"Some of these countries are already friendly," said Scharpp, "and we can work undisturbed provided we do not interfere in the Panama Ca.n.a.l Zone. It is North American territory, and you will have trouble from their officials and intelligence officers as well as political pressure from the States. You understand?"

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

"Precisely. At the present time it is not wise to do much more than broadcast, but at a propitious time we shall be able to explain National Socialism to the Panamanians."

He looked at Kohpcke, whose left eyelid droops more than his right, giving him the appearance of being perpetually sleepy. Kohpcke looked at Neumann.

"Tonight we want to organize a Bund in Panama. In a few days I am going to Costa Rica to organize another and then leave for Valparaiso."

The others nodded. They had been informed that Scharpp was to have complete charge of n.a.z.i activities from Valparaiso to Panama. That night they established _Der Deutsch-Auslandische n.a.z.i Genossenschafts Bund_, with the understanding that it function secretly. The list of members was to be controlled by Neumann.

Scharpp explained that secrecy was advisable to avoid antagonizing the Panamanian Government, "which is friendly to Italy and we can cooperate with the Italian Legation here."

"The j.a.panese are more important that the Italians," Kohpcke pointed out.

"The j.a.panese will work with us," Heildelk a.s.sured him.

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

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

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

Scharpp nodded slowly. "He is generally believed to be anti-n.a.z.i. His partner spent twelve years in j.a.pan and speaks j.a.panese perfectly. The j.a.panese Consul knows and trusts both. We cannot find a better place."

On the night of December 13, 1937, forty carefully selected Germans who, during the intervening month had become members of the Bund in Panama, arrived singly and in small groups at the home of August Jacobs-Kantstein, Panamanian merchant and Austrian Honorary Consul.

Five j.a.panese, headed by Tetsuo Umimoto, also came. One, K. Ishibashi, formerly captain of the "Hokkai Maru" and a reserve officer in the j.a.panese Navy; K. Ohihara, a j.a.panese agent staying with the j.a.panese Consul but having no visible reason to be in Panama; two captains of j.a.panese fishing boats and A. Sonada, the barber who organized the labor union and in whose presence the Consul does not sit until the barber is seated.

Throughout the meeting, presided over by the elderly but tall and soldierly Austrian Consul, the j.a.panese said little. It was primarily the first get-together for n.a.z.i-j.a.panese cooperation in the Ca.n.a.l Zone area.

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

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

The others understood. The j.a.panese were too shrewd to discuss detailed plans with so many present.

A few days later Umimoto called upon Heildelk and was closeted with him for three hours. Shortly after that Sonada made a hurried trip to j.a.pan.

VI

_Secret Agents Arrive in America_

Germany's interest in the Panama Ca.n.a.l became acute only after j.a.pan joined the Rome-Berlin axis "to exchange information about Communism"--an exchange which appears to be more concerned with military secrets than with Communism.

The activities of j.a.panese and n.a.z.i agents in Latin American countries and especially around the Ca.n.a.l, the organizing of a fascist rebellion in Mexico to the south of us and intensive propaganda carried on in Canada to the north, are but part of the broad invasion of the Western Hemisphere by the Fifth Column--an invasion which began almost immediately after Hitler got into power. Since the United States is the most important country in the Americas, it was and is subject to special concentration by secret n.a.z.i agents.

The first threads spun spread out in many directions, with propaganda as the base from which to broaden espionage activities. One of the earliest of the secret agents sent to this country was an American, Colonel Edwin Emerson, soldier of fortune, mediocre author and fairly competent war correspondent. Emerson lived at 215 East 15th Street, New York City and had an office in Room 1923 at 17 Battery Place, the address of the German Consulate General. Room 1923 was rented by a representative of the German Consul General. The rent paid was nominal and in at least one instance, to avoid its being traced, it was paid in cash by Hitler's diplomatic representative. Prior to the renting of this room, Emerson had desk s.p.a.ce with the German Consulate General for six weeks.

The May 15, 1933, issue of the _Amerika Deutsche Post_, a n.a.z.i propaganda organ published in New York, carried an advertis.e.m.e.nt stating that the editor of this paper made his headquarters in Emerson's room. This was the first indication that Emerson had arrived in this country to handle n.a.z.i propaganda.

For many years Emerson had wandered about the globe covering a.s.signments for newspapers and magazines and always bragging about his Americanism and his "patriotism." One of his great boasts was that he was with Roosevelt's Rough Riders during the Spanish-American war; what he never told was that Roosevelt brought him back from Cuba in irons.

From his room paid for by the German Consul General, Emerson launched the "Friends of Germany."[6] This organization was the chief disseminator of pro-Hitler and anti-democratic propaganda in the United States, but the Colonel directed the propaganda somewhat stupidly. The "Friends of Germany" held meetings with "storm troops"

in full uniform; bitter attacks were made against Jews and Catholics at large ma.s.s meetings. Visiting officers and sailors, from German ships docked in New York, appeared at these meetings to preach fascism and n.a.z.ism, until a wave of resentment swept the country. One of the keynotes of these talks was sounded by Edward F. Sullivan of Boston at a meeting held at Turnhalle, Lexington Avenue and 85th Street, on June 5th, 1934, when he repeatedly referred to Jews as "dirty, stinking kikes" and announced that he proposed to organize a strong n.a.z.i group in Boston.

Propaganda Minister Goebbels in Berlin became annoyed at the public reaction, and the entire n.a.z.i foreign propaganda service was reorganized. Emerson was ordered back to Germany for explicit instructions on how to carry on propaganda without antagonizing the entire country.

In October, 1933, Royal Scott Gulden (who has no connection with the mustard business, but is a distant relative of the head of it), who had been cooperating with Emerson, tried to organize an espionage system to watch Communists. In this effort Gulden enlisted the aid of Fred R. Marvin, a professional patriot. At three o'clock on the afternoon of March 10, 1934, a very secret meeting was called by Gulden at 139 East 57th Street. Present were Gulden, J. Schmidt and William Dudley Pelley, head of the Silver Shirts.

The meeting decided to adopt anti-semitic propaganda--to play on latent anti-semitism--as part of the first campaign to attract followers. The country was in a serious economic crisis with considerable unrest throughout the land. Both Hitler and Mussolini got into power in periods of great unrest by promising peace and security to the bewildered people. Men of means were terrified by fears of "revolution" and this group, directed by Emerson, began to preach that the revolution might come any minute and that the Jews were responsible for Moscow, the Third International, the Mississippi flood and anything else that troubled the people. When the meeting ended the "Order of '76"[7] had been born and Royal Scott Gulden appointed Secretary to direct espionage and propaganda.

From the very beginning Emerson tried to get people into places which would provide access to important information. On February 22, 1934, a merger of the Republican Senatorial and Congressional Campaign Committees to conduct the Party's Congressional campaign independent of the Republican National Committee was announced in a joint statement by Senator Daniel O. Hastings of Delaware and Representative Chester C. Bolton of Ohio, chairmen, respectively, of the two committees.

Several weeks before this announcement, the two committees had employed Sidney Brooks, for years head of the research bureau of the International Telephone and Telegraph Company. Brooks, because of his position, was close in the confidences of Republican Senators and Congressmen. He heard state secrets and had his fingers on the political pulse of the country.

Shortly after he took charge of the joint committee for the Senators and Congressmen, Brooks made a hurried visit to New York. On March 4, 1934, he drove to the Hotel Edison and went directly to Room 830 where a man registered as "William D. Goodales--Los Angeles," was awaiting him. Mr. "Goodales" was William Dudley Pelley, head of the Silver Shirts, who had come to New York to confer with Brooks and Gulden.

After this conference the two went to Gulden's office where they had a confidential talk that lasted over an hour during which an agreement was made to merge the Order of '76 with the Silver Shirts so as to carry on their propaganda more effectively.

Brooks himself, on his mysterious visits to New York, went to 17 Battery Place, which houses the German Consulate General. At that address he visited one John E. Kelly. In a letter to Kelly dated as far back as December 27, 1933, he wrote: "I will be in New York Friday to Monday and can be reached in the usual manner--Gramercy 5-9193 (care Emerson)."

Sidney Brooks also was a member of the secret Order of '76. Before anyone could join he had to give, in his own handwriting and sealed with his own fingerprints, certain details of his life. Brooks'

application for membership in this espionage group organized with the help of a n.a.z.i sent to this country, revealed that he was the son of the n.a.z.i agent, Colonel Edwin Emerson, and that he was using his mother's maiden name so that connection could not be traced too easily.

[Ill.u.s.tration: Application by Sidney Brooks for membership in the secret Order of '76, showing him to be a son of the n.a.z.i agent, Colonel Edwin Emerson.]

One of the other early propagandists who is still active as a "patriot" was Edward H. Hunter, Executive Secretary of the Industrial Defense a.s.sociation, Inc., 7 Water Street, Boston. Early in 1934, while the negotiations for the merging of the espionage order and the Silver Shirts were going on, this rooter for American liberty heard Germany was spending money in this country and on March 3, he wrote to the "Friends of Germany":

"Under separate cover we are sending you twenty-five copies of our _Swan Song of Hate_ as requested and you may have as many as you wish.

"Several times I have conferred with Dr. Tippelskirch and at one time suggested that if he could secure the financial backing from Germany, I could start a real campaign along lines that would be very effective.

"All that is necessary to return America to Americans is to organize the many thousands of persons who are victims of Judaism and I am ready to do that at any time."

Dr. Tippelskirch, with whom Hunter discussed getting money from Germany for anti-semitic work, was the German Consul in Boston.

The activities of the early agents ranged from propaganda to smuggling and espionage, though at the beginning the espionage was on a minor scale. It took several years of organizing pro-German groups in this country before they could pick the most reliable for the more dangerous spy work. Much of the propaganda was sent in openly through the mails, but some of it was of so vicious and anti-democratic character that the Propaganda Ministry in Germany decided it was wiser to smuggle it in from n.a.z.i ships.

One of the chief smugglers was Guenther Orgell,[8] at that time head of the "Friends of Germany," through whom the propaganda was distributed to various branches of the organization throughout the country. In those days Orgell lived at 606 West 115th Street, New York City,[9] and was ostensibly employed as an electrical engineer by the Raymond Roth Co., 25 West 45th Street. Let me ill.u.s.trate how he worked: