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CHAPTER II SECRET SERVICE ORGANISATIONS, COMPARISONS, AND INCIDENTALS

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Table of Contents

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 Cœur; 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 Spain £3,000,000
Turkey 14,000,000 Holland 2,000,000
Italy 10,000,000 Norway 1,600,000
Bulgaria 5,000,000 Denmark 1,000,000
Greece 4,000,000 Switzerland 1,000,000
China 4,000,000 Argentine 1,000,000
Sweden 3,000,000 Brazil 1,000,000
Roumania 3,000,000 Chili 600,000
Persia 3,000,000 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.

British Secret Service During the Great War

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