, to which Lamar replied : ^'Buchanan will settle Gompers within twenty- four hours !" The clippings kept coming in as testimony to the vigorous work being done by the organiza- tion's press bureau : the Council attacked the Fed- eral Reserve Banks as "munitions trusts," it cited on July 8 nine ships lying in port awaiting muni- tions cargoes, and attacked Dudley Field Malone, then Collector of the Port of New York, for per- mitting such ships to clear; it claimed to repre- sent a million labor votes, and four million and a half farmers; it listened eagerly to an address by Hannis Taylor, a disciple of the late warm- hearted Secretary of State, Mr. Bryan, in which Taylor criticized President Wilson and was roundly cheered by the German-American ele- ment in the audience. Semi-occasionally during the midsummer heat Charles Oberwager, attor- ney for the Council (whose firm had received handsome fees from von Papen), rose to deny any German connection with the organization. The Council assailed Secretary Lansing as a man "whose radicalism was liable to plunge this nation 17B The German Secret Service in America into war." The Council assailed, in fact, any project which furthered the interests of the Allies. Rintelen began to have his doubts of the effectiveness of Lamar's work. The bank ac- count in the Trans- Atlantic Trust Company had dwindled from $800,000 to $40,000, and Rintelen admitted that his transactions with Lamar cost him several hundred thousand dollars. Labor's National Peace Conference died quietly, Lamar flitted away to a country estate at Pittslield, Mass., and Rintelen started across the Atlantic Ocean. August wore on. The Council was getting ready for a second gaseous session, when Milton Snelling, a representative of the Washington Central Labor Union, who had been elected a first vice-president of the Council, withdrew from its membership, because he "discovered persons par- ticipating in the meetings who have been hanging on the fringe of the labor movement for their own personal aggrandizement, men who have been discarded . . . others never having been mem- bers of any organization of labor," and because Jacob C. Taylor, the cigar-making delegate from East Orange, N. J., said, in answer to a query as to the Council's purpose: *'We want to stop the export of munitions to the Allies. You see Ger- many can make all the munitions she wants." Labor 179 Then — and It may be coincidence — about one week later the New York World began its publi- cation of certain of the papers found in the brief case which Dr. Heinrich Albert, of the German Embassy, allowed to escape him on a New York elevated train; on August 19 Buchanan resigned the Council, and Taylor was elected to succeed him. Indictments were returned against Rintelen, as well as against Lamar, Martin, Buchanan and their associates, on December 28, 19 15. Bu- chanan at once exploded with a retaliatory de- mand for the impeachment of United States Dis- trict Attorney Marshall, upon which Congress dared not take action. Marshall gracefully re- tired from the trial in May, 191 6, lest he preju- dice the Government's case, and Lamar, Martin and Rintelen were convicted of infraction of the Sherman Anti-Trust Law and sentenced to one year each in a New Jersey prison. Thus ended Labor's National Peace Council, thanks to David Lamar. The project for an embargo looked attractive to the Embassy, however — so attractive that while the Council was at the height of Its activ- ity. Baron Kurt von Reiswitz wrote on July 22, 191 5, from Chicago to Dr. Albert: "Everything else concerning the proposed em- 180 The German Secret Service in America bargo conference you vv^ill find in the enclosed copy of the report to the Ambassador. A change has, however, come up, as the mass meeting will have to be postponed on account of there being insufficient time for the necessary preparations. It will probably be held there in about two weeks. ''Among others the following have agreed to cooperate: Senator Hitchcock, Congressman Buchanan, William Bayard Hale of New York and the well known pulpit orator, Dr. Aked (born an Englishman), from San Francisco. "Hitchcock seemed to be very strong for the plan. He told our representative at a conference in Omaha: 'If this matter is organized in the right way you will sweep the United States.' "For your confidential information I would further inform you that the leadership of the movement thus far lies in the hands of two gen- tlemen (one in Detroit and one in Chicago) who are firmly resolved to work toward the end that the German community, which, of course, will be with us without further urging, shall above all things remain in the background, and that the movement, to all outward appearances, shall have a purely American character. I have known both the gentlemen very well for a long time and know that personal interest does not count with them ; the results will bring their own reward. Labor 181 "For the purposes of the inner organization, to which we attribute particular importance, we have assured ourselves of the cooperation of the local Democratic boss, Roger C. Sullivan, as also Messrs. Sparman, Lewis and McDonald, the lat- ter of the Chicago American. Sullivan was for- merly leader of the Wilson campaign and is a deadly enemy of Wilson, as the latter did not keep his word to make him a Senator ; therefore, principally, the sympathy of our cause." One is inclined to wonder where Rintelen's vast credits went, during his short visits in 191 5. Lamar took a goodly sum, as we have seen; the negotiations for the purchase of the Krag rifles cost him no small amount; his ship bomb activi- ties required a considerable payroll. But as fur- ther evidence of the high cost of causing trouble, we must consider briefly the profligate methods he employed in other attempts to inflame and seduce labor. A walkout by the longshoremen of the Atlantic coast would cripple the supply of munitions to Europe, and might be successful enough to cause a shell famine in France of which the Central Powers could readily take advantage. There were 23,000 dock-workers in American ports; they must be guaranteed a certain wage for five weeks of strike; the cost in wages alone would 182 The German Secret Service in America therefore amount to about $1,635,000, besides service fees to intermediaries. He had the money, and the first step was taken in the other- wise placid city of Boston. On May 7, 191 5, the day the Lusifania sank, WilHam P. Dempsey, the secretary-treasurer of the Atlantic Coast International Longshoremen's Union, met Dennis Driscoll, a Boston labor leader and former city office-holder, at the old Quincy House in Hanover Street. Driscoll said that Matthew Cummings, a wealthy Boston gro- cer, had outlined to him the plan for the strike, and said he was acting for parties who were will- ing to pay a million dollars. Dempsey main- tained his poise when the startling information was recited, but he was frightened, and at the conclusion of the interview he telegraphed at once to T. V. O'Connor, the president of the union, re- questing an interview. The two union men met in Albany and discussed the affair pro and con, arriving at the conclusion that they had best re- veal the plot to the Government. O'Connor ac- cordingly told of the negotiations to Secretary Wilson of the Department of Labor, and then in connivance with the Secret Service, went on deal- ing with the grocer, constantly pressing him for the identity of the principals who, he said, were prepared to supply all the necessary money. He Labor 183 implicated George Sylvester Viereck, the editor of a subsidized German propaganda-weekly called The Fatherland, and said that he had been in- troduced to him by Edmund von Mach. Neither of those men figured except as intermediaries, and Cummings suggested that Dr. Bernhard Dernburg, a loyal propagandist then in the United States, was the director of the enterprises. Owing to the high pitch of public feeling over the Lusitania, Cummings could not receive permis- sion from his superiors to go ahead with O'Con- nor, but he did his best to keep O'Connor inter- ested. The latter, fearing that German agents were at work on the Pacific coast, took a trip to the far West, and during his absence Cummings telegraphed him twice. There the affair ended, for O'Connor ignored the message, and on July 14 returned to New York to find that a German at- tempt to force a walkout on the New York water- front had failed, and that Cummings had stopped playing with fire and had gone back to his gro- cery in Boston. When the Government turned the story over to a newspaper to publish on September 13, the time was not ripe to fix the responsibility for the at- tempt. Dr. Dernburg was a popular scapegoat at the time, and the implication of his authority in the attempt was allowed to stand. Rintelen 184 The German Secret Service in America was in Donington Hall, a prison camp in Eng- land, and it was months thereafter before the United States and British Secret Services had fully compared notes on him. By that time there were other charges lying against him which prom- ised better cases than an abortive attempt to pro- mote a strike 'longshore. We have witnessed the cumulative influence of newspaper reports in surrounding Labor's Na- tional Peace Council with an almost genuine atmosphere of national interest; we have been able to picture the hostility which the publication of the longshoremen's strike story aroused in legitimately organized labor; and although as a typical instance of newspaper influence we should postpone the following incident, it is a temptation too great to resist. It is the story of The Story That Cost an Ambassador, and if any further plea for its introduction be needed, let it be that it is another subtle attempt upon labor in the summer of 191 5. James F. J. Archibald, an American corre- spondent who had seen most of the wars of re- cent years, and who wanted to see more, set sail from New York on August 21, 191 5, for Amster- dam, with his wife, his campaign clothes, and a portfolio. At Falmouth, England, the usual Copyright, International Film Servi Dr. Constantin Dumba, Austrian ambassador to the United States, recalled after the disclosures of the correspon- dence captured on the war correspondent, Archibald Labor 185 search party came aboard, and inspected the papers in the portfoHo. Archibald proved to be an unofficial despatch-bearer, upon whom his Ger- man and Austrian acquaintances in the United States placed great reliance — such men as Papen, Bernstorff, and Dr. Constantine Dumba sent re- ports to their governments in his care. On September 5 the New York World burst forth with the text of one of the letters — one from Dr. Dumba, the Austro-Hungarian ambas- sador at Washington, to his chief in the foreign office at Vienna, Baron Burian. It is worth re- producing here intact : "New York, August 20." "Your Excellency: "Yesterday evening Consul-General von Nuber re- ceived the enclosed aide memoire from the chief editor of the local influential paper S^iabadsag, after a previous conversation w^ith me in pursuance of his verbal propos- als to arrange for strikes at Bethlehem in Schwab's steel and munitions factory and also in the middle West. "Archibald, who is well known to your Excellency, leaves today at 12 o'clock on board the Rotterdam for Berlin and Vienna. I take this rare and safe opportunity of warmly recommending these proposals to your Ex- cellency's favorable consideration. It is my impression that we can disorganize and hold up for months, if not entirely prevent, the manufacture of munitions in Beth- lehem and the middle West, which, in the opinion of the 186 The German Secret Service in America German military attache, is of great importance and amply outweighs the comparatively small expenditure of money involved. "But even if strikes do not occur it is probable that we should extort under pressure more favorable conditions of labor for our poor downtrodden fellow countrymen in Bethlehem. These white slaves are now working twelve hours a day, seven days a w^eek. All weak persons suc- cumb and become consumptive. So far as German work- men are found among the skilled hands means of leaving will be provided immediately for them. "Besides this, a private German registry office has been established which provides employment for persons who voluntarily have given up their places. It already is working well. We shall also join in and the widest sup- port is assured us. "I beg your Excellency to be so good as to inform me with reference to this letter by wireless. Reply whether you agree. I remain, with great haste and respect, "DuMBA." ■ The aide memoire, written by the editor of a Hungarian weekly, proposed to create unrest by a campaign in foreign language newspapers cir- culated free to labor, muck-raking labor condi- tions in Bethlehem, Youngstown, Cleveland, Pittsburg, and Bridgeport, where there were great numbers of foreign workmen, Hungarians, Austrians, and Germans. This was to be sup- plemented by a ''horror novel" similar to the bloody effort of Upton Sinclair to describe the Labor 187 Chicago stockyards. Special agents of unrest, roll-turners, steel workers, soapbox orators, pic- nic organizers, were all to be insinuated into the plants to stir up the workmen. This editor had stirred them up a few weeks before at Bridge- port — the strike which Lamar claimed as his own accomplishment — and he presented to Baron Burian a really comprehensive plan for creating unrest through his well-subsidized foreign-lan- guage press. And in passing it on. Dr. Dumba stood sponsor for it. The British government saw in the discovery of the letter and the cool impudence of it, a rare chance for propaganda in America. So, as has been said, the World published the story, and at once the wrath of the truly American people jus- tified President Wilson in doing what he and Sec- retary Lansing had already determined to do — to send Dr. Dumba home. Perhaps Dumba's refer- ence to the "self-willed temperament of the Presi- dent" in another note found on Archibald had something to do with the haste with which the Ambassador's recall was demanded; it followed on the heels of the publication of the letter : "By reason of the admitted purpose and intent of Mr. Dumba to conspire to cripple legitimate industries of the United States and to interrupt their legitimate trade, and by reason of the flagrant violation of diplomatic propriety 188 The German Secret Service in America in employing an American citizen protected by an Ameri- can passport as a secret bearer of official despatches through the lines of the enemy of Austria-Hungary, the President directs us to inform your Excellency that Mr. Dumba is no longer acceptable to the Government of the United States as the Ambassador of his Imperial Majesty at Washington." So went Dumba. After his departure Baron Zwiedinek, his charge d'affaires, and Consul von Nuber adver- tised widely in Hungarian newspapers calling on Austrians and Hungarians at work in munitions plants to leave. If they wrote the Embassy on the subject, the reply they received read: "It is demanded that patriotism, no less than fear of punishment, should cause every one to quit his vv^ork im- mediately." But neither threats, nor walking delegates, nor German spies could check the output of shells and guns. An attempt made by Dr. Albert to buy, for $50,000, a strike in Detroit motor factories failed. The factories were making money as they had never made money before, and labor was buying luxuries. To the American muni- tions-worker a comfortable supply of money meant much more than the shrill bleat of the Cen- tral Powers. And what was more, he was not entirely satisfied that the right was all on Ger- Labor 189 many's side. (Our space does not permit, nor is definite information at present available, to dis- cuss the anarchist, socialist, and I. W. W. ele- ments of labor, and their relations to Germany. These three factors, especially the last named, ef- fected in the years 1914-1918 a sufficient amount of industrial unrest to qualify them as allies, if not actual servants, of the Kaiser. Whether they v^^ere employed by Germany wall be brought out in a trial which began in Chicago in April, 1918.) CHAPTER XIII THE SINKING OF THE LUSITANIA The mistress of the seas — Plotting in New York — The Lusitania's escape in February, 19 15 — The advertised warning — The plot — May 7, 191 5 — Diplomatic corre- spondence — Gustave Stahl — The results. In the eyes of the German Admiralty the Lusitania was the symbol of British supremacy on the seas. There were larger ships flying the Prussian flag, but one of them lay in her German harbor, the other at her Little-German pier in Hoboken, while the Lusitania swept gracefully over the Western Ocean as she regally saw fit, leaving only a thin trail of smoke for the sluggish undersea enemy to follow. Time and again dur- ing the early months of war the plotters in Berlin had attempted her destruction, and every time she had slipped away — until the last, when the plot was developed on American soil. Her destruction would carry home to Germany news of heartening influence out of all proportion to the mere sinking of a large single tonnage. The German visible navy had, with the exception of scattering excursions into the North Sea, and 190 bo o > ^ ^ H The SinJxhig of the Lusitania 191 the swiftly quenched efiorts of the South Atlantic fleet, been of negligible — and irksome — conse- quence. To sink the mistress of the British mer- chant fleet would be to inform all the world that Britain was incapable of protecting her cargo and passenger vessels, to puncture the comfortable British boast of the moment that business was being performed "as usual," and to gratify the blood-letting instincts of the Junkers. So von Tirpitz, with his colleagues, undertook to sink the Lusitania, and to warn neutrals to travel in their own ships or stay ashore. Early in December, 1914, the German agents who met nightly at the Deutscher Verein in Cen- tral Park South speculated on ways and means of bringing down this attractive quarry. Commun- ication between Berlin and New York at that time was as facile as a telephone conversation from the Battery to Harlem. There were new iio-kilowatt transmitters in the German-ow^ned Sayville wireless station, imported through Hol- land and installed under the expert supervision of Captain Boy-Ed, and memoranda issued in Berlin to the naval attache were frequently the subject of guarded conversation in the German Club v/ithin a few hours after they had left the Wilhelm- strasse. Occasionally the conspirators found it more tactful to drive through the Park in a 192 The German Secret Service in America limousine during the evening, to discuss the pro- ject. Spies had made several trips to Liverpool and back again aboard the ship, under false pass- ports, and Paul Koenig's waterfront henchmen supplied all necessary information of the guard maintained at the piers. All this was passed up to the clearing-house of executives, and their plans began to take shape. Boy-Ed possessed a copy of the secret British Admiralty code, which explained his frequent trips to Sayville. He knew — and Tirpitz's staff therefore knew — the position of any British ves- sel at sea which had occasion to utter any mes- sage into the air. But before he conceived a use for this code other than as a source of informa- tion, he decided to try out a code of his own. He arranged with Berlin a word-system whose theory was popular with Germany throughout the earlier years of her secret war communication: under the guise of apparently harmless expres- sions of friendship, or grief, or simple business, were transmitted quite definite and specific secret meanings. A message addressed by wireless from the Lusitania to a friend in England which read for example ''Eager to see you. Much love" would scarcely arouse suspicion, especially as there was no word in it which might suggest mili- tary information. Yet in February, 191 5, a mes- The Sinking of the Lusitania 193 sage of that type was despatched from the east- ward-bound Lusitania to a British station ; it was intercepted and interpreted by a German sub- marine commander in the "zone" nearby, who presently popped up in the ship's wake and fired a torpedo. His information was better than his aim. The Lusitania dodged the steel shark, and fled to safety, her wireless informing the British naval world meanwhile of the presence of the U-boat. The plotters had to reckon with her unequalled speed. The Lusitania and her sister ship, the Mauretania, had each rather prided herself in the past on reducing the other's fresh, bright passage- record from Queenstown to New York — a record of four days and a few hours ! The submarine of 191 5 knew no such speed, and it was necessary, if the liner was to be torpedoed, to select out of the vastness of the ocean one little radius in which the submarine might lie in wait for a pot-shot. But just how? Spies had reported that it was customary as the Lusitania neared the Irish coast on her homeward voyage for her captain to query the British Ad- miralty for instructions as to where her convoy might be expected. They reported that under certain conditions German agents might be placed on board. And they reported that the wireless 194 The German Secret Service in America operator was susceptible to bribery. Those three facts formed the nucleus of the final plan. Audacious as they were in their use of Ameri- can soil as the base for their plans, the German Embassy had certain obligations to the United States Government, which they felt must be ob- served. The unspeakable falsifying which is sometimes called expediency, sometimes diplo- macy, required that official America must know nothing of the intentions of which the Embassy itself was fully conversant and approving. Fur- ther, a palliative must be supplied to the American people in advance. Consequently Count von Bernstorff, under orders from Berlin, inserted in the New York Times of April 23, 19 15, the fol- lowing advertisement : NOTICE Travelers intending to embark on the Atlantic voyage h.re reminded that a state of war exists between Germany and her Allies and Great Britain and her Allies ; that the zone of war includes the waters adjacent to the British Isles ; that in accordance with formal notice given by the German Imperial Government, vessels flying the flag of Great Britain or any of her Allies are liable to destruc- tion in these waters and that travelers sailing in the war zone on ships of Great Britain or her Allies do so at their own nsv. Imperial German Embassy. Washington, D. C., April 22d, 1915. OCEAN TRAVEL L NOTICE! TRAVELLERS intending to embark on the Atlantic voyage I are reminded that a state of war exists between Germany and her allies and CreatBritain and her allies; that the zone of I war includes the waters adja^ 'cent to the British Isles; that, I in accordance with formal no |tice given by the Imperial Ger 'man Government, vessels fly- ing the flag of Great Britain, or' ofanyof her ailies,are liable to: [destruction in those waters and that travellers sailing in the war zone on ships of Great Britain or her allies do so at their own risk. IMPERIAL GERMAN EMBASSY WASHINGTON, D. C. APRIL 22. 1915 The newspaper advertisement inserted among "ocean travel" advertising by the Im- perial German Embassy prior to the Lusitanias departure on what proved to be her last voyage The Sinking of the Lusitania 195 Germans in New York who knew of the plot dropped hints to their friends ; anonymous warn- ings were received by several passengers who had booked their accommodations; Alfred Gwynne Vanderbilt received such a message, signed "Morte." But such whispers were common, the Lusitania had outrun the submarines before and could presumably do it again; further, most Americans at that moment had some confidence left in civilization. The plot was substantially this : when Captain Turner, on the last day of the voyage, should send his wireless query to the Admiralty, inquiring for his convoy of destroyers, a wireless reply in the British code directing his course must be sent to him from Sayville. His query would be heard and answered by the Admiralty, of course, but the genuine reply must not reach him. Berlin assigned two submarines to a point ten miles south by west of the Old Head of Kinsale, near the entrance to St. George's Channel. She selected an experienced commander for the espe- cial duty, and with him went a secret agent to shadow him as he opened his sealed instructions, and shoot him if he balked. And about the time when the U-boats slipped out of the Kiel Canal, and threaded their way through the mine-fields into the North Sea, submerging as they picked up 196 The German Secret Service in America the smoke of British ships on the western horizon, the Lusitania warped out of her pier in the Hud- son River and set her prow for Sandy Hook, the Grand Banks, and Ireland. She carried 1,254 passengers and a crew of eight hundred, a total of more than 2,000 souls, of v/hom 1,214 were sailing to their death. Ger- many had selected their graves ; von Rintelen had two friends aboard who were detailed to flash lights from the portholes in case the ship made the submarine rendezvous at night. The Lusitania carried bombs which Dr. Karl Schimmel placed on board; she carried bombs which wretched little Klein placed on board; she carried, too, the crea- ture who vv^as to betray her. Her company was gay enough, and interesting; besides Mr. Vander- bilt her passenger list included Charles Frohman, the most important of theatrical managers; El- bert Hubbard, a quaint and lovable writer-arti- san; Charles Klein, a playwright; Justus Miles Forman, a novelist ; and numerous others of more or less celebrity, among them an actress who lived to reenact her part in the tragedy for the benefit of herself and a motion picture company. Ruth- less as it was, the Lusitania also carried Lindon W. Bates, Jr., a youth whose family had be- friended von Rintelen. And there were the women and children. The Sinking of the Lusitania 197 Meanwhile, Sayville was in readiness, a trained wireless operator prepared at any moment to hear Captain Turner's inquiry, and to ilash a false re- ply with a perfect British Admiralty touch. On May 5 Captain Boy-Ed received word from Ber- lin that he had been awarded the Iron Cross. On May 7 the Lusitania spoke: Captain Turner's request for instructions. Presently the reply came, and was hurried to his cabin. From his code book he deciphered directions to ''proceed to a point ten miles south of Old Head of Kinsale and thence run into St. George's Channel, ar- riving at the Liverpool bar at midnight." He carefully calculated the distance and his running time on the assumption that he was protected on every side by the British fleet, and set his course for the Old Head of Kinsale. The British Admiralty also received Captain Turner's inquiry, just as the Sa3Aville operator had snatched it from the air, and despatched an an- swer : orders that the Lusitania proceed to a point some 70 or 80 miles south of the Old Head of Kinsale, there to meet her convo}'-. Captain Turner never received that message. The British Government knows why the message was not delivered, though the fact has not, at this date, been made public. The Lusitania headed northeast all mornine. 198 The German Secret Service in America At 1 :20 o'clock she ran the gauntlet of two sub- marines; a torpedo was released, and found its target. The ghastly details of what followed have been told so fully, so vividly, and so appeal- ingly that they need not be repeated here. They made themselves heard around a world that was already vibrant with uproar. The first sodden tremor of the ship told Captain Turner that he had been betrayed. He described later at the Cor- oner's inquest how he had received orders sup- posedly from the Admiralty, and had set out to obey them. He produced the copy of those or- ders, but of the genuine message from the Ad- miralty he knew nothing. Asked if he had made special application for a convoy, he said: "No, I left that to them. It is their business, not mine. I simply had to carry out my orders to go, and I would do it again." America was in a turmoil. Germany nad presumed too far; she — it is almost incongruous to call Germany "'she" — had believed that her warning declaration that the waters about the British isles were a war zone would be respected, or if not respected, would serve as an excuse, and that the torpedoing would be accepted calmly by America. She was not prepared for Colonel Roosevelt's burning denunciation of this act of common piracy, nor for the angry editorial re- The Sinking of the Lusitania 199 monstrance of a people outraged at the loss of one hundred and fourteen American lives. But Ger- many recovered her presumptuous poise swiftly, and while ugly medals were being struck off com- memorating the German triumph over the ship, and while destroyers were still searching British waters for the bodies of the dead, she sent a note of commiseration and sympathy to Washington. Three days later — on May 13 — the United States conveyed to Berlin a strong protest against the submarine policy which had culminated in the sinking of the Lusitania. Three days before Germany replied on May 28, a submarine attacked an American steamer, the Nebraska, and the Im- perial government followed up its first reply with a supplementary note justifying its previous at- tacks upon the American vessels GulHight and Gushing. Germany's fat was in the fire. A German editor in the United States had the effrontery to announce that American ships would be sunk as readily as the Lusitania. Secretary Bryan, of the Department of State, at that time a confirmed pacifist, resigned his post on June 8, thus drawing the sting of a second and sharper protest which went forward to Germany the next day. To this the Foreign Office replied on July 8 that American ships would be safe in the sub- marine zone under certain conditions, and the 200 The {German Secret Service in America President on July 21 rejected this diplomatic sop as "very unsatisfactory." Count von Bernstorff finally announced, on September i, that German submarines would sink no more liners without warning, and his government ratified his promise a fortnight later. The promise was at best a quibble, and it in no way restricted undersea depredations upon commerce and human life. After the Lusitania affair followed the Leelanaw, the Arabic, and the Hesperian and on February 16, 1916, Germany acknowledged her liability for the Lusitania' s destruction — the day after Secre- tary Lansing declared the right of commercial vessels to arm themselves in self-defense, and five days before the Crov/n Prince began the ten- months' battle of Verdun. The published correspondence of the State De- partment gives in detail the negotiations regard- ing maritime relations, a record of Imperial hy- pocrisy which indicates clearly the desire and in- tention of the Germans to retain their submarine warfare at any cost. There is not space here to brief the papers, nor any great need, for it was the Lusitania which dictated the tone and outcome of the correspondence, and which brought the United States rudely face to face with the cruel facts of war. In spite of these facts, Germany employed her The Sinking of the Lusitania 201 agents in desperate, devious and futile attempts to gloss over the crime. Relatives of those who had drowned were persuaded by agents (one of them was "a lawyer named Fowler, now under Federal indictment on another count") to sue the Cunard Line for damages for having mounted guns on the liner, thus making her liable to attack. Paul Koenig paid a German, Gustave Stahl, of Ho- boken, to swear to an affidavit that he had seen guns on the ship ; this affidavit was forwarded by Captain Boy-Ed on June i, to Washington, and had a wide temporary effect upon public senti- ment until Stahl was convicted of perjury and sentenced to i8 months in Atlanta. It was Koenig who hid Stahl where neither the police nor the press could find him after he made his statement, and it was Koenig w^ho, at the com- mand of the Federal authorities, produced him. It was Rintelen who dined on the night of the tragedy at the home of one of the victims ; it was Rintelen who received the news with a mild ex- pression of regret because "he had two good men aboard." Tactically Germany had attained her objec- tives ; her submarines had obeyed orders and sunk a liner. Strategically Germany had made a gross miscalculation ; recruiting in England took a pro- nounced rise, the Admiralty was shocked into re- 202 TJie German Secret Service in America doubled vigilance, the United States instead of swallowing the affront complicated the question of the freedom of the seas beyond all untangling except by force of arms, and beside the word "Belgium" on the calendar of crime the w^orld wrote the word ''Lusitania," as equally typical of the warfare of the Hun. CHAPTER XIV COMMERCIAL VENTURES German law in America— Waetzoldt's reports — The British blockade— A report from Washington— Stopping the chlorine supply— Speculation in wool — Dyestuffs and the Deutschland—Fmchasing phenol — The Bridgeport Projectile Company- The lost portfolio — The recall of the attaches — A summary of Dr. Albert's efforts. In addition to the exercise of its diplomatic functions, now more important than they had ever been before, the German Embassy had as- sumed the burden of large commercial enter- prises. Their execution was entrusted to Dr. Al- bert, the privy councillor and fiscal agent for the Empire, There was apparently no limit, either financial or territorial, to the scope of his efforts, and the fact that he was able to administrate such a volume of work is no small tribute to his zeal. But that very zeal outran his regard for Ameri- can law, so in one of his earlier ventures he set out to substitute the law of the Empire for that of the nation to which he was accredited. Dr. Albert was informed on March lo, 191 5, by 203 204" The German Secret Service in America a German lawyer, S. Walter Kaufmann of 60 Wall Street, that his clients, the Orenstein- Arthur Keppel Company, had an order for 9,000 tons of steel rails to be shipped to Russia, despite instructions from the company's home office in Berlin that "no orders should be accepted for ship- ment to any country at war with Germany, be- cause of Paragraph 89 of the Gesetz Buch." The Gesetz Buch is the German Penal Code. (One of Kaufmann's law partners was Norvin R. Lind- heim, legal adviser to Germany's agents in the United States.) The manufacturers begged the permission of the Embassy to accept the order and pass the actual manufacture on to the United States Steel Company, in order to evade the let- ter of Paragraph 89, and in order "to delay the order, if that would in any way be desirable." The matter was neglected in the Embassy, and on July 13 the Orenstein-Arthur Keppel Company wrote from Keppel, Pa., to the German consul, Philadelphia, Dr. George Stobbe, again asking permission to accept the order. The consul re- plied, denying permission, on the ground that the shipment would facilitate the Russian transport of troops, and that such action would be within the meaning of Paragraph 89 of the Gesetz Buch. "That you are in position to delay the delivery of the order, to the prejudice of the hostile country Commercial Ventures 205 ordering, in no way makes you less punishable," he continued. He forwarded a copy of his ruling to the Ambassador for approval, and it in turn was forwarded to Dr. Albert. The order was not taken; the fear of punishment by Germany was greater than the protection afforded by American Law. The foregoing episode reveals the nature of Dr. Albert's chief problem — the financial blocking of supplies for the Allies. Let Boy-Ed destroy the ships, von Papen dynamite the factories and rail- ways, Rintelen run his mad course of indiscrim- inate violence — the smooth financial agent would undertake only those great business ventures in which his shrewdness and experience could have play. He was receiving reports constantly on the economic status, and the following extract from a report from G. D. Waetzoldt, a trade investigator in the Consulate in New York, will illustrate the German frame of mind about midsummer of "The large war orders, as the professional journals also print, have become the great means of saving American business institutions from idleness and financial ruin. " The fact that institutions of the size and in- ternational influence of those mentioned could not find sufficient regular business to keep them to 206 The German Secret Service in America some extent occupied, half at least, throws a harsh light upon the sad condition in which American business would have found itself had it not been for the war orders. The ground which induced these large interests to accept war orders rests entirely upon an economical basis and can be ex- plained by the above-mentioned conditions which were produced by the lack of regular business. These difficulties, resulting from the dividing up of the contracts, are held to have been augmented, as stated in business circles, by the fact that cer- tain agents working in the German interest suc- ceeded in further delaying and disturbing Ameri- can deliveries. . . . "So many contracts for the production of picric acid have been placed that they can only be filled to a very small part." Dr. Albert also received a report from another trade expert, who had had a long conference with ex-Senator John C. Spooner of Wisconsin as to whether or not there could be prosecutions under the Sherman Anti-Trust Law against British rep- resentatives because of the restrictions placed by the British Government upon dealings by Americans in certain copper, cotton and rubber. Naturally one of the most vital problems that stirred Dr. Albert was the British Orders in Council blockading Germany, from which re- Commercial Ventures 207 suited the seizure of meat and food supplies and cotton by British war vessels. He was always on the alert for information of the attitude of the Administration and the people of the United States toward the blockade. In another report dated June 3, 191 5, Waetzoldt said: "There can be no doubt that the British Gov- ernment will bring into play all power and pres- sure possible in order to complete the total block- ade of Germany from her foreign markets, and that the Government of the United States will not make a strenuous effort to maintain its trade with Germany. . . . "It has been positively demonstrated during this time that the falling off of imports caused by the war in Europe will in the future be principally covered by American industry. , . . "The complete stopping importation of German products will, in truth, to a limited extent, espe- cially in the first part of the blockade, help the sale of English or French products, but the dam- age which will be done to us in this way will not be great. . . . "The Lusitania case did, in fact, give the Eng- lish efforts in this direction a new and powerful impetus, and at first the vehemence with which the Anti-German movement began anew awak- ened serious misgivings, but this case also will 208 The German Secret Service in America have a lasting effect, which, unless fresh compli- cations arise, we may be able to turn to the advan- tage of the sales of German goods. . . . "The war will certainly have this eifect, that the American business world will devote all its energy toward making itself independent of the importation of foreign products as far as pos- sible. . . . "If the decision is again brought home to Ger- man industry it should not be forgotten what po- sition the United States took with reference to Germany in this war. Above all, it should not be forgotten that the 'ultimate ratio' of the United States is not the war with arms, but a complete prohibition of trade with Germany, and in fact, through legislation. That was brought out very clearly and sharply in connection with the still pending negotiations regarding the Lusitania case." That Dr. Albert used secret and perhaps de- vious means to secure his information is revealed by an unsigned confidential report which he re- ceived under most mysterious circumstances con- cerning an interview by a man referred to as "M. P." with President Wilson and Secretary Lan- sing. The person who wrote of "the conversa- tion" on July 23, 1915, with "Legal Agent" Levy Commercial Ventures 209 and Mr. John Simon does not give his name. A striking part of this conversation follows : ''Levy advises regarding a conference with M. P. Thereafter M. P. saw Lansing as well as Wilson. He informed both of them that an American syndicate had approached him which had strong German relations. This syndicate wishes to buy up cotton for Germany in great style, thereby to relieve the cotton situation, and at the same time to provide Germany with cotton." (Dr. Albert attempted, with a suitable campaign of press and political propaganda, to inflame the Southern planters over the British embargo on cotton.) ''The relations of the American syndi- cate with Germany are very strong, so that they might even possibly be able to influence the posi- tion of Germany in the general political question. M. P. therefore asked for a candid, confidential statement in order to make clear not only his own position, but also necessarily the political oppor- tunity. The result of the conversation was as follows : "i. The note of protest to England will go in any event whether Germany answers satisfactor- ily or not. "2. Should it be possible to settle satisfactorily the Lusitania case, the President will bind him- 210 The German Secret Service in America self to carry the protest against England through to the uttermost. "3. The continuance of the difference with Ger- many over the Lusitania case is 'embarrassing* for the President in carrying out the protest against England. . . . "4. A contemplated English proposal to buy cotton in great style and invest the proceeds in America would not satisfy the President as an answer to the protest. . . . "5. The President, in order to ascertain from Mr. M. P. how strong the German influence of this syndicate is, would like to have the trend of the German note before the note is officially sent, and declares himself ready, before the answer is drafted, to discuss it with M. P., and eventually to so influence it that there will be an asfreement for its reception, and also to be ready to influence the press through a wink. "6. As far as the note itself is concerned, which he awaits, so he awaits another expression of re- gret, which was not followed in the last note. Regret together with the statement that nobody had expected that human lives would be lost and that the ship would sink so quickly. "7. The President is said to have openly de- clared that he could hardly hope for a positive Commercial Ventures 211 statement th-^.t the submarine warfare would be discontinued." Dr. Albert conferred with Captains Boy-Ed and von Papen on all military and naval matters having a commercial phase. Captain von Papen, on July 7, 191 5, submitted to Dr. Albert a memo- randum for his consideration and further recom- mendation, headed "Steps Taken to Prevent the Exportation of Liquid Chlorine." He told of the efforts made by England and France to buy that chemical in America, estimated the output here, and cited the manufacturers. He also enclosed a plan for checkmating the Allies and concluded with the following paragraph : ''It will be impossible, however, for this to go on any length of time, as the shareholders wish the profits to be derived therefrom. Dr. Oren- stein therefore suggests that an agreement be con- summated with the Electro Bleaching Company, through the President, Kingsley, whereby the de- livery of liquid chlorine by this country to France and England will be stopped. A suggested plan is enclosed herewith. "From a military standpoint I deem it very de- sirable to consummate such an agreement, in or- der to stop thereby the further exportation of about fifty-two tons of liquid chlorine monthly, 212 The German Secret Service in America especially in view of the fact that in France there is only one factory (Rouen) which can produce this stuff in small amounts, while it is only pro- duced in very small quantities, in England." During 1914 and 19 15 German speculation in wool was active. Early in the war von Berns- torff summoned a German-American wool mer- chant recommended by a business friend in Ber- lin and directed him to buy all the wool he could secure. He did so, using Deutsches Bank credits for the purchases made for Germany, and mak- ing his purchases of wool for Germany even in Cape Town and Australia. The German-Amer- ican, after following this practice for some months, decided that his fmancial allegiance be- longed to America, so he tried, through Hugo Schmidt, to induce the German interests in his firm to sell out to him. On August 9, 191 5, Schmidt wrote to Keswig, the Berlin principal : ''Your friend here has inquired in London, and he offers no matter what price may be realizable in London at that time to take over the wool from you at the original price, in which case you would naturally pay all the expenses, which are esti- mated to be about 6 per cent. As you see, it is not so simple to deal with your friends." The German-American's offer meant a good profit to him, as the London price of wool at that Commercial Ventures 213 time had advanced nearly 15 per cent. Yet he apparently fell into no ill favor with Berlin, for in June, 191 6, the German Foreign office wrote von Bernstorff : "Interested parties here have repeatedly made representations for preferential treatment of the firm of Forstmann & Huffman in Passaic, N. J., in connection with shipment of coal tar dyes to the United States of America. Since this pure German firm, as is well known on your side, un- dertook last year the wool supply for Germany, and therefore claim it has been especially badly treated by England, it is most respectfully recom- mended to Your Excellency, should there be no reason to the contrary, to arrange for the great- est possible consideration for this firm in the later distribution of the shipments to consumers which now are in prospect." Necessity, the mother of invention, had forced America's production of coal-tar derivatives and dyestuffs upward enormously during the first year of war. As the British blockade tightened, the German supply, which had long constituted the world supply, was cut off completely. The value of dyestuffs in America increased enormously from 1914 to 191 5. Germany witnessed this growth with apprehension, and realized gravely that export expansion would follow increased 214 The German Secret Service in America and perfected production in America, which it promptly did. German chemical interests in- volved in a drug house familiar with the German market, have testified that their firm ''paid three times the value" of a cargo of dyestuffs shipped from Bremen to Baltimore in 191 6 in the huge undersea-boat Deutschland, "which paid for the ship and cargo." Her sister ship, the Bremen, which set forth for America, but never arrived, was also "built with money furnished by the dye- stuff manufacturers," according to Ambassador Gerard. The Deutschland herself was 300 feet long, with a cargo capacity of some 800 tons. She docked at the North German Lloyd piers in Balti- more, and after loading a cargo of rubber and nickel, took an opportune moment one foggy twi- hght to cast off and slip out to sea. She not only returned safely to Germany but made another round trip to America, putting in the second time at New London. She was at sea about three weeks on each crossing of the Atlantic. Dr. Albert made plans for buying up carbolic acid to prevent it from reaching the Allies. Dr. Hugo Schweitzer, a German-American chemist of New York, paid down $100,000 cash on June 3, 191 5, to the American Oil & Supply Company in New Jersey as part payment of $1,400,000 for Commercial Ventures 215 1,212,000 pounds of carbolic acid, of which the American Oil & Supply Company had directed the purchase from Thomas A. Edison. Dr. Schweitzer said that he bought the liquid not to prevent it from falling into the hands of the Al- lies but to use in the manufacture of medical sup- plies. Not the least interesting of Dr. Albert's finan- cial experiences is that which conceived and bore the Bridgeport Projectile Company. In a con- ference early in 191 5 in the offices of G. Amsinck & Co., in New York, Count von Bernstorff came to the conclusion that one way to prevent the ship- ment of munitions to the enemy was to monopo- lize the industry, or at least to control it financially as far as possible. Dr. Albert made an unsuc- cessful attempt to buy the Union Metallic Car- tridge plant for $17,000,000. He chose as his lieutenants for his next task Hugo Schmidt, the New York representative of the Deutsches Bank, and Karl Heynen, whose past record had been auspicious, as agent for Mexico of the Hamburg- American Line. Heynen it was who had smug- gled a cargo of arms ashore for Huerta at Vera Cruz, under the nose of the American fleet; he had received some 40,000 pesos (Mexican) for the coup, and he was regarded as a capable indi- vidual. On March 31, 1915, the Bridgeport Pro- 216 The German Secret Service in America jectile Company was incorporated for $2,000,000, paid in, with Walter Knight as president, Heynen as treasurer, and Karl Foster as secretary and counsel. Schmidt drew up a contract with the new-born company calling for a large order of shells. On May 17 Heynen reported to Albert that 534 hy- draulic presses for making shells of calibres 2.95 to 4.8 had been ordered, and would cost $417,550. These orders, with all others for tools and ma- chinery which the Bridgeport company placed, were so well concealed about the business world that as late as August the impression was current that Great Britain was financing the company. On June 30 Heynen reported to Albert through Schmidt that the first shell cases would be manu- factured under United States government inspec- tion, in order to create the impression that the company was anxious for American contracts, and so that immediate delivery could be made in case such contracts were actually secured. "The most important buildings, forges, and machine shops, are almost under roof ; the other buildings are fairly under way ; presses, machinery and all other materials are being promptly assembled, and there is every indication that deliveries will commence as provided in the contract; i. e., on Sept. 1st, 1915." Commercial Ventures 217 The Bridgeport Projectile Company contracted with the 2?itna Powder Company, one of the largest producers of explosives in America, for its entire output up to January, 191 6, and then turned round and offered the Spanish government a million pounds of powder. The Spanish repre- sentatives may have suspected the identity of the company, for they raised certain objections to the contract, to which Heynen refused to listen, and he also reported to his superiors that British and Russian purchasing agents were going to call on him within a few days. He made a contract with Henry Disston & Co. for two million pieces of steel, most of them tools, for which Schmidt ad- vanced the money. He contracted with the Cam- den Iron Works of Camden, N. J., for presses, and posted a forfeit of $165,000 in case the con- tract should be cancelled; the contract was signed and cancelled the next day by the Bridgeport company, causing the Camden concern great busi- ness difficulty. Thus, by the manipulation of contracts, Dr. Al- bert and his associates were accomplishing the following ends : I. Arranging to supply Germany with shells and powder (as soon as smuggling could be ef- fected) at a time when official Germany was at- tempting to persuade the United States to place 218 The German Secret Service in America an embargo on the shipment of war materials to the AlHes. 2. Securing a monopoly on all powder avail- able. 3. So tying up the machinery and tool manu- facturers that all their production for months to come was under contract to the Bridgeport Pro- jectile Company, yet so wielding the cancellation clauses in its contracts that delivery could be de- layed and the date further postponed when the manufacturers of machinery and tools could be free to take Allied orders. 4. Arranging to accept contracts for the United States and the Allies under such provisions that there would be no impossible forfeit if the con- tracts could not be fulfilled. This would have the effect of making the Allies believe that they were going to receive supplies which the Bridgeport Projectile Company had no intention of furnish- ing them. 5. Heynen, by the contract with the munitions industry, which his work afforded, knew where Allied orders for shells were placed, and he learned to his pleasure that the Allies were being forced to contract for shrapnel which was forged — a less satisfactory process than pressing. He also learned that the first two orders for forged Commercial Ventures 219 shrapnel placed by the Allies had been rejected because the product was inferior. 6. Paying abnormal wages with the unlimited funds at its disposal, stealing labor from the Union Metallic Cartridge Company in Bridge- port, and generally unsettling the labor situation. 7. Offering powder to Spain, a neutral with strong German affiliations. The project was glorious in its forecast. But we may well let a German hand describe how it failed; among the papers captured by the British on the war correspondent and secret messenger Archibald at Falmouth in late August was a letter from Captain von Papen to his wife in Germany, in which he said: "Our good friend Albert has been robbed of a thick portfolio of papers on the elevated road. English secret service men of course." (Papen was not altogether correct in this statement.) ''Unfortunately, some very important matters from my report are among the papers, such as the purchase of liquid chlorine, the correspondence with the Bridgeport Projectile Company, as well as documents relating to the purchase of phenol, from which explosives are manufactured, and the acquisition of Wright's aeroplane patents. I send you also the reply of Albert, in order that you 220 The German Secret Service in America may see how we protect ourselves. This we com- pounded last night in collaboration." ^ Dr. Albert could hardly have chosen a more un- fortunate set of documents to carry about with him and lose. "Pitiless publicity" was his re- ward, and the statement which he and von Papen prepared in refutation and denial was received by those in authority as precisely the sort of denial which any unscrupulous and able master of in- trigue might be expected to issue under the cir- cumstances — and no more. If there had been any doubt of the perniciousness of his activities — and there was none — it would have been dis- pelled by the seizure of the Archibald letters, but the result of the exposures of German activity which made the Nezv York World, a newspaper worth watching during August and September, 191 5, was not the expulsion of Dr. Albert, l>ut of the military and naval attaches. Albert, while he had been magnificently busy attempting to dis- turb America's calm, had been cunning enough to keep his hands free of blood and powder smoke; 1 The captain added: "The sinking of the Adriatic" (by which he meant the Arabic, which had been sunk without warn- ing on August 19, with a loss of sixteen lives, two of them American), "may be the last straw for the sake of our cause. I hope the matter will blow over." On October 5 the German Government, consistent with its assurance of September i that no more ships would be sunk without warning, disavowed the sinking of the Arabic, and offered to pay indemnities. So the matter "blew over." Commercial Ventures 221 Boy-Ed and von Papen had to answer for the origination of so many crimes that it is almost incredible in the light of later events that they escaped with nothing more than a dismissal. On December 4, Secretary Lansing demanded their recall on account of their connection "with the illegal and questionable acts of certain persons within the United States"; Bernstorff made no reply for ten days, and received a sharp reminder for his delay; he then replied that the Kaiser agreed to the recall. Four days before Christ- mas von Papen sailed for England and Holland. On January 2 and 3, 1916, his effects were searched by the British at Falmouth and two documents among others found may be cited here. Boy-Ed sailed on New Year's Day, but with no incriminating documents, for he had been warned. The first document found on von Papen Avas a letter from President Knight of the Bridgeport Projectile Company, dated Sept. 11, 191 5, ad- dressed to Heynen at 60 Wall Street — the build- ing in which von Papen had his office — giving certain specifications for shells that were being made in the new Bridgeport plant ; the second was a memorandum of an interview on December 21, between Papen, Heynen, G. W. Hoadley of the affiliated American-British Manufacturing Com- 222 The German Secret Service in America paiiy, and Captain Hans Tauscher. The four men had discussed specifications for a time, and had agreed that firing- tests of the projectiles could be made "in a bomb-proof place by electri- cal explosion." Delays in production at Bridge- port are evident in the last sentence of the mem- orandum : "It was agreed that Mr. Hoadley, till date, has com- plied with all the conditions of the contracts of the ist April, with the exception of the commencement of the delivery of the shells, which is due to force majeure, i. e., to failure to timely obtain the delivery of machinery and tools occasioned by strikes in the machine factories." A letter to von Papen from Dr. Albert, then in San Francisco, undated but obviously written in December, 191 5, contained these farewell senti- ments : "Dear Herr von Papen, "Well, then ! How I wish I were in New York and could discuss the situation with you and B. E. . . . So we shall not see each other for the present. Shall we at all before you leave? It would be my most anxious wish ; but my hope is small. From this time, I suppose, matters will move more quickly than in Dumba's case. I wonder whether our Government will respond in a suitable manner ! In my opinion it need no longer take public opinion so much into consideration, in spite of it being artificially and intentionally agitated by the press and the legal proceedings, so that a somewhat 'stiffer' at- Commercial Ventures 223 titude would be desirable, naturally quiet and dignified! . . , Please remember me to your chief personally. I assume that he still remembers me from the time of the 'experimental establishment for aircraft,' and give my best wishes to Mr, Scheuch, and tell him that the struggle on the American front is sometimes very hard. . . . When I think of your and Boy-Ed's departure, and that I alone remain behind in New York, I could — well, better not ! " Perhaps Dr. Albert would have accompanied the attaches had not the submarine situation been so acute. For while the Government had in its possession sufficient provocation for his dismissal, and that of Count von Bernstorff as well, the Government's desire at that time was peace, and stubbornly, patiently, it clung to its ideal in a dogged attempt to preserve its neutrality. Dr. Albert had run the British blockade with his sup- plies for Germany, and had roared protest when Great Britain seized cargoes of meat intended for Germany, although she paid the packers for them in full. He had floated a German loan through Chandler & Company, a New York house of which Rudolph Hecht, one of his agents, was a member ; he had sold $500,000,000 worth of Ger- man securities; to sum up his financial activities, he had played every trick he knew, and his last year in America was unfruitful of result, for he 224 The German Secret Service in yimerica was watched. He returned to Germany person- ally enriched, for time and again, prompted by stock tips from his German friends on stocks or "September lard," and by diplomatic information which he knew would influence the stock market, he made handsome winnings for von Bernstorff and himself. CHAPTER XV THE PUBLIC MIND Dr. Bertling — The Staats-Zeitung — George Sylvester Viereck and The Fatherland — Efforts to buy a press asso- ciation — Bernhardi's articles — Marcus Braun and Fair Play — Plans for a German news syndicate — Sander, Wunnenberg, Bacon and motion pictures — The German- American Alliance — Its purposes — Political activities — Colquitt of Texas — The "Wisconsin Plan" — Lobbying — Misappropriation of German Red Cross funds — Friends of Peace — The American Truth Society. Some one has said that America will emerge from this war a gigantic national entity, a colos- sus wrought of the fused metal of her scores of mixed nationalities. That is naturally desirable, and historically probable. If such is the result, Germany will have lost for all time one of her most powerful allies — the German population in the United States. Nearly one-tenth of the pop- ulation of the United States in 1914 was of either German birth or parentage. Ethnic lines are not erased in a generation except by some great emer- gency, such as war affords. Germany is doomed to a deserved disappointment in the loss of her 226 226 The German Secret Service in America American stock — deserved because she tried so hard to Germanize America. She wasted no time in injecting her verbal propagandists into the struggle on the American front. On August 20, 1914, Dr. Karl Oskar Bertling, assistant director of the Amerika In- stitut in Berlin, landed in New York, and went at once to report to von Bernstorff . The Amer- ika Institut had of recent years made considerable progress in familiarizing Germany with Ameri- can affairs; its chief director, Dr. Walther Drechsler, had been master of German in Mid- dlesex, a prominent boys' school in Massachu- setts; he returned to Berlin in 1913 and was attached, upon the outbreak of war, to the press office. All who were associated with it knew something of America. It is characteristic of the convertibility of German institutions to war that another executive of this organization, employed in peace times to cement the friendship between the two nations, should be sent on the day war was declared to America to establish a German press bureau. Dr. Bertling went about delivering pro-Ger- man speeches, and prepared articles for the press on international questions. These he submitted to Bernstorff himself for approval — one such story was to be published in a Sunday magazine The Public Mind 227 supplement to a long ^'string" of American news- papers. Although every editor was on the look- out for any "war stuff" which was written with any apparent background of European politics, he found small market for his wares among the New York newspapers, and some of his speaking dates were cancelled. He proposed to publish, with one of his stories, a set of German military maps of Belgium, but to this von Papen wrote him on November 21 : "1 entirely agree with you in your opinion in regard to the maps — it is a two-edged sword," and he added : "One observes how very ill-informed the average American is." Bert- ling's lack of accomplishment drew censure, how- ever, from several sources : the head of the Ger- man-American Chamber of Commerce in Berlin chided him for not having carried out his "spe- cial mission to supply a cable service to South America and China," and the late Professor Hugo Muensterberg of Harvard waxed righteously in- dignant over the fact that Bertling opened and read a letter entrusted by the psychologist to him for safe delivery to Dr. Dernburg. Bertling ap- plied to the Embassy for special employment, and on March 19, 1915, the ambassador's private sec- retary wrote him : "His Excellency is entirely agreeable to giving you the desired employment, but he considers the 228 The German Secret Service in America present conditions too uncertain, as his departure for Germany in the near future is not impossible." Excellent testimony to the subtle iniquity of his task lies in the names of the men whose pro-Ally utterances he was striving to counteract. In a letter written December 20, 19 14, to Bertling by C. W. Ernst, a Bostonlan of German birth and American naturalization, appears this passage : "Is it prudent to defend the German cause against such men as C, W. Eliot and other Ameri- cans who consider themselves artlstocratic and important? . . . Who, apparently, was of more importance than Roosevelt, to whom now even the dogs pay no attention? . . . The feeling of men like Eliot, C. F. Adams, etc., is well under- stood. German they know not. They under- stand neither Luther nor Kant, nor the history of Germany. . . . Tactically it is a mistake to be easv sfoingf with Enp'land, or in discussion with her American toadies. By curtness, defiance, irony one can get much further. . . ." His friend in the German-American Chamber of Commerce wrote again to Berlin in a vein which showed how closely Germany herself was watching publicity in America. "Viereck has sent me a letter," he said, "and Harper's printed some matter by way of Italy. . . . The Foreign Office and the War Department urgently want The Public Mind 229 more reports sent here. If cables through neu- tral countries are not feasible, could not Ameri- cans travelling be called upon? More steam, please. . . . The exchange professors should get busy. . . . One is quite surprised here that with the exception of Burgess and possibly Sloan, no- body seems to be doing anything. . . . Nasmith's article, 'The Case for German}^,' in the Outlook is very good — inspired by me. The same of Mead's in Everybody's/' And again: ''We will dog Uncle Sam's foot- steps with painful accuracy — ^his sloppy, obstin- ate, pro-English neutrality we utterly repudiate. When God wishes to punish a country he gives it a W. J. B. as Secretary of State." (When Bryan resigned, German rumors were circulated from time to time that Secretary Lans- ing, who succeeded him, had had a falling out with President Wilson, and was himself on the point of resigning. What Herr Walther thought of "W. J. B." 's successor is a matter of conjecture.) The documents found in Dr. Bertling's posses- sion, and the method of securing them, brought forth a sharp editorial from Bernard Ridder of the New Yorker Staats-Zeitung, then one of the stanch members of the foreign language press en- gaged in defending Germany. Dr. Bertling re- mained unmolested in the United States until 230 The German Secret Service in America April, 1 918, when he was arrested as an enemy- alien in Lexington, Mass., and interned. Dr. Bernhardt Dernburg, to quote the words of a German associate, "had some propaganda and wrote some articles for the newspapers" . . . and was "certainly in connection with the German Government,'^ gave Adolph Pavenstedt $15,000 in early October, 19 14. To this Pavenstedt added $5,000, and on October 12 paid the sum of i$20,ooo to the Staats-Zeitmig, to tide the news- paper over a rough financial period. 'T ex- pected," said Pavenstedt, "that if the business were bankrupt it would be lost to the Ridders, who have always followed a very good course for the German interests here." Soon after the war began George Sylvester yiereck brought out his publication. The Father- land, a moderately clever attempt to appeal to in- telligent readers in Germany's behalf. On July ;i, 191 5, the publication having stumbled along a rocky financial path — for no publication dis- tributed gratis can make money — Dr. Albert >vrote Viereck : "Your account for the $1,500 — bonus, after deducting the $250 received, for the month of June, 191 5, has been received. I hope in the course of the next week to be able to make pay- ment. In the meantime, I request the proposal T3 > o C a 0} Vh o o ft, The Public Mind 231 of a suitable person who can ascertain accurately and prove the financial condition of your paper. From the moment when we guarantee you a regular advance, I must ''i. Have a new statement of the condition of your paper. "2. Practise a control over the financial man- agement. *'In addition to this we m.ust have an under- standing regarding the course in politics which you will pursue, which we have not asked hereto- fore. Perhaps you will be kind enough to talk the matter over on the basis of this letter, with Mr. Fuehr." Fuehr's office was across the hall from Viereck. Viereck had assembled about him among oth- ers a staff of contributors which included Dr. ■Dernburg, Frank Koester, Rudolph Kronau, J. Bernard Rethey, a writer who affects the nom de plume of "Oliver Ames," Edmund von Mach (whose brother is an official of some prominence in Germany), and Ram Chandra (the editor of a revolutionary Hindu newspaper published in California). Viereck, in his paper, forecasted the sinking of the Lusitania and later gloated over it as well as over the murder of Edith Ca- vell. Flis father is the Berlin correspondent of his paper. They are both '"naturalized" citizens 232 The German Secret Service in America of the United States. One of his contributors, as late as 1918, wrote for Viereck a peculiarly- suspicious essay on his conversion to American- ism, setting forth in exhaustive detail the pro- German convictions which he had previously held, and the justification for them, and winding up with a pallid renunciation of them, the docu- ment as a whole intended ostensibly to stimulate patriotism, while in reality it would have re- kindled the dying German apology. The perni- cious Viereck, whose mental stature may be judged by the fact that he treasured a violet from the grave of Oscar Wilde, sought to interest the Embassy in his merits as a publisher of Ger- man books, and was supported, as pro-German volumes were issued from the Jackson Press which he controlled. He suggested, too, to Dr. Albert names of American publishing houses as excellent media for bringing out propaganda books on account of their obvious innocence of German sympathies. A more patent attempt to influence the public originated in the German Embassy itself. Dr. Albert, through intermediaries, schemed to ob- tain for $900,000 control of a press association. The sale was not made. One of Dr. Albert's agents, M. B. Claussen, formerly publicity agent for the Hamburg-American Line, established in The Public Mind 233 the Hotel Astor, New York, the "German Infor- mation Bureau" for disseminating "impartial news about the war" and "keeping the American mind from becoming prejudiced," and he issued many a red-white-and-black statement to the newspapers. The German interests also had designs on buy- ing an important New York evening newspaper, the Mail. One of von Papen's assistants, George von Skal, a former reporter (and the predecessor as commissioner of accounts of John Purroy Mitchel, New York's "fighting mayor"), entered the negotiations in a letter written by Paul T. Davis to Dr. Albert at the embassy. This letter, dated, June 21, 191 5, set forth that — "In November, 19 14, my father, George H. Davis, conceived the idea that Germany ought to be represented in New York by one of the papers printed in English. He spoke to a number of German-Americans about the scheme and finally through Mr. George von Skal got in touch with Ambassador Count von Bernstorff. Mr. Percival Kuhne acted as the head of the move- ment until it was found that he could not devote the necessary time to the matter in hand and at father's suggestion Mr. Ludwig Nissen was sub- stituted. . . . We decided upon the Mail as the only paper that was not too expensive. . . . We 234 The German Secret Service in America opened negotiations with the proprietors of the Mail and proceeded until Ambassador Count von Bernstorff notified both Mr. Kuhne and Mr. Nissen that at that time nothing further should be done in the matter. , . ." The Mail was sold, however, to Dr. Rumely. Dr. Albert collected for General Franz Bern- hardi the proceeds of the publication in American newspapers of the latter 's famous "Germany and the Next War." Bernhardi wrote von Papen on April 9,1915: ''I have now written two further series of articles for America. The Foreign Office wanted to have the first of these, entitled 'Germany and England,' distributed in the American press; the other, entitled Tan-Germanism,' was to appear in the Chicago Tribune. They will certainly have some sort of effect, this is evident from the inexpressible rage with which the British and French press have attacked those Sun articles." Bernstorff and Papen, under orders from Chancellor von Bethmann-Hollweg, in ]\Iay, 1915, had under consideration the payment of from $1,000 to $1,200 for the expenses of a trip to Germany for Edward Lyell Fox, a newspaper writer, who "at the time of his last sojourn in Germany" (in 1914)" was of great benefit to us by reason of his good despatches." CcpfrighSt International Film Strvii George Sylvester Viereck. founder and Editor of T/ie Father- land a pro-German propaganda weekly known later as Viereck' s Weekly The Public Mind 235 Von Bernstorff himself wrote on March 15, 191 5, to Marcus Braun, a Hungarian, and editor of a review called Fair Play : "My dear Mr. Braun: "In answer to your favor of the 12th instant, I beg to say that I have read the monthly review Fair Play for the last 3 years, and I can state that this publication is living up to its name, and that it has always taken the American point of view. During the last 7 months Fair Play has, in its editorial policy, treated all belligerents justly and thereby rendered great services to the millions of foreign born citizens in this country, especially to those of German and Austro-Hungarian origin. Fair Play has fought for the rights of the latter and for truth, al- ways maintaining an American attitude and showing true American spirit. "You are at liberty to show this letter to anybody who is interested in the matter, but I beg you not to publish it, as to (do) this would be contrary to the instructions of my government, who does not wish me to publicly adver- tise any review or newspaper. "Very sincerely yours, "J. Bernstorff." On May 28, 191 5, J. Bernstorff signed another gratifying document for the same Braun — a check for $5,000 payable to the Fair Play Print- ing & Publishing Company. Such was the re- ward of "true American spirit." When Germany embarked upon an enterprise 236 The Gerinan Secret Service in America she usually followed charts prepared by trained surveyors. Her attempts at newspaper and magazine propaganda in the first ten months of war had been hastily conceived and not altogether successful. One of the most comprehensive re- ports which have come to light is a recommenda- tion, dated July, 191 5, in which the investigator discusses the feasibility of a strong German news- syndicate in America. It was to be operated by two bureaus, one in Berlin as headquarters for all news and pictures from Germany, Austria-Hungary, Turkey and the Balkans, one in New York for distribution of the matter to the American press. Corre- spondents from America were to be given the privileges of both Eastern and Western fronts, from 3,000 to 4,000 words a day were to be sent by wireless from Nauen to Sayville, secret codes were to be arranged so that the cable news might be smuggled past the enemy in the guise of com- mercial messages. The bureau in New York was to gather American news for Germany, and the service was eventually to extend over the whole world, 'Tn fact," said the report, "it will be particu- larly desirable to inaugurate the Chinese service at once, so that the American public is informed about that which really happens in order to create eCRMAN eMBASSV WASH. NOTCH. IXC. WashiHgton , D . C . , March 15, 1915. My dear Mr. Braun, In answer to your favor of i2th Instant I beg to say that I have read the monthly review „Fair Play" for the last 3 years, and I can state that this publication has been living up to its name and that it has always taken the American point of view. During the last 7 months .Fair Play" has, in its editorial policy, treatej all belligerents justly and thereby rendered, great services lo the millions of foreign born citizens of this coontryjespeclally to those of German and Auslio- Hungarlan origin. ,Fair Play" has fought for the rights of the latter and for truth, always maintaining an American attitude and showing true American spirit. You are at liberty to show this letter to anybody who is Interested in the matter, but I beg you not to publish it, as to this would be contrary to the instructions of my Government, who does not wish me to publicly advertize any reviews or newspaper. Very sincerely yours. Marcus Braun, Esq., Editor of „Fair Play" New York City. 0mff Fac-simile of a letter from Count von Bemstorff to the editor of "Fair Play" Tlie Public Mind 237 an effective counter-weight against the Japanese propaganda in the American press." The New York bureau was estimated to cost $6,640 per month, the bureau in Berlin about half that sum; two years' effort would have cost about $200,000. The writer proposed to establish a lecture service as auxiliary, the total expenses of which, covering the Chautauquas of one summer, he estimated at $75,000. The investi- gator concluded: ''Hoping that my proposals will lead to a suc- cessful result, I will take the liberty of advising in the interest of the German cause — aside from the fact whether my proposals will be carried out or not — that the following should be avoided on the part of Germany in the future : "i. The Belgian neutrality question as well as the question of the Belgian atrocities should not be mentioned any more in the future. "2. It should not be tried any more in America to put the blame for the world war and its con- sequences alone on England, as a considerable English element still exists in America, and the American people hold to the view that all parties, as usual, are partly guilty for the war. "3. The pride and imagination of the Ameri- cans with regard to their culture should not con- tinually be offended by the assertion that German 238 The German Secret Service in America culture is the only real culture and surpasses everything else. "4. The publication of purely scientific pam- phlets should be avoided in the future as far as the American people are concerned, as their dry reading annoys the American and is incompre- hensible to him. "5. Finally it is of the utmost importance that the authorities as v^ell as the German people cease continually to discuss publicly the delivery of American arms and ammunition, as well as to let every American feel their displeasure about it." The Foreign Office never saw fit to act upon the investigator's proposals, for less than a month after he had written his report, it appeared, verbatim, in the columns of a New York news- paper. Axiom: The most efTective means of fighting enemy propaganda is by propaganda for which the enemy unwittingly supplies the ma- terial. Motion pictures appealed to the Germans as a practical and graphic means of spreading through America visual proof of their kindness to prison- ers, their prodigious success with new engines of war, and their brutal reception at the hands of the nations they were forced in self-defence to invade. So Dr. Albert financed the American Correspondent Film Company, two of whose a SO o > 'ca o O g o o o O The Public Mind 239 stockholders were Claussen and Dr. Karl A. Fuehr, a translator in Viereck's office. As late as August, 191 6, Karl Wunnenberg and Albert A. Sander, of the ^'Central Powers Film Com- pany," which was also subsidized to circulate German-made moving pictures, engaged George Vaux Bacon, a free-lance theatrical press agent, to go to England at a salary of $100 a week, ob- tain valuable information, and transmit it in writing in invisible ink to Holland, where it would be forwarded to Germany. The two principals were later indicted on a charge of having set afoot a military enterprise against Great Britain, and were sentenced to two years in prison ; Bacon, the cat's-paw, received a year's sentence. (San- der, a German, had been involved in secret-agent work on a previous occasion when he assaulted Richard Stegler for not disavowing an affidavit explaining his acquisition of a false passport.) The secret ink they gave Bacon was invisible un- der all conditions unless a certain chemical prepa- ration, which could be compounded only with dis- tilled water, was applied to it. At the start of the war there began in Con- gress a vehement debate over the question of im- posing a legislative embargo on the shipment of arms and ammunition to the Allies. In these de- bates participated men who undoubtedly were 240 The German Secret Service in America sincere in the convictions they expressed. Never- theless, in the late winter and early spring of 191 5, a hireling of the Germans began to seek secret conferences with congressmen in a Wash- ington hotel and to outline to them plans for com- pelling an embargo on munitions. His activities bring us to the affairs of the National German- American Alliance, Germany's most powerful and least tangible factor of general propaganda in the United States. The organization had a large membership among Germans in America; it has been esti- mated that there were three million members, who constituted a great majority of the adult German-American population. It received a Federal charter in 1907. The Alliance, to quote Professor John William Scholl, of the University of Michigan, (in the New York Times of March 2, 1918), "strives to awaken a sense of unity among the people of German origin in America; to 'centralize' their powers for the 'energetic de- fense of such justified wishes and interests' as are not contrary to the rights and duties of good citizens; to defend its class against 'nativlstic en- croachments'; to 'foster and assure good, friendly relations of America to the old German father- land.' Such are its declared objects. "All petty quibbling aside, this programme can Tlie Public Mind 241 mean nothing else than the maintenance of a Germanized body of citizens among us, conscious of their separateness, resistent to all forces of absorption. It is mere camouflage to state in a later paragraph that this body does not intend to found a 'State within the State/ but merely sees in this centralization the 'best means of attaining and maintaining the aims' set forth above. "All existing societies of Germans are called upon as 'organized representatives of Deutsch- tum' to make it a point of honor to form a national alliance, to foster formation of new societies in all Slates of the Union, so that the whole mass of Germans in America can be used as a tin it for political action. This league pledges itself 'with all legal means at hand unswervingly and at all times to enter the lists for the maintenance and propagation of its principles for their vigor- ous defense wherever and whenever in danger.' " Professor Scholl, himself a teacher of German, continues: "A little attention to the context of the sentences quoted shows that these Germans demand the privilege of coming to America, getting citizenship on the easiest terms possible, while maintaining intact their alien speech, alien customs, and alien loyalties. That is 'assimila- tion,' the granting of equal political rights and commercial opportunities, without exacting any 242 The German Secret Service in America alteration in modes of life or 'Sittlichkeit.' 'Ab- sorption' means Americanization, a fusing with the whole mass of American life, an adoption of the language and ideals of the country, a spiritual rebirth into Anglo-Saxon civilization, and this has great terrors for the members of a German alliance. '^A glance back over the whole scheme will show how cleverly it was made to unite the aver- age recent comeoverer with his beer-drinking pro- clivities, with the professor of German, who had visions of increased interest in his specialty, and the professor of history, who hoped for larger journal space and ampler funds, and the readily flattered wealthy German of some attainments, into a close league of interests, which could be used at the proper time for almost any nefarious purpose which a few men might dictate. "Add to this the emphatic moral and financial support of the German-language press as one of the most powerful agencies of the organization, and we have the stage set for just what happened a little over three years ago." The Alliance, long before the war, had been active in extending German influence. Among other affairs, it had arranged the visit of Prince Henry of Prussia. Its president. Dr. C. J. Hexamer, whose headquarters were in Philadel- The Public Mind 243 phia, had received special recognition from the Kaiser for his efforts — efforts which may be briefly set forth in a speech addressed to Germans in Milwaukee by Hexamer himself : "You have been long-suffering under the [preachment that you must be assimilated, but we shall never descend to an inferior culture. We are giving to these people the benefits of German culture." The outbreak of Vv^ar made the Alliance an ex- ceedingly important, if unwieldy, instrument for shaping public opinion. It promoted and spon- sored a so-called National Embargo Conference in Chicago in 191 5, working hand-in-glove with Labor's National Peace Council in an attempt to persuade Congress to pass a law forbidding the export of munitions. At every congressional election, particularly in such cities as Chicago, Cincinnati, Milwaukee, and St. Louis, the hand of Prussia was stirring about. When O. B. Col- quitt, a former governor of Texas, decided to run for the Senate in late 191 5, he corresponded with the editors of the Staats-Zeitung and a New York member of the Alliance for su])port from the German press and the German vote in his state. The next year saw the approach of a presi- dential campaign, and the Alliance established a 244 The German Secret Service in America campaign headquarters in New York to dictate which candidates for United States offices should receive the soHd German-American vote. Such candidates had to record themselves as opposed to the policies of the Administration. An effort was made to further the nomination of Champ Clark as the Democratic candidate, succeeding Wilson. A German professor, Leo Stern, super- intendent of schools in Milwaukee, after a con- ference with Hexamer there, wrote to the New York headquarters approving the "Wisconsin plan" ( Hexamer 's) for swaying the Republican national convention. This plan set forth that "it is necessary that a portion of the delegations to the . . . convention — a quarter to a third — shall consist of approved, distinguished German- Americans." The Alliance was bitterly opposed to Wilson, it hated the lashing tongue and the keen nose of Theodore Roosevelt, it distrusted Elihu Root, and deriving much of its income from the liquor business, it feared prohibition. Politically the Alliance was constantly active. It supported in early 191 6, through its friendly congressmen, the McLemore and Gore resolu- tions, the latter of v/hich, according to Hexamer, deserved passage because it would — "i. Refuse passports to Americans travelling on ships, of the belligerents. The Public Mind 245 "2. Place an embargo on contraband of war. "3. Prohibit Federal Reserve Banks from sub- scribing to foreign loans." The Alliance's lobby- ist called on Senators Stone, Gore, O'Gorman, Hitchcock (all of whom he reported as "opposed to Lansing"), Senator Smith of Arizona, Senators Kern, Martine, Lewis (''our friend"). Smith of Georgia, Works, Jones, Chamberlain, McCumber, Cummins, Borah and Clapp. Borah, he said, had ''a fool idea about Americans going everywhere." In the House of Representatives he canvassed the Democratic and Republican leaders, Kitchin and Mann, and a group "all of whom want the freedom of the seas," which in- cluded Dillon of South Dakota, Bennett of New York, Smith of Buffalo, Kinchloe of New York, Shackleford of Missouri, and Staley and Decker of Kentucky. "I saw Padgett, chairman of the house naval affairs committee," he continued, "he will fall in line after a while. ... I am work- ing with Stephens of the House and Gore of the Senate to put their bills in one bill as a joint reso- lution. I have told them that my league would aid them in getting members of the House and the Senate, as well as helping them with propa- ganda (this was their suggestion)." The resolutions failed. All these activities cost money. The German 246 The German Secret Service in America Embassy through Dr. Albert iuriiished the head- quarters of the AlHance with sufficient funds for its many purposes. Count von Bernstorff is al- leged to have handled a large fund for bribery of American legislators, but the fact has never been established, beyond his request in January, 191 7, for $50,000, for such purposes. It is a fact, how- ever, that the National German-American Al- liance collected a sum of $886,670 during the years 1914-1917 for the German Red Cross; this was turned over to von Bernstorff for transmis- sion to Germany, and officers of the Alliance have admitted that of this sum about $700,000 was probably employed in propaganda by Dr. Dern- burg and Dr. Meyer-Gerhardt, w4io posed as the head of the German Red Cross in America. Contributions to the German and Austrian relief funds came in as late as October, 1917, although no part of them were forwarded to Europe after the entrance of America into the war. This last event occasioned further activity on the part of the Alliance ; during the period which followed the break in diplomatic relaxations, and while Congress was debating the question of war, members of Congress were deluged with an extraordinary flood of telegrams from German- Americans cautioning them against taking such a step. These telegrams were prepared by the The Public Mind 247 Alliance and the ''American Neutrality League" and circulated among their members and sym- pathizers, to be sent to Washington. The Al- liance then issued to its branches throughout the states a resolution of loyalty to be adopted in case war was declared. This resolution, after making a hearty declaration of loyalty to the United States, went on to belie its promise with such pacifist utterances as this: ''Our duty before the war was to keep out of it. Our duty now is to get out of it." So earnest were the efforts of the Alliance to keep out of war that some ten months after its declaration of loyalty was promulgated. Congress decided to investigate the organization, with a view to revoking its charter. The investigation wrote into the archives certain characteristics of the Alliance which had long been obvious to the truly American pul)lic; its deep-rooted Teuton- ism, its persistent zeal, and its dangerous scope of activity. The courageous legislators who initiated and pursued the investigation, in the face of con- stant opposition of the most tortuous variety, had their reward, for on April ii, 1918, the executive committee of the National Alliance met in Phila- delphia and dissolved the organization, turned the $30,000 in its coffers over to the American Red Cross, and uttered a swan song of loyalty to the 248 The German Secret Service in America United States. The body of the octopus was dead. One by one, first in Brooklyn, then in San Francisco, then elsewhere, its tentacles sloughed away. A word for the pacifists. One pacifist consti- tutes a quorum in any society. There were in America at the outbreak of war one hundred million people who disliked war. As the injus- tices of Germany multiplied, the patriotic war- haters became militarists, and there sprang up little groups of malcontents who resented, usually by German consent, any tendency on the part of the Government to avenge the insult to its inde- pendence. Social and industrial fanatics of all descriptions flocked to the standard of "Peace at Any Price," and for want of a dissenting audience soon convinced themselves that they had some- thing to say. Many of the peace movements which were set going during the first three years of the war were sincere, many were not. A mass meeting held at Madison Square Garden in 191 5 at which Bryan was the chief speaker, was inspired by Germany. In the insincere class falls also the "Friends of Peace," organized in 191 5. Its letterhead bore the invitation : "Attend the National Peace Con- vention, Chicago, Sept. 5 and 6," and incidentally betrayed the origin of the society. The letter- The Public Mind 249 head stated that the society represented the American Truth Society (an offshoot of the National German- American Alhance), The American Women of German Descent, the Amer- ican Fair Play Society, the German-American Alliance of Greater New York, the German Cath- olic Federation of New York, the United Irish- American Societies and the United Austrian and Hungarian-American Societies. Among the ^'honorable vice-chairmen" were listed Edmund von Mach, John Devoy, Justices Goff and Co- halan (a trinity of Britonophobes), Colquitt of Texas, Ex-Congressman Buchanan (of Labor's National Peace Council fame), Jeremiah O'Leary (a Sinn Feiner, mentioned in official cables from Zimmermann to Bernstorff as a good intermedi- ary for sabotage), Judge John T. Hylan, Richard Bartholdt (a congressman active in the German political lobby), and divers officers of the Alli- ance. The American Truth Society, Inc., the parent of the Friends of Peace, was founded in 191 2 by Jeremiah O'Leary, a Tammany lawyer later in- dicted for violation of the Espionage Act, who disappeared when his case came up for trial in May, 1918; Alphonse Koelble, who conducted the German-American Alliance's New York political clearing house; Gustav Dopslaff, a German- 250 The German Secret Service in America American banker, and others interested in the German cause. In 191 5 the Society, whose ex- ecutives were well and favorably known to Ger- man embassy, began issuing and circulating noisy pamphlets, with such captions as "Fair Play for Germany," and "A German-American War." O'Leary and his friends also conducted a mail questionnaire of Congress in an effort to cata- logue the convictions of each member on the blockade and embargo questions. Their most in- sidious campaign was an effort to frighten the smaller banks of the country from participating in Allied loans, by threats of a German "black- list" after the war, to organize a "gold protest" to embarrass American banking operations, and in general to harass the Administration in its international relations. So with their newspapers, rumor-mongers, lecturers, peace societies, alliances, bunds, vereins, lobbyists, war relief workers, motion picture operators and syndicates, the Germans wrought hard to avert war. For two years they nearly succeeded. America was imder the narcotic in- fluence of generally comfortable neutrality, and a comfortable nation likes to wag its head and say "there are two sides to every question." But whatever these German agents might have accom- plished in the public mind — and certainly they THEFRIEND S OF PEACE Attend the National Peace Convention, Chicago, Sept. 5 and 6, 1915 Ameri Representing American Truth Society American Independence Union American Humanity League 1 Women of German Descent I Fair Play Society Continental League German-American Alliance of Greater N. Y. German Catliolic Federation of New York United Irish-American Societies United Austrian & Hungarian-American Soc's Upholsterers' International Union and other American Societies. National .Convention Committee JOHN BRIS3EN WALKER, of New York, Chairman ALEXANDER P. MOORE. of Pittsburgh, Pa., Secretary Publicity Committee RUTLEDGK RUTHERFORD, Chairman HENRY SCHAEFFER, | RICHARD M. McCANN, f Secretaries HUGH MASTERSON, ' New York,. .1915 Convention Commitlee Edmund von Macli John Devoy Jeremiah ]i. Murpliv Henry U'eismanii Horace L, Brand Paul Mueller Prof. Wm. I. Shepl-.erJ Joseph Frey JuJi>e T. O'Neill Rvan Ricriavd Bavtholdl Jeremiah O'Leary Jud^e John J. Rooney Ferd Timm E. K. Victor Hon. John W. Goff Hon. Etoniel Cohalan Joseph P. McLaushlin Judge John T. Hylan JudgeJ. Harry Tiernan Patrick O'Donnell James T. Clarke Hugh H. O'Neill Frank Buchanan O. B. Colquitt Daniel O'Connell Col. Wm. Hoynes Stephen E. Folan lohn F. Kelly Hon.JamesK. McGuire A. L. Morrison Miss Annie C. Malia Ellen Ryan Jolly Thomas O'Brien J. 8. Murphy Thomas H. Maloney T. J. Corrigan Marry F. McWhorter P. J. Reynolds Frank J. Ryan J. P. O'Mahony Thomas F. Anderson Letter-paper of "The Friends of Peace" The Public Mind 251 were sowing their seed in fertile ground — was nullified by acts of violence, ruthlessness at sea, and impudence in diplomacy. The left hand found out what the right hand was about. CHAPTER XVI HINDU-GERMAN CONSPIRACIES The Society for Advancement in India — "Gaekwar Scholarships" — Har Dyal and Gadhr — India in 1914 — • Papen's report — German and Hindu agents sent to the Orient — Gupta in Japan — The raid on von Igel's office — Chakravarty replaces Gupta — The Annie Larson and Maverick filihuster — Von Igel's memoranda — Har Dyal in Berlin — A request for anarchist agents — Ram Chandra — Plots against the East and West Indies — ^Correspond- ence between BernstorfT and Berlin, 1916 — Designs on China, Japan and Africa — Chakravarty arrested — The conspirators indicted. As far back as 1907 a plot was hatched in the United States to promote sedition and unrest in British India. The chief agitators had the ef- frontery in the following year to make their head- quarters in rooms in the New York Bar Associa- tion, and to issue from that address numerous circulars asking for money. The late John L. Cadwallader, of the distinguished law firm of Cadwallader, Wickersham and Taft, was then president of the Bar Association, and when he learned of the Hindu activities under the roof of 252 Hindu-German Conspiracies 253 the association he swiftly evicted the ringleaders. Their organization, chartered in November, 1907, was called The Society for the Advancement of India. One of its officers was a New York man to whom the British have since refused permis- sion to visit India. Its members included several college professors. The presence of several educators in the list may be accounted for by the fact that the society existed apparently for the purpose of supplying American college training to selected Hindu youths. Many of them were sent to the United States at the expense of the Gaekwar of Baroda, one of the richest and most influential of the Indian princes; the Gaekwar's own son was a student in Harvard College in the years 1908- 1912, Considerable sums of money Avere so- licited from worthy folk who believed that they were furthering the cause of enlightenment in India; others who sincerely believed that British rule was tyrannical gave frankly to the society to help an Indian nationalist movement for home rule; others contributed freely for the promotion of any and every anti-British propaganda in India. The source of the latter funds may be suggested by the understanding which long ex- isted between the Society for the Advancement of India and the Clan-na-Gael, an understanding 254 The German Secret Service in America witnessed by the frequent quotation in the dis- affected press of India of articles from the Gae- lic-American. Another successful solicitor was a contemptible Swami, Vivekahanda, who dis- cussed soul matters to New York's gullible-rich to his great profit until the police gathered him in for a very earthly and material offense. But the students were the best material for revolt, whether it was to be social or military, and we shall see presently how they were made use of. The Gaekwar of Baroda came to America in the first decade of the new century and expressed freely at that time his dislike for the British. At the time of the Muzaffarpur bomb outrage, in which the wife and daughter of an English of- ficial were killed, the police found in the outskirts of Calcutta a Hindu who had been educated at an American college at the Gaekwar's expense and who was at that time conducting a school of in- struction in the use of explosives and small arms; he even had considerable quantities of American arms and ammunition stored in his house. The youths who held "Gaekwar scholarships" in America were under the general oversight of a professor attached to the American Museum of Natural History, and the accumulation of evi- dence of the activities of the students finally caused his removal. Hindu-German Conspiracies 255 The Society established branches in Chicago, Denver, Seattle, and even in St. John, New Bruns- wick, and it thrived on the Pacific Coast. With- in the purlieus of the University of California, there lived in 191 3 one Har Dyal, a graduate of St. John's college at Oxford. Har Dyal in that year founded a publication called Gadhr, which being translated means ''mutiny," its main edition published in Urdu, other editions published in other vernaculars, and appealing not only to Hindus, but to Sikhs and Moslems. The publi- cation and the chief exponents of its thought formed the nucleus of a considerable system of anti-British activity. Whatever was anti-British found a warm re- ception in Berlin, England, in August and Sep- tember, 1914, was wrestling heroically with the problem of supplying men to the Continent before the German drive should reach the Channel. Her regulars went, and the training of that gal- lant ''first hundred thousand" followed. She combed her colonies for troops, and having an appreciable force of well-trained native soldiers under arms in India, she brought them to France, and the chronicles of the war are already full of stories of the splendid fighting they did, and the annoyance they caused to the grey troops of Germany. From the German standpoint it was 256 The German Secret Service in America good strategy to incite discontent in India, both as tending to remove the Hindu and Sikh regi- ments from the fighting zone, and as distracting England's attention from the main issue by mak- ing her look to the preservation of one of her richest treasure lands ; there was the further pos- sibility, after the expected elimination of Russia, of German conquest of India, and a German trade route from the Baltic to the Bay of Bengal, through the Himalayan passes. Germany seized upon the opportunity. The Amir of Afghanistan had trained his army under Turkish officers, themselves instructed by Germany through the forces of Enver Pasha. The Afghans were told that the Kaiser was Mohammedan, and by the faith prepared to smite down the wicked un- believer, England. The Amir himself spoiled Germany's designs among his people, however, for upon the outbreak of the war he pledged his neutrality to the British Government, and he kept his word. A report found on the war correspondent Archibald and written by Captain von Papen to the Foreign Office in the summer of 191 5, outlines the German version of the situation in India : "That a grave unrest reigns at the present time throughout India is shown by the various follow- ing reports: Hindu-German Conspiracies 257 ^'Since October, 1914, there have been various local mutinies of Mohammedan native troops, one practically succeeding the other. From the last reports, it appears that the Hindu troops are going to join the mutineers. "The Afghan army is ready to attack India. The army holds the position on one side of the Utak ( ?) River. The British army is reported to hold the other side of the said river. The three bridges connecting both sides have been blown up by the British. "In the garrison located on the Kathiawar Peninsula Indian mutineers stormed the arsenal. Railroads and wireless station have been de- stroyed. The Sikh troops have been removed from Beluchistan; only English, Mohammedans and Hindu troops remain there. "The Twenty-third Cavalry Regiment at Lahore revolted, the police station and Town House were stormed. The Indian troops in Somaliland in Labakoran are trying to effect a junction with the Senussi. All Burma is ready to revolt. "In Calcutta unrest (is reported) with street fighting. In Lahore a bank was robbed; every week at least two Englishmen killed; in the north- western district many Englishmen killed; muni- 258 The German Secret Service in America tions and other material taken, railroads de- stroyed; a relief train was repulsed. "Everywhere great unrest. In Benares a bank has been stormed. "Revolts in Chitral very serious, barracks and Government buildings destroyed. The Hurti Mardin Brigade, under Gen. Sir E. Wood, has been ordered there. Deputy Commissioner of Lahore wounded through a bomb in the Anakali Bazaar. "Mohammedan squadron of the cavalry regi- ment in Nowschera deserted over Chang, south- west Peshawar. Soldiers threw bombs against the family of the Maharajah of Mysore. One child and two servants killed, his wife mortally wounded. "In Ceylon a state of war has been declared." In February, 191 5, Jodh Singh, a former student of engineering in the United States, was in Rio de Janeiro. He was directed by a fellow Hindu to call upon the German Consul, and the latter gave him $300 and instructions to proceed to the German consul in Genoa, Italy, for orders. Thence he was forwarded to Berlin, where he at- tended the meetings of the newly formed Indian Revolutionary Society and absorbed many ideas for procedure in America. Supplied with more German money he came to New York and was Hindu-German Conspiracies 259 joined by Heramba Lai Gupta, a Hindu who had been a student at Columbia, and Albert H. Wehde, an art collector. The three went to Chicago, and Singh called at once upon Gustav Jacobsen, the real estate dealer who will be re- called in the Kaltschmidt bomb plots in Detroit. Jacobsen assembled a group of German sym- pathizers which included Baron Kurt von Reis- witz, the consul, George Paul Boehm (mentioned in instructions to von Papen to attack the Canadian Pacific Railway) and one Sterneck. At the conference Jodh Singh, Boehm, Sterneck and Gupta were detailed to go to the far East: Singh to Siam, to recruit Hindus for revolution- ary service, Gupta to China and Japan to secure arms; Boehm to the Himalayas, to attack the ex- ploring party of Dr. Frederick A. Cook, the notorious, to impersonate Dr. Cook, and thus travel about the hills spreading sedition. Wehde, with $20,000 of von Reiswitz's money, Boehm and Sterneck sailed for Manila, and apparently es- caped thence to Java, to meet two officers from the Emden, for the three are at this writing fugi- tives from justice; Jodh Singh v/as arrested in Bangkok and turned over to the British authori- ties. In the diary of Captain Grasshof of the Ger- man cruiser Geier, interned in Honolulu, appears 260 The German Secret Service in America the following entry, establishing Wehde's call in Hawaii, and the complicity of the Consulate there in his plans: "At the Consulate I met Mr. A. Wehde from Chicago, who is on way to Orient on business. "One of the Hindoos sent over by Knorr (naval attache of German Embassy at Tokio) left for Shanq-hai on the 6th, In Hons^-konsf there are 500 Hindoos, 200 officers and volunteers, besides one torpedo boat and two Japanese cruisers. "K-17 (A. V. Kircheisen) was almost captured in Kobe. The first officer of the China warned him and he immediately got on board again as soon as possible. K-17 informed me that the Japs have sold l)ack to the Russians all the old guns taken from the latter during the Russo- Japanese war." Reiswitz in June added $20,000 more to the fund for revolution in India. Gupta, to whom von Papen had paid $16,000 in New York, went on to Japan with Dhirendra Sarkar, a fellow con- spirator. The presence of the two plotters in Japan be- came known to the authorities and soon there- after to the public. They were shadowed every- where, and a complete record was kept of their activities ; the newspapers discussed them, and it was common property that they gave a banquet Hindu-German Conspiracies 261 on the night of November 9, 19 15, to ten other Hindus, to toast a plot for revolution in India. On November 28 they were ordered by the chief of police to leave Japan before December 2, which was tantamount to a delivery into the hands of the British, as the only two steamers available were leaving for Shanghai and Hong Kong, both ports well supplied with British officers. On the afternoon of December i the two plotters escaped in an automobile to the residence of a prominent pro-Chinese politician (a friend of Sun Yat Sen) and were concealed there, between false walls, until May, 19 16, when they stowed away on a ship bound for Honolulu. Sarkar returned to India, Gupta to America. When the round-up came, in 19 17, Jacobsen, Wehde and Boehm were each convicted of violation of section 13 of the Federal Penal Code, and sentenced to serve five years in prison and pay $13,000 fines; Gupta's sentence was three years, his fine $200. The scene shifts for a moment from the Orient to the Occident, and the twenty-fifth floor of the building at 60 Wall Street, New York, on the morning of April 19, 191 6. There von Papen had had his office; there when he was sent home in December, 19 15, he had left in charge a sharp- eyed youth named Wolf von Igel as his successor. Von Igel, at eleven o'clock, was surveying the re- 262 The German Secret Service in America suit of several hours' work in sorting and arrang- ing neat stacks of official papers for shipment to the German Embassy at Washington, for he had got word that trouble was brewing, and that the documents would be safer there. An attendant entered. "A man wants to see you, Herr von Igel," he announced. ''He won't tell his busi- ness, except that he says it is important." Von Igel was gruffly directing the attendant to make the stranger specify his mission when the door burst open, and in dashed Joseph A. Baker, of the Department of Justice, and Federal Agents Storck, Underbill and Grgurevich. "I have a warrant for your arrest!" shouted Baker. Von Igel jumped for the doors of the safe, which stood open. Baker sprang simul- taneously for von Igel, and the two went to the floor in battle. The German was over- powered, and the attendant cowed by a flash of revolvers. "This means war!" yelled von Igel. "This is part of the German Embassy and you've no right here." "You're under arrest," said Baker. "You shoot and there'll be war," said von Igel, and made another frantic attempt to close the safe doors. A second skirmish ended in von Igel's re- Hindu-German Conspiracies 263 moval to a cell, while the agents took charge of the documents. The collection was a rare catch. It contained evidence which supplied the missing links in numerous chains of suspected German guilt, and the matter was at once placed in the safe keeping of the Government. One letter was dated BerHn, February 4, 1916, and addressed to the German Embassy in Wash- ington. It reads : "In future all Indian affairs are to be exclusively handled by the committee to be formed by Dr. Chakra- varty. Dhirendra Sarkar, and Heramba Lai Gupta, which latter person has meantime been expelled from Japan," . . . (Gupta was at that moment between the walls of the Japanese politician's house.) . . ."thus cease to be independent representatives of the Indian Independence Committee existing here. "(Signed) Zimmermann." The Embassy on March 21, 1916, wrote von Igfcl as follows: '& "The Imperial German Consul at Manila writes me : " 'Unfortunately the captured Hindus include Gupta, who last was active at Tokio. The following have also been captured : John Mohammed Aptoler, Rulerham- mete, Sharmasler, No-Mar, C. Bandysi, Rassanala. Ap- 264 The German Secret Service in America parently the English are thoroughly informed of all indi- vidual movements and the whereabouts at various times of the Hindu revolutionists.' "Please inform Chakravarty." The name ''Chakravarty" occurring in these two memoranda makes it necessary here to turn back the calendar to 191 5, in order to outUne an- other conspicuous Hindu-German activity. Not only were the East Indian students and sympa- thetic educators in America prolific in their verbal advocacy of revolt in India, but with German as- sistance they attempted at least one clearly de- fined bit of filibustering, which if it had been successful would have supplied the would-be mutineers in the Land of Hind with the arms they so longed to employ against the British. The reader will recall the mention of a large quantity of weapons and cartridges which Cap- tain Hans Tauscher had stored in a building in 200 West Houston Street, New York, and w4iich he said he had purchased for "speculation." The speculation was apparently the project of Indian mutiny, which in the eyes of the Indian Nationalist party was to equal in grandeur the infamous mutiny of 1857. For those arms were shipped to San Diego, California, secretly loaded aboard the steamer Annie Larsen, and moved to sea. The plan provided for their transshipment Hindu-German Conspiracies 265 off the island of Socorro to the hold of the steam- ship Maverick, which was to carry them to India. The two ships failed to effect a rendezvous, and after some wandering the Annie Larsen put in at Hoquiam, Washington, where the cargo was at once seized by the authorities. The Maverick sailed to San Diego, Hilo, Johnson Island, and finally to Batavia. Count von Bernstorff had sufficient courage, on July 2, to inform the Secretary of State "con- fidentially that the arms and ammunition . , . had been purchased by my government months ago through the Krupp agency in New York for shipment to German East Africa." On July 22, he wrote again, asking that the arms be returned as the property of the German Government, and offering to give the Department of Justice ''sucii further information on the subject as I may have" if they cared to push an examination of the cargo. On October 5 he threw all responsi- bility for the movements of the Maverick upon Captain Fred Jebsen, her skipper — by this time a fugitive from justice — and stating "the German Government did not make the shipment, and knows nothing of the details of how they were shipped" — which was a rather shabby way of dis- crediting his subordinates. It developed later that the arms were purchased 266 The German Secret Service in America — sixteen carloads of them — by Henry Muck, Tauscher's manager, for $300,000, made payable by von Papen through G. Amsinck & Co. to Tauscher. A part of the shipment was sent to San Diego ; the balance was to have gone to India via Java and China, but never left on acount of the protests of the British Consul. Instead, a number of machine guns and 1,500,000 rounds of ammunition were sold to a San Francisco broker who was acting as agent for Adolphi Stahl, financial agent in the United States for the Re- public of Guatemala. When Zimmermann cabled to von Bernstorff on April 30, 1916 (through Count von Luxburg in Buenos Aires), "Please wire whether von Igel's report on March 27, Journal A, No. 257, has been seized, and warn Chakravarty," he had grave concern over the be- trayal of German influences in the Hindu con- spiracies. This was fully justified when a cor- respondence notebook of von Igel's disclosed, among other entries, the following transactions : August 12, 1915 — Captain Herman Othmer in- closed documents about the Annie Larsen and von Igel forwarded charter to Consul at San Fran- cisco. September 2 — The embassy forwarded papers from San Francisco about the Annie Larsen and von Igel returned them. Hindu-German Conspiracies 267 September 7 — The embassy sent a telegram from San Francisco about the Maverick. September 9 — The consulate, San Francisco, sent a letter for information and von Igel replied with a telegram about Maverick repairs. September 9, 19 15 — The Embassy sent a letter from the consulate at San Francisco about ship- ment and von Igel replied to embassy that the proposals were impracticable. October i — The embassy sent a cipher message to Berlin about the Maverick. October 9 — The Consulate, San Francisco, sent a letter about the Maverick negotiations. October 20, 1915 — Von Igel received a report about a shipment of arms from Manila. January 2y, 19 16 — The embassy forwarded copies of telegrams to San Francisco in the matter of the Maverick. August 28 — The Consulate, Manila, sent a cipher letter about the transport of arms. November 8, 191 5 — AAA 100 sent a report from or concerning Ispahan arms. The peaceful Har Dyal, Oxford graduate, lecturer at Leland Stanford, denizen of the Uni- versity of California, and editor of Gadhr, had laid down the following rules for the guidance of members of the group of revolutionaries which he headed: each candidate for membership must 268 Tlie German Secret Service in America undergo a six months' probationary period before his admission; any member who exposed the secrets of the organization should suffer death; members wishing to marry could do so without any ceremony, as they were above the law. Un- der such amiable rules of conduct he accumulated a number of followers of the faith, and more swarmed to the tinkle of German money. In August, 1914, the "first expeditionary force" of revolutionists set sail for India in the Korea. A few months later, Har Dyal left for Berlin, where he organized the Indian Revolutionary Society, leaving Ram Chandra as his successor to edit Gadhr in Berkeley, The avowed object of this society was to estab- lish a Republican government in India with the help of Germany. They held regular meetings attended by German officials and civilians who knew India, among them former teachers in In- dia. At these meetings the Germans were ad- vised as to the line of conduct to be adopted. The deliberations were of a secret nature. Har Dyal and Chattopadhay had considerable influ- ence with the German Government and were the only two Indians privileged to take part in the deliberations of the German Foreign Office. Besides these societies there were in Berlin Hindu-German Conspiracies 269 two other associations known as the Persian and Turkish societies. The object of the first named was to free Persia from European influences in general, and create ill feeHng against the British in particular, and to assist the natives to form a republic. The object of the Turkish society was practically the same. They established an Oriental translating bureau which translated German news and other literature selected by the Indian Revolutionary Society into various Oriental languages and distributed the transla- tions among the Hindu prisoners of war. Har Dyal continued in close touch with Ameri- can affairs. On October 20 and 26, 191 5, he wrote to Alexander Berkman, a notorious anarchist imprisoned in 1918 for violation of the draft law, urging Berkman to send to Germany through Holland com.rades who would be valuable in Indian propaganda, and asking for letters of introduction ''from Emma or yourself" (Emma Goldman) to important anarchists in Europe; these communications are unimportant except as they betray the Prussian policy of making an ally of anarchy, although anarchy as a social factor is the force from which Germany has most to fear. "Perhaps you can find them," wrote Dyal, "in New York or at Paterson. They should be 270 The German Secret Service in America real fighters, I. W. W.'s or anarchists. Our Indian party will make all the necessary arrange- ments," Ram Chandra went on with the work until he was stopped by the Foreign Office. He printed anti-Britannic pamphlets quoting Bryan for cir- culation in India; he printed and delivered to Lieutenant von Brincken at the German Consul- ate in San Francisco some 5,000 leaflets, which were to be shipped to Germany and dropped by the Boche aviators over the Hindu lines in France: the handbills read, "Do not fight with the Germans. They are our friends. Lay down your arms and run to the Germans." Chandra and his crew supplied the Maverick with quan- tities of literature, but most of it was burned when the Hindu agents aboard feared that there were British warships near Socorro Island. In the same group were G. B. Lai and Taraknath Das, two former students at the University of California, the latter a protege of a German pro- fessor there himself engaged in propaganda work. Throughout the fall of 191 5 the Hindus in America awaited word of Gupta's success in Japan. They heard nothing but news of his dis- appearance. Accordingly in December, Dr. Chakravarty, a frail little Hindu of light choco- Hindu-German Conspiracies 271 late complexion, sailed from Hoboken for Ger- many, traveling as a Persian merchant, on a false passport. He made a good impression on the Foreign Office, as may be judged by the follow- ing letter, dated January 21, 1916, addressed to L. Sachse, Rotterdam: "Dr. Chakravarty will return to the United States and form a working committee of only five members, one of whom should be himself and another, Ram Chandra. In addition to sending more Indians home the new American committee will undertake the following: "i — An agent will be sent to the West India islands, where there are nearly 100,000 Indians, and will organize the sending home of as many as possible. "They have not yet been approached by us and there are no such difficulties in the way of their going to India as are encountered by our countrymen from the United States. "2 — An agent will be sent to British Guiana with the same object. "3 — A very reliable man will be sent to Java and Sumatra. "4 — It is proposed to have pamphlets printed and circulated in and from America. The literature will be printed secretly and propaganda will be carried on with great vigor. "5 — An effort will be made to carry out the plan of the secret Oriental mission to Japan. Dr. Chakravarty is in a position to get letters of introduction to important persons in Japan, as well as a safe-conduct for himself and other members of mission." 2T2 The German Secret Service in America After conferring with Dyal, Zimmermann, and UndeF^secretary Wesendonk of the Foreign Of- fice, he was given money and sent back to the United States, arriving in February, 19 16. He at once sent H. A. Chen to China to purchase arms and ship them to India. He then reported to Wolf von Igel, who paid him $40,000 for the purchase of a house in 120th Street and one in 17th Street. There he held forth for more than a year, working in conjunction with von Igel, and the latter with the Embassy in Washington. His activities may be indicated, and the complicity of the German Government again established, in the following communications : From von Igel to von Bernstorff "New York, April 7, 191 6 — A report has been received here that Dr. Chakravarty was taken Monday, the 3d of April, to the Providence Hospital with concussion of the brain in consequence of an automobile accident. His convalescence is making good progress. A certain Ernest J. Euphrat has been here and he came "from the Foreign Office and had orders with respect to the India propa- ganda. He could not identify himself, but made a very good impression. He told us Herr von Wesendonk told him to say that Ram Chandra's activity in San Francisco was not satisfactory. This person should for the time being suspend his propaganda activities." "In re No. 303 : Euphrat was sent by me to India in October of last year, and is so far as known here reliable. Hindu-German Conspiracies 273 He was, indeed, recommended at the time by Marcus Braun. Please intimate to him cautiously that he should not speak too much about his orders he received in Berlin. San Francisco is being informed." "For Prince Hatzfeld." From New York to von Bernstorff "New York, April 15, 1916 — Mr. E. J. Euphrat has asked that the inclosed documents be forwarded to his excellency in a safe way. Ke asks for a reply as quickly as possible, because if he does not receive the desired al- lowance he will have to change the plans for his journey. "(Signed) K. N. St." To H. Eisenhuth, Copenhagen, from Nezv York, and unsigned "May 2, 1916. We have also organized a Pan-Asiatic League, so that some of our members can travel without arousing any suspicion. Also everything has been ar- ranged for the 'mission to Japan.' Please let me know when your men can come, so that we can approach the party more definitely. I had talks with one of the direc- tors of the Yamato Shimhmi of Tokio and Chinvai Dempo of Kyoto. It would not be necessary to buy off these papers, as they understand it is to mutual interest. But they ask for certain considerations to help their financial status. They are also decided to attack Anglo- Japanese treaty as antagonistic to national interest. To carry on work it will be necessary to place at the dis- posal of the committee here $25,000." 274 The German Secret Service in America Cablegram from Zimmermann, Berlin, to von Bernstorff, via von Liixbiirg, Buenos Aires "To Bernstorff, May 19, 1916: Berlin telegraphs No. 28 of May 19. Answer to telegram 23. Your excel- lency is empowered to give the Indians $20,000. No. 29 of May 19 in continuation of telegram No. 16. Please, in making direct payments to Tarak Nath Das, avoid receipts. Das will receipt own payment through a third party as Edward Schuster. "(Signed) Zimmermann." Zimmermann to Peking, transmitted by Luxburg, to Bernstorff for Peking legation "The confidential agent of the Nationalists here, the Indian, Tarak Nath Das, an American citizen, is leaving for Peking by the Siberian Railway. Please give him up to 10,000 marks. Das will arrange the rest. "Zimmermann." "Ambassador at Washington: Please advise Chakra- vart}'. "Luxburg." From Bernstorff, mailed at Mt. Vernon, N. Y., to Z. N. G. Olivers, a German agent in Amsterdam "June 16, 1916 — Referring to my letter A275 of June 8, Chakravarty reports: Organization has been almost completed, and many of our old members are active and free. Only they are afraid if arms are not available soon there may be premature uprising in Madras and the Punjab as well as in Bengal. The work in Japan is going unusually well, more than our expectations." Hindu-German Conspiracies 275 From Berlin to Chakravarty "July 13, 1916 — In organizing work in the United States and outside, remember our primary object is to produce revolutions at home during this war. Trinidad, British Guiana and East Africa, including Zanzibar, should be particularly tapped for men. "We wired your name to Francis E. M. Hussain, Bachelor of Arts, Barr. at Law, Port of Spain, Trinidad. Through messenger communicate full programme desired in Trinidad to him, and mention the name 'Binniechatto.' He can be trusted. If, after some secret work, you think revolution can be organized in island itself, then we may try to smuggle arms, and our men will seize Government and set up independent Hindustani Republic. Do not let such plan be carried out if our prospects for work at home are likely to be ruined." A report from Chakravarty, written July 26, 1916 "I am going to Vancouver next week to see Bhai Bal- want Singh and Nano Singh Sihra, who have asked me to go there to arrange definite plan of action for group of workers there, and then to San Francisco to induce Ram Chandra to plan our committee here, and to include him and his nominees in the said committee, so that our work does not suffer in the East by placing enemies on their guard and right track by his thoughtless, enthusiastic writings. . . . Gupta is back in New York and has seen me, but has not submitted any report. We need $i5,cxD0 more for the next six months to carry out the new plan and to continue the previous work undertaken." 276 The German Secret Service in America From von Bernstorff, at Rye, N. Y ., to Olifiers, trans- mitting Chakravartys report "August 5, 1916 — Our organization has been well per- fected in the West Indies and Houssain has been ap- proached. We have also enlisted the sympathy of the Gongoles party, a strong fighting body of colored people, who have ramifications all over Central America, includ- ing British Guiana and Guatemala. Arms can be easily smuggled there and if we can get some of the German officers in this country to go there and lead them there is every possibility that we can hold quite a while. But the question is — ask the Foreign Secretary whether it is desirable, for it might simply create a sensation and noth- ing more. As soon as we hold there the Governmental power the island would be isolated by the British navy, and the attitude of the United States is uncertain, and we may be compelled to surrender sooner or later ; but if it serves any purpose either as a blind or otherwise, and after due consideration of its advantages and disadvan- tages, wire at once the authorities here to give us a few officers, as we need them badly, and other help necessary to carry out the plan, and it can be done without much difficulty. I believe if a sensation is desired something also can be done in London, at least should be tried. If we can get a few men from the Pacific Coast we can send them easily as a crew with a Dutch passport. "We are sending arms in small quantities through Chinese coolies over the border in Burmah, but in big quantities we do not find possibility. However, we are on the lookout. We have been trying our best with a Japanese firm who have a business affiliation in Calcutta, Hindu-German Co7is piracies 277 whether they will undertake to transmit some arms through their goods. "To complete the chain we are sending Mr. Chandra to London as a medical student in the university, and he will send men and other informations to you via Switzer- land. We are also sending a few Chinese students to China to help us in the work, and if you want it can also be arranged they give you a personal report through Russia and Sweden. "We need $15,000 more, as I return from the Pacific Coast, to carry out these plans, excepting that of Trinidad operations, v/hicli, if you approve, wire at once the mili- tary agent here to arrange to buy and ship arms to us, before the enemy can be on guard." To H. Eisenhuth, Copenhagen, in cipher "September 5, 1916 — Arms can no more be safely sent to India through Pacific, except through Japanese mer- chandise or through China merchants, shipped to Chinese ports and then to our border. Responsible men are will- ing to take the risk and they are willing to send their confidential agents to Turaulleur." Chakravarty to Berlin, Foreign Office "September 5, 1916 — Li Yuan Hung is now President of China. He was formerly the southern revolutionary leader. W. T. Wang was then his private secretary. He is now in America and starting for China. He says Li Yuan Hung is in sympathy with the Indian revolution and would like English power weakened. Some of the prominent people are quite eager to help India directly, 278 The German Secret Service in America and Germany indirectly, without exposing themselves to any great risk, on three conditions : "The first — Germany to make a secret treaty with China, that in case China is attacked by any power or powers, Germany will give her military aid. It will be obligatory for five years after the discontinuance of the present war and there will be an understanding that China shall get one-tenth of all arms and ammunition she will receive for and deliver to the Indian revolutionaries and the Indian border. "In return, China shall prohibit the delivery of arms and ammunition in the name of the Chinese Government and from China through private sailing boats and by coolies to any nearby point or any border place as directed. She vv^ill help Indian revolutionaries as she can, secretly and in accord with her own safety. "But this is to be regarded as a feeler through a third party, and, if it is acceptable to the German Government, then they will send one of their trusted representatives to Berlin to discuss the details and plan of operations, and if it is settled, then negotiations should take place officially and papers signed through the embassies in Berlin and Peking. They want to know the attitude of the German Foreign Office as soon as possible so that they can set the ball rolling for necessary arrangements." Von Bernstorff to Zimmermann "October 13, 1916 — Chakravarty's reply is not sent; too long. Require at end of October a further $15,000. Ac- cording to news which has arrived here Okechi has not received the $2000 and in the meantime left Copenhagen. Hindu-German Conspiracies 279 Please withhold payment until Polish National Committee provides therefor. "Bernstorff." To O lifters, Amsterdam, postmarked Washington "November 21, 1916 — Rabindranath Tagore has come at our suggestion and saw Count Okuma, Baron Shimpei Goto, Masaburo Suzuki, Marquis Yamanouchi, Count Terauchi and others; Terauchi is favorable and others are sympathetic. Rash Beharl Bose is still there to see whether they can be persuaded to do something positive for our cause. S. Sekunna and G. Marsushita are doing their best. Yamatashimbun is strongly advocating our cause. D. Pal has not come. Benoy Sarkar is still in China. Lala is willing to go, but this passage could not be arranged. As soon as Tilak arrives he will be ap- proached. Bapat is still free and writes that he has been trying his best, but for want of arms they have not been able to do anything. Received a note from Abdul Kadir and Shamshar Singh from Termes-Buchare that they are proceeding on slowly to their destination. Barkatullah is in Kabul ; well received, lacks funds. Mintironakaono is here. Isam Uhiroi is in Pekin. Tarak has safely reached there. Our publication work is going on well. We have brought out seven pamphlets and one in the press. We are waiting for definite instructions as to the work in Trinidad and Damrara. "Wu Ting Fang has been now made the Foreign Minister. He has always been sympathetic with our cause. But the influence of Sun Yat Sen still persists in opposing us in that direction." 280 The German Secret Service in America Zimmermann to Bernstorff "December 20, 1916 — According to Chakravarty, the Indians were paid up to September 30 $30,000, Total credit for Indians, $65,000. ''Zimmermann." Zimmermann to Bernstorff "January 4, 1917 — very secret. The Japanese, Hideo Nakao, is travehng to America with important instruc- tions from the Indian Committee. He is to deal exclu- sively with Chakravarty. Please, after consultation with Chakravarty, inform Imperial Minister at Peking and the Imperial Consulate at Shanghai that they are to send in Nakao's reports regularly. I advise giving Nakao in in- stallments up to fifty thousand dollars in all for the exe- cution of his plans in America and Eastern Asia. Deci- sion as to the utility of the separate payments is left to your excellency and the Imperial Legation at Peking. Despatch follows. "(Signed) Zimmermann." On March 7, 191 7, Guy Scull, deputy police commissioner in New York, with eight detectives, called at 364 West 120th Street, found Dr. Cha- kravarty clad in a loin cloth, and arrested him on a charge of setting afoot a military enterprise against the Emperor of India. With Sekunna, a German who had been writing tracts for him, he was later transferred to San Francisco to stand trial. The typewriter in the 120th Street house, whose characteristics — all typewriters are as in- Hindu-German Conspiracies 281 dividual and as identifiable as finger-prints — had betrayed the conspirators, lay idle for many months, but as late as March i8, 19 18, a Hindu, Sailandra Nath Ghose, who had collaborated with Taraknath Das in writing a propaganda work called "The Isolation of Japan in world politics/' i"was arrested there in company with a German [woman, Agnes Smedley. The two were accused of violating the espionage act by , representing themselves to be diplomatic agents of the Indian Nationalist Party, and of having sent an appeal for aid in the establishment of a democratic fed- erated republic in India to the Brazilian Embassy in Washington, to Leon Trotzky in Russia, and to the Governments of Panama, Paraguay, Chile and other neutral nations. In the course of the years 191 6 and 191 7 the Government built up an unusually exhaustive and troublesome case for nearly one hundred defend- ants, including the personnel of the San Fran- cisco consulate, the German consul at Honolulu (who had supplied the Maverick in Hilo Har- bor ^), a large group of Hindu students, a smaller group of war brokers, and numerous lesser in- termediaries. Their trial was one of the most cumbersome and interesting cases ever heard in ^The Maverick was lost in a typhoon off the Philippines in August, 1917. 282 The German Secret Service in America an American court. It began on November 19, 191 7, in San Francisco, with Judge Van Fleet on the bench. Witness after witness recited his story of adventure, each stranger than the last, and all stranger than fiction. Lieutenant von Brincken, one of the San Francisco consulate, pleaded guilty within a few weeks; his sentence was long deferred by the prosecution on ac- count, presumabably, of evidence which he sup- plied the Government. George Rodiek, the Ger- man consul in Honolulu, followed suit and was fined heavily ; Jodh Singh turned state's evidence and presently his mind became diseased and he was committed to an asylum; the procedure was interrupted from time to time with wran- gles among the defendants, and on one occa- sion Franz Bopp, the San Francisco consul, shouted to one of his fellows, ''You are spoiling the whole case!" When the Government, through United States Attorney Preston, intro- duced evidence from the Department of State, the Hindus attempted to subpoena Secretary Lans- ing; when Bryan's pacifist tracts were introduced the defendants sought Bryan, On April t8, 1918, Chakravarty confessed, to the irritation of the other defendants. The climax in melodrama occurred on the afternoon of April 23, 191 8, when, with the case all but concluded. Ram Singh Hindu-German Conspiracies 283 shot and killed Ram Chandra in the courtroom. A moment later Ram Singh lay dead, his neck broken by a bullet fired over the heads of the at- torneys by United States Marshal Holohan. That afternoon Judge Van Fleet delivered his charge to the jury; that night a verdict of guilty was returned against twenty-nine of the thirty- two defendants who had not been dismissed as the trial proceeded. Judge Van Fleet, on April 30, 1918, pronounced the following sentences : Franz Bopp, German consul in San Francisco, two years in the penitentiary and $10,000 fine; F. H. von Schack, vice-consul, the same punish- ment; Lieutenant von Brincken, military attache of the consulate, two years' imprisonment with- out fine; Walter Sauerbeck, lieutenant comman- der in the German navy, an officer of the Geier in- terned in Honolulu, one year's imprisonment and $2,000 fine; Charles Lattendorf, von Brincken's secretary, one year in jail; Edwin Deinat, mas- ter of the German ship Hohatia, interned in Honolulu, a term of ten months in jail and a fine of $1,500; Heinrich Felbo, master of the German ship Ahlers, interned in Hilo, Hawaii, six months in jail and a fine of $1,000. These men may be described as the loyal German group. Robert Capelle, agent in San Francisco of the 284 The German Secret Service in America North German Lloyd line, fifteen months' impris- onment and a fine of $7,500; Harry J. Hart, a San Francisco shipping man, six months in iail and a fine of $5,000; Joseph Bley of the firm of C. D. Bunker & Co., customs brokers, fifteen months in prison and a fine of $5,000; Moritz Stack von Goltzheim, a real estate and insurance broker, six months in jail and $1,000 fine; Louis T. Hengstler, an admiralty lawyer and professor in the University of California and in Hastings Lav/ College, a fine of $5,000; Bernard Manning, a real estate, insurance and employment agent in San Diego, nine months in jail and a fine of $1,000; and J. Clyde Hizar, a former city attor- ney in Coronado and assistant paymaster in the United States Navy, one year's imprisonment and a fine of $5,000. These gentlemen constituted the so-called "shipping group" which was inti- mately concerned with the affairs of the Annie Larsen and the Maverick. Dr. Chakravarty, who had been delegated by no less a personage than Zimmermann of Berlin to handle all Indian intrigue in America, received a crushing sentence of sixty da3^s in jail and a fine of $5,000. Bhagwan Singh, the "poet of the revolution," was sentenced to eighteen months in the penitentiary; Taraknath Das, the author and lecturer, to twenty-two months' imprisonment; .^Vi^ Copyright^ International Film Service Dr. Chakravarty (on the right) , the accredited agent of Ger- many in the Hindu-German intrigues in America. With him is Ernest Sekunna, also a German agent, arrested with Chakravarty Hindu-German Conspiracies 285 Gobind Behari Lai, the University of California student, to ten months in jail. The smaller fry of the University of Calif ornia-G^ /iaench publisher and pubHcist. He brought excehent letters of recommendation, and was well supplied with money. He was personable, and well sponsored, and he was correspondingly well received. Within a month he left the United States for France, with appropriate expressions of his ap- preciation of American hospitality. In April, 19 18, that same man faced a French firing squad, guilty of having attempted to be- tray his country, and of having traded with the enemy. He was Paul Bolo Pacha, Paul Bolo by com- mon usage, Pacha by whatever right is vested in a deposed Khedive to confer titles. Born some- where in the obscurity of the Levant, he came as a boy to A/Earseilles. He was successively barber's- boy, lobster-monger, husband of a rich woman who left him her estate, then cafe-owner and wine-agent. Then he drifted to Cairo, and into the good graces of Abbas Hilmi, the Khedive. Abbas was deposed by the British in 1914 as pro- German, and went to Geneva ; Bolo followed. Charles F. Bertelli, the correspondent in Paris of the Hearst newspapers, naively related before Captain Bouchardon, a French prosecutor, the circumstances of his acquaintanceship with Bolo, which led to the latter's cordial reception at the Mexico, Ireland, and Bolo 309 hands of Hearst when he arrived in New York. '\ . . Jean Finot, Directeur of La Revue, . . . had sent him a letter of introduction to Mr. Hearst and had requested me to accredit him with Mr. Hearst. He had said to me : 'Occupy your- self with the matter, Bolo has very great political power ; he is the proprietor of Le Journal and it would be well that Hearst should know him.' . . . I made the voyage with Bolo. ... I spoke of Bolo to Hearst and the latter said to me, *If he is a great proprietor of French newspapers, I should Le very glad to. . . .' As a compliment to Hearst, Bolo gave a grand dinner at Sherry's. . . . Bolo had two personal guests: Jules Bois and the German, Pavenstedt. . . ." We need draw on Bertelli no further than to introduce the same Adolph Pavenstedt in whose offices Papen and Boy-Ed had sought refuge at the out- break of war in 19 14; Adolph Pavenstedt, head of the banking house of G. Amsinck & Co., through which the attaches paid their henchmen for attempts at the Welland Canal, the Vanceboro bridge, and at America's peace in general. Bolo had made Pavenstedt's acquaintance in Havana in 1913. Four days after he landed in New York, and before the Hearst dinner (which was incidental to the plot) Bolo had progressed with his negotia- 310 Tlie German Secret Service in America tions to betray France to a point where von Bernstorfif sent the following message to the For- eign Office in Berlin : "Number 679, February twenty-sixth. "I have received direct information from an entirely trustworthy source concerning a poHtical action in one of the enemy countries which would bring about peace. One of the leading political personalities of the country in question is seeking a loan of one million seven hunflred thousand dollars in New York, for which security will be given. I was forbidden to give his name in writing. The affair seems to me to be of the greatest possible import- ance. Can the money be provided at once in New York ? That the intermediary will keep the matter secret is en- tirely certain. Request answer by telegram. A verbal report will follow as soon as a trustworthy person can be found to bring it to Germany. "Bernstorff." Herr von Jagow felt that even at that date peace with any belligerent was worth $1,700,000. He cabled back: "No, 150, February twenty-ninth. "Answer to telegram No. 679: "Agree to the loan, but only if peace action seems to you a really serious project, as the provision of money in New York is for us at present extraordinarily difficult. If the enemy country is Russia have nothing to do with the business, as the sum of money is too small to have Ctfyritht, lnt0rnati ^ Jagow. Mexico, Irdand, and Bolo 315 There was not, although Bolo was keeping the cables hot witl! messages directmg the further transfer of the nest-egg of v$ 1,700,000 which he had acquired in his month in New York. He wanted the money credited to the account of Senator Humbert in J. P. Morgan & Co., then through Morgan, Harjes & Co. of Paris he di- rected the remittance of his funds to Paris, then cancelled those instructions and directed that his million be credited to him in Perrier & Cie., in which he was interested. What twists and turns of fate occasioned the juggling of these funds after he returned to France is not known, but cer- tainly no bag of plunder ever passed through more artful manipulation. The explanation of its hectic adventures may lie in the fact that the spectacle of Bolo, commissioned to go to the United States to spend money for news print, and returning with nearly two millions of dollars, would have interested the French police. For more than a year he covered his tracks. Shortly after his return the Bonnet Rouge, the declining publication which served ex-Premier Joseph Caillaux as mouthpiece, began to attract attention for its discussion of peace propaganda. A strain of pessimism over the conduct of the war began to make itself apparent in other journals. The arrest of Duval and Almereyda 316 The German Secret Service in America of the Bonnet Rouge disclosed certain of Bolo s activities and a search of his house in February revealed papers covering certain of his financial transactions in America. The United States was requested to investigate, and refused, as the affair was considered political, and it was not until we joined France in the war that the request was re- peated, this time with better success. Attorney-General Merton Lewis of New York State conducted an investigation which revealed every step of Bolo's operations in New York. His search of the records of the banks involved indicated that a fund of some $50,000,000 in cash and negotiable securities lay on deposit in America which the Deutsches Bank could place at the disposal of von Bernstorff and his fellow conspirators at any time for any purpose, and which was adequate as a reserve for any enter- prise which might present itself. The evidence against Bolo was forwarded to Paris, and he was arrested. On October 4, 19 17, Secretary Lan- sing made public the correspondence which the State Department had intercepted. The French public became hysterically in- terested in the case. Senator Humbert promptly refunded the 5,500,000 francs which he had re- ceived from Bolo for 1,600 shares in Le Journal. Almereyda of the Bonnet Rouge committed Mexico, Ireland, and Bolo 317 suicide in prison; his death dragged Malvy, Minister of the Interior under Ribot, out of office under suspicion of trading with the enemy; the editor of a Paris financial paper was imprisoned on the same charge; "Boloism" became a generic term, and the French government, f eehng a grow- ing restlessness on the part of the public, en- couraged the new diversion of spy-hunting which resulted in the exposure of negotiations between Caillaux and German representatives in Buenos Aires. Russia had been dissolved by similar German propaganda, Italy, after vigorous ad- vances into Italia Irridenta, had had her military resistance sapped by another such campaign as Eolo proposed for France, and had retreated to the Po valley; the sum total of ''Boloism" during the autumn and winter of 1917-1918 was an in- creased conviction on the part of the Allied peoples that the line must be held more firmly than ever, while the rear was combed for prom- inent traitors. Thus, a year before she entered war, the United States supplied the scene of one of the outstanding intrigues of the war. How voluble was Adolph Pavenstedt in confessing his services as interme- diary for the Kaiser ; Pavenstedt was interned in an American prison camp ... a rather comfort- able camp. Hugo Schmidt, who on his own tes- 318 The German Secret Service in America timony was the accredited manipulator of enor- mous sums for the German government, was ingenuous to a degree in his denial of any knowl- edge of what the money paid Bolo was to be used for ; Schmidt was interned. Bolo was shot. Revolution in India, a battle royal on the Central American isthmus, a revolution in Mexico, uprisings in the West Indies, a separate peace in France — these were ambitious under- takings. For three years they were cleared through Washington, D. C. We must accept that fact not alone with the natural feeling of chagrin which it evokes, but with an eye to the future. We should congratulate our smug selves that our country was concerned only with the processes of these intrigues, and was not subject directly to their results. And then we Americans should ask ourselves whether it is not logical that, our country having served as the most fertile ground for German demoralization of other nations, we should be on our guard for a similar plot against ourselves. That plot will not come noisily, obviously. It will be no crude effort to suggest that ''American troops are suffering at the hands of the French high command." It will not be phrased in terms which reek of the Wilhelmstrasse — earnest, plodding, grotesque German polysyllables. The Mexico, Ireland, and Bolo 319 German knows that an army must depend upon the hearts of its people, and he reasons : "I shall attack the hearts of the people, and I believe that if it is a good principle to attack my enemy from the rear through his people, it is also a good prin- ciple to attack his people from the rear. The heart is as near the back as it is the front, nicht wahrf" The plot will seem, in its early stages, part and parcel of our daily life and concern ; we shall not see the German hand in it; the hand will be so concealed as not even to excite the enthusiasm of the German-American, often a good danger-signal. It will involve institutions and individuals whom we have trusted, and we shall take sides in the controversy, and we shall grow violently pro-this and anti-that. We shall grow sick of the wretchedness of affairs, per- haps, and we shall lose heart. That is precisely what Germany most desires. That is what Ger- many is striving for. That is why the nobility of our citizenship carries with it the obligation of vigilance. It is in the hope that each one of us Americans may learn how Germany works abroad, that we may be better prepared for her next step here, that this narrative has been written. CHAPTER XVIII AMERICA GOES TO WAR Bernstorff's request for bribe-money — The President on German spies — Interned ships seized — Enemy aHens — Interning German agents — The water-front and finger- print regulations — Pro-German acts since April, 1917 — A warning and a prophecy. On January 22, 19 17, President Wilson set forth to the Senate of the United States his ideas of the steps necessary to secure world peace. On the same day Count von Bernstorff sent his For- eign Office this message : "I request authority to pay out up to $50,000 (Fifty thousand dollars) in order, as on former occasions, to influence Congress through the organization you know of, which perhaps can prevent war. I am beginning in the meantime to act accordingly. In the above circum- stance a public official German declaration in favor of Ireland is highly desirable in order to gain the support of Irish influence here." The money did not have the desired soothing effect. Nine days later Germany announced un- restricted submarine warfare as her immediate 320 America Goes to War 821 future policy and the head of the German spy system in America received his passports for re- turn to Germany. He was succeeded by the head of the German spy system in America. The real name of this successor is not known to the authorities at this date. If it were he would be arrested, and punished according to whatever specific crime he had committed against a set of American statutes created for conditions of peace. Then, with the head of the German spy system in America in prison, he would be succeeded, as Bernstorff was, by the head of the German spy system in America. And so this absurd progression would go on, until finally there would be no more spies to head the system on the American front. How much the system would be able to accomplish during the painstaking pursuit and capture of its successive heads would depend upon America's swiftness in pursuit and capture. Who the individual in authority over the system is, and what is his structure of organization, cannot be answered here. But it is vitally necessary for every citi- zen who has the free existence of this republic at heart to decide, basing his judgment on cer- tain events since the declaration of war, what measure of accomplishment the German spy sys- tem shall have, and what it has already effected 822 The German Secret Service in America against a nation with which it is now openly and frankly at war. Let him first recall that in his Flag Day speech of June 14, 1916, President Wilson said in part: "There is disloyalty in the United States, and it must be absolutely crushed. It proceeds from a minority, a very small minority, but a very active and subtle minority. ... If you could have gone with me through the space of the last two years and could have felt the subtle impact of intrigue and sedition, and have realized with me that those to whom you have intrusted au- thority are trustees not only of the power but also of the very spirit and purpose of the United States, you would realize with me the solemnity with which I look upon the sublime symbol of our unity and power." Let him then refer to the President's Flag: Dav address of one year later (quoted at the begin- ning of the book). With those admirable ex- pressions in mind, let him recapitulate the activ- ities of German sympathizers or agents since February, 191 7. Ninety-one vessels flying the German flag were in American harbors. Their displacement totalled nearly six hundred thousand tons — the equivalent of a fleet of seventy-five of the cargo carriers on which the United States later began America Goes to War 323 construction to offset the submarine. Months in advance of the severance of diplomatic relations, orders had been issued from the Embassy to the masters of all these vessels in case of v^ar between Germany and the United States to cripple the ships. With the break in relations imminent, German agents slipped aboard the vessels and gave the word: the great majority of the ninety- one ships were then put out of commission by the 368 officers and 826 men aboard. The damage was performed with crowbars and axes. Vital parts had been chalk-marked weeks in advance, so that the destruction might be effected swiftly: delicate mechanisms were mashed beyond recog- nition, important parts removed and smuggled ashore or dropped overboard, cylinders cracked, emery dust introduced in the bearings of the en- gines, pistons battered out of shape, and the ma- chinery of the ships generally destroyed as only skilled engineers could have destroyed them. Out of thirty ships in New York harbor, thirty ships were damaged — among them the liners, Vaterland, of 54,000 tons, the George Washing- ton, of 25,000 tons, the Kaiser Wilkelm, the Pres- ident Lincoln, and the President Grant, of about 20,000 tons each. In the harbor of Charleston, S. C., lay the Liebenfels, of 4,525 tons; her crew, led by Captain Johann Klattenhoff, scuttled her 324 The German Secret Service in America on February i, in the navigating channel o£ Charleston Harbor; Klattenhoff, with Paul Wierse, a Charleston newspaper man, and eight of the Liebenfels' crew were tried and convicted of the crime, fined and sentenced to periods aver- aging a year in Atlanta. The discovery of the damage forced the Government to take over the vessels at once. The Department of Justice has- tened on February 2 to notify all of its deputies *'to take prompt measures against the attempt at destruction or sinking or escape of such ships by their crews" which those crews had already done; and the customs authorities who boarded the ships in San Francisco, Honolulu, New York, Boston, Manila, and every other American port came ashore with rueful countenances. The combined damage served to tie the vessels up for at least six months more, and to require expen- sive repair. To return to the comparison : a fleet of seventy-five 8,000 ton cargo vessels, such as have since been built, would have been able to make, during those six months, at least four round trips to France each, or 300 voyages. When the German fleet put into neutral Amer- ican ports of refuge in 1914 the personnel of its ships totalled 476 officers and 4,980 men. When the ships were seized in 1917, there were 368 officers and 826 men aboard. Of those who had America Goes to War 325 been discharged or allowed indefinite shore leave a considerable number were active German agents, by far the great majority were German citizens,,and the United States was on the horns of a dilemma: either each of the sailors ashore must be watched on suspicion, or else each was free to go about the country as he pleased. Thus more than 4,000 potential secret agents from an active auxiliary arm of the German navy were dumped on the hospitality which our neutrality entailed. When war was declared those men came within the troublesome problem of the status of the enemy alien. What was an enemy alien? The United States, on April 6, declared war against Ger- many. "Meanwhile," reads the report of the Attorney-General for 191 7, "prior to the pas- sage of the joint resolution of Congress of April 6, 19 1 7, elaborate preparation was made for the arrest of upward of 6^ alien enemies whom past investigation had shown to constitute a danger to the peace and safety of the United States if allowed to remain at large." These "alien ene- mies" were male Germans. Not Austrians, for the United States did not go to war with Austria until December 7. Not Bulgars, nor Turks, for the United States has not declared war upon Bul- garia or Turkey. Not female Germans, in the 326 TJie German Secret Service in America face of the full knowledge of the predilections of Bernstorff, Boy-Ed, and von Papen for employ- ing women in espionage. Of the thousands of Germans in the United States whose sympathies were presently to be demonstrated in numerous ways against the successful prosecution of Amer- ica's war, sixty-three had been deemed worthy of arrest. By June 30 this number had risen to 295, and by October 30 to 895. "Some of those interned," continues the report, "have been paroled with the necessary bonds and restric- tions." Although the United States went to war on April 6, Karl Heynen, who managed the Bridgeport Projectile Company for Bernstorff and Albert, and who had previously earned the good will of the United States by gun-running in Mexico, was not arrested until July 6, in his offices in the Hamburg-American Line at 45 Broadway. At the same time F. A. Borge- meister, former adviser to Dr. Albert, and lat- terly Heynen's lieutenant, was arrested. Both were interned at Fort Oglethorpe and dur- ing December, Borgemeister was allowed three weeks' liberty on parole. Rudolph Hecht, con- fidant of Dr. Albert, who had sold German war loan bonds for the Kaiser, and who had also been interned, was released for a like period of liberty in December. G. B. Kulenkampf, who America Goes to War 327. had secured false manifest papers for the supply- ship Berwind in August, 19 14, was arrested on May 28, 1918, more than one year after America had entered the war; on the same day Robert J, Oberfohren, a statistician employed by the Hamburg-American, was arrested and in his room were captured compiled statistics covering the exports of munitions from the United States during the two years past: Oberfohren said he expected to turn the figures in to the University of Munich after the war. Bernstorff himself left an able alien enemy in the Swiss Legation in Washington. He was Heinrich Schaffhausen, and had been one of the brightest attaches of the German Embassy. As a member for three months of the Swiss Legation he might readily have sent (and no doubt did send) information of military value to his own people in code, under protection of the Swiss seal. The State Department on July 6 ordered his deportation. Adolph Pavenstedt was ar- rested on January 22, 1918, in the Adirondacks, after having enjoyed nine months' immunity; Otto Julius Merkle was not interned until De- cember 7; Gupta, the Hindu, was finally caught in New York in 1917, gave bail, and escaped; Dr. John Ferrari, alias F. W. Hiller, a German officer who had escaped from a British detention camp 328 The German Secret Sei^vice in America in India and had joined the German intrigue colony, was interned in January, 1918; Baron Gustave von Hasperg was arrested only after he had displayed undue interest in the National Army cantonment at Upton in the same month; Franz Rosenberg, a wealthy German importer, convicted in 191 5 of having attempted to smug- gle rubber in cotton bales into Germany, and fined $500 for that offense, was allowed at liberty un- til February 9, 1918; in a round-up which took place in January, 1918, the Federal authorities collected such celebrities as Hugo Schmidt, Fred- erick Stall forth, and Baron George von Seebeck (the son of General von Seebeck, commander of the Tenth Corps of the German army). The cases cited are picked at random out of a mass. They illustrate the breathing periods given to Germans who had been active under Bernstorff in disturbing America's peace and defying her laws. They serve also to illustrate the contrast between the methods employed by the United States, and those adopted by her Allies, from whom she has taken other lessons in the business of warfare. France gave alien enemies forty-eight hours in which to leave the soil of the country, and any such person found at large after that date was to be interned in a detention camp. To have interned all of America Goes to War 329 the Germans in the United States would have been impossible and the Government took some time to find a second best method. By May 2 the Department of Justice was in a position to announce that it had plans for internment camps for three classes of aliens: prisoners of war, enemy aliens, and detained aliens, and it an- nounced on that date there were some 6,000 in those classes already detained. By February 17, 1918, however, there were actually no more than 1,870 aliens interned under the war department and under military guard at Forts McPherson, Oglethorpe and Douglas, and some 2,000 at Hot Springs, North Carolina, in the Department of Labor's detention camp. At both camps the prisoners were fed and housed at the expense of the Government, and it was not until the early spring of 191 8 that they were put to work. From April 6 to July 10, 19 17, an enemy alien could be employed by any shipbuilder, tug-boat captain, lighterage firm or steamship line; he could go about any waterfront at will, provided he did not enter the so-called "barred zones" in the vicinity of Government military or naval property, and he could make unmolested such observations as his eyesight afforded of the ship- ping upon which the United States depends for 330 The German Secret Service in America its share in this war. After that date he was forbidden such employment, and denied approach to all wharves and ships. On July 9 the Govern- ment discharged from its employ 200 German subjects who for weeks past had been loading transports at the docks in an "Atlantic port." A raid on the Hoboken waterfront in the following winter rounded up 200 more enemy aliens who had calmly ignored the "barred zone" regula- tions. The Government was confronted with a stu- pendous problem. How to handle with its nor- mal peace-time police force the great unwieldy flow of the alien population presented a con- stantly baffling question, yet it was absolutely essential to the control of internal affairs that the Government know the comings and goings of the enemies within its gates. The date of February 13, 1918, was eventually set as the last on which citizens of enemy countries living in the United States might set down their finger prints and names and file their affidavits of residence and condition. What facilities had the United States provided for transacting this great volume of additional protective duty? There existed, first of all, the Department of Justice, whose chief function in peace-time had been the enforcement through its America Goes to War 331 investigators and prosecutors of acts of Con- gress, such as the so-called Mann ''White Slave" Act, and the Sherman "Anti-Trust" Act. There was the United States Secret Service, a bureau of the Treasury Department, v^hose chief func- tion had been the detection of smuggling and counterfeiting and the protection of the person of the President. There was the Intelligence Bureau of the War Department, and a similar Bureau of the Navy Department, both under- manned, as was every other branch of our mili- tary forces at that time. The advent of war brought a complicated necessity for coordination of these four branches and of several other Fed- eral investigating bureaus. The German did not w^ait for coordination. He inspired food riots among the poorer classes of the lower East Side in New York. He opposed the draft law, rallying to his sup- port the Socialist, the Anarchist, and the Indus- trial Worker of the World, under whose cloak he hid, not too well concealed. He celebrated the declaration of war by blowing up a munitions plant at Eddystone, Pa., on April lo, 1917, and killing 112 persons, most of whom were women and girls. He sneaked information into Ger- many through the Swedish legation. He tried to promote strikes in Pittsburg, but his agent. 332 The German Secret Service in America Walter Zacharias, was arrested. He tried to dynamite the Elephant-Butte dam on the Rio Grande, but his agent, Dr. Louis Kopf, was caught. He caused a serious revolution in Cuba until his agents were expelled. He tried to block the Liberty Loans, in vain. He tried to obstruct the collection of Red Cross funds. He caused strikes in the airplane-spruce forests of the Northwest. He assisted Lieutenant Hans Berg of the captured German prize Appam to escape from Fort McPherson with nine of his crew in October, 1917. He erected secret wire- less stations at various points, to communicate to Berlin via Mexico, whither thousands of his army reservists had fled on false passports at the outbreak of war. He smuggled information of military importance in and out of the country in secret inks, on neutral vessels, and even wrote them (on one occasion) in cipher upon the shoul- der of a prima donna. He burned warehouses and shell plants. He sawed the keel of a trans- port nearly through. He placed a culture of ptomaine germs in the milk supply of the cadets' school at Fort Leavenworth. He invented a chemical preparation which would cause painful injury to the kidneys of every man who drank water in a certain army cantonment. He re- ceived Irish rebellionists and negotiated with America Goes to War 333 them for further revohitlon. He made his way into our munitions plants and secured data which he forwarded to BerHn; he worked in our aero- plane plants and deliberately weakened certain vital parts of the tenuous construction so that our aviators died in training; he kept track of our transports, and of the movements of our forces, and passed them on to the Wilhelmstrasse. He sold heroin to our soldiers and sailors. He supplied men for the motor boat Alexander Agassiz which put to sea from a Pacific port to raid commerce. In short, he continued to carry out, with multiplied opportunity, the same tactics he had employed since August, 1914. The German spy in America continues to attack our armies in the rear. He is here in force. A word to him may mean that within twenty-four hours Kiel will know of another transport embarking with certain forces for France. He is here to take the lives of Amer- icans just as certainly as his kinsman is firing across a parapet in Lorraine for the same pur- pose. Whatever provision will save those, lives must be made swiftly. The Departments, al- ready overtaxed with the magnitude of their task, ask simply that they be given the weapons to make their splendid battle on the American front successful. 334 The German Secret Service in America Whatever aid and comfort the enemy may find in this recitation of his disgraceful achievements and graceless failures, he may have and wel- come. He has imposed upon the hospitality of the United States, has dragged his clumsy boots over the length and breadth of their estate, has run amuck with torch and explosive, and has earned a great deal of loathing contempt, hardly amounting to hatred. But no fear — and that is what he sought. The spectacle of what the dis- loyalists of America have done, and the easily conjurable picture of what they would do if Ger- many should win, are graphic enough for loyal America. The United States must proceed with incisive vigor to cut out this poisonous German sore. And the United States will remember the scar. It is so written. APPENDIX A GERMAN PROPAGANDIST In 191 5 Fritz von Pilis came to America. He had been a member of the colonization bureau of the German Government maintained to Prussianize Poland, and later an emigration agent of the North German Lloyd. He posed here as an anti-German Austrian who desired to give the American public the "true facts" of Germany's intentions in the war. He approached the Sun, offering it the following brief of a volume written in late 1914 by a Prussian Pan-German, provided he (von Pilis) be allowed to write a commentary to accompany the outline. His offer v/as not accepted, for the Sun saw him in his true light of Prussian propagandist sent here to spread the gospel of might which is preached in the book. The brief is offered here as an authoritative platform of Germany's aims by conquest as the Pan-German party saw them after a few months of war. Many of these aims have already been achieved. (The phraseology and spelling is von Pilis'.) Denkschrift, etc. General War Goal. Weakening of foes: discard all "world citizen" sentiment and dangerous objectivity in favor of strangers. We want peace terms based solely on our interests. 335 336 Appendix Severity : Let's hear no more of "considerations of humanity," "cultural demands." Must impose indemni- ties on foes and take land in Europe and overseas to lessen political power : (a) In Europe for healthy colonization. (b) Colonial : to supply raw materials and take finished products. (c) Indemnities to be devoted to common social better- ment of German people. Internal. Rehabilitation of farmer class by providing ample land. Combat city evils. (1) Opportunity provided by fate in this attack by our foes. (2) France and Russia must cede land near our gates as punishment ; estates to German farmers. (3) City evils to be remedied by better housing condi- tions; by war indemnities, not single tax. (Cheap rents, tenants become owners.) (Gift of fate through foes.) Old age pensions larger and at lower period of age (65 years instead of 70). Overseas. Take over colonies and settle by Germans to give economic independence for imports and exports. This will give opportunities to eliminate "intelligent pro- letariat" by use elsewhere. Belgium. Conspiracy and conduct of people and Gov- ernment show Belgium not entitled to independence. ( 1 ) All well-informed people in Germany say : "Bel- gium must cease to exist." (2) Impossible to take into German people with equal rights. Rather leave with indemnity which must pay anyway. But we need the coast against England. Appendix 337 Belgium to be property of Empire, Kaiser its Lord : Belgium to lose its name. Belgium to be divided into 2 parts: Walloons and Flemish. Kaiser's officials to govern as dictators of province. Belgians taken into Empire to have no political rights. All who object may emigrate. Walloons unworthy of being "Germanized." France. Must "bleed it white" so as never to be at- tacked again : (i) i.e., indemnity and land. Land from Switzerland via Belfort, Moselle, Epinal, Toul, Meuse, Verdun, Sedan, Charleville, St. Quentin to Somme and Channel at Cayeux. (2) France to take over and indemnify the present in- habitants. We get the land sans dangerous people. Such expulsion immoral ? Retribution. Not bricht evisen ! France'll be thankful for the population. Needs it. (3) Ceded area to become military frontier, adminis- tered by dictator. To be settled by Germans : discharged soldiers or war veterans' families. (4) Toulon and environs to be made impregnable fort- ress on land and seaside for base on the Mediterranean, Rather forego all French territory than take with it the hostile French population. Walloons to be kept in land only to furnish mass of laborers, lest new German settlers become industrial laborers again. England. Its world-rule must be ended! Can't formulate demands until naval warfare decided. Btuld ships with all your might! Japan. Must be punished for white race. Revenge. Russia. Must be put hors de combat by permanent 338 Appendix weakening. We must forcibly once more turn Russia's face towards East by curtailing its frontiers as before Peter I's time. Then its pressure vs. Asia. (i ) A new Poland (off G. territory) including Grodno, Minsk and part of Mohilen to Dnieper. Probably a king- dom with personal connection to Hapsburg House. (2) G. to seize hegemony of Baltic; take Kniland, Livona, Esthonia and Lithuania safeguarded by terri- tories to rivers that were frontiers of R. before Peter. (3) To take Suwalki and military strip of Poland to strengthen Thorn and Silesia, Soldau, Wloclanek Kolo. (4) Finland to be independent or go to Sweden? (5) R. to lose most of Black Sea coast. (6) Ukraine Empire under Hapsburg for "Small Rus- sia." Bessarabia to Rumania. Austria to get good part of Serbia and Montenegro. How avoid clash of nationalities in newly formed terri- tories ? Ans. : By forced migration. No home feelings in Russian farmer ; R's precedents Siberia. Exchange of G. settlers in New Russia for R's in new G. (several years). Possibly so exchange Poles in Posen too? Lithuanians may readily be incorporated into Poland and Letts and Esthonians to be left or transferred to Russia according to treatment of G's in this war. R. Jews un- thinkable in G. Empire: Bar their migration westward. Remedy (i) Bind R. to remove restrictions vs. Jews and then Jews back there. (2) Zionism: Palestine to be ceded through G. and A-Hung, influence. This — safe wall vs. Jews and stimu- late migration of Jews to Russia. Prussia to get New Territory in East or else form "Marks" for Germanization. Appendix 339 Tenants to be settled by public grant in return for en- hanced realty values. We must never be without enemies strong enough to compel defensive militia. Fr. and Eng. made powerless, let R. always threaten us and be our foe; that'll be our luck. The Colonies. French Morocco, Senegambia & Congo. Egypt freed from England; England's colonies in Africa depend on developments. Tunis to Italy. Bizert and Damietta (with Italy's and A-H's consent), D Jibuti, Goa, Ceylon, Sabang, Saigon, Azores, Caperdon (?), Isls, Madagascar. Austria-Hungary . Heavy indemnity from Russia. New Poland and Ukraine Empire personally united to A-H. North half of Serbia. South % to Bulgaria. Guarantees to be given to Germanic minority by Slavs. West Galicia to Poland. East Galicia to Ukraine Em- pire. German to be Reichsprache ? The Neutrals. Luxemburg to win G. Statehood (too weak to control B. Luxemburg). Holland. Avoid pressure politically. Not to receive Flemish Belgium. These need strict masters. Italy, if neutral, Corsica, Lower Savoy, Nizzia, Tunis. Rumania: Bessarabia (Odessa, if she joins G. in war). Bulgaria : South % of Serbia (more if she joins G. in war). Turkey, if enters war, heavy indemnity and land in Caucasus. Integrity guarantees by G. and A-H : spheres of Influence economically. Sweden may get Finland if both willing. 340 Appendix Economic unity of territories and G. and A-H., Switzer- land, Holland, Italy, Scandinavia, Rumania and Bulgaria probably join. Offensive and Defensive Germanic Alliance: Scan- dinavia. Maybe and voluntarily restore settlements of N. Schleswig to Denmark, if necessary. New Germanic blood needed to make good war losses. Special Demands. Exclusion of all East people from G. soil ; rights to expel Letts, Esthonians and Lithuanians for 25 years. No colored person on G. soil. G. high schools for G's and foreigners of G. descent; special exceptions. Only allied officers to be in G. army. Only mature and fortified G. youth to study abroad. Only G. language, G. fashions, G. Geographical names. Steady supply of grain. Subsidies to married officers out of war indemnity. G. nobles to marry only Germans. Vf,^,!^,^,^ OF CONGRESS lllliii'lllllllillliljllllllll 020 914 172 3