CHAPTER VII

MASTER-SPIES AND THEIR CUNNING

We shall probably never be able to realise a hundredth part of what

Germany has done by her spy system, but we know enough to realise

that, for years, no country and no walks of life--from the highest to

the lowest--have been free from the presence of her ubiquitous and

unscrupulous secret agents. Nothing in the way of espionage has been

too large, or too small, for attention.

Her spies have swarmed in all cities, and in every village; her agents

have ranked among the leaders of social and commercial life, and

among the sweepings and outcasts of great communities. The wealthiest

of commercial men have not shrunk from acting as her secret agents.

She has not been above employing beside them the very dregs of the

community. No such a system has ever been seen in the world; I hope it

is safe to say that no such system will ever be seen again. Indeed,

so despicable is this German spy system that even the leader of the

Opposition in the Reichstag, Herr Richter, one day rose from his

seat and protested against "the more than doubtful morality of the

individuals employed." This protest was made because it was known that

the Secret Service of Germany countenanced rank immorality and vice,

the suborning of high officials, and the shameless engagement of women

of ill-fame in the search for information. The official feeling in

Germany concerning such debased methods was well illustrated by the

reply of Herr Von Puttkamer, the Minister for the Interior, who said:--

"It is the right and duty of the State to employ special and

extraordinary methods, and even if that honest and estimable

functionary, Police-Councillor Rumpff, has employed the methods of

which he is accused, in order to secure for the State the benefits of

useful intelligence, I here publicly express to him my satisfaction

and thanks."

That statement is certainly informing. It reveals to us the low, vile

methods of our enemies.

The German spy system, as we know it to-day, is the creation of one

Carl Stieber, and it dates back to about the year 1850.

Stieber, who was an obscure Saxon, began his career of espionage by

betraying the revolutionary Socialists, with whom he pretended to

sympathise, and so successful was he in this respect that he very

soon obtained employment among the regular police, and was afterwards

created head of a department which finally worked quite independently,

and was beyond police control.

Stieber could never have achieved the success he did but for the luck

or good management which, during his work among the revolutionaries,

brought him to the notice of Frederick William, the King of Prussia.

Under the royal patronage he was secure against counter-plotters among

the military and the police, both of whom hated him beyond measure

as an interloper who was seen to be dangerous to their interests.

Up to this time, it should be remembered, the game of espionage, so

far as military matters were concerned, had been a matter solely

for the military authorities, and they did not fail to resent

the new influence, which very speedily threatened to make itself

all-powerful--as, indeed, it ultimately did--in this particular field

of Prussian activity.

It must not be supposed that Stieber--upon whose model the Russian

Secret Police was afterwards established--confined his activities to

either the enemies or the criminals of Prussia. He established a close

watch on persons even of high rank, and many a tit-bit of information

went to regale the mind of his royal master. In a sense, Frederick

William was, like the modern Kaiser, the master-spy, for without his

confidence Stieber could never have achieved the success he did,

against both the military and the police, influences which, even in

those days, were almost, but not quite, all-powerful in Germany.

Stieber's greatest achievement in the field of actual spying was his

work which led to the crushing of Austria at Sadowa in 1866. At this he

laboured for years, and it is not too much to say that his work assured

the success of the campaign. By the time the Prussian armies were on

the move, Stieber had established such an army of spies and agents

throughout Bohemia, that it was a matter of absolute impossibility for

the unfortunate Austrians to make a single move without information

being promptly carried to their enemies.

So successful was Stieber's method found, that it was only natural that

it should be tried in other countries. France was the next victim, and

the campaign of 1870-71 is so recent that it is hardly necessary to do

more than remind the reader how thoroughly the Germans were served by

their spy system.

As in the present war, the advancing Germans found, in every town

and village, swarms of agents who were ready to provide them with

information and guidance, and it was even said that the German invaders

were better acquainted with the country they were attacking than

were the officers entrusted with its defence. We have seen the same

thing in the present war, when time after time the Germans have been

led into towns and districts by men who have lived there for years

and, in many cases, had even become naturalised Frenchmen the better

to carry on their work. It speaks volumes for the perfection of the

German military machine that, on the outbreak of hostilities, these men

should have been able, without the slightest difficulty, to join the

corps operating in the districts with which they had become perfectly

familiar by years of residence.

And they were able, not merely to give topographical information, but

even to indicate where stores of food and petrol could be found, and

to point out to their comrades where the best prospects of loot and

plunder existed.

All this was merely a natural development of the system which Carl

Stieber established, and which his successors have developed to the

highest pitch of unscrupulous perfection.

After the war of 1870-71, the system which Stieber invented found

its place in German administration, and it has continued ever since

as a separate and highly-organised department, spending vast sums of

money--about £720,000 a year--and extending its ramifications to an

incredible extent. It may be mentioned, incidentally, that its workings

and methods have been copied by the German commercial world, and many

a British employer has, during the past few years, paid dearly through

his closest commercial secrets being given away to his keenest German

rivals by the patient, diligent and hard-working German clerk, who

was willing to work for a mere pittance for the advantage of "learning

English" and studying British methods.

There cannot now be the slightest doubt that thousands of these German

employees were, before the war, really in the pay of German firms, and

were busily engaged in sending to Germany all the information they

could possibly pick up which would tend to help the German and injure

the British merchant and manufacturer.

I hope they have over-reached themselves, and that when the war is over

we shall see a great deal less of the English worker being supplanted

by spying Germans, whose apparent cheapness has been the costliest

labour Englishmen have ever employed.

"Never trust or employ a German, and always make him pay cash" ought to

be the British commercial motto for the future.

Stieber died in the early nineties, but he was succeeded by others

quite as clever, and even more unscrupulous than himself, some

of whom--though by no means all--have become faintly known to us

through the revelations made in the too few cases of espionage where

prosecution has been undertaken by our sleepy authorities. I say "very

few," of course, in the comparative meaning of the phrase. Actually,

there have been a fair number of cases, but when we consider the

slyness of German methods we must come to the conclusion that not a

fraction of the whole have been dealt with, in spite of the amusing

claim of Mr. McKenna that he has succeeded in smashing the German spy

organisation in this country. Our leniency in this respect is a matter

of amazement to people in France, and other countries where, from

bitter experience, the German spy-peril is better understood, and it is

also a matter of some resentment. Every blow at England, it is argued,

injures the cause of the Allies as a whole, and the worst blows are

likely enough to be struck by the undetected and unpunished spy.

In almost every case of espionage in England in recent years, the name

of Steinhauer, "of Potsdam," has figured prominently. He is, at the

moment, the chief of the Kaiser's spy-system, and there is no doubt

that he fully enjoys the confidence and friendship of his royal master.

Steinhauer--as he is known to our Secret Service--is an officer in

the Prussian Guard, and is about forty years of age. Personally, he

is a man of charming manners, of splendid education, and of excellent

presence, capable of taking his place--as he has frequently done--in

the very best society. Steinhauer--the man of a hundred aliases--acting

under the direct instructions of the Kaiser, and with the closest

support and co-operation of the German military authorities,

established in England such a network of naval and military spies as,

when it was tardily discovered, fairly made our authorities aghast.

The allegations I have made in these pages are borne out by Mr.

McKenna's own admission, that hardly anything was done in the matter

until about the year 1911; yet, as I have indicated, long before this

the Germans were actually plotting war against England, and were

preparing for it and looking forward to the day when they might hope to

wage it with every prospect of success.

The following extract from a public statement by the Home Secretary

is worth quoting. It will be noticed that Steinhauer's name is

not mentioned, but there is no doubt that he was the head of the

organisation of which the Home Secretary speaks.

Mr. McKenna stated in his remarkable and somewhat ludicrous communiqué

of October 9th, 1914:--

"The Special Intelligence Department ... was able in three years,

from 1911 to 1913, to discover the ramifications of the German

Secret Service in England. In spite of enormous effort and lavish

expenditure by the enemy, little valuable information fell into their

hands.... There is good reason to believe that the spy organisation,

crushed at the outbreak of the war, has not been re-established....

How completely that system had been suppressed in the early days of

the war is clear from the fact disclosed in a German Army Order--that

on 21st August the German military commanders were ignorant of the

dispatch and movements of the British Expeditionary Force, although

these had been known for many days to a large number of people in

this country."

Such an attempt as this to lull us into a false sense of security was

little short of criminal.

If not from spies, asked a correspondent of the _Globe_, from whom did

Germany obtain, in 1912, the very valuable information that oil was

to be the sole source of motive power for the "Queen Elizabeth" (v.

_Taschenbuch der Kriegsflotten_, January, 1913)? Certainly not from

any English official source; for we were kept entirely in the dark as

to this momentous change until the _Morning Post_ announced in July,

1913, that the battleship in question would consume liquid fuel only.

Even minor details did not escape the notice of German spies during the

period specified by Mr. McKenna. For instance, the _Taschenbuch_ for

1914 contains this statement:--

"'Hermes,' at present tender to air-craft, and as such only carries

eight 6in. guns."

Yet it was not until the "Hermes" had been sunk in the Channel by a

German submarine, that any official statement was made as to how she

had been employed and her armament reduced!

Again, there is irrefutable evidence to show that German agents were

ready waiting in France for the disembarkation of at least some details

of the British Expeditionary Force, and the whole world knows that the

German Emperor's insolent reference to Sir John French's Army was made

_before August 21st_.

Further evidence of the activity of German spies before and since

the outbreak of the war is to be found in the following extract from

a letter written by an English naval officer, and published in the

_Times_ of November 20th under the heading, "In the North Sea":--

"Their (_i.e._, the Germans') submarines are outside even now, and it

seems funny where they get their information. But, at any rate, they

are well served, as they knew where the Fleet was when we were at

Devonport, and we did not know ourselves."

Taking all these facts into consideration, it is evident that the

German spy system is more than a match for the Intelligence Division of

the Admiralty War Staff.

Steinhauer--the chief of German Espionage--was the author and

inspiration of these "enormous efforts," and of the lavish expenditure

of money.

With unlimited means at his disposal from the German Secret Service

funds, a close personal friend of the Kaiser, a man of undoubted

ability, great charm of manner and unquestionable daring, the man

known as Steinhauer must be ranked as one of the most dangerous of our

enemies. I have met him more than once. He speaks English practically

like an Englishman, and, out of uniform, might well pass for an

Englishman in any cosmopolitan gathering. About eight years ago he

was appointed to look after the German Secret Service, with special

instructions from the Emperor to particularly devote himself to England.

He made frequent visits to this country; he got to know many German

residents here of the better class, whose efforts might be of value to

him, and within twelve months--while our red-tape-tangled Government

Departments closed their eyes and dreamed--had actively at work a swarm

of agents in every dockyard town and garrison where the picking up of

information of value would be possible or likely. How he must have

smiled! Every important town and city, many villages on the coast,

every naval base had its agent or agents, and there can be no doubt

that it was the result of Steinhauer's wonderful activities that at

last aroused even the supine British Home Office, which for years had

jeered at me and reassured the public with official denials that there

were no spies in England, and had laughed at the numerous warnings to

them to "sit up and take notice."

And all this in face of a great and terrible national peril!

I would here like to pay a tribute to the thoroughness with which the

Confidential Department have all along done their work. Up to the

limits to which the staff were allowed to go, they did magnificently.

There can be no doubt that a good many of the most active German spies

were detected and accounted for. The trouble is that the Intelligence

officers were not allowed to go far enough--indeed, since the war the

director, who knew many of the spies personally, has actually been

relieved of his post. Why, we may well ask. Do not let us inquire,

however, but let us realise that after six months at war we still have

at large amongst us some 27,000 alien enemies who would, in any other

country, be safely under lock and key. This spy peril means the loss

of our sons and our loved ones, and a blow at our Empire. Even the

Department is subject to ordinary human limitations, and we shall never

be free from the spy-peril until we recognise with Sherman that during

war the military authority is superior to the civil; until we insist

with Sir Oliver Lodge that all foreign spies must be shot, and all

native ones hanged.

This Steinhauer's crowning act of daring and cool "cheek" came in

1911, when it is stated upon the best authority that he actually paid

a visit to King George at Buckingham Palace, as a member of the German

Emperor's personal suite! In that year I met him. The Kaiser visited

London to attend the unveiling by the King of the Queen Victoria

Memorial. Steinhauer, the spy, was actually a member of his suite!

Of the action of our false friend the Kaiser in this matter it

is difficult to speak with patience. At this time, it should be

remembered, he was professing the firmest friendship for England,

and more than one Cabinet Minister was full of his praise; yet this

pinchbeck Napoleon could find it within his notions of honour to

introduce to England the one man of all others who was most active in

the perfidious campaign against her. Can it be wondered that with such

an example of treachery to lead them, German diplomatists made small

ado about tearing up the solemn treaty which guaranteed the neutrality

of Belgium!

At this time, of course, Steinhauer's real mission was unknown to our

Home Office, and, of course, Steinhauer is not his real name. It was

not until later in the year that the Confidential Department fixed his

identity and ascertained his true character. One sighs to realise the

farce of it all.

Then began a campaign in which the Germans were badly outwitted.

Without giving the slightest indication that anything unusual was

on foot, or had been discovered, the Special Department--under the

director who is, alas! no longer there--set to work.

One branch of their activities was revealed in a recent case, when they

calmly produced, in court, tracings of letters posted in London by

Steinhauer's agents. For once the spy had been met and beaten at his

own game. In the meantime, some of Steinhauer's chief agents had been

identified, and were kept under the closest but most unostentatious

surveillance.

Arrests were made in a number of cases, and in many others information

was secured which bore prompt fruit when war was declared, and over two

hundred of the "master-spy's" tools were captured in different parts of

the country and interned.

It is, however, beyond doubt that many of this man's agents, of greater

or less influence or ability, are to-day still at liberty, and there

is no doubt either that many have come over in the guise of Belgian

refugees; that, indeed, has been officially admitted. Of course, they

are now working under enormously greater difficulties in getting

information, owing to the increased severity of the watch kept at all

places of importance. And even to send it away when they have got it is

not easy, though no doubt it is arranged, through Italy, Denmark, or

Scandinavia.

Here is an instance reported by me to the authorities, as I considered

it full of suspicion. Among the thousands of Belgian refugees arriving

in England just before the fall of Antwerp--a city infested by German

spies--there came among us a certain priest, with four other male

companions. The priest explained to the Relief Committee which received

him, that he was head of a certain college in Belgium. He and his

companions were, at their own request, passed on to a provincial Relief

Committee. There the priest's penurious position naturally aroused

much sympathy, and he and his companions were put into a good-sized

house, given money for their maintenance, and petted by many charitable

persons.

The five were free to take observations in and around the place where

they were domiciled. That our enemy would be glad of any details

regarding it there can be no doubt. Then, of a sudden--in the first

days of January--the priest, to the surprise of the Committee,

announced the fact that as he had received a letter from the Cardinal

Archbishop of his diocese, stating that many of his old pupils had

returned, he must leave at once for home with two of his companions.

One of the latter declared that he had to go to "look after his

cows"--as though the Germans would have left him any cows! When

questioned, the priest admitted that he held monies of the college

which he must hand over. To say the least, their behaviour was highly

suspicious.

By some persons who became acquainted with this curious request the

matter was viewed with considerable suspicion. There seemed no urgent

reason why the refugees in question should return, for their excuses,

when challenged, were of the flimsiest character. However, they were

able to obtain a sum of money, which went towards their travelling

expenses.

I at once went to the proper authorities--with the usual result.

Officials "got busy" scribbling reports and writing polite

"acknowledgments," but nothing was done, and the priest and his

friends were allowed to cross to Flushing unmolested on January 5th.

But while it may be true that the main spy organisation has been

partially broken up--as Mr. McKenna would have us believe--it should

not be supposed, by any means, that the peril is at an end. Letters

can still be smuggled out of the country. To test this, I myself have

communicated with friends in Germany since the war by sending my

letters to Italy, where they were re-addressed, and replies have come

by the same means. Signals can, and are still, undoubtedly being made

to German submarines lying within easy distance of our East Coast.

And there can be no doubt that the stream of secret German gold, part

of the £720,000 a year, has, alas! done its work all too well in

inducing at least a few renegade Englishmen to betray their country.

This thought leaves a nasty taste in one's mouth, but there are

black sheep in all nations, and the black sheep of this kind are the

master-spy's most precious instruments. Very few of them, fortunately

or unfortunately, as we may choose to think, have been discovered; but

an example was made of one--the ex-naval gunner, Parrott--who, perhaps,

was one of the worst examples.

Much organising of the actual work of espionage in England is believed

to have been carried on by Count von der Schulenberg, who was recently

appointed Governor of Liége. A very interesting account of his clever

methods was published by the _Daily Mail_ soon after his appointment

was announced. Von der Schulenberg belongs to what is, unquestionably,

the most dangerous type of spy--the monied man of good family, of a

certain culture, enjoying the friendship of people in the better ranks

of life, and above all, able to plead many hobbies to account for his

presence in this country. We have many of a similar sort in our midst,

posing as naturalised persons.

It was in 1909 that Schulenberg--whom I met at the Hotel Cecil, where

I was living--first settled in England. He took a flat in Jermyn

Street, where he spent a considerable time, probably in the work of

familiarising himself with the ramifications of the German spy system

in this country. He became well known among the German colony in the

West End, and he was in the habit of spending considerable periods on

some mysterious errands; at any rate he often disappeared for days from

his favourite haunts.

About two years ago this Schulenberg left Jermyn Street--and the

Hotel Cecil, where he often came in to see his friends--and went to

live in Borough Green, Kent, a quiet village within easy reach of

Chatham Dockyard. Here he posed, of all things in the world, as a

poultry fancier! Here he spent a good deal of time, sparing no pains

to ingratiate himself with everybody in the district, and, to a great

extent, succeeding.

We next hear of him as a "breeder of bulldogs" in the little village of

Hemley-on-Deben, in Suffolk, not far from Harwich. This was about the

middle of 1913. The amusing part of his pose here is that it was quite

obvious to everyone that he knew nothing whatever about the subject

which he made his hobby! He was utterly ignorant of bulldogs, and

everything pertaining to them. However, they served as the excuse he

wanted to cover his real operations.

It is not thought that this Schulenberg did any actual spying; it is

more probable that he was merely an agent and a "cover" for the work of

others. That he may have been an organiser under Steinhauer is probable

enough, and it is known that he received visits from mysterious

Germans, to one of whom, in particular, he paid considerable deference.

After his departure, a very significant statement is said to have been

made by a young man who is now serving in our army at the front. This

man asserted that if he had been willing to do what von Schulenberg

asked him, he would, by this time, "have been a rich man, able to drive

his own motor-car." We can make a pretty good guess as to the class of

service that was sought.

Many other cases of a similar nature that have come to light make

it plain that Great Britain was systematically divided out into

territories, for the purpose of espionage, each territory having a

head spy, or agent, to whom all others under him were responsible, and

to whom they gave their reports for transmission to the headquarters

of the German spy system in Brussels. These cases are too numerous to

mention individually, and it will be sufficient to quote one as an

example, that of Captain X----, of Manchester.

The captain was originally arrested for having--needless to say he

was a German--travelled more than five miles from the city without

permission. When the case came on the magistrates took the view that

the offence was a mere oversight, and inflicted a small fine. Later,

however, certain facts came to light, and the captain was re-arrested

at the instance of the military authorities. Great importance was

attached to the case, as the authorities believed that through it they

would be able to lay their hands upon centres, not only in the North of

England, but also in London, through which the Germans were in receipt

of important information.

Captain X---- was a man of the type who have done excellent service for

Germany among the too trustful English. Of charming manners, apparently

a rich man, and very "English" in his ways, he was able to move in

good society, and numbered among his friends many prominent Manchester

people. But there was another side to his character of which his

Manchester friends were not aware.

One of his favourite haunts was a certain German club in the city. Here

he was seen almost nightly, and it was noticed that he seemed to have a

great friendship for certain hotel-waiters of German nationality, who,

like himself, were members. These club waiters, who evidently possessed

an amount of cash which is not common among men participating in the

"tronc," were constantly occupied with the captain in a private room.

They "did themselves well," and in course of time they attracted the

attention of certain Englishmen who were also members of the club. It

could not escape notice that German waiters were rather curious friends

for an apparently wealthy man moving in the best society in Manchester,

and there is only one explanation of their common activities. Of the

captain's ultimate fate I am ignorant, but we may assume that by this

time he is beyond the capacity of doing us further harm, at any rate

for a considerable time.

"_Place aux dames!_" Among the "master spies" of the Kaiser we must

certainly include a proportion of the fair sex--those women of lax

morals discussed in the Reichstag. And of all the perplexing problems

with which our authorities have had to deal of late, there is none more

difficult than that of women who have been acting as agents of German

espionage.

It is a popular jibe that a woman cannot keep a secret. Never was

a popular opinion worse founded. To the spy no quality is more

essential than the ability to hold his tongue--a casual word may be

enough to betray him under circumstances in which he might think

himself absolutely safe. And if some women, at any rate, could not be

trusted to set a very rigid seal on their lips, the Kaiser and other

spy-masters would be robbed of some of their most able and desperate

agents.

History has shown us that the woman-spy is, if anything, far more

dangerous than the man, once she gives herself heart and soul to

the business. And the reason is obvious: she brings to bear subtle

influences--especially if she is of the half-world--which are far

beyond the capacity of the male spy. More often than not, she simply

works on a man's passions, and there are endless cases of men who have

given away important secrets not for mere sordid motives, but through

the wiles of a pretty little woman by whom they have been temporarily

enslaved. The woman-spy, as a rule, must be possessed of great personal

charm of manner, and more than a share of good looks--often they

are minor actresses or ladies of no profession. They are, indeed,

the aristocrats of the spy profession, for they can work with good

prospects of success in cases where the ordinary lure of money would

be rejected with scorn, and, probably, personal violence if it were

proffered.

Now, it is absolutely foreign to the British character to take

any steps against women of whatever class unless there are very

clear grounds upon which to act. We may be quite sure that this

fact is fully recognised by the authorities at Potsdam. There are

to-day, in London--many around Piccadilly Circus, and practically

uncontrolled--hundreds of German women, clever and capable, who are

an unmistakable danger to our country. What to do with them is,

admittedly, not a problem easy of solution. We, as Britons, do not want

to inflict on women the unavoidable hardships of the concentration

camps if it can be avoided, but we certainly do want to protect

ourselves. The suggestion has been made that these women should be

compulsorily repatriated, and it seems as good a way of dealing with

the difficulty as any.

One of the most notorious of the German woman agents is believed to

have come over to this country immediately after the fall of Brussels.

She is said to be an exceedingly accomplished woman, very good-looking,

and widely travelled, and speaking seven languages. The Confidential

Department are to-day keeping her under observation. A woman of this

kind is especially dangerous owing to her ability to pass in any class

of society, and it is to be hoped that the Department has been able to

curtail her opportunities for mischief.

As I have, over and over again, stated in the course of these past few

years of Britain's slumber, the tremendous extent of the German spy

system cannot be over-estimated, nor can it be too strongly impressed

upon the public. Nothing is too large, or too small, for the net of

German espionage; no agent can be too highly, or too lowly, placed.

From the few chiefs who really control the dastardly work, designed

for our undoing, radiate channels which stretch into every department

of life, pouring in a constant stream of facts of greater or less

importance, but all having their proper place when correlated and

arranged by the keen brains in Berlin devoted to the work.

Never let it be forgotten that an apparently trivial incident may

be the key for which the spy is patiently seeking, and that even a

seemingly baseless rumour transmitted by the humble German, as the

result of eavesdropping during his employment, may set the master-brain

at work upon some matter of overwhelming importance.

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