On November 15, 1937, Heildelk returned from Japan by way of Germany.

Five days later, on November 20, 1937, his father-in-law, who, besides

being Nazi Consul, owns in partnership with Fritz Kohpcke, one of the

largest hardware stores in Panama, told his clerks that he and his

partner would work a little late that night. Neither partner went out

to eat and the corrugated sliding door of the store, at Norte No. 54

in the heart of the Panamanian commercial district, was left open

about three feet from the ground so that passers-by could not see

inside unless they stooped deliberately.

At eight o'clock a car drew up at the corner of the darkened street in

front of Neumann & Kohpcke, Ltd. Two unidentified men, Heildelk and

Walter Scharpp, former Nazi Consul at Colon who had also just returned

from Germany, stepped out, and stooping under the partly open door,

entered the store. Once inside Scharpp quietly assumed command. To all

practical purposes they were on German territory, for the Nazi

consulate office was in the store.

Scharpp announced that the group had been very carefully chosen

because of their known loyalty to Nazi Germany and because of their

desire to promote friendship for Germany in Latin American countries

and to cooperate with the Japanese, who had their own organization

functioning efficiently in Central and South America.

"Some of these countries are already friendly," said Scharpp, "and we

can work undisturbed provided we do not interfere in the Panama Canal

Zone. It is North American territory, and you will have trouble from

their officials and intelligence officers as well as political

pressure from the States. You understand?"

"Panama is friendly to North America," said Kohpcke.

"Precisely. At the present time it is not wise to do much more than

broadcast, but at a propitious time we shall be able to explain

National Socialism to the Panamanians."

He looked at Kohpcke, whose left eyelid droops more than his right,

giving him the appearance of being perpetually sleepy. Kohpcke looked

at Neumann.

"Tonight we want to organize a Bund in Panama. In a few days I am

going to Costa Rica to organize another and then leave for

Valparaiso."

The others nodded. They had been informed that Scharpp was to have

complete charge of Nazi activities from Valparaiso to Panama. That

night they established _Der Deutsch-Auslaendische Nazi Genossenschafts

Bund_, with the understanding that it function secretly. The list of

members was to be controlled by Neumann.

Scharpp explained that secrecy was advisable to avoid antagonizing the

Panamanian Government, "which is friendly to Italy and we can

cooperate with the Italian Legation here."

"The Japanese are more important that the Italians," Kohpcke pointed

out.

"The Japanese will work with us," Heildelk assured him.

"But we can't be seen with them--"

"Fritz [Kohpcke] will call a meeting in Jacobs' house," said Scharpp.

"Jacobs!" exclaimed one of the unidentified men. "You don't mean the

Austrian Consul!"

Scharpp nodded slowly. "He is generally believed to be anti-Nazi. His

partner spent twelve years in Japan and speaks Japanese perfectly. The

Japanese Consul knows and trusts both. We cannot find a better place."

On the night of December 13, 1937, forty carefully selected Germans

who, during the intervening month had become members of the Bund in

Panama, arrived singly and in small groups at the home of August

Jacobs-Kantstein, Panamanian merchant and Austrian Honorary Consul.

Five Japanese, headed by Tetsuo Umimoto, also came. One, K. Ishibashi,

formerly captain of the "Hokkai Maru" and a reserve officer in the

Japanese Navy; K. Ohihara, a Japanese agent staying with the Japanese

Consul but having no visible reason to be in Panama; two captains of

Japanese fishing boats and A. Sonada, the barber who organized the

labor union and in whose presence the Consul does not sit until the

barber is seated.

Throughout the meeting, presided over by the elderly but tall and

soldierly Austrian Consul, the Japanese said little. It was primarily

the first get-together for Nazi-Japanese cooperation in the Canal Zone

area.

"Mr. Umimoto has not said much," remarked Jacobs.

"There is so little to say when there are so many present," said the

little Consul apologetically.

The others understood. The Japanese were too shrewd to discuss

detailed plans with so many present.

A few days later Umimoto called upon Heildelk and was closeted with

him for three hours. Shortly after that Sonada made a hurried trip to

Japan.

VI

_Secret Agents Arrive in America_

Germany's interest in the Panama Canal became acute only after Japan

joined the Rome-Berlin axis "to exchange information about

Communism"--an exchange which appears to be more concerned with

military secrets than with Communism.

The activities of Japanese and Nazi agents in Latin American countries

and especially around the Canal, the organizing of a fascist rebellion

in Mexico to the south of us and intensive propaganda carried on in

Canada to the north, are but part of the broad invasion of the Western

Hemisphere by the Fifth Column--an invasion which began almost

immediately after Hitler got into power. Since the United States is

the most important country in the Americas, it was and is subject to

special concentration by secret Nazi agents.

The first threads spun spread out in many directions, with propaganda

as the base from which to broaden espionage activities. One of the

earliest of the secret agents sent to this country was an American,

Colonel Edwin Emerson, soldier of fortune, mediocre author and fairly

competent war correspondent. Emerson lived at 215 East 15th Street,

New York City and had an office in Room 1923 at 17 Battery Place, the

address of the German Consulate General. Room 1923 was rented by a

representative of the German Consul General. The rent paid was nominal

and in at least one instance, to avoid its being traced, it was paid

in cash by Hitler's diplomatic representative. Prior to the renting of

this room, Emerson had desk space with the German Consulate General

for six weeks.

The May 15, 1933, issue of the _Amerika Deutsche Post_, a Nazi

propaganda organ published in New York, carried an advertisement

stating that the editor of this paper made his headquarters in

Emerson's room. This was the first indication that Emerson had arrived

in this country to handle Nazi propaganda.

For many years Emerson had wandered about the globe covering

assignments for newspapers and magazines and always bragging about his

Americanism and his "patriotism." One of his great boasts was that he

was with Roosevelt's Rough Riders during the Spanish-American war;

what he never told was that Roosevelt brought him back from Cuba in

irons.

From his room paid for by the German Consul General, Emerson launched

the "Friends of Germany."[6] This organization was the chief

disseminator of pro-Hitler and anti-democratic propaganda in the

United States, but the Colonel directed the propaganda somewhat

stupidly. The "Friends of Germany" held meetings with "storm troops"

in full uniform; bitter attacks were made against Jews and Catholics

at large mass meetings. Visiting officers and sailors, from German

ships docked in New York, appeared at these meetings to preach fascism

and Nazism, until a wave of resentment swept the country. One of the

keynotes of these talks was sounded by Edward F. Sullivan of Boston at

a meeting held at Turnhalle, Lexington Avenue and 85th Street, on June

5th, 1934, when he repeatedly referred to Jews as "dirty, stinking

kikes" and announced that he proposed to organize a strong Nazi group

in Boston.

Propaganda Minister Goebbels in Berlin became annoyed at the public

reaction, and the entire Nazi foreign propaganda service was

reorganized. Emerson was ordered back to Germany for explicit

instructions on how to carry on propaganda without antagonizing the

entire country.

In October, 1933, Royal Scott Gulden (who has no connection with the

mustard business, but is a distant relative of the head of it), who

had been cooperating with Emerson, tried to organize an espionage

system to watch Communists. In this effort Gulden enlisted the aid of

Fred R. Marvin, a professional patriot. At three o'clock on the

afternoon of March 10, 1934, a very secret meeting was called by

Gulden at 139 East 57th Street. Present were Gulden, J. Schmidt and

William Dudley Pelley, head of the Silver Shirts.

The meeting decided to adopt anti-semitic propaganda--to play on

latent anti-semitism--as part of the first campaign to attract

followers. The country was in a serious economic crisis with

considerable unrest throughout the land. Both Hitler and Mussolini got

into power in periods of great unrest by promising peace and security

to the bewildered people. Men of means were terrified by fears of

"revolution" and this group, directed by Emerson, began to preach that

the revolution might come any minute and that the Jews were

responsible for Moscow, the Third International, the Mississippi flood

and anything else that troubled the people. When the meeting ended the

"Order of '76"[7] had been born and Royal Scott Gulden appointed

Secretary to direct espionage and propaganda.

From the very beginning Emerson tried to get people into places which

would provide access to important information. On February 22, 1934, a

merger of the Republican Senatorial and Congressional Campaign

Committees to conduct the Party's Congressional campaign independent

of the Republican National Committee was announced in a joint

statement by Senator Daniel O. Hastings of Delaware and

Representative Chester C. Bolton of Ohio, chairmen, respectively, of

the two committees.

Several weeks before this announcement, the two committees had

employed Sidney Brooks, for years head of the research bureau of the

International Telephone and Telegraph Company. Brooks, because of his

position, was close in the confidences of Republican Senators and

Congressmen. He heard state secrets and had his fingers on the

political pulse of the country.

Shortly after he took charge of the joint committee for the Senators

and Congressmen, Brooks made a hurried visit to New York. On March 4,

1934, he drove to the Hotel Edison and went directly to Room 830 where

a man registered as "William D. Goodales--Los Angeles," was awaiting

him. Mr. "Goodales" was William Dudley Pelley, head of the Silver

Shirts, who had come to New York to confer with Brooks and Gulden.

After this conference the two went to Gulden's office where they had a

confidential talk that lasted over an hour during which an agreement

was made to merge the Order of '76 with the Silver Shirts so as to

carry on their propaganda more effectively.

Brooks himself, on his mysterious visits to New York, went to 17

Battery Place, which houses the German Consulate General. At that

address he visited one John E. Kelly. In a letter to Kelly dated as

far back as December 27, 1933, he wrote: "I will be in New York Friday

to Monday and can be reached in the usual manner--Gramercy 5-9193

(care Emerson)."

Sidney Brooks also was a member of the secret Order of '76. Before

anyone could join he had to give, in his own handwriting and sealed

with his own fingerprints, certain details of his life. Brooks'

application for membership in this espionage group organized with the

help of a Nazi sent to this country, revealed that he was the son of

the Nazi agent, Colonel Edwin Emerson, and that he was using his

mother's maiden name so that connection could not be traced too

easily.

[Illustration: Application by Sidney Brooks for membership in the

secret Order of '76, showing him to be a son of the Nazi agent,

Colonel Edwin Emerson.]

One of the other early propagandists who is still active as a

"patriot" was Edward H. Hunter, Executive Secretary of the Industrial

Defense Association, Inc., 7 Water Street, Boston. Early in 1934,

while the negotiations for the merging of the espionage order and the

Silver Shirts were going on, this rooter for American liberty heard

Germany was spending money in this country and on March 3, he wrote to

the "Friends of Germany":

"Under separate cover we are sending you twenty-five copies of our

_Swan Song of Hate_ as requested and you may have as many as you wish.

"Several times I have conferred with Dr. Tippelskirch and at one time

suggested that if he could secure the financial backing from Germany,

I could start a real campaign along lines that would be very

effective.

"All that is necessary to return America to Americans is to organize

the many thousands of persons who are victims of Judaism and I am

ready to do that at any time."

Dr. Tippelskirch, with whom Hunter discussed getting money from

Germany for anti-semitic work, was the German Consul in Boston.

The activities of the early agents ranged from propaganda to smuggling

and espionage, though at the beginning the espionage was on a minor

scale. It took several years of organizing pro-German groups in this

country before they could pick the most reliable for the more

dangerous spy work. Much of the propaganda was sent in openly through

the mails, but some of it was of so vicious and anti-democratic

character that the Propaganda Ministry in Germany decided it was wiser

to smuggle it in from Nazi ships.

One of the chief smugglers was Guenther Orgell,[8] at that time head

of the "Friends of Germany," through whom the propaganda was

distributed to various branches of the organization throughout the

country. In those days Orgell lived at 606 West 115th Street, New York

City,[9] and was ostensibly employed as an electrical engineer by the

Raymond Roth Co., 25 West 45th Street. Let me illustrate how he

worked:

At twenty minutes to ten on the evening of March 16, 1934, the North

German Lloyd "Europa" was preparing to sail at midnight. The gaily

illuminated boat was filled with men and women, many in evening dress,

seeing friends off to Europe. German stewards, all of them members of

the ship's Nazi _Gruppe_, stood about smiling, bowing, but watching

every passenger and visitor carefully.

People wandered all over the boat. Many visited the library on the

main promenade deck, which has a German post office. There was a great

deal of laughter and chatter. Orgell, dressed in an ordinary business

suit and carrying a folded newspaper in his hands, wandered in.

Catching the post office steward's eye, he casually took four letters

from his coat pocket and handed them to the steward who as casually

slipped them into his pocket. There were no stamps on the letters,

which, incidentally, constituted a federal offense.

Still so casual in manner that the average observer would not even

have noticed the transfer of the letters, Orgell wandered over to a

desk in the library and rapidly wrote another letter--so important,

apparently, that he dared not carry it with him for fear of a mishap.

The letter was sealed and handed to the steward.

The library had a great many visitors. No one seemed to be paying any

attention to this visitor or passenger talking to the steward. With a

quick glance around him, Orgell took in everyone in the library and

seemed satisfied. He caught the steward's eye again and nodded. The

steward opened a closet in the library, the second one left of the

main aisle on the port side toward the stern of the boat. A thin

package was taken from its hiding place and quickly slipped to Orgell

who covered it with his newspaper and promptly left the ship.

This was the manner in which Nazi secret instructions and spy reports

were sent and received--a procedure that kept up until the arrest of

the Nazi spies who were tried late in 1938.

When Orgell needed trusted men to deliver messages to and from the

boats as well as to smuggle off material, he usually called upon the

American branch of the _Stahlhelm_, or Steel Helmets, which used to

drill secretly in anticipation of _Der Tag_ in this country. Only when

he felt that he was not being watched, or only in the event of the

most important messages, did he go aboard the ships personally.

Orgell's liaison man in the smuggling activities was Frank

Mutschinski, a painting contractor who used to live at 116 Garland

Court, Garritsen Beach, N.Y.

Mutschinski came to the United States from Germany on the S.S. "George

Washington," June 16, 1920. He was commander of one of the American

branches of the _Stahlhelm_ which had offices at 174 East 85th Street,

New York. While he was in command, he received his orders direct from

Franz Seldte, subsequently Minister of Labor under Hitler. Seldte at

that time was in Magdeburg, Germany. Branches of the _Stahlhelm_ were

established by him and Orgell in Rochester, Chicago, Philadelphia,

Newark, Detroit, Los Angeles and Toronto (the first step in the Fifth

Column's invasion of Canada).

To help Orgell in his smuggling activities, Mutschinski supplied him

with a chief assistant, Carl Brunkhorst. It was Brunkhorst's job to

deliver the secret letters. Nazi uniforms for American Storm Troopers

were smuggled into this country off German ships by Paul Bante who

lived at 186 East 93rd Street, New York City. Bante, at the time he

was engaged in the smuggling activities, was a member of the 244th

Coast Guard as well as the New York National Guard.

In the early days of organizing the Nazi web over the United States,

the German agents received cooperation from racketeering "patriots"

who saw possibilities of scaring the wits out of the American people

by announcing that the "revolution" was just around the corner. The

country was in an economic crisis, the American people were bewildered

and didn't know which way to turn, there was considerable unrest in

the land, and the Nazi agents and their American counterparts

visualized in Hitler's cry that "Communism and the Jews" were

responsible, grand pickings from the scared suckers.

Since Communism, especially in those restless days in the depths of

the depression, was the bugaboo of the rich, it was inevitable that

some unscrupulous but shrewd observers of the American scene would

take advantage of this fear and capitalize on it. One of the chief

racketeers, a man who subsequently worked very closely with secret

Nazi agents in this country, was Harry A. Jung, Honorary General

Manager of the American Vigilant Intelligence Federation, Post Office

Box 144, Chicago. This organization was originally founded to spy on

Communists and Socialists. For a while Jung collected from terrified

employers by promising to inform them about the threat of

revolution--what time it would occur and who would lead it. In return

he collected plenty.

In time employers got fed up when the rowboat loaded with

bomb-throwing Bolsheviks failed to arrive from Moscow. Pickings became

slim. Jung was badly in need of a new terror-inspiring "issue" with

which to collect from the suckers. He found it at the time Emerson was

sent here from Germany. Gulden, Pelley and their associates were

launching an anti-semitic campaign as the first step to attract people

to the "Friends of Germany." Jung likewise discovered the "menace of

the Jew" and peddled it for all it was worth.

[Illustration: Showing the type of literature peddled by

patrioteer Harry A. Jung.]

There was an air of secrecy about the whole outfit. Even the location

of the office in the Chicago Tribune Tower was kept from the

membership; all they were given was the post office box number. As

soon as he collected enough material from the _Daily Worker_ and other

Communist publications, he sent agents to call on the gullible

businessmen with horrendous stories of the Muscovites now on the high

seas on their way to capture the American Government. The salesmen

collected and in turn got forty per cent of the pickings.

When Jung heard that William Dudley Pelley was making money on the

Jew-and-Catholic scare and that others like Edward H. Hunter of the

Industrial Defense Association were talking with the German Consul

General about getting money from Germany for propaganda, he got busy

peddling "The Protocols of the Elders of Zion," long discredited as

forgeries. Armed with these, Jung's high pressure salesmen scoured the

country, collecting shekels from Christian businessmen and getting

their forty per cent commissions.

It was not long before Jung, Pelley and others were working in full

swing with secret Nazi agents sent into this country for propaganda

and espionage purposes.

FOOTNOTES:

[6] Subsequently changed to "Friends of the New Germany" and then to the

current "German-American Bund."

[7] Still functioning on a minor scale. The Fifth Column has since these

early beginnings established much more efficient groups.

[8] Following passage of the new 1938 law requiring all foreign agents

to register, Orgell registered with the State Department as a German

agent.

[9] He now lives at Great Kills, Staten Island, N.Y.

VII

_Nazi Spies and American "Patriots"_

Once the spadework was done by the early Nazi agents sent into the

United States, the web rapidly embraced native fascists, racketeering

"patriots" and deluded Americans who swallowed their propaganda. When

Japan joined the Rome-Berlin axis, espionage directed against American

naval and military forces became one of the major interests of the

foreign agents, especially on the West Coast.

Some five years ago, after the McCormick Congressional Committee

investigation into Nazi activities turned up a number of

propagandists, there was a lull in their activity until the

nation-wide denunciations died out. In the meantime Goebbels again

ordered the reorganization of the entire propaganda machine in this

country.

It was during this period that the approaching Presidential elections

presented an immediate task for the Nazis to work on. The Roosevelt

Administration was considered by the Nazis both here and in Germany as

none too friendly to Hitler, and before the election got well under

way the Nazis here, upon instructions from their local leaders who act

only upon instructions from the German Propaganda Bureau, became

active in the anti-Roosevelt campaign. Both Nazi agents and

"patriotic" American groups working with Nazi agents (without much

money after the Congressional Committee's exposes) suddenly found

themselves possessed of more than enough capital with which to

operate. Some of the money came from the Nazis and some from

anti-Roosevelt forces.

One of the most vicious of the anti-Roosevelt propaganda mediums was

established by Nazi agents in a carefully hidden printing plant.

[Illustration: Anti-Semitic anti-Roosevelt handbill issued by the

American White Guard in California.]

No one who got off on the sixth floor at 325 W. Ohio St., Chicago, and

entered the John Baumgarth's Specialty Company, would have suspected

anything out of the ordinary about the place. It looked just like

hundreds of other business firms where pale girls and anemic-looking

men made calendars.

People came up on the ancient elevator, attended to their affairs at

the desks in front of the door, and left. Very few of them ever went

behind the enormous piles of cardboard and paper which almost

obstructed the passage to the right of the desks. But if you turned

into this passage and then turned to the left, you came upon a wooden

partition. Unless you were watching for it you would think it a wall.

There was no indication of what was behind the partition. There was

only a shiny Yale lock in a door carefully hidden from the eyes of

casual visitors. If you knew nothing about it and tried to open the

door, you would find it locked. If you knocked or banged on it, there

would be no answering sign from the other side, and the young man

operating the cutting machine alongside the partition would merely

stare at you blankly.

Secret armies · 第 5 / 10 段