CHAPTER II

SECRET SERVICE ORGANISATIONS, COMPARISONS, AND INCIDENTALS

ESPIONAGE IN PAST AGES--MODERN BRITISH SECRET SERVICE FOUNDED,

1910--POSSIBLE IMPROVEMENTS--COMPARISONS--JEALOUSIES OF BIG

DEPARTMENTS--EXAMPLES OF RECKLESS EXTRAVAGANCE--BUSINESS MEN

WANTED--ECONOMIES IN THE SECRET SERVICE--BUNGLING

INCOMPETENCE--IMPASSIVENESS OF THE FOREIGN OFFICE--GERMAN WAR

METHODS--FRENCH AND DUTCH SECRET SERVICE--MILITARY INTELLIGENCE,

B.C.--RISE AND DEVELOPMENT OF GERMAN SECRET SERVICE--THE EFFICIENCY

OF SCOTLAND YARD--DETAILS OF GERMAN FOREIGN PROPAGANDA AND

EXPENDITURE--BRITISH SECRET SERVICE, ITS COST AND

FRUGALITIES--MAJOR HENRI LE CARON--NATHAN HALE--SIMILITUDE OF THE

LIFE OF A SECRET SERVICE AGENT.

Not until the reign of Henry VII. and the days of the great Cardinal

Wolsey do we hear speak of organised systems of Secret Service. Cromwell

encouraged the department, whilst Charles II. seems to have arranged

grants for its continuance equivalent to £500,000 per annum. Pitt was a

firm supporter of the service, and Canning is said to have paid £20,000

for the treaty of Tilsit.

In earlier times, British Intelligence Agents were attached to the

Chancelleries of our Ministers abroad, as is the case to-day with nearly

every nation, except our own. Remuneration was given commensurate with

the risks and service. But from the 'sixties the pay diminished and the

department faded away from being an asset of much general valuable

utility.

The present British Secret Service Department was founded about 1910 by

an officer, a man of untiring energy, pluck, and perseverance, who has

rendered noble service and willing sacrifice. Since its initiation this

department seems to have been harassed, attacked, and shot at by petty

jealousies, which, during the agony of the crisis of war were ignoble

and contemptible in the extreme. An observer behind the scenes can

therefore admire the more the men who ignored this and worked on,

unheeding all, with but a single thought, and that the welfare of their

King and Country.

England never seems to have had any real organisation for Secret Service

propaganda which can compare in thoroughness with the German effort. It

has had no schools of instruction, nor does it send its members to

specialise in any particular branch. It is an unwritten rule of the

department that a naval or a military officer must be at the head of

every branch or sub-division of any importance; and the service of

civilians or of those from other professions than the Navy and the Army

is neither sought nor welcomed, however capable or however clever the

persons available may be. The exceptional civilian is soon made to feel

this. Whether the idea is to instil discipline, or to impress upon the

newcomer the superiority and importance of the right to wear a uniform,

it is difficult to imagine. The main work of the department, however, is

on a par with the collection of evidence, the unravelling of secret

mysteries, and the study and handling of character--which any man of the

world would have probably at once concluded was more fitted to the

controlling influence of experienced Criminal and Commercial

Investigators rather than to long-service officers who have been

strapped to their stool by strict disciplinary red-tapeism from their

teens upwards. Admitted that officers must be at the top of the Service

to direct the information required, and to deal with it when obtained,

nevertheless for the direction and control of ways and means of its

attainment, the financial part, both inside and out, the selection of

the executive staff, the tabulation of facts collected, and

correspondence, a member of the Government of some standing and with

experience of this class of work should be commissioned as special

Minister in full control of the department; because its importance to

the State cannot be overstated or exaggerated.

Not only should this department have, as near its chief as possible, a

man who has had an extensive experience of active criminal and

commercial affairs, but he should also, if possible, be one who has

specially qualified himself in the commercial world as a _thoroughly

efficient business man_.

It may perhaps be added that it is by no means the only Government

department which has suffered acutely for want of an efficient business

man on its directorate.

So far as office work is concerned, a Service officer may understand

book routine and discipline, but when it comes to rock-bottom business

this war has produced overwhelming proof that a Service officer is lost

against an efficient business man. Speaking broadly, the former has no

idea of the general value of things, or of the worldly side of the

business world. How can it be expected of him? He is trained, specially

trained, in his profession, which has naught to do with the struggle of

the money-makers. He is not accustomed to rub shoulders with the man in

the street, whilst there are thousands of minor details which he would

probably ignore when brought to his notice, but which a business man

would recognise as floating thistledown showing the direction of the

wind. The business man knows that a knowledge of his fellow-man is the

most valuable knowledge in the world. He is not saddled with fastidious,

obsolete forms of etiquette, the waiting for the due observance of which

has cost millions of pounds sterling and thousands of much more valuable

lives. He is not tied down to the cut-and-dried book routine, probably

unrevised for years, which it is an impossibility to keep thoroughly

up-to-date.

He is not afraid of the wrath of his immediate superior officers, which,

unless being an officer himself he could modify or smooth it over, might

put on the shelf for ever all chance of his future success in life. He

is not shackled with incompetents whom he dared not report or remove

because they hold indirect influences which might be moved to his

disadvantage. He is not hampered by the importunities of

brother-officers who are pushed at him continually by place-seekers, or

by feared or favoured ones. He is not handicapped by the jealous spite

of machination of other departments, because an efficient business man

will have none of this from anyone, whether above or below him. Should

it arise, he eradicates it root and branch at first sight, which an

ordinary Service officer is generally utterly powerless to do; nor dare

he dream of its accomplishment.

It is the existence of this terrible canker-worm of jealousy, false

pride, petty spite, or absurd etiquette, which in the past has gnawed

into the very vitals of our glorious Services, sapping away much of

their efficiency and undermining future unity, which always tends to

turn victories into defeats or colossal disasters. It is devoutly to be

hoped that this world-war will level up the masses and kill and for ever

crush out of our midst this hydra-headed microbe, the greatest danger of

which is that on the surface it is invisible.

Members of the Secret Service knew all along that the War Office and the

Admiralty were like oil and water, because they would not or could not

mix.[5] If one required anything of importance from the War Office it

might have blighted the hopes of success to have blurted out that one

came from, or was a member of, the Admiralty, and _vice versâ_. These

two mighty departments never seemed to work in harmonious unity. Hence,

whenever Jim had business at the War Office he advisedly concealed that

he had any interest in the Admiralty; and whenever he was at the

Admiralty he denied all connection with the War Office. It saved so much

friction and avoided so much unnecessary formality, trouble, and delay.

That this friction was bad for the country, detrimental to the

shortening of the war, and most expensive to the taxpayer, goes without

saying; but perhaps the fault lay with our system, which permits so many

men over sixty years of age to remain in, or to be suddenly placed into

positions of such terrible responsibility and such colossal and

continual accumulation of work; men who hitherto had had a slack time

and who perhaps had hardly ever been contradicted or denied in their

lives; men who constantly demonstrated to those around them that their

dignity and self-importance must be admitted and put before almost every

other consideration; men who ought to have taken honorary positions and

not for a single hour kept from the chair of office more efficient and

younger officers; men who knew only the old routine, who were long past

their prime, and who were consistent upholders of the greatest curse

that ever cursed our island Kingdom--the Red-tapeism of the

Circumlocution Office.

Volumes could be filled with examples of the pernicious results arising

because this country has not adopted modern and up-to-date methods.

Volumes could be written to prove the reckless waste and extravagance

that has been allowed to run wild and caused by our not providing for a

department having a Minister of Conservation and Economy. Volumes could

be written to prove that if jealousies could be stamped out, false

dignity crushed, and red-tapeism abolished, our nation would rise far

above the heads of all other nations in the world, and our taxpayers'

burdens, both now and in the future, would be materially reduced.

Although thousands of examples could be given it is submitted that for a

book of this description an example from two or three departments should

be sufficient to illustrate the argument.

FROM THE ADMIRALTY.

Some time in the autumn of 1915, two fields were acquired by the

Admiralty at Bacton, on the Norfolk coast, for use as an aviation

ground. In order to give a sufficiently large unbroken and even surface

for aeroplanes, it was deemed necessary to level a hedge-bank of

considerable length, dividing the fields in question.

Within a few miles of these fields were stationed a thousand soldiers,

who were chafing at and weary with the monotony of their daily routine,

an unvaried one for over a year. The majority of these men would have

welcomed the acceptance of such a task as this. But follow the events

which happened, and it is proved convincingly that some silly,

ridiculous reason prevented any approach, by those who sit in Chairs at

the Admiralty to those who sit in Chairs at the War Office, to utilise

this unemployed labour, or to save the nation's pocket in so simple a

matter.

The expenditure of money seemed to be of no consideration whatsoever,

although the House of Commons was at this particular period shrieking

for economy in others, which they were quite unwilling to commence

themselves; whilst the Prime Minister (Mr. Asquith) addressed a great

economy speech to the massed delegates representing 4,000,000 organised

workers at Westminster on December 1st, 1915. So a contract was offered

and entered into with a civilian to do the work. Owing to Lord Derby's

scare-scheme system of recruiting instead of National Service (which

ought to have been enforced immediately after the Boer War, as pressed

by Lord Roberts and others), the unlucky contractor lost most of his

young men and was quite unable to get more than a very few old men who

were past the age of strenuous labour. His job progressed so slowly that

the Admiralty realised the work might not be finished for months and

months to come if permitted to continue on the then present line.

What was it that prevented the Admiralty, on this second occasion of

necessity, from approaching the War Office, or even one of the officers

in command of the thousands and thousands of troops stationed in

Norfolk, a few of whom could and would gladly have completed the work in

a few hours without a penny extra expense to the country?

Instead of incurring any possible suspicion of an obligation from the

War Office, an appeal was made to the newly-formed City of Norwich

Volunteers for their men to put down their names for this work. That

loyal, energetic, and patriotic body of Englishmen, which was drawn

from all ranks of society, although working at their various vocations

all the week, immediately acquiesced, without stopping to reason why,

and agreed to go to Bacton the next ensuing Sunday.

The distance from Norwich to Bacton is twenty miles, but the nearest

station is about three miles from the fields in question.

By reason of the War Office having taken over control of the railways,

these men could, by a simple request from the Admiralty to the War

Office, have been provided with free travelling passes. They had

expressed their willingness to walk the remaining three miles of the

journey, do the work gratuitously (although quite unaccustomed to any

such rough manual labour), find their own rations, and walk the return

three miles to the station afterwards. Such, however, was not

acceptable, nor permitted.

At North Walsham, five miles from the aerodrome site, at least a

thousand troops were stationed. They were provided with motor vehicles

capable of travelling thirty miles per hour. A few of these vehicles

could have carried the whole party from North Walsham station to the

fields in under half an hour; or they could have fetched them from

Norwich in about an hour. But no; such an arrangement might incur the

obligation of a request and a compliance.

_So the Admiralty arranged to send some of their own motor lorries from

Portsmouth to Norwich in order to convey this small party of civilian

volunteer-workers twenty-one miles to the job_.

It was said that five lorries were ordered, but only three were sent.

They were of the large size, extra heavy type, which cannot, with

general convenience, travel at a speed beyond ten miles an hour--if so

fast; whilst their petrol consumption might be estimated at about a

gallon per hour. They arrived at Norwich on Sunday morning November

28th, 1915, apparently after several days on the road. They took part of

the small party of enthusiasts to Bacton, who worked all through the

Sabbath; whilst other Admiralty motor-cars were ordered specially over

from Newmarket which took the remainder of the party to and from the

job.

The three lorries avoided London, thus the full journey of each must

have approximated 500 miles.

Consider: the running expenses of a private two-ton motor-car would not

be less than a shilling a mile; compare the petrol, oil consumption, and

wear and tear. It is thus not difficult to estimate this absurdly

unnecessary and recklessly extravagant waste of the taxpayers' money;

and all because of some ridiculous personal prejudices, or of the sacred

cause of red-tapeism; or the possible touching of some false sentiments

of dignity or hollow pride, assumed by those who sit on Chairs on one

side or the other of Whitehall, and who direct the details of war

expenditure.

FROM THE WAR OFFICE.

Every Englishman must deeply regret the memory of countless examples of

reckless waste, incompetent management, and riotous extravagance which

particularly marked the first two years of the war; and which, alas,

appeared much more flagrantly in connection with the Army than with the

Navy.

During the progress of the war groans arose in this strain from every

county. The Yorkshire £10 to £15 tent-pegs case, as recorded in the

Press, December 18th, 1915, was never denied.

A motor trolley accidentally smashed about half a score of tent-pegs at

---- camp. Instead of replacing them at the cost of half a crown or

less, the C.O. ruled that a report must be drawn up and submitted to the

War Office requesting a new supply of pegs. In due course the answer

arrived saying: "Loose pegs could not be sent, as they were only

supplied with new tents, but a new tent would be sent, value £150, _with

the usual quantity of pegs_." Which course in all seriousness was

actually adopted.

* * * * *

In June, 1916, a chimney at a Drill Hall in the town of Lowestoft on the

east coast required sweeping, and an orderly suggested to the

commanding officer that he should employ a local man residing a few

doors away, who offered to undertake the job efficiently at the modest

outlay of 1s. But the commanding officer was shackled body and soul in

red-tape bonds. Following his duty he reported the matter to

headquarters. Further particulars were required and given and in the

course of a few days the army chimney-sweep arrived, did the work and

departed. _He came from and returned to Birmingham_, and stated that his

contract price was 10d. The third-class return fare from Birmingham is

26s. 7d. It probably meant two days occupied at an expense which could

not have been much less than 30s. A total of £2 16s. 7d., plus payment,

postages, paper and possible extras, to _save 2d._ and to do a local man

out of a 1s. job in a town admittedly ruined by the unfortunate

exigencies of the war!

FROM THE HOME OFFICE.

The Leicester correspondent of the _Shoe and Leather Record_, wrote on

February 25th, 1916:

"The Government have intimated, through the medium of the usual official

document, that they are willing to receive tenders for twenty-four emery

pads, the total value of which would be one shilling and four pence. The

tender forms are marked 'very urgent' and firms tendering are warned

that inability of the railway companies to carry the goods will not

relieve contractors of responsibility for non-delivery.

"The goods are presumably intended for the Army boot-repairing depôts,

but in view of the admitted 'urgency' it will, I think, strike most

business men as strange that there is not an official connected with

this branch of the service possessing sufficient authority to give the

office boy sixteen pence with instructions to go and fetch the goods

from the nearest grindery shop.

"Up to the time of writing I have not heard which local firm has been

fortunate enough to secure this 'contract.'"

* * * * *

After this gigantic tussle of titanic races is over and the bill of

costs has to be met, perhaps the nation will realise the cry, that for

some years past has been lost like a voice crying in the wilderness--_We

want business men_: business men in all Government departments which

have to handle business matters. England's colossal financial

liabilities, pyramided up during recent years, are practically all

traceable to her lack of efficient business men in her business

departments.

In the Navy, in the Army, in the Transport, in the supplies, and

throughout, let the head of each department be chosen from a member of

its body, if believed best so to do; but let the business side thereof

be presided over by an efficient and fully-qualified business man--a man

who knows the purchasing power of a pound; more important still, who

knows how hard it is to earn one. The men entrusted with such

responsible positions should have full responsibility placed upon their

shoulders; they should be highly paid and they should be free to act

without being tied down by the fetters of "the book," by red-tape

precedents, and by the counter-consents of so many others who in nine

cases out of ten are men of no previous business training nor

qualification concerning the majority of details which they are called

upon to handle.

Recent Army and Naval administration, as the public have seen, requires

little further comment here. The hundreds of thousands of pounds

absolutely squandered in surplus rations, billeting, pay, and transport,

etc., should have impressed the minds of observers in a manner that this

generation is never likely to forget. A business man in each department,

with a free hand to economise and arrange its details, in a

business-like way, would have saved the country the salaries paid to

them ten thousand times over, with a gigantic surplus to spare.

The British Intelligence Department probably suffered least of any in

this respect. Its actual managing chief never wasted a shilling where he

could personally see a way of saving it. To my knowledge he never

overpaid anyone, whilst he was not at all adverse to using the

persuasive argument of patriotism, in order to get a mass of useful work

done for nothing at all. To quote an instance. It was the case of a man

who, at his country's call, had sacrificed an income of considerably

over £1,000 per annum, together with all his home and business

interests, and who in the chief's absence had accepted a thankless and a

dangerous task on the active foreign executive at a remuneration less

than he had been paying a confidential clerk.

The chief on his return to office did not hesitate to ask him to waive

altogether his remuneration, and to pay out of his own pocket

twenty-five per cent. of his personal travelling expenses in addition!

Loyally he agreed, and for months he thus served, although those in

authority above him showed no sign of appreciation or gratitude

afterwards for the sacrifice.

If other Government departments were half as careful over their

expenditure as the Secret Service, the British public would not have

much cause to find fault nor even to grumble. But what hampered its

efficiency, and was neither fair, nor politic, nor economic, was the

policy of the Foreign Office, which permitted others, in no way

whatsoever connected with the Service, or with the Intelligence, to

interfere (during 1914 and 1915) with its work and with members of its

executive both at home and abroad. This was not the worst of it. Not

only was the organisation of a whole and important branch of the

department on two occasions brought to a complete standstill, owing to

the interference of one vainly conceited incompetent who had collected a

string of high-sounding qualifications behind his name, but he caused

money to be scattered in thousands where hundreds, and probably tens, or

a little judicious entertaining, would have been more than sufficient.

If these monies were debited to the Secret Service Department, such a

wrong ought to be righted. In due course the colossal indiscretions of

this interfering bungler involved matters in such a dangerous tangle

that he apparently lost his head, and for a period of time was quite

inaccessible for business. On recovery he coolly announced that he

should wash his hands entirely of all Secret Service affairs. Imagine

the feelings of the patient chiefs of the Foreign Secret Service

Department. They had silently sat for months watching the efforts of

their captured staff hampered at every turn whilst they were

persistently building up a sound, practical, useful organisation, which

a fool and his folly overturned, like a house of cards, in one day. They

had been actually stopped from controlling the movements of their own

men, yet they were responsible for their pay and their expenses; whilst

possibly they had had a heavy load of extravagant outside expenditure

heaped upon their department without any equivalent advantage. They had

been compelled to endure this indignity, because, as Service officers,

they dared not, for the sake of their then present position and possibly

their future, openly remonstrate or criticise, or even report the bare

facts concerning the all-too-palpable incompetence of this somewhat

Powerful Gentleman who had insisted on poking his officious and

inefficacious nose into a department which did not concern him, and the

existence of which it was his loyal duty to ignore.

Without a word of complaint (except to members of his executive, to whom

his language was as emphatic as it was sultry), our good old managing

chief set to work afresh. Within a couple of months he had straightened

out the line, when, to the astonishment of all concerned, the old enemy

appeared once more upon the scene. Moved either by jealousy, or by

vindictive spite at the success which followed where he had failed, he

again attacked the department by hitting at individual members of its

actively working executive! Remember, England was at war at the time;

thus a more unpatriotic action could hardly have been conceived. Yet the

Foreign Office, although impressively advised of the wrong-doing and the

probable consequences, either dared not or would not trouble itself to

investigate the details of the matter.

Yes, verily, my friends, _suppressio veri_ has much to answer for. It is

well for some of those who sit in high offices that a rigid censorship

and secrecy was maintained throughout the war; or the very walls of

England might have arisen in fierce mutiny.

Mr. Le Queux touches the point in his book on "German Spies in England,"

page 92:

"We want no more attempts to gag the Press, no evasive speeches in the

House, no more pandering to the foreign financier, or bestowing upon him

Birthday Honours: no more kid-gloved legislation for our monied enemies

whose sons, in some cases, are fighting against us, but sturdy, honest,

and deliberate action--the action with the iron hand of justice in the

interests of our own beloved Empire."

Whilst Burnod--"Maxims de Guerre de Napoléon"--quotes: "It is the

persons who would deceive the people and exploit them for their own

profit that are keeping them in ignorance."

Napoleon's greatness was achieved by employing only the best men

obtainable for positions of the highest responsibility. His most

important officer in the Secret Service Department seems to have been a

German, by name Karl Schulmiester, who drew the princely salary of

£20,000 per annum. Proved efficiency was the little Corsican's only

passport.

Germany has learnt well from this lesson. Soldiers, sailors, and

business men waged her war. Not a lawyer or professional politician took

part in it except in the trenches. Germany entrusted the administration

of her affairs to experts. Blue blood, patronage, and reputation carried

neither weight nor meaning. It was ruthless, but it was business--it was

war. The magic of a great military name did not save Lieutenant-General

Helmuth von Moltke from dismissal from the Head of the German staff when

the Kaiser was convinced of his inefficiency. Vice-Admiral von Engenohl,

Commander-in-Chief of the High Canal Fleet, had to retire in favour of

Admiral von Pohl owing to failures; whilst the septuagenarian father of

bureaucrats, Dr. Kuhn, had to vacate finance in order to make way for

the professional banker, Dr. Helfferich, who although quite unknown to

distinction was appointed Chancellor of the Imperial Exchequer.

From the very commencement, Germany appointed experts over each

department of her colossal war machine--_expert business men_. Every

solitary industry which has aught to do with war-making was linked up

with the Government. By way of example there was a Cotton Council, a

Coal Advisory Board, a Motor and Rubber Committee, a Chemical Committee,

etc., etc.

That able journalist, Mr. F. W. Wile, has proved again and again by his

articles that war is and always has been a scientific business with

Germany. He argues that there is nothing hyperphysical or mysterious

about the successes she achieved. They were essentially material. German

soldiers are not supermen, or as individual warriors the equal to those

of many other nations. Their victories have been due to a chain of very

obvious and systematic circumstances: to organisation, strict

discipline, thoroughness, and far-sighted expert management; in other

words, making a business of their business and employing therein only

business men who know the business.

Apologising for this partial digression from the main subject matter,

the French Secret Service of modern times has been principally conducted

on the Dossier principle, which came to light in the Dreyfus affair. In

the present war this system has seemingly been of little practical

value, and France has had to depend almost entirely upon her Allies for

foreign intelligence work. Eighteen months after the war commenced her

foreign Secret Service department was said to have practically closed

down for want of finances, so far as the north of Europe was concerned.

Harking back to before the South African War, we find that Paul Kruger,

the late President of the South African Republic, was a great believer

in an efficient up-to-date Secret Service department, and vast sums were

expended by him with little, if any, inquiry or vouching. Messrs. D.

Blackburn and Captain W. Waithman Caddell, in their book on "Secret

Service in South Africa," record how Tjaard Kruger, a son of the

President of the Transvaal Republic, who was for a short time Chief of

the Secret Service Bureau, paid £2,800 in one afternoon in 1906, out of

the many thousands of pounds in gold coinage which he always kept in his

office, to casual callers only, to men who came accredited by some

person in authority as being able to supply valuable information.

Tjaard Kruger was succeeded in office by a most clever and interesting

celebrity, Dr. Leyds, Secretary of State, who was the only man who made

the department a success. He showed the unfailing tact of the born

diplomat. He was a great reader of character and formed a pretty

accurate estimate of a person in a surprisingly short time. He conducted

his affairs so delicately and diplomatically that he won universal

esteem and the staunchest and most loyal adherents. He would hand over

disagreeable work to a subordinate so gracefully that it gave the

impression that he was relegating the work, not because it irked him,

but because he had found a man more capable than himself--the man whom

he had long sought.

Dr. Leyds' letters of instructions to his agents were clear, precise,

and exacting, and provided for every possible contingency; yet had they

fallen into the hands of the unauthorised they would have conveyed

little. These letters bespoke the diplomat. They would have come safely

out of an investigation by a committee of suspicious spy-hunters.

When he required to "draw" any person he would instruct his agents to

ascertain carefully that person's tastes, habits, prejudices, and

amusements. These he would study to the minutest trifle, and by skilful

play upon a weakness, or by the evidence of a similar taste, he would

successfully penetrate to the most exclusive and jealously guarded

sanctum sanctorum.

Mr. Hamil Grant is an author who may be congratulated upon his

carefully-compiled work, entitled, "Spies and Secret Service," which

contains the history of espionage from earliest times to the present

day. He shows how the practice was used by Joshua, David, Absalom, and

the mighty warriors whose deeds of valour are recorded in the Old

Testament. He quotes Alexander Mithridates, the King of Pontus, who

made himself the master of twenty-five languages and spent seven years

wandering through countries he subsequently fought and vanquished. He

traces developments from Alexander the Great, who lived 300 years before

Christ and was the first known to start secret post censorship; from

Hannibal, who could never have crossed from Andalusia over the Pyrenees

and the Alps into the plains of Piedmont to fight the battle of Trebia

(218 B.C.) without the assistance he received from the intelligence

scouts who preceded him. He points out how Cæsar and the great generals

who conquered Europe invariably used scouts and intelligence agents. He

quotes Napoleon's admission of indebtedness to Polyænus for original

strategic ideas of espionage; whilst he has much to say in proving that

no war of either ancient or modern times was successful without it.

His most interesting chapters are those dealing with the rise of the

Prussian empire, which he claims to have been built almost entirely upon

such an unenviable foundation. The author has taken the liberty of

quoting somewhat numerous extracts as follows:

"The Modern System of espionage seems to have been originally

conceived by Frederick the Great of Prussia and subsequently

elaborated into a kind of National Philosophy by writers like

Nietzsche, Treitschke and Bernhardi. But a nation which is ruled as

if it were a country of convicts actual or potential cannot fail

inevitably to develop in a pronounced degree those symptoms of

character and predisposition which land its converts in the

correction institutions where they are most commonly to be found.

"Baron Stein, a well-known statesman of the Napoleonic period, was

responsible for the practical application of the theories in the

philosophy of Frederick the Great. He was followed by the

celebrated Dr. Stieber, who had the handling of millions of pounds

at his discretion and whose character had all those elements which

were associated with the criminal who operates along the higher

lines. He was a barrister, born in Prussia in 1818, and he first

curried favour with the officials by persuading his friends and

relations to enter into illegal acts in order that he might betray

them for his own advantage. The German word _stieber_ seems

appropriate; in our language it means sleuth-hound. In appearance

he represented an inquisitor of old. His eyes were almost white and

colourless, whilst there were hard drawn lines about his mouth.

With subordinates he adopted the loud airs of a master towards

slaves. In the presence of high authorities he was self-abasing and

subdued, with a smile of deferential oiliness and acquiescence,

with much rubbing of hands.

"He seemed to have commenced Secret Service work with a standing

salary of £1,200 a year, in addition to which he received side

emoluments. He organised an internal and external service with

complete independence from all other official bodies, subsidised by

full and adequate appropriations from Parliament. His system was

thorough. He commenced by spying into the privacies of the Royal

family and Court and Government officials, Army and Naval officers,

and everybody of the slightest importance, down to the labourers'

and the workmen's organisations. In a very few years his nominal

salary had risen to £18,000, but about 1863, in spite of his having

been honoured with every German decoration conceivable, he was for

a couple of years suspended from office, during which period he

organised the Russian Secret Police.

"With Stieber's assistance, Bismarck struck down Denmark in 1864,

Austria in 1866, and France in 1870. Even Moltke, the great

Prussian organiser of victory, was astonished and astounded at the

vast amount of valuable military information by which Stieber had

facilitated the rapid advance of his armies.

"As a preliminary journey into France in 1867, Stieber appointed

1,000 spies, within the invasion zone, with head centres at

Brussels, Lausanne, and Geneva; and on his return he handed over to

Bismarck some 1,650 reports which contained full military and

original maps of the French frontiers and the invasion zone. Year

by year this army of spies was increased, until in 1870 Stieber

had between 30,000 and 40,000 on his pay-roll.

"In 1867 an attempt was made on the life of Alexander the Second of

Russia when on a visit to Paris in order to create a closer

Franco-Russian Alliance, which dastardly act was planned by Stieber

in order to be frustrated by him. When the assassin was tried for

his life the jury were bought by Prussian gold to acquit the

accused in order that the two nations could be kept apart and the

object of the journey thereby frustrated, but whether it was the

fertile brain of Bismarck or Stieber who planned the scheme of the

plot will never be known.

"In 1870 Stieber boasted that he controlled the opinions of some

eighty-five writers in the French daily and weekly newspapers,

furthermore that he had paid sympathisers on the Austrian, Italian,

and English Press in addition.

"By 1880 Stieber and Prince Bismarck had extended their organised

system materially as well as personally, which can be seen in the

present day network of railway lines and stations controlled solely

for militarist uses rather than for the development of the country;

whilst the funds demanded yearly from the Reichstag for Secret

Service work increased proportionately.

"No one but a native of Prussia was allowed to hold any responsible

position in Prussia, yet in 1884 there were 15,000 Germans or

semi-foreigners serving on the French railways, all of them more or

less in the employ of the German Espionage Bureau and prepared to

destroy the plant, the lines, the buildings, and to paralyse French

mobilisation at the word of command.

"In addition to this, Stieber's plans embraced upheavals in all

industrial classes.

"It was German gold which instigated and carried through the

Dreyfus agitation, also the Association Bill which brought about

the disestablishment of the Church of France and the so-called

Agadir incident in the spring of 1911, which coincided so

remarkably with the devastating strikes in Great Britain.

"It is a cry of the Fatherland that every good citizen is required

to pay taxes, build barracks, and shut his mouth.

"The recent agitations in Ireland and practically all the strikes

in England have been indirectly supported by German gold; to which

the circulation of the extraordinary manifesto in August, 1914, was

also directly traceable. £4,000 was used for the purposes of the

French Railway Strike of 1893; in the same year a local

subscription of £48 was raised for a bootmakers' strike at Amiens,

whilst an alleged sympathetic £1,000 was sent from Frankfort.

"The English suffragettes are also said to have received thousands

of pounds from unknown sources which in reality were German.

"Stieber died in 1892, possessed of over £100,000.

"As a part of his deep-rooted policy multitudes of Germans were

sent to France, England, and elsewhere to establish small

businesses, practically every one of which was subsidised by the

German Secret Service Office; as also were German clerks and others

who could obtain positions giving access to information of any

value. Stieberism practically demoralised the entire German nation,

whilst it inoculated its poison into other European countries in

such a manner that their energies and sound judgment seem to have

been paralysed in more ways than one.

"Stieberists follow the same creed as Jesuits, 'All is justifiable

in the interests of the future of the Fatherland.'

"Major Steinhauer succeeded Stieber, and the present Secret Service

Bureau of Berlin was in his hands when this war started. He also

was a past master in the art of organisation. The entry into

Brussels of 700,000 men without inconvenience or mishap was

practically entirely due to his organisation. Over 8,000 spies had

been placed on the various routes between Aix-la-Chapelle and Saint

Quentin, whilst those in the Belgian capital had some two or three

years previously actually worked out on paper the billets and

lodgings for all those troops in advance.[6]

"The ordinary German Secret Service agent started with a salary of

£200 a year and 10s. a day expenses, with a bonus for each job to

an unlimited amount. Whilst abroad or on any matter of delicacy,

out-of-pocket allowances were increased to £2 a day, but 33% of all

current monies owing was kept back as a safety-valve until he left

the service.

"Amongst the members were to be found Princes, Dukes, Counts,

Barons, Lawyers, Clergymen, Doctors, Actresses, Actors, Mondaines,

Demi-Mondaines, Journalists, Authors, Money-lenders, Jockeys,

Printers, Waiters, Porters; practically every class of society was

represented.

"The remuneration cannot be considered high when compared with the

dangers undertaken, and since no official countenance was ever

given (nor indeed expected) on the part of the agents once one of

them fell into the hands of the enemy, the game was far from being

worth the worry and strain it entailed.

"The training and examination before efficiency was reached were

far more difficult than our cadets would have to pass at Woolwich

or Sandhurst, or even officers for a staff college appointment."

The head offices of the German Secret Service Department, which was

presided over by the Kaiser himself, were situated in Berlin at

Koenigergratzerstrasse No. 70. So far as callers were concerned the same

routine was followed as at our War Office and Admiralty: the portals

were guarded by commissionaires who kept records of every visitor, with

such particulars as they could gather. Army or Naval officers were in

charge of all departments. They planned the work, but they never or very

rarely executed it. The secretaries and general assistants were all

civilians. No Ambassadors, Ministers, secretaries of legation, envoys,

plenipotentiaries, consuls, or recognised officials were permitted to

interfere in any way with the work of this department, although they

undoubtedly gave it every material assistance whenever they could.

History has clearly proved this. No jealousies or acts of favouritism to

relatives and the nominees of indirect influences were countenanced.

For such an offence the very highest in office would at once be deposed

and punished, whilst there was no appeal to a Parliament, Congress,

Chamber of Deputies, or political newspapers, against the Kaiser's

decision. He was not only the supreme head of what he himself described

as "My army of spies scattered over Great Britain and France, as it is

over North and South America, as well as the other parts of the world,

where German interests may come to a clash with a foreign power," but he

took a very keen interest in their individual work. Efficiency and

obedience only counted in his estimation.

The persons selected for this work were specially trained in preparation

for the prospective tasks ahead of them. For days, weeks, and months, as

the case may be, they were grounded in topography, trigonometry,

mechanics, army and naval work; with a mass of detail which might be of

service, possibly when least expected. Their studies embraced visits to

the big Government construction works and yards; they were made familiar

with all necessary knowledge concerning war-ships, submarines,

torpedoes, aircraft, guns and fortifications; silhouettes of vessels;

uniforms of officers; secret surveys of interesting districts; signals,

codes, telegraphs and multitudinous other matters which the

thorough-going German considered absolutely essential to the training of

an efficient Secret Service agent.

Mr. Le Queux, to whom all honour is due for his persistent and patriotic

efforts in unmasking German spies, their systems and organisations in

this country, corroborates Mr. Hamil in recording that the German Secret

Service dates back to about 1850, when an obscure Saxon named Stieber

began the espionage of revolutionary socialists, from which original

effort the present department originated. Also that the work was

fostered under the royal patronage of Frederick William, the King of

Prussia, which guarded it against anti-counter plotting from both

militarism and police, and which permitted it to grow and flourish until

it ultimately became the most powerful and feared department of the

State. In August, 1914, with an income approximating £750,000 per

annum, the agents of the German Secret Service extended all over the

world, organised to perfection as are the veins and arteries

perambulating the flesh and tissues of a man's body.

Herr Stieber's present-day successor, Herr Steinhauer, also seemed to

enjoy the full confidence of His Majesty the Kaiser. He was then between

forty and fifty years of age, charming in manners, excellent in

education and of good presence. This officer of the Prussian Guard is

well known throughout the capitals of Europe. He has collected

information concerning every foreign land which is almost incredible. He

had maps of the British Isles which in minute detail and accuracy

surpass our own Ordnance Survey. The Norwegian fiords were better known

to German navigation lieutenants than to the native pilots and fishermen

who daily use them. These are facts which practical experts in many

countries have seen put to successful tests since the world-war started.

For some years Mr. Le Queux made it his hobby to follow up the movements

of German spies in England. He collected information of value and

importance which he says he placed in the hands of our Government

officials, but that our Government departments were so hopelessly bound

up and entangled by red-tapeism that for years his communications and

warnings fell upon ears that would not listen, eyes that would not see,

brains that would not believe, and hands that would not act.

The late Lord Roberts, who devoted his life to his country, referred to

this in the House of Lords some ten years before the present war, but

the Liberal and Radical politicians scoffed and laughed at him; as they

did when he urged other reforms so sound, so urgent, and so necessary

for our very existence. Now prayers are offered for the dead who never

would have died had these warnings been accepted in time.

German espionage in England has been worked from Brussels, the chief

bureau being situate in the Montagne de la Coeur; whilst Ostend and

Boulogne were favoured rendezvous for those engaged in the work and the

go-betweens.

Large English towns and counties were divided into groups or sections.

In each were selected numerous acting agents who received small

periodical payments for services rendered. Such sections acted under the

supervision of a Secret Service agent, the whole system being visited

from time to time by agents higher up in the service, who paid over all

monies in cash, collected reports, and gave further instructions. The

favourite cloak or guise to conceal identity was usually that of a

commercial traveller.

It is a great pity that full reports of various trials of German spies

captured in England have not been permitted to be made public in the

Press, passing, of course, under a reasonable censorship which would

have deleted only such parts as referred to matters affecting the safety

of the realm. The scales would then perhaps have fallen from the eyes of

our fatuous and blinded public. And many another secret enemy who was,

or had been, working throughout the war, would have been reported and

laid by the heels; as well as many a noble life spared which has fallen

through such short-sighted folly.

If the public are under the impression that the great round-up of over

14,000 German, Austrian, and foreign spies so actively at work in

England at the outbreak of war, and within a few weeks thereof, was due

to our Secret Service Department, it is labouring under a great

delusion. The credit for this exceedingly valuable work is due to the

energy, zeal, and intelligence of Scotland Yard, backed up by thoroughly

efficient police officers throughout the country, which force is without

doubt the finest in the world.

Our censorships are also separate departments run on their own lines and

quite apart from any direct control from the Secret Service.

On January 7th, 1916, Mr. J. L. Balderston, the special correspondent of

the _Pittsburg Despatch_, U.S.A., published data he had collected in

Europe showing that German propaganda had been carried on with feverish

energy in eighteen neutral countries, two of which had been won over at

a cost of £19,000,000, and one lost after a vain expenditure of

£10,000,000. During the first eighteen months of war, Germany had spent

no less than £72,600,000 to foster intimidation, persuasion, and

bribery, in conjunction with her colossal Secret Service system.

The following extract gives the estimated expenditure in each country

where German agents were at work:

United States £15,000,000

Turkey 14,000,000

Italy 10,000,000

Bulgaria 5,000,000

Greece 4,000,000

China 4,000,000

Sweden 3,000,000

Roumania 3,000,000

Persia 3,000,000

Spain 3,000,000

Holland 2,000,000

Norway 1,600,000

Denmark 1,000,000

Switzerland 1,000,000

Argentine 1,000,000

Brazil 1,000,000

Chili 600,000

Peru 400,000

-----------

Total £72,600,000

-----------

The moderation of the estimate that only £15,000,000 has been spent in

influencing the United States, a figure half or one-third of that often

mentioned in America, is also characteristic of the other estimates, all

of which are probably too low, since they deal only with expenditures

which have been traced or have produced observable results, such as

harems for Persian potentates, or palaces for Chinese mandarins, or

motor-cars for poor Greek lawyers who happen to be members of Parliament

on the King's side.

It should also be noted that no attempt is made here to deal with the

German system of espionage in hostile countries, or with the organised,

but of course secret, attempt to sow sedition among the subjects of

Great Britain, France, and Italy, in India, South Africa, Egypt,

Tripoli, and Tunis.

To the German Government, the stirring up of trouble in the dependencies

of her enemies is an aim of perhaps equal importance with that of

winning over neutrals to be actively or passively pro-German.

Returning to the actual work of the English Secret Service agents, it

is soon noted that any ordinary British Service officer of a few years'

standing is a marked man in whatever society he may find himself. His

bearing and mannerisms invariably give him away. There may be

exceptions, in which he can disguise himself for a time, but that time

will be found to be much too short. There are, of course, in the Service

many officers who are different from the ordinary standard, men whose

veins tingle with the wanderlust of the explorer or adventurer, or who

are of abnormal or eccentric temperament; men who generally hold

themselves aloof from the fashionable society vanities, which in the

past have been dangled too much and too closely round our

stripe-bedecked uniforms to be good for efficiency. But even with these

men, after they have been a few years in the Service, they find that

their greatest difficulty is to conceal that fact. It should be

unnecessary to add that for the particular work which is under

discussion it could hardly be considered an advantage for anyone to

start out labelled with his profession and nationality. What ruled Rome

so successfully in olden times should have taught the world its lesson;

namely, a triumvirate.

In this particular venture, a naval man, a military man, and a civilian

strike one as a good combination to be allotted to a given centre of

importance. A paradoxical coalition abroad, in that it should ever be

apart and yet together; each should know the other and yet be strangers;

each should be in constant touch with the others' movements and yet be

separated by every outward sign. The duties of Service men should be

limited to those of consulting experts, whilst specially selected and

trained individuals should be employed to carry out active requirements.

In some places and in some instances Service men can undertake executive

work better perhaps than anyone else could do; but these opportunities

are limited. Perhaps they may almost be classed as the exceptions which

prove the rule.

There seems to be an unwritten rule in the British Secret Service that

no one should be engaged for any position of any importance below the

rank of captain. In the head office it was a saying: "We are all

captains here." And it may be assumed that every officer so engaged in

the Intelligence also ranked as a staff officer.

Most people have an idea that the pay in the British Secret Service is

high, even princely. On this they may as well at once undeceive

themselves; the pay is mean compared with the risks run, yet officers

are keen on entering the B.S.S., as it is known to be a sure

stepping-stone to promotion and soft fat future jobs.

Germany was said to vote about £750,000 per annum to cover direct Secret

Service work, in addition to £250,000 for subsidising the foreign Press;

£1,000,000 each year in all. Yet certain members of the House of Commons

grudgingly and somewhat reluctantly gave their consent to the £50,000

originally asked for at the end of 1914 by the English Secret Service

Department.

The actual amounts voted and expended on English Secret Service work are

shown hereunder.

_Year ending 31st March._ _Grant._ _Expended._

1912 £50,000 £48,996

1913 50,000 48,109

1914 50,000 46,840

1915 110,000 107,596

1916 400,000 398,698

1917 620,000 593,917

1918 750,000 740,984

1919 1,150,000 1,207,697

1920 200,000 (_not known_)

How much of the money was actually available for direct Secret Service

work, and how much may have been diverted into other or indirect

channels (_exempli gratia_--the Liberal solatium of £1,200 per annum to

Mr. Masterman for perusing foreign newspapers)[7] is not known; nor has

the government allowed any explanation to be given.

Mr. Thomas Beach, of Colchester, Essex, whose identity was for so many

years and so very successfully concealed under the pseudonym of Major

Henri le Caron, and by whose energies the United Kingdom was saved the

loss of many millions of money and many thousands of lives, proves, from

so far back as the year 1867 and for the twenty-five years following,

during which period he was employed in the Secret Service of the British

Government and stultifying the popular fiction which associates with

such work fabulous payments and frequent rewards, that "there is in this

service only ever-present danger and constantly recurring difficulty;

but of recompense a particularly scant supply."

At the conclusion of his somewhat interesting volume "The Recollections

of a Spy," he complains bitterly of the meanness and cheese-paring

methods of the British Government: "On this question of Secret Service

money I could say much. The miserable pittance doled out for the purpose

of fighting such an enemy as the Clan-na-Gael becomes perfectly

ludicrous in the light of such facts as I have quoted in connection with

the monetary side of the dynamite campaign." After quoting the vast sums

used by the enemy he adds: "How on earth can the English police and

their assistants in the Secret Service hope to grapple with such

heavily-financed plots as these on the miserable sums granted by

Parliament for the purpose?... Some day, however, a big thing will

happen--and then the affrighted and indignant British citizen will turn.

The fault will be the want of a perfect system of Secret Service,

properly financed.... Imagine offering men in position a retainer of £20

a month with a very odd cheque for expenses thrown in! The idea is

ridiculous. I have heard it urged that the thought of Secret Service is

repugnant to the British heart, wherein are instilled the purest

principles of freedom. The argument has sounded strange in my ears when

I remembered that London, as somebody has said, is the cesspool of

Europe, the shelter of the worst ruffians of every country and clime.

America is called the Land of the Free, but she could give England

points in the working of the Secret Service, for there there is no

stinting of men or money."

What a contrast were the life and actions of this man to Nathan Hale,

one of the heroes of the American War of Independence, who said: "Every

kind of service necessary for the public good becomes honourable by

being necessary. If one desires to be useful, if the exigencies of his

country demand a peculiar service, its claims to the performance of that

service are imperious."

When caught and sentenced to be shot he exclaimed:

"I only regret that I have but one life to sacrifice for my country."

Throughout the period that I was connected with the B.S.S. there were

constant difficulties about money. Had not my personal credit been good,

which enabled me to raise large amounts almost everywhere I happened to

travel, I, or my colleagues, might have been stranded again and again.

It was nothing unusual for appeals to be made to me to act as banker and

Good Samaritan until long-deferred payments eventually arrived.

In the early days most of the B.S.S. agents travelling abroad seemed to

labour under the same difficulty: a shortage of funds and overdue

accounts wanting payment. It may not have been any fault of, but merely

an eccentricity of, our good old managing chief; be that as it may,

impecuniosity never bothered me. Some of the others got very angry about

it, whilst their irritation increased as their banking accounts became

more heavily overdrawn.

So far as actual pay went, a B.S.S. man drew the equivalent to his

ordinary army or naval pay, with nothing over for rations or extras. He,

however, returned a list of his travelling expenses and hotel bills

which were agreed to be refunded each month. If he were a married man,

he had to pay his wife's and his family's expenses out of his own

pocket, should it be necessary for any of them to accompany him, which

often absorbed the whole of his pay and a good bit above it. If he

entertained anyone with a view to drawing out some point of useful

intelligence, it would be passed in general expenses, provided the

outlay was exceedingly moderate. But the members of the executive with

whom I came in contact were inclined to be of the parsimonious type,

much too much afraid to spend a sovereign, either because they could not

really afford it, or for fear they would never see it back again. Their

entertaining was conspicuous by its absence, which necessitated a rather

heavier drain upon my pocket and upon my good nature. It had at times to

be done, and someone had to do it; that someone was nearly always

myself. The Chief preached economy at all times and he religiously

practised it. It was paradoxical in that if a big amount was wanted for

some exceedingly doubtful purpose no limit seemed to be made; the

wherewithal was almost certain to be forthcoming to meet the demand. But

the loyal Britisher who came along to help the Service and his country

in her hour of need, who freely and ungrudgingly offered to sacrifice

everything he possessed in order to serve, who worked for nothing or

practically nothing, and who perhaps paid a good part of his own

expenses, received an absurdly small remuneration and little if any

thanks; most certainly he never received a line in writing from anyone

in high authority to express his country's gratitude.

Those who sit in chairs in Whitehall take their regular fat salaries and

periodical distinctive honours as a matter of course. They are the men

who watch the wheels revolving. They collect and hand over results, the

fruit garnered in by others working in the twilight which shades their

individuality. With the Powers-that-be these men (the gentlemen who sit

in chairs) are ever in the official limelight, whilst the reckless,

devil-may-care workers over the horizon, the men who carry their life in

their hands and who go right into the lion's den to collect facts and

data which often mean success or defeat in battles raged elsewhere, or

who manipulate and pull the strings on the spot, seem to be ignored and

forgotten. The secrecy of the Service is so absolute that no mention of

the way their work is accomplished may be made. The cloak of mystery is

drawn so completely over the whole department that no matter what

sacrifice a member may make for his country's sake, no matter what

bravery he may have exhibited in almost every instance alone and

unsupported, probably in an enemy's domain as one man facing a host of

his country's enemies, his deeds are unrecorded, unhonoured and unsung.

Whilst he is in the Service he is merely a cypher, a unit, an atom. When

he has left it he is hardly remembered as once a member. What of it? He

only did his duty. Now he is out of the Service he is no longer

interesting, he ceases to exist. The big wheel of life continues to

revolve. The B.S.S. Department is but a very minute little wheel which

cogs into the larger machinery of State in its own respective corner. As

the rim of this very minor wheel comes up from the dark recesses of the

working world and the separate cogs become revealed, those in authority

who sit watching each and every cog, upon the stamina and reliability of

which so much depends, from time to time find one that cannot stand the

strain, because it is hurt or damaged, either in body, or in mind, or in

fortune. It is at once removed. We are at war. Sentiment is dead and

buried, except with the weak, who in life's battles are crushed and

accordingly find themselves forced to the wall. Any cog believed to show

signs of weakness is instantly extracted, and those who sit and watch

the wheels revolve seek another piece of tougher and believed to be

better material which may come to hand, and which they force into the

vacant space created. For a second perhaps the discarded hard-used cog

is looked at with admiration for past and valued service when knowingly

driven at highest pressure; or with regret at having to part with such a

tried and trusted friend; then it is hurled into outer darkness, on to

the scrap-heap of broken and forgotten humanity. The new cog is pushed

in and hammered home, it is smeared with the grease of experience, and

the wheel continues its monotonous revolution.

Such is a good similitude of the short and exciting life of a Secret

Service agent.

FOOTNOTES:

[5] "So far from co-operating, the Army and the Navy were rival

purchasers of aircraft."--Mr. Ellis Griffith, House of Commons, February

16th, 1916. See also Air Defence Debate in House of Commons, March 22nd,

1916. At Hull, which was under military control, it was rumoured that a

certain naval officer, in command of a small warship lying in the Humber

at the time of one of the first of the Zeppelin raids, was

court-martialled because he fired at and hit one of the Zeppelins whilst

it was bombarding the town, without having first received an order from

the Military permitting him to do so. Annals of Red-tapeism, June, 1915.

[6] This fact refutes the theoristic argument that Germany was forced at

the eleventh hour to invade Belgium.

[7] Reports of House of Commons.

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