That a group of bankers in New York City, headed by J.P. Morgan &
Company, was negotiating with the British Treasury authorities for the
flotation in the United States of $100,000,000 of the new British war
loan was announced in the newspapers on July 3, 1915. Mr. Morgan's
firm had handled contracts to furnish war munitions to the Allies,
amounting to $500,000,000, and this had been widely published. On the
morning of July 3 J.P. Morgan was attacked and wounded with a revolver
at his country estate on East Island, near Glen Cove, Long Island, by
Erich Muenter, alias Frank Holt. Holt was an Instructor in German at
Cornell University; Muenter was a Harvard instructor for whom the
police had been seeking since the spring of 1906 on a charge of
murdering his wife. After his suicide in jail on July 6, Professor
C.N. Gould, of the University of Chicago, and Professor Hugo
Muensterberg, of Harvard, among others, identified Holt and Muenter as
the same person.
Muenter's insane attack on Mr. Morgan, because he had failed to "use
his influence to prevent the exportation of arms and ammunition,"
followed the wrecking of the United States Senate reception room in
the Capitol at Washington on July 2 by the explosion of an infernal
machine set by Muenter. On July 6 a trunk owned by Muenter containing
twenty pounds of explosives was found in New York. During his stay in
jail Muenter wrote to his wife that two ships were to sink at sea on
July 7, if his calculations went right, naming the Philadelphia and
the Saxonia. The ships were duly warned by wireless, but no bombs were
found aboard them, nor were any confederates of Muenter discovered. On
July 7 the steamship Minnehaha reported by wireless a "fire caused by
explosion" under control.
Incendiary bombs had been discovered aboard four freight steamships
sailing from New York for Havre in April and May. On July 12 Secretary
of the Navy Daniels, acting on advices received from The New Orleans
Picayune, directed the naval radio station at Arlington, Virginia, to
flash a warning to all ships at sea to be on the lookout for bombs
supposed to have been placed on board certain vessels, and warning
particularly the steamers Howth Head and Baron Napier that information
had come to the Navy Department that explosive bombs might have been
placed on those two vessels. All ships were requested to try to
communicate with the Howth Head and the Baron Napier. On July 11 a
written threat to assassinate J.P. Morgan, Sir Cecil Spring-Rice, the
British Ambassador, and destroy by bombs British ships clearing from
American ports, thus carrying out some of the plans of Erich Muenter,
was reported in a letter signed "Pearce," who styled himself a partner
and intimate associate of Muenter. This letter was received by The New
Orleans Times-Picayune.
Two more "Pearce" letters were received on July 13 by an afternoon
newspaper of New Orleans and by its Chief of Police, saying that Erich
Muenter had taught the writer the use of explosives. On the same day
the Samland of the Atlantic Transport Line and the Strathlay,
chartered by the Fabre Line, survived attempts to destroy them by fire
bombs, and on July 15 "Pearce" threatened in another letter to destroy
the Rochambeau. A bomb thought to be intended for the Orduna in a car
loaded with coal consigned to the Cunard Line was discovered at
Morrisville, N.J., on July 18. The Washington Times, the Philadelphia
Public-Ledger and the Brooklyn Eagle received on July 16, 19 and 20,
respectively, letters from "Pearce" declaring that henceforth persons
leaving America on British ships would do so at their peril, and
harking back to the German Embassy's warning before the Lusitania was
torpedoed. On July 26 an SOS call was received at the Fire Island
station, at the Brooklyn Navy Yard, and by the coast guard ship
Mohawk, but the distressed ship's appeal for help was broken off
before her name or position could be given. "Pearce's" letter to The
Brooklyn Eagle reads as follows:
"Sir: You people of Brooklyn have already had one experience with the
work of our men, and so, perhaps, it will be unnecessary to say more
than a few words of warning. The Kirkoswald affair is still fresh in
your memory; therefore, we will not waste words discussing this
matter. The purpose of this communication is to warn the American
citizens living in your vicinity to keep clear of British vessels
sailing from Brooklyn, New York, New Orleans, Savannah, Newport News,
and Montreal. Our men are now operating from each of these ports, and
Americans will do well to heed this warning ere it is too late.
"The Imperial German Government derives no satisfaction or profit from
the killing of neutral Americans, and we are instructed to go to great
lengths in order to give timely warnings to all Americans who
contemplate voyages to Europe within the next two months. The
explosive operations will supplement the submarine operations, which
have proved inadequate to prevent the enemy from importing munitions
from America.
"We earnestly advise Americans who find it imperative to travel to
Europe to sail only on vessels flying the American flag. Such steamers
as those of the American Line, for instance, will be perfectly immune
from either submarine or explosive operation. The Imperial German
Government will, if requested, offer no objection to the American
Government pressing into service the interned German vessels if the
American vessels are found to be unable to accommodate the traffic to
Europe. By publishing this warning American lives may be spared.
"The circumstances under which this communication is written make it
impossible for us to affix our proper signatures; therefore, we trust
that you will accept for a signature our pen name.
"PEARCE."