CHAPTER I

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THE GERMAN SPY IN AMERICA

The Secret Plotting of German Spies in the United States and the

Inside Story of the Sinking of the Lusitania

by

JOHN PRICE JONES

With a Foreword by

THEODORE ROOSEVELT

and an Introduction by

ROGER B. WOOD

Former U.S. Assistant Attorney in New York_

London: Hutchinson & Co.

Paternoster Row :: :: 1917

Copyright 1917

by

John Price Jones

Agnes C. Laut

432, Fourth Avenue, New York.

Office of

Theodore Roosevelt.

February 27, 1917.

MY DEAR MR. JONES,

I have read the galley proofs of your book, and I wish to say, with all

emphasis and heartiness, that you are doing this country a great service

in publishing it.

Your statements are evidently for the most part based on official

Government records, happening in the course of prosecuting the various

criminals, who by the direct instigation of the German Government, have

for the last two and one-half years been using this country as a base

for war against the Allies, and more than this, have in effect been

waging war on us within our own boundaries, no less than on the high

seas. Our people need to know certain of the facts that you set forth.

They need to understand that Germany has waged war upon us, and has

waged war against our property, and has waged war against the lives of

non-combatants, including women and children, and therefore a far more

evil war than one waged openly. Our people also need to understand what

you so clearly set forth that very much of the pacifist movement has

been directly instigated by German intrigues, and paid for by German

money, and that the entire pacifist movement in this country, during the

past two and a half years, has really been in the interest of German

militarism against the rights of small nations, and against our own

honour and vital national interests.

You have done a capital work, and I wish it could be put in the hands of

all good Americans.

Sincerely yours,

THEODORE ROOSEVELT.

Mr. John Price Jones,

_The Sun_, New York.

FOREWORD

There have been two kinds of German propaganda. One, devoted to setting

before the American people Germany’s side of the war, may be classed as

legitimate. The other has been illegal and criminal. While both are set

forth in this narrative, the greater space has been devoted to illegal

activities.

The author claims for this book no other distinction than a plain

unvarnished statement of facts—vital, dramatic, absorbing facts of the

manner in which secret agents of the Teutonic governments, acting under

orders of authorized directors, have attacked the very integrity of our

national life, commercial, social and politic. It contains facts

arranged from an American viewpoint by an American who considers it his

duty to present them to his fellow Americans.

These facts were obtained by the writer as a reporter on the _New York

Sun_ who devoted a year to no other work. _They were derived by a

painstaking investigation and where flat statements are made they are

based on knowledge obtained by the author from various authorities and

from the examination of documents some of which have never been

published._ They show how German agents sought to subvert the aims of

our government to the advantage of the Central Powers. They furnish a

glimpse of the manner in which these men and women sought to make

America the hinterland for the European War; how they planned and

executed bribery, arson, felonious assaults; how they plotted

destruction of property and even murder on American territory.

These facts emphasize the need of a new kind of preparedness. They prove

that not only does the nation need preparedness in arms on both land and

sea against a foreign foe but also defence against those within our

bounds, who are eager to betray us. No true American, whether he be

pro-Ally, pro-German, or strictly neutral, can read this book without

realizing the thoroughness and the perfection of the German espionage

system and being convinced of the way in which Germany’s spies have

overrun the entire country, nor can anyone doubt the necessity for

preparedness to cope with these men and this system in a different guise

in the event of still graver issues.

JOHN PRICE JONES.

INTRODUCTION

When the German note announcing that the Imperial German Government

intended to resume with greater vigour its ruthless submarine warfare

was handed to the Secretary of State of the United States, a crisis in

the affairs of this nation was abruptly precipitated. The President met

that crisis with courage, with promptness and in a way that merits, and

has, the unqualified support of every American who is proud of his

citizenship.

After the receipt of such an insulting note it was unthinkable that the

United States could longer remain on friendly terms with a nation that

deliberately returned to wanton murder of innocent non-combatants,

including women and helpless children.

The conduct of the Imperial German Government in striving to win a war

by means (which barbarians would hesitate to use) begun by that

Government without just cause and pursued by riding rough-shod over a

much smaller and much weaker nation, has been condemned by every

civilized country, and it will be many years before the German people

recover from the shame and degradation into which they have been

plunged.

Germany will have to repent in sackcloth and ashes for a long, long time

before it is received again into the Family of Nations.

In prosecuting the war, Germany and her allies have proceeded from the

beginning upon the theory that “the end justifies the means” and acting

upon that theory have held in supreme contempt the rights of neutral

nations.

From the beginning of the war, subjects of Germany, resident in the

United States, have continuously violated our laws in the most

outrageous and flagrant manner.

At the very threshold, they sought to use the United States as a base

from which to supply the German raiders in the South Atlantic, and to

that end, by fraud, obtained from the collectors at various ports of the

United States legal clearances, thus subjecting every ship which

lawfully cleared from any United States port to seizure by the Allies.

Next, they sought and obtained, by fraud, and false swearing, passports

to be used by German reservists in returning to Germany, travelling

under the guise of American citizens; thus placing in danger the lives

and liberty of honest Americans travelling with legitimate passports and

entitled to the protection of this Government.

Because the Allies were able to purchase in the United States munitions

of war, foodstuffs and all other supplies they might need, and were able

to transport them, and because the United States did not at the behest

of the Imperial German Government, stop the sale and transportation of

the supplies, which its citizens had a perfect right to sell and

transport, German residents devised the inhuman scheme of making

chemical fire bombs and infernal machines to be placed on ships carrying

passengers and supplies, with the deliberate intent and purpose that the

ships should be crippled or sunk in mid-ocean—it mattered not to them

that all on board might find a watery grave.

Numerous attempts have been made to equip men of the most desperate

character with necessary explosives and other implements of death and

destruction and have them go from the United States into Canada, our

friendly and respected neighbour, to destroy railroads, canals, ships,

warehouses and factories without regard to human life.

Agents have been sent to the United States with unlimited money at their

command to engage gunmen and thugs to blow up our munition plants and

factories—many explosions have occurred—many lives have been lost—much

damage has been done—I cannot say who caused such wholesale murder to be

committed, but I have the right as you have, to suspect.

It is a matter of record that the German Military Attaché, Captain Franz

von Papen, and the German Naval Attaché, Captain Boy-Ed, knew of and

sanctioned some of the conspiracies above referred to—_perhaps_ the

German Ambassador did not know of them; but it will be hard to convince

a hard-headed, common-sense American citizen that he did not know what

his right hand and his left hand were doing in such a crucial period.

Murder has followed murder on the high seas, one crime came fast upon

another in the United States, and now we are told that this Government

must do as the Imperial German Government directs; or murder on a more

colossal scale will be the result. The people of the United States have

not taken orders from any Government since 1776, and the German

murderers ought to have known we would take none now, least of all from

a Government that had forfeited its right to the respect of any

civilized nation.

“The German Spy in America” will give you some small conception of what

the Germans in the United States have been doing since August 1, 1914.

Its author has followed their nefarious plots very closely and he has an

intimate knowledge of his subject.

Its purpose is to let the American people know the danger that lurks

within; to sound the alarm so that every man may be on his guard; to

show the grave necessity for preparedness against a foreign foe, and

particularly numerous alien enemies within our borders.

If it serves in a small measure to accomplish its high aim, its author

will be amply repaid because he will have rendered a great service to

humanity, and above all to our country, which we love more than all

else, save God.

ROGER B. WOOD.

CONTENTS

CHAP. PAGE

I.—AMERICA: THE BACKGROUND OF THE WAR 13

II.—CAPTAIN FRANZ VON PAPEN, DIRECTOR OF GERMANY’S MILITARY

ENTERPRISES ON THE AMERICAN FRONT 27

III.—CAPTAIN VON PAPEN, BUYER OF PASSPORTS AND PROMOTER OF

SEDITION 70

IV.—VON IGEL AND KOENIG, TWO OF THE KAISER’S FAITHFUL WORKERS 88

V.—CAPTAIN KARL BOY-ED, THE EMPEROR’S SOCIAL DANDY AND VON

TIRPITZ’S TOOL 113

VI.—CAPTAIN FRANZ VON RINTELEN, GERMAN ARCH-PLOTTER 144

VII.—CAPTAIN FRANZ VON RINTELEN (concluded) 168

VIII.—THE STORY OF THE “LUSITANIA” 186

IX.—DR. HEINRICH F. ALBERT, GERMANY’S BAGMAN AND BLOCKADE

RUNNER 204

X.—AMBASSADOR DUMBA, GERMANY’S CO-CONSPIRATOR 229

XI.—GERMANY’S LOBBY IN CONGRESS 242

XII.—CHANGING THE SYSTEM 252

THE GERMAN SPY IN AMERICA

CHAPTER I

AMERICA: THE BACKGROUND OF THE WAR

America has been the great background of the European War. Though far

removed from the trenches with the play of artillery and the heroic

charges, this country has been the scene of an equally dramatic, though

silent struggle—a battle not visible to the eye. It has been a conflict

of wits, of statesman pitted against statesman, of secret agent striving

to outdo his opponent of a belligerent nation; for in America, agents of

Germany have been striving for a two-fold aim. They have sought to

enmesh the United States in an international conspiracy and to use this

country as the means of a rear attack on the Entente Allies.

And New York has been the centre of it all. In several of the huge

office buildings that make the thoroughfares of the city seem like

canyons, Germany had, and still has, the headquarters of a vast

nerve-like system radiating throughout the country. The nerve coils are

composed of thousands of secret agents located in every city and town.

These men have worked under orders from Berlin in the execution of a

series of campaigns designed to be of service to the Teutonic Allies.

Against these men have been pitted agents of the American government,

all aiming to detect the schemes and frustrate any plans for the

violation of our neutrality laws.

A diplomat, famed for his finesse and grace of manner, was at a

reception given to distinguished statesmen, talented business men and

attractive women. The conversation was turned to the topic of spies. One

woman wished to know if the diplomat had encountered any spies.

“Well,” remarked the diplomat, “I used to stop at the Hotel Grandeur,

but Count ——” (mentioning the name of a diplomat of a nation with which

his country was at war) “persisted in having my baggage searched every

day. So I moved to the Hotel Excellency; but I found things no better

there.”

“Didn’t you complain to the management?”

“Ah, no,” answered he gravely, “but every time the Count stops at the

Hotel Elaborate, I have his baggage searched, too.”

Perhaps the diplomat was not serious, but in days when the destiny of

nations was at stake, it was likely that he was speaking none too

lightly of a game that had doubtless cost him many an hour of the

keenest anxiety.

Of all the secret service systems, the German is the most elaborate and

machine-like. It has been organized not merely to gather information,

but to trample upon the laws of the United States, in order to hinder

any project of the Entente Allies. Constructed in the hours of peace

with the utmost care and foresight, it was easily expanded in the United

States at the outbreak of the war into such a vast network that if a

representative of the Allies suddenly retraced his steps or halted

suddenly when around a corner, he was almost sure to bump the shins of a

German spy. Germany, always methodical and thorough, possessing a genius

for moulding a multitude of details into an effective whole, had

prepared her secret service system with the same efficiency with which

through scores of years she had equipped her military forces for battle;

indeed, her secret service was a part of her military forces.

The system is based on the principle of “Lass die linke Hand nicht

wissen was die rechte tut”—“let not the left hand know what the right is

doing.” _So thoroughly is this maxim followed that two German spies may

be working side by side and not be aware of the fact._ Though groups of

Germans may engage in some activity with a thorough understanding of the

aims of another, still the order of silence is rigorously enforced. The

agents hand their information to a superior, who in turn transmits it to

somebody higher up. _One spy knows only the person or group of persons

with whom he directly deals, sending information along devious and

hidden routes up to the final assembling point._

Germany’s spy system has been the sword hand of her statesmen and her

diplomats. When this war is over and the world learns of the moves,

counter-moves, and Machiavellian methods of German diplomats, with their

intrigues, secret understandings, and their daring attempts to force

this country into dangerous situations, people will realize more clearly

than to-day what a marvellous system has been behind many seemingly

casual developments in this country. It will be shown how German agents

have violated our laws in order to gain secret information for the

benefit of Germany; how her secret agents have committed crimes in order

to coerce diplomatic negotiations.

RAMIFICATIONS OF UNDERGROUND PLOTS

So perfectly organized and so responsive to the slightest suggestion

from Berlin is the American branch of the Kaiser’s secret service that

vast undertakings—some legitimate, many in violation of American

laws—were carried out.

The magician, who invented the wireless, enabled the German General War

Staff to move to New York. The splash and splutter of electricity over

oceans and continents virtually transported Germany’s leading statesmen,

tacticians, and scientists at will to hold sessions in Manhattan on

matters arising in America and bearing on the battle-front in the many

theatres of actual warfare. For instance, how many people know that the

secretary to one of the generals on the Western Line was a brother to

one of the most notorious woman plotters in America? Germany had

foreseen the possibilities of the wireless in war and had developed

secret methods of sending code messages by radiogram, when apparently

only ordinary messages were being transmitted, and she had also, some

way or other, got possession of the code ciphers of other nations. Every

night messages have been sent out from Germany, apparently blindly,

addressed to no one and have been picked up by hidden receiving stations

in America and other countries.

While Germany calls her spy system “a bureau of intelligence,” its

purpose is confined not merely to the gathering of information, but to

the carrying out of any campaign that will be harmful to her enemies. In

the United States, Germans—reservists, army officers, representatives of

the German Government—have been indicted for crimes against Federal

laws. These violations were committed without doubt in a

self-sacrificing spirit with the aim of helping the Fatherland. Germans,

or German influences, have been behind schemes in violation of

neutrality laws and restraint of trade. _They have attempted arson,

bribery, forgery, engaged in military enterprises, caused explosions in

ships and factories, resulting in many deaths, and have set fires in

ships and factories._

They have participated in plots against Canada, Ireland and India, all

developed in the United States under the supervision of the German

representatives of Berlin, though often ostensibly carried out by

anarchist tools. _The activities of the German agents_, multitudinous in

detail and variety, _all have been designed to hinder the Allies_ in

their prosecution of the war, _to cause a breach between the Allies and

the United States, to embroil this country in a war and to accomplish

other secret aims of the General War Staff_. In all the propaganda,

German secret agents and official representatives of the German

Government have not only worked with utter disregard to American laws,

but have endeavoured to place the United States in a position of being

secretly unneutral.

But the German Government has officially denied that she ordered any of

her subjects to undertake any act in violation of American laws. Shortly

after President Wilson in his message to Congress bitterly attacked the

activities of Germans and German-Americans in America, accusing the

latter of treason, the German Government authorized the statement that

it:

* * * * *

“_Naturally has never knowingly accepted the support of any person,

group of persons, society or organization seeking to promote the cause

of Germany in the United States by illegal acts, by counsels of

violence, by contravention of law, or by any means whatever that could

offend the American people in the pride of their own authority. If it

should be alleged that improper acts have been committed by

representatives of the German Government they could be easily dealt

with. To any complaints upon proof as may be submitted by the American

Government suitable response will be duly made.... Apparently the

enemies of Germany have succeeded in creating the impression that the

German Government is in some way, morally or otherwise, responsible for

what Mr. Wilson has characterized as anti-American activities,

comprehending attacks upon property in violation of the rules which the

American Government has seen fit to impose upon the course of neutral

trade. This the German Government absolutely denies. It cannot

specifically repudiate acts committed by individuals over whom it has no

control, and of whose movements and intentions it is neither officially

or unofficially informed._”[1]

* * * * *

Footnote 1:

Berlin despatch in the New York _Sun_, Dec. 19, 1915.

To this official disavowal of German propaganda in America, there are

two answers that stand out with dramatic force. First, the extent to

which the subjects of Germany are expected to go in war time is shown by

excerpts from Germany’s War Book of instructions to officers, which says

in part:

* * * * *

“_Bribery of the enemy’s subjects with the object of obtaining military

advantages, acceptances of offers of treachery, reception of deserters,

utilization of the discontented elements in the population, support of

the pretenders and the like are permissible; indeed, international law

is in no way opposed to the exploitation of the crimes of third parties

(assassination, incendiarism, robbery and the like) to the prejudice of

the enemy. Considerations of chivalry, generosity and honour may

denounce in such cases a hasty and unsparing exploitation of such

advantages as indecent and dishonourable, but law, which is less touchy,

allows it. The ugly and inherently immoral aspect of such methods cannot

affect the recognition of their lawfulness. The necessary aims of war

give the belligerent the right and imposes upon him, according to

circumstances, the duty not to let slip the important, it may be

decisive, advantages to be gained by such means._”[2]

* * * * *

Footnote 2:

The War Book of the German General Staff, translated by J. H. Morgan,

M.A., pp. 113–114.

Secondly, since Germany sent out that semi-official proclamation from

Berlin concerning propagandists, many steps have been taken by the

American Government, both administrative and judicial. Captains von

Papen and Boy-Ed, military and naval attachés respectively, have been

dismissed from this country for “improper activities in military and

naval affairs.”

There was no favouritism in the German secret service. Every German,

high or low, was open to assignment, disagreeable and dishonourable, in

getting information, and to orders to commit crimes—for Germany stops at

no crime—that may be necessary to circumvent the enemy.

Captain von Papen showed his feeling keenly one night at a dinner of a

few men where the wine flowed freely.

“My God, I would give everything in the world,” he exclaimed, “to be in

the trenches where I could do the work of a gentleman.” In his work,

there was no public reward for work well performed according to the war

code. That man’s sentiments were echoed by von Rintelen, who, when among

friends, fairly shook with emotion at the thought of the work in which

he was engaged.

“How loathsome I feel,” he said. “How this dirty work sticks to me! When

this war ends, I shall take a bath in carbolic acid.”

THREE EXECUTIVES IN THE UNITED STATES

Over all the thousands of reservists, trained agents, and other spies

were the men in charge of the centres of information to whom they made

their report; and the three or four chief lieutenants in charge of the

various and distinct line of activities into which these matters of war,

finance and commerce automatically were divided. There were practically,

outside of the Chief Spy, three important executives in this country,

supervising respectively the commercial, military and naval lines of

information and activity. Each one of these men was surrounded by a

group of experts who had charge of a sub-division of the work. All had

their legal advisers, their bankers, and every sort of an expert that

their special work required. Upon them fell the task of sifting and

analysing the mass of facts gathered by the spies and making reports to

Berlin. Upon each one of them also fell the duty of carrying out any

orders that might come from the General War Staff in Germany.

First and foremost of the three lieutenants was Dr. Heinrich F. Albert,

Privy Councillor to the German Embassy in America and Fiscal Agent of

the German Empire. He directed the gathering of a huge mass of

information of value to Germany concerning the financial, industrial and

commercial activities of this country, and was the chief instrument

through whom money reached the army of spies. Though he was the director

of many activities, nothing criminal, it must be asserted in justice to

him, has been traced to him.

The military agent was Captain Franz von Papen, the attaché of the

German Embassy. His work was confined specifically to the procuring of

information that would be of aid to the Imperial German army and to the

military tasks that might be peculiarly helpful to the army.

The naval expert was Captain Karl Boy-Ed, another attaché of the German

Embassy. He had under him experts who made a speciality of various lines

of naval matters, fortifications, coast defences and explosives.

The headquarters of the entire system were and are yet in New York. Dr.

Albert had his offices in the Hamburg-American Steamship Company’s

building, and he utilized at times a good part of the Hamburg-American

Company’s staff—a concern in which the Kaiser himself owns a large

percentage of the stock. In the same building was the office of Paul

Koenig, the business manager of part of Germany’s spy system in America,

though nominally the Superintendent of Police for the Hamburg-American

line. Captain Boy-Ed had his headquarters in Room 801 of 11, Broadway,

and Captain von Papen had his on the twenty-fifth floor of 60, Wall

Street.

This narrative seeks to show as definitely as possible the work of these

three agents of Germany in America and of others co-operating with them.

It sets forth the enterprises that they plotted and the ramifications of

their organization. It reveals how countless agents, unaware that they

were parts of a vast system and often innocent of any intentional

wrongdoing, acted their parts. It shows how that part of the machinery

engaged in legitimate propaganda was linked at places with the machinery

executing illegal acts.

While the conspiracy has been manipulated, the American Government has

been very active. To the skill of the United States secret service,

headed by Chief William J. Flynn, always alert and apparently unruffled

in the most trying crises, and to A. Bruce Bielaski, head of the special

agents of the Department of Justice, and William M. Offley,

Superintendent of the New York Bureau of the special agents, has fallen

the task of seeing that the representatives of the different countries

followed the American maxim, “Play fair; play according to the rules of

international law and the laws of this country.” Upon Police

Commissioner Woods, his deputy, Guy Scull, of New York, and his

enthusiastic and clever aid, Police Captain Thomas J. Tunney, has

devolved also the hazardous and difficult task of combating the schemes

of those spies. Those men, by courageous and skilful detective work have

unearthed and foiled some of the most daring bomb plots of the Germans.

To Messrs. Flynn and Bielaski, at times, have come secrets of intrigue

and conspiracy that must have made them, even as it has the President,

almost tremble with the import of impending events that had to be

forestalled.

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