Thursday, March 5, 2015
Chapter II THE PASSPORT FRAUDS
Chapter II THE PASSPORT FRAUDS
Passport control is an outgrowth of the World War. Before the war,
it was possible to travel all over the world without a passport; it was
only the careful traveler who availed himself of this means of personal
identification. He carried it for his own convenience, and foreign gov-
ernments rarely used it to check up on him. Consequently, in the
United States obtaining a passport was a simple matter which resolved
itself into filling out an application form signed by two witnesses of
American nationality who certified that they knew the applicant to
be an American citizen. The passport carried a rough general descrip-
tion of the bearer but no photograph. To prevent the return of reserv-
ists to the Central Powers the Allies insisted on every traveler's carry-
ing a passport. Passports were examined at all Allied ports; and, as the
cordon tightened, every merchant vessel was stopped at sea by patrols
and searched for suspects.
Von Papen and Boy-Ed were therefore immediately faced with the
problem of securing neutral passports for the thousands of reservists
who were pouring in on them. Since the peacetime passport regula-
tions remained in force for some time, the task was at first a simple
one; but soon the Government tightened its rules; the applications
were closely scrutinized and checked; and more and more informa-
tion was required on the instrument, such as the names of the coun-
tries the holder intended visiting. A photograph was also added to the
requirements. It became necessary, therefore, for the two Attaches to
set up a special organization for supplying passports. They realized,
too, that the difficulties were now such that they would have to aban-
don sending back reservists on a wholesale scale, and instead would
have to concentrate on the officers, of whom there were from 800 to
1,000 scattered through North and South America and who, as they
THE PASSPORT FRAUDS II
were sent on by the various German Consulates, were flowing into
New York in a steady stream.
Hans von Wedell, a reserve officer who had many connections in
New York and who knew the city well, having both practiced law
there and served as a newspaper reporter, was designated to head the
organization. Furthermore, he had already made a trip to Germany
as a courier for von Bernstorff, and while there had discussed the
reservist question with his uncle, Count Botho von Wedell, a Foreign
Office official in Berlin.
When approached by von Papen, von Wedell eagerly undertook the
task. He opened up an office in Bridge Street and then set about acquir-
ing neutral passports. German-Americans in Yorkville and Hoboken,
bums on the East Side, and longshoremen and sailors of Spanish, Scan-
dinavian, or other neutral nationality, who frequented the water front,
were his prey. For the $io to $25 he offered them they delivered to him
the passports he had persuaded them to apply for in their own names.
For a time von Wedell got along famously. The two Attaches sent a
steady stream of reserve officers to him, and with the false neutral pass-
ports furnished by him they were successfully sent on their way to
Scandinavian, Dutch, and Italian ports. His bills were paid by Captain
von Papen. Proof of this was revealed later when the Attache's check
books were seized by the British at Falmouth while he was en route
home after being recalled.
Soon, however, von Wedell was in difficulties; some of his men
started blackmailing him. This was followed up by the disturbing news
that the Department of Justice was on his trail. He was an American
citizen, and as a lawyer he knew the penalties ahead of him. Hence,
deciding that discretion was the better part of valor, he fled to Cuba;
but not, however, before sending von Bernstorff the following letter,
dated December 26, 1914, from the Hotel St. George, Nyack-on-
Hudson, which clearly implicated von Papen and his assistant, von
Igel:
12 THE ENEMY WITHIN
His Excellency
The Imperial German Ambassador
Count von Bernstorff
Washington, D.C.
Your Excellency:
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 direc-
tions and in order to hold in check the blackmailers thrown on my hands
by the German 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 for-
ward officers and "aspirants" 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.
II — The motives which induced me to leave New York and which, to
my astonishment, were not communicated to you, are the following:
1. 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 Jjlackmailers, 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 altogether too lightly and
ought to — for God's sake — disappear.
6. My counsel . . . had advised me to hastily quit New York, inasmuch as
a local detective agency was ordered to go after the passport forgeries.
THE PASSPORT FRAUDS I3
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 investigation 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 wife's harmless and unsuspecting cousin 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 support myself and wife and to
build my future on. I have finally, at the suasion of Count Wedell, under-
taken it, ready to sacrifice my future and that of my wife. I have, in order
to reach my goal, despite infinite difficulties, destroyed 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 Germany
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,
Hans Adam von Wedell
Carl Ruroede, a former senior clerk in Oelrichs and Company, re-
ferred to in the above letter, whom von Wedell had carefully
groomed to take his place, was not long left in peace. Albert G. Adams,
an agent of the Department of Justice, cleverly disguised as a pro-
German Bowery tough, managed to enroll himself as one of Ruroede's
agents in obtaining fake passports. They bargained over the price and
finally agreed on $20 each for passports of native-born Americans and
$30 each for passports of naturalized citizens — the higher price was
fixed for the latter as the application requirements were more severe.
A few days later Adams dashed into Ruroede's office brandishing
four passports. Ruroede expressed satisfaction, as indeed he should
have; for they were perfect, having been made out by the State Depart-
ment at the special request of the Department of Justice.
14 THE ENEMY WITHIN
"But what about the photographs ?" said Adams with a worried look,
after Ruroede had got through examining them.
"Oh! That's simple," replied Ruroede; "watch me."
At this, Ruroede took one of the passports, examined it carefully,
then from a stack of passport photographs picked out one of a reservist
officer whose description fitted the one shown on the instrument. Next
he moistened this photograph, applied some mucilage, and then stuck
it over the photograph on the passport, which had been similarly
dampened. He then turned the paper over, laid it on a cloth, and with
a dull-pointed bone knitting needle traced out the lettering on the seal.
"When this dries," said Ruroede with a triumphant smile, "the new
photograph will bear the imprint of the United States seal and Arthur
Sachse, Reserve Lieutenant in the German Army, will have become
Howard Paul Wright, bearer of passport Number 45573."
The unfortunate Ruroede little knew that Howard Paul Wright
happened to be a Department of Justice agent.
It was not difficult for Adams to discover that the reservists who had
received the four passports furnished by him, under the names of
Howard Paul Wright, Peter Hansen, Stanley F. Martin, and Herbert
S. Wilson, were to sail on the S.S. Bergensfjord, a Norwegian liner,
bound for Bergen, Norway.
On January 2, 191 5, as soon as they received word that Ruroede had
been arrested, four agents of the Department of Justice hurried to the
Barge Office and boarded a revenue cutter, on which they overtook
the Bergensfjord a few minutes after it had sailed. The ship was or-
dered to heave to. All the male passengers on board were lined up,
and the four bearers of the passports were picked out. After a short
interrogation they realized that they had been trapped, and identified
themselves as Sachse, Meyer, Wegener, and MuUer, reservists home-
ward bound to the Fatherland.
On the same day, while Department of Justice agents were gathering
up the papers in Ruroede's office at 11 Bridge Street, a German walked
in bearing a letter of introduction from von Papen and introduced
himself as Wolfram von Knorr, Captain of Cruiser, who up to the out-
break of war had been Naval Attache in Tokio. Cleverly drawn out
in conversation by Joseph A. Baker, Assistant Agent in Charge of the
THE PASSPORT FRAUDS I5
Federal Bureau of Investigation in New York, von Knorr guilelessly
admitted that von Papen had sent him over to get a passport. He v^as
allow^ed to depart; and it was only the next day, vv^hen he read the
morning paper, that he realized he had been questioned by a Depart-
ment of Justice agent.
Von Knorr also unw^ittingly supplied additional proof of von Papen's
complicity in Ruroede's activities. Expert examination showed that the
typewriter used in writing the letter of introduction was the same one
employed in typing the lists of names and descriptions of reservists
which were found in Ruroede's office.
Faced with the facts, Ruroede confessed. He was sentenced to three
years in Atlanta prison. The four reservists, advancing the plea that
they had accepted the passports out of patriotism, were fined $200 each.
There was still, however, one more act to the drama. The luckless
von Wedell had returned from Cuba and was on the Bergensfjord at
the time of the search. This came out in Ruroede's confession. The
Department of Justice had missed him in the line-up; but there was
still the wireless.
On January 11, 191 5, the boarding officer of a British patrol boat
took Rosato Sprio, a Mexican, off the Bergensfjord, Sprio admitted
after close interrogation that he was Hans von Wedell, an American
citizen.
The British patrol boat never made port. She struck a German mine,
and von Wedell went to the bottom with her.
The attitude of official Germany to these passport frauds can be
gauged from coded telegram Number 39 which passed between Wash-
ington and Berlin, on January 7, 1915 :
In consequence of the instructions sent to me by private letter from the
[ ? ] and officially to Herr Papen to send home the largest possible number
of German officers, it was necessary to furnish the latter with false passports,
in regard to which I had, in the circumstances above referred to, no thought
of objection. Details have unfortunately become known to public opinion and
the American Government started an investigation, in the course of which
there is no reason to fear that the Embassy will be compromised. State De-
partment informed me definitely that this Government attached no impor-
tance to the rumors that the Embassy had been concerned. But in regard to
l6 THE ENEMY WITHIN
this question, a strong difference of opinion has arisen between Consul
General Falcke and me. The Consul General considered himself bound to
raise pedantic objections, while I only wanted to give weight to the point
of view that it was incumbent on Hcrr Papen to see that as many officers
as possible were provided. I have already submitted to your Excellency part
of the correspondence with the Consul General. The rest of the papers are
to follow as soon as the matter has been settled.
Bernstorff
Fully agreeing with von Bernstorff in his estimate of Consul General
Falcke, Zimmermann replied on January ii, 1915:
Intelligence has reached us from private sources which raises doubts as
to whether the Consulate General at New York is at present in competent
hands. Please acquaint me with your views by telegraph.
Von Bernstorff then promptly replied on January 12, 1915, suggest-
ing the transfer of Falcke:
Unfortunately I have to confirm the news which has reached Your Ex-
cellency. As I have informed Your Excellency in my dispatches . . . various
differences of opinion have arisen between Falcke and me. He always ended
by yielding to my direct orders, and I have exerted myself to the utmost to
avoid a conflict at this juncture. All the time I took into account the fact that
it was all but impossible for Falcke to travel from here to Europe. Perhaps
he could be transferred to a South American post Albert already sees to
many matters which ordinarily the Consul General would have dealt with
because we had to take Falcke's passive resistance into account.
The arrest of Ruroede did not put an end to the passport frauds,
though their execution became much more difficult. Von Papen and
Boy-Ed continued to hire men to secure passports for them. One of
the latter's men, Richard Peter Stegler, a reservist, was arrested in Feb-
ruary 1915. He admitted that on instructions from Boy-Ed he had
obtained the birth certificate of Richard Madden, of Hoboken, and
had used it to obtain an American passport for which he paid Madden
$100. Both of them were sentenced to a term in prison.
Not only reservists but also spies were sent over to Europe with these
THE PASSPORT FRAUDS I7
false passports. Several of those recruited and sent over by Boy-Ed were
caught by the British. Of them, Karl Lody, was shot in the Tower of
London, and Kuepferle committed suicide in Brixton Prison.
When such of the reservists as managed to get across the Atlantic
reached Germany, their passports were carefully collected by the Ger-
man Secret Service and were again used to send spies from Germany
into England, France, and Russia — fully 90 per cent of the spies who
were sent out from the various German spy bases were equipped with
neutral passports. As the war progressed, the German Secret Service
became more scientific; they copied minutely the texture of the paper,
the seals, and even the watermark, and made up passports in Germany
which would have defied expert examination. Such, however, were not
available to von Papen and Boy-Ed, who had to continue to rely on the
ones obtained by von Wedell and Ruroede.
But the Department of Justice steadily increased its vigilance, and
the State Department changed the form of the passport and made the
application requirements more severe. These measures rapidly reduced
the number of passport frauds. The passport control of the Allies, too,
became more efficient. But during the first few months of the war only
von Papen and Boy-Ed can tell how many hundreds of false passports
they made use of.
Chapter I The American Front
Chapter I THE AMERICAN FRONT
Before the World War Germany had made all her war calculations on the basis of a short but decisive campaign through Belgium and northern France. When this failed, she realized that she was in for a long war in which economic strength would be the decisive factor. On account of her miscalculation on winning the war in a few months she had not given much attention to the United States. All her energies had been devoted to preparing against Russia, France, and, to a lesser extent, England.
But the heads of the government and the army soon came to realize that America's resources might well be the key to victory for whichever side could obtain access to them. British sea power precluded Ger- many's having any chance of drawing on the American market, her- self; but at least she could and must try to keep her enemies from exploiting their advantage. There were only two means of doing this which held out any hope of success, the submarine and sabotage. But Germany had too few underseas craft in the first year of the war to enable her seriously to cripple shipping. She therefore felt obliged to direct the German Military and Naval Intelligence Services to under- take a sabotage offensive.
Before the World War Gerniany possessed the largest and most effi- cient secret service organization in Europe. Most of her espionage activities, however, had been directed against likely enemies on the continent. She had thought it worth while to plant only one part-time spy in the United States and had limited his activities to reporting on new industrial and chemical developments.
As Germany was automatically cut off from the world across the sea on the outbreak of hostilities, it was then too late to send any great number of trained spy and sabotage agents to the United States. She had to rely, therefore, on her diplomatic representatives here to build up the necessary organization during the early stages of the war. These were few in number and had been chosen for their posts with no thought that they would ever be called upon to carry on more than normal consular and diplomatic business. The Embassy was staffed by four executives: an Ambassador, a Commercial Attache, a Military Attache, and a Naval Attache.
The Ambassador, Count Johann von Bernstorff, was a career diplo- mat who had had many years training in the diplomatic service. His deep, dome-shaped head and furrowed face revealed the thinker — a man endowed with great power of concentration. A firm mouth and chin, and a Kaiser mustache lent him a certain air of fierceness in contrast to his otherwise delicately molded features. Cold eyes, peering at times through half -closed lids, gave an impression of cunning, which was immediately dispelled by his ingratiating smile. Tall, slender, al- ways immaculately groomed, he had a distinguished appearance. He Was an aristocrat, a member of an old Saxon family which had sup- plied Saxony with many of her statesmen.
As an ambassador he had the entree to the White House, a seat in the diplomatic galleries of the Senate and House of Representatives, and was in close contact with those Senators, Congressmen, and appointees who hailed from the sections of the country which had an influential German-American vote. He had his finger on the pulse of official Washington and was easily able to keep his government closely in- formed on all important issues and political events in the capital.
Socially he was much sought after, not only by those to whom spon- sorship by an ambassador is always an attraction but also by many Americans of German extraction who were anxious to be useful. He was a keen judge of character, and many of these men and women he astutely used on any occasion they could be of service to him.
Germany's Commercial Attache was Privy Councilor Dr. Heinrich Albert. Not only was he the paymaster of all Germany's diplomatic and consular representatives in the United States, but he also dis- bursed funds for supplies purchased by his government, and finally also paid out money — at least $30,000,000 that we know of — for propa- ganda, sabotage, and secret service purposes. He had a joint account with von Bernstorff in the Chase National Bank, which often amounted to several million dollars. As American treasurer for the Imperial Ger- man Government, he had great influence with bankers, manufacturers, and others with whom he did business. His office during the war was in the Hamburg-American Building at 45 Broadway, New York City.
He was tall and slim. His countenance was open; and in spite of several saber scars on his cheeks, his fair hair and mild blue eyes gave him a friendly appearance. He was always well dressed, extremely polite, and punctilious. He was liked and held in high esteem by his colleagues, who credited him with expert knowledge of economic con- ditions in the United States. His methods were quiet and successful; his participation in secret service and other clandestine activities v/as carefully camouflaged and but for an accident might even have passed entirely unnoticed.
Long afterwards, when Congress got down to investigating his ac- tivities, he was characterized by Senator Nelson as the "Machiavelli of the whole thing ... the mildest mannered man that ever scuttled ship or cut a throat."
Captain Franz von Papen held the post of Military Attache. At the time of his appointment, in 191 3, there was no thought that any big task might devolve on him. From the viewpoint of the large standing armies of Europe, Washington was a minor post; and for that reason the Military Attache occupied a dual position: he was attached both to the German Embassy in Washington and the German Legation in Mexico City. To assist him in covering this wide field of activity, he had only a secretary. Wolf von Igel.
At the time, von Papen was a young cavalry officer in a regiment of Uhlans. He had married a Miss Boche, the daughter of an immensely wealthy Alsatian pottery manufacturer; and his new wealth, added to his social and military standing, had won for him the Washington appointment. His appearance reflected energy: he was tall, broad- shouldered, and erect; his face was clean-cut, with large bones, a large nose, prominent ears, keen eyes, a military mustache, and a strong jaw. He was vigorous in speech, and quick and daring in action. Intoler- ance, arrogance, and bluntness in criticizing his associates also were prominent among his characteristics. Coupled with all these was a capacity for cunning, intrigue, and hard work. He liked women and used them whenever he could.
The Kaiser's Naval Attache was Captain Karl Boy-Ed, the son of a German mother and a Turkish father. So brilliantly had he acquitted himself at the outset of his naval career that he had been one of six young officers chosen by the German Naval Command for training for high executive posts. Attached to the staff of Admiral von Tirpitz, he had successfully directed a press campaign in 1910 to influence the public on the eve of requests for heavy naval appropriations, which amounted in that year to 400,000,000 marks. Later his duties had taken him to various parts of the world as Naval Attache, and 1914 found him at the Washington post.
In appearance he was heavy-set, bull-necked, with a massive jaw. He was polished and had considerable charm. He was less impulsive than von Papen and exercised much more care in covering up his tracks. He was often at loggerheads with the Military Attache. On one occasion von Papen telegraphed him to be more careful. To this he replied in a letter: Dear Papen:
A secret agent who returned from Washington this evening made the following statement: "The Washington people are very much excited about von Papen and are having a constant watch kept on him. They are in possession of a whole heap of incriminating evidence against him. They have no evidence against Count B. and Captain B-E (!)." In this connection
1 would suggest with due diffidence that perhaps the first part of your telegram is worded rather too emphatically.
These then were the men entrusted with the launching of Germany's campaign of sabotage and obstruction in the United States. It must be borne in mind, however, that as the war progressed both German secret services sent free-lance agents to the United States, many of whom operated independently of Germany's diplomatic represen- tatives.
When the news was flashed to the United States that the Austrian Archduke Francis Ferdinand and his wife had been assassinated in Sarajevo on June 28, 1914, Count von Bernstorff v^as having dinner w^ith the Spanish Ambassador at the MetropoHtan Club in Washington. Von Bernstorff fully comprehended that this might be the spark that w^ould touch off the general European v^ar v^hich the v^^hole world knew was impending. He at once arranged for his summer leave and on July 7 sped to Berlin. In the light of his subsequent activities, we can take it for granted that, in addition to receiving his instructions from the German Foreign Office, he was also interviewed by the es- pionage bureaus.
The first of these, commonly known as the German Secret Service, comprised Section III B of the Great General Staff and was under the able direction of Colonel Nicolai. In addition to this organization there also was a Naval Intelligence Service, which, although a much smaller unit, also operated on a secret service basis. As was the case with the Allies, both German secret service bodies established spy bases in the principal neutral countries and from these directed spy activities against the enemy. Belligerents on both sides tied in their secret service organ- izations with their naval and military attaches. But if this was common to both sides, the attaches and secret services of the Allies were at least wise enough not to engage in any activities which could be construed as at all detrimental to the neutral countries in which they were located. Although the attaches acted in an advisory capacity concerning the objectives to aim at in enemy territory and also telegraphed the spy reports to headquarters, they never came into contact with the actual agents. Their dealings were exclusively with the chiefs of the spy bases, who recruited and directed the individual agents.
However, since Germany had no organized espionage base in the United States before the war, she had perforce to instruct the Military and Naval Attaches to undertake personally the task of forming one.
On August 5, 1914, when England declared war, von Bernstorff was already on his way back to the United States, having sailed three days previously. Accompanying him were Dr. Albert and Dr. Dernburg, former Secretary of State for Colonies, whose chief duty was to be the spreading of German propaganda.
In the Ambassador's possession was $150,000,000 in German treasury notes, which, according to Dr. Albert's later admissions, was to serve for "buying munitions for Germany, stopping munitions for the Allies, necessary propaganda, forwarding reservists — and other things." In order to guard against this treasure's falling into the hands of patrolling British warships, it was always kept close at hand so that, in the event of the ship's being stopped and searched by a boarding party, it could be thrown overboard at a moment's notice.
If the German Secret Service lacked a prewar organization in the United States, here were the funds to create one immediately. An ample surplus would remain after attending to the objectives out- lined by Dr. Albert. There remained only the handing over of the instructions from Berlin to von Papen and Boy-Ed before the ma- chinery would be set in motion.
Captain von Papen was in Mexico City at the outbreak of hos- tilities. He hurried north immediately to meet von Bernstorff in Wash- ington and after a conference with him established headquarters in New York City at 60 Wall Street, where he took a suite of offices which was known as the Bureau of the Military Attache, or the War Intelli- gence Center. Meanwhile Captain Boy-Ed had also had an interview with his Ambassador; and he too located himself in New York with an office at 11 Broadway, close to the New York Custom House. As has already been mentioned. Dr. Albert's headquarters were a stone's throw away, at 45 Broadway.
If there are any doubts as to the nature of the orders von Bernstorff passed on to his Attaches, we need only turn to the very definite instruc- tions which were later issued by the authorities in Germany. On January 26, 1915, the General Staff telegraphed the Embassy in Washington via the Foreign Office a message the meaning of which is unmis- takable:
For Military Attache. You can obtain particulars as to persons suitable for carrying on sabotage in the U. S. and Canada from the following persons : one, Joseph MacGarrity, Philadelphia, Pa.; two, John P. Keating, Michigan Avenue, Chicago; three, Jeremiah O'Leary, 16 Park Row, New York.
One and two are absolutely reliable and discreet. Number three is reliable but not always discreet. These persons were indicated by Sir Roger Case- ment. In the U.S. sabotage can be carried out in every kind of factory for supplying munitions of war. Railway embankments and bridges must not be touched. Embassy must in no circumstances be compromised. Similar precautions must be taken in regard to Irish pro-German propaganda.
Zimmermann
The abrupt opening of the above cable indicates that there must have been instructions issued relative to sabotage in the United States prior to the sending of this message. By these orders Germany's diplo- matic representatives in the United States were compelled to play a dual role. On the surface they were to carry out their diplomatic func- tions and preserve friendly relations with the United States; surrepti- tiously they were to direct Germany's sabotage activities. And above all Dr. Jekyll was always to deny and repudiate what Mr. Hyde was doing.
Count von Bernstorff as the commander in chief was to keep in the background as much as possible, his principal duty being to watch Congress and the President in order to prevent any political action unfavorable to Germany. Dr. Albert was to handle the funds, also to act as the director of activities to tie up Allied munitions orders. Cap- tain von Papen was to supervise an active army of spies and sabotage agents both in the United States and in Canada. Captain Boy-Ed was to direct sabotage on ships transporting munitions to the Allies, to arrange for coal and supplies for German warships and commerce raiders, and also to recruit spies to send to enemy countries in Europe, chiefly England. In this work these four chiefs were to be actively assisted by the various German Consuls and consular representatives scattered throughout the United States.
But, before these plans could be put into operation, von Papen and Boy-Ed were swamped by another and more pressing task. Immedi- ately war was declared the thousands of reservists resident in Amer- ica were required to go home and rejoin the colors. The burden of figuring out ways and means of getting them through the blockade fell on the two Attaches, and for some time this chore absorbed the major part of their energies.
* Throughout most of the war Zimmermann was a prominent official of the Foreign Office, holding successively the posts of Undersecretary and Secretary of State for Foreign Affairs.
Before the World War Germany had made all her war calculations on the basis of a short but decisive campaign through Belgium and northern France. When this failed, she realized that she was in for a long war in which economic strength would be the decisive factor. On account of her miscalculation on winning the war in a few months she had not given much attention to the United States. All her energies had been devoted to preparing against Russia, France, and, to a lesser extent, England.
But the heads of the government and the army soon came to realize that America's resources might well be the key to victory for whichever side could obtain access to them. British sea power precluded Ger- many's having any chance of drawing on the American market, her- self; but at least she could and must try to keep her enemies from exploiting their advantage. There were only two means of doing this which held out any hope of success, the submarine and sabotage. But Germany had too few underseas craft in the first year of the war to enable her seriously to cripple shipping. She therefore felt obliged to direct the German Military and Naval Intelligence Services to under- take a sabotage offensive.
Before the World War Gerniany possessed the largest and most effi- cient secret service organization in Europe. Most of her espionage activities, however, had been directed against likely enemies on the continent. She had thought it worth while to plant only one part-time spy in the United States and had limited his activities to reporting on new industrial and chemical developments.
As Germany was automatically cut off from the world across the sea on the outbreak of hostilities, it was then too late to send any great number of trained spy and sabotage agents to the United States. She had to rely, therefore, on her diplomatic representatives here to build up the necessary organization during the early stages of the war. These were few in number and had been chosen for their posts with no thought that they would ever be called upon to carry on more than normal consular and diplomatic business. The Embassy was staffed by four executives: an Ambassador, a Commercial Attache, a Military Attache, and a Naval Attache.
The Ambassador, Count Johann von Bernstorff, was a career diplo- mat who had had many years training in the diplomatic service. His deep, dome-shaped head and furrowed face revealed the thinker — a man endowed with great power of concentration. A firm mouth and chin, and a Kaiser mustache lent him a certain air of fierceness in contrast to his otherwise delicately molded features. Cold eyes, peering at times through half -closed lids, gave an impression of cunning, which was immediately dispelled by his ingratiating smile. Tall, slender, al- ways immaculately groomed, he had a distinguished appearance. He Was an aristocrat, a member of an old Saxon family which had sup- plied Saxony with many of her statesmen.
As an ambassador he had the entree to the White House, a seat in the diplomatic galleries of the Senate and House of Representatives, and was in close contact with those Senators, Congressmen, and appointees who hailed from the sections of the country which had an influential German-American vote. He had his finger on the pulse of official Washington and was easily able to keep his government closely in- formed on all important issues and political events in the capital.
Socially he was much sought after, not only by those to whom spon- sorship by an ambassador is always an attraction but also by many Americans of German extraction who were anxious to be useful. He was a keen judge of character, and many of these men and women he astutely used on any occasion they could be of service to him.
Germany's Commercial Attache was Privy Councilor Dr. Heinrich Albert. Not only was he the paymaster of all Germany's diplomatic and consular representatives in the United States, but he also dis- bursed funds for supplies purchased by his government, and finally also paid out money — at least $30,000,000 that we know of — for propa- ganda, sabotage, and secret service purposes. He had a joint account with von Bernstorff in the Chase National Bank, which often amounted to several million dollars. As American treasurer for the Imperial Ger- man Government, he had great influence with bankers, manufacturers, and others with whom he did business. His office during the war was in the Hamburg-American Building at 45 Broadway, New York City.
He was tall and slim. His countenance was open; and in spite of several saber scars on his cheeks, his fair hair and mild blue eyes gave him a friendly appearance. He was always well dressed, extremely polite, and punctilious. He was liked and held in high esteem by his colleagues, who credited him with expert knowledge of economic con- ditions in the United States. His methods were quiet and successful; his participation in secret service and other clandestine activities v/as carefully camouflaged and but for an accident might even have passed entirely unnoticed.
Long afterwards, when Congress got down to investigating his ac- tivities, he was characterized by Senator Nelson as the "Machiavelli of the whole thing ... the mildest mannered man that ever scuttled ship or cut a throat."
Captain Franz von Papen held the post of Military Attache. At the time of his appointment, in 191 3, there was no thought that any big task might devolve on him. From the viewpoint of the large standing armies of Europe, Washington was a minor post; and for that reason the Military Attache occupied a dual position: he was attached both to the German Embassy in Washington and the German Legation in Mexico City. To assist him in covering this wide field of activity, he had only a secretary. Wolf von Igel.
At the time, von Papen was a young cavalry officer in a regiment of Uhlans. He had married a Miss Boche, the daughter of an immensely wealthy Alsatian pottery manufacturer; and his new wealth, added to his social and military standing, had won for him the Washington appointment. His appearance reflected energy: he was tall, broad- shouldered, and erect; his face was clean-cut, with large bones, a large nose, prominent ears, keen eyes, a military mustache, and a strong jaw. He was vigorous in speech, and quick and daring in action. Intoler- ance, arrogance, and bluntness in criticizing his associates also were prominent among his characteristics. Coupled with all these was a capacity for cunning, intrigue, and hard work. He liked women and used them whenever he could.
The Kaiser's Naval Attache was Captain Karl Boy-Ed, the son of a German mother and a Turkish father. So brilliantly had he acquitted himself at the outset of his naval career that he had been one of six young officers chosen by the German Naval Command for training for high executive posts. Attached to the staff of Admiral von Tirpitz, he had successfully directed a press campaign in 1910 to influence the public on the eve of requests for heavy naval appropriations, which amounted in that year to 400,000,000 marks. Later his duties had taken him to various parts of the world as Naval Attache, and 1914 found him at the Washington post.
In appearance he was heavy-set, bull-necked, with a massive jaw. He was polished and had considerable charm. He was less impulsive than von Papen and exercised much more care in covering up his tracks. He was often at loggerheads with the Military Attache. On one occasion von Papen telegraphed him to be more careful. To this he replied in a letter: Dear Papen:
A secret agent who returned from Washington this evening made the following statement: "The Washington people are very much excited about von Papen and are having a constant watch kept on him. They are in possession of a whole heap of incriminating evidence against him. They have no evidence against Count B. and Captain B-E (!)." In this connection
1 would suggest with due diffidence that perhaps the first part of your telegram is worded rather too emphatically.
These then were the men entrusted with the launching of Germany's campaign of sabotage and obstruction in the United States. It must be borne in mind, however, that as the war progressed both German secret services sent free-lance agents to the United States, many of whom operated independently of Germany's diplomatic represen- tatives.
When the news was flashed to the United States that the Austrian Archduke Francis Ferdinand and his wife had been assassinated in Sarajevo on June 28, 1914, Count von Bernstorff v^as having dinner w^ith the Spanish Ambassador at the MetropoHtan Club in Washington. Von Bernstorff fully comprehended that this might be the spark that w^ould touch off the general European v^ar v^hich the v^^hole world knew was impending. He at once arranged for his summer leave and on July 7 sped to Berlin. In the light of his subsequent activities, we can take it for granted that, in addition to receiving his instructions from the German Foreign Office, he was also interviewed by the es- pionage bureaus.
The first of these, commonly known as the German Secret Service, comprised Section III B of the Great General Staff and was under the able direction of Colonel Nicolai. In addition to this organization there also was a Naval Intelligence Service, which, although a much smaller unit, also operated on a secret service basis. As was the case with the Allies, both German secret service bodies established spy bases in the principal neutral countries and from these directed spy activities against the enemy. Belligerents on both sides tied in their secret service organ- izations with their naval and military attaches. But if this was common to both sides, the attaches and secret services of the Allies were at least wise enough not to engage in any activities which could be construed as at all detrimental to the neutral countries in which they were located. Although the attaches acted in an advisory capacity concerning the objectives to aim at in enemy territory and also telegraphed the spy reports to headquarters, they never came into contact with the actual agents. Their dealings were exclusively with the chiefs of the spy bases, who recruited and directed the individual agents.
However, since Germany had no organized espionage base in the United States before the war, she had perforce to instruct the Military and Naval Attaches to undertake personally the task of forming one.
On August 5, 1914, when England declared war, von Bernstorff was already on his way back to the United States, having sailed three days previously. Accompanying him were Dr. Albert and Dr. Dernburg, former Secretary of State for Colonies, whose chief duty was to be the spreading of German propaganda.
In the Ambassador's possession was $150,000,000 in German treasury notes, which, according to Dr. Albert's later admissions, was to serve for "buying munitions for Germany, stopping munitions for the Allies, necessary propaganda, forwarding reservists — and other things." In order to guard against this treasure's falling into the hands of patrolling British warships, it was always kept close at hand so that, in the event of the ship's being stopped and searched by a boarding party, it could be thrown overboard at a moment's notice.
If the German Secret Service lacked a prewar organization in the United States, here were the funds to create one immediately. An ample surplus would remain after attending to the objectives out- lined by Dr. Albert. There remained only the handing over of the instructions from Berlin to von Papen and Boy-Ed before the ma- chinery would be set in motion.
Captain von Papen was in Mexico City at the outbreak of hos- tilities. He hurried north immediately to meet von Bernstorff in Wash- ington and after a conference with him established headquarters in New York City at 60 Wall Street, where he took a suite of offices which was known as the Bureau of the Military Attache, or the War Intelli- gence Center. Meanwhile Captain Boy-Ed had also had an interview with his Ambassador; and he too located himself in New York with an office at 11 Broadway, close to the New York Custom House. As has already been mentioned. Dr. Albert's headquarters were a stone's throw away, at 45 Broadway.
If there are any doubts as to the nature of the orders von Bernstorff passed on to his Attaches, we need only turn to the very definite instruc- tions which were later issued by the authorities in Germany. On January 26, 1915, the General Staff telegraphed the Embassy in Washington via the Foreign Office a message the meaning of which is unmis- takable:
For Military Attache. You can obtain particulars as to persons suitable for carrying on sabotage in the U. S. and Canada from the following persons : one, Joseph MacGarrity, Philadelphia, Pa.; two, John P. Keating, Michigan Avenue, Chicago; three, Jeremiah O'Leary, 16 Park Row, New York.
One and two are absolutely reliable and discreet. Number three is reliable but not always discreet. These persons were indicated by Sir Roger Case- ment. In the U.S. sabotage can be carried out in every kind of factory for supplying munitions of war. Railway embankments and bridges must not be touched. Embassy must in no circumstances be compromised. Similar precautions must be taken in regard to Irish pro-German propaganda.
Zimmermann
The abrupt opening of the above cable indicates that there must have been instructions issued relative to sabotage in the United States prior to the sending of this message. By these orders Germany's diplo- matic representatives in the United States were compelled to play a dual role. On the surface they were to carry out their diplomatic func- tions and preserve friendly relations with the United States; surrepti- tiously they were to direct Germany's sabotage activities. And above all Dr. Jekyll was always to deny and repudiate what Mr. Hyde was doing.
Count von Bernstorff as the commander in chief was to keep in the background as much as possible, his principal duty being to watch Congress and the President in order to prevent any political action unfavorable to Germany. Dr. Albert was to handle the funds, also to act as the director of activities to tie up Allied munitions orders. Cap- tain von Papen was to supervise an active army of spies and sabotage agents both in the United States and in Canada. Captain Boy-Ed was to direct sabotage on ships transporting munitions to the Allies, to arrange for coal and supplies for German warships and commerce raiders, and also to recruit spies to send to enemy countries in Europe, chiefly England. In this work these four chiefs were to be actively assisted by the various German Consuls and consular representatives scattered throughout the United States.
But, before these plans could be put into operation, von Papen and Boy-Ed were swamped by another and more pressing task. Immedi- ately war was declared the thousands of reservists resident in Amer- ica were required to go home and rejoin the colors. The burden of figuring out ways and means of getting them through the blockade fell on the two Attaches, and for some time this chore absorbed the major part of their energies.
* Throughout most of the war Zimmermann was a prominent official of the Foreign Office, holding successively the posts of Undersecretary and Secretary of State for Foreign Affairs.
Introduction
Introduction
In this book I have endeavored to present the true facts, as far as they are know^n, concerning German sabotage in the United States during the period between the outbreak of the World War and the entrance of the United States into the war. I have concentrated principally on the Black Tom and Kingsland cases, as they were the most devastating acts committed and the only ones, with the exception of an explosion in Tacoma Harbor, in which any attempt has been made to prove German complicity and to collect damages.
Having assisted the American claimants in their investigations in connection with the Black Tom and Kingsland cases, I have known intimately many of the principal characters involved and have obtained from them their personal stories. Because of this connection, too, the voluminous records of these cases, consisting chiefly of exhibits, briefs, oral arguments before the Mixed Claims Commission, and reports of the various American investigators have been at my disposal.
This book has been written entirely at my own volition and has been inspired neither by the American claimants nor by their German opponents; nor is it my object to try the case in public before a final decision has been reached by the Mixed Claims Commission. I have been prompted solely by a desire to tell the general story of German sabotage here and in particular to cover the amazing fight which the American claimants have put up during the last fifteen years in their efforts to prove Germany's guilt in the destruction of Black Tom and Kingsland. The story of these cases, probably the most intricate and bitterly contested ones ever argued before an international court of law, has never been told before. In view, too, of the present war clouds gathering in Europe and the Orient and in view of the fact that the United States is still as vulnerable as ever to the saboteur, it is high time that the lessons of Black Tom and Kingsland be revealed
.
Far be it from me to indict Germany. Many arguments can be advanced in support of her contention that, while the United States was technically neutral during the neutrality period, actually she was affording material and financial aid to Germany's enemies and that Germany was justified, therefore, in the use of sabotage to impede the flow of munitions and supplies to the Allies. In wartime every nation adopts the most expedient methods to guard its vital interests, and American unpreparedness in the field of counter-espionage was an open invitation to Germany to conduct a campaign of sabotage in the United States.
In depicting the background of the fight which the American in- vestigators have waged against the German Secret Service and in analyzing the evidence, I have drawn on my own war experience in the British Secret Service. During that period I had unique opportunities to learn the methods and psychology of the German Secret Service.
A final word must be added concerning the German wireless and cable messages which the British intercepted and decoded during the war. Although an explanation of how Amos Peaslee came into pos- session of them is not given until Part II, they have been inserted throughout the text of the book wherever they apply. Their authenticity has been admitted by the German Government.
August 23, 1937. H. L.
In this book I have endeavored to present the true facts, as far as they are know^n, concerning German sabotage in the United States during the period between the outbreak of the World War and the entrance of the United States into the war. I have concentrated principally on the Black Tom and Kingsland cases, as they were the most devastating acts committed and the only ones, with the exception of an explosion in Tacoma Harbor, in which any attempt has been made to prove German complicity and to collect damages.
Having assisted the American claimants in their investigations in connection with the Black Tom and Kingsland cases, I have known intimately many of the principal characters involved and have obtained from them their personal stories. Because of this connection, too, the voluminous records of these cases, consisting chiefly of exhibits, briefs, oral arguments before the Mixed Claims Commission, and reports of the various American investigators have been at my disposal.
This book has been written entirely at my own volition and has been inspired neither by the American claimants nor by their German opponents; nor is it my object to try the case in public before a final decision has been reached by the Mixed Claims Commission. I have been prompted solely by a desire to tell the general story of German sabotage here and in particular to cover the amazing fight which the American claimants have put up during the last fifteen years in their efforts to prove Germany's guilt in the destruction of Black Tom and Kingsland. The story of these cases, probably the most intricate and bitterly contested ones ever argued before an international court of law, has never been told before. In view, too, of the present war clouds gathering in Europe and the Orient and in view of the fact that the United States is still as vulnerable as ever to the saboteur, it is high time that the lessons of Black Tom and Kingsland be revealed
.
Far be it from me to indict Germany. Many arguments can be advanced in support of her contention that, while the United States was technically neutral during the neutrality period, actually she was affording material and financial aid to Germany's enemies and that Germany was justified, therefore, in the use of sabotage to impede the flow of munitions and supplies to the Allies. In wartime every nation adopts the most expedient methods to guard its vital interests, and American unpreparedness in the field of counter-espionage was an open invitation to Germany to conduct a campaign of sabotage in the United States.
In depicting the background of the fight which the American in- vestigators have waged against the German Secret Service and in analyzing the evidence, I have drawn on my own war experience in the British Secret Service. During that period I had unique opportunities to learn the methods and psychology of the German Secret Service.
A final word must be added concerning the German wireless and cable messages which the British intercepted and decoded during the war. Although an explanation of how Amos Peaslee came into pos- session of them is not given until Part II, they have been inserted throughout the text of the book wherever they apply. Their authenticity has been admitted by the German Government.
August 23, 1937. H. L.
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