SPIES IN BANKS
Through the arrest of Koenig and the facts obtained thereby, one of the mysteries concerning the Germans’ method of getting information about the shipment of munitions of war to the Allies was cleared. They knew the number of the freight car rushing to the Atlantic seaboard and its exact contents. They knew the ship’s hold into which that product was to be placed; but how they got this data was a mystery until Koenig was caught. Then Metzler, Koenig’s secretary, made a confession that cleared the mystery. Agent Adams got the confession.
Besides having spies in some of the factories throughout the country, the Germans had one great fountain of information in the foreign department of the National City Bank, an institution that has carried hundreds of millions of dollars in financing the purchase of supplies for the Entente Powers. That source was Frederick Schleindl, a German who has since been convicted of selling stolen information and sentenced to three years in a New York State prison.
Schleindl, only twenty-three years old, came to this country from Germany several years ago, obtained work with a private banking firm, and after the war started was shifted to the National City Bank. He had influence to get the position, and, incidentally, it may be said, that for years prior to the war German agents, trained financiers, have been stationed in New York, making friends and learning conditions, so that at the critical time they could, by underground means, succeed in getting positions for such men as Schleindl who would betray their trust.