The German Spy System from Within

by Anonymous

Mr Bodkin stated that the prisoner first came under the suspicion of the authorities in October of 1911, and it was evident that from then until January of 1914 he had been a spy in the pay of the German secret service. The man who was practically Ernst’s master was one Steinhauer, a member and organiser of the German secret service, whose name had figured in practically every espionage case investigated in this country for the past three or four years.

Acting under Steinhauer’s orders, the prisoner was alleged to have been deputed to accomplish certain duties which fell under two heads. In the first place, it was alleged that he was to receive from Steinhauer, who was located in Germany, letters enclosed in envelopes which gave them the appearance of ordinary business communications, and to post them in England to various members of the organisation. In the second place, it was alleged that he was to make inquiries on his own account with regard to persons and places which, in the opinion of Steinhauer, would be useful to the German secret service. His salary consisted of out-of-pocket expenses and a retaining fee of one pound a month, which, when Ernst pointed out the risk attaching to what he was doing, and the importance of his work, was increased to one pound ten shillings a month. Mr Bodkin stated that “the system was perfectly well-known from the commencement in 1911, and the hairdresser’s shop in Caledonian Road was accordingly kept under observation.”

The observation included the opening of letters addressed to the accused, which were traced and the tracings filed before delivery of the originals to Ernst. There were included among these letters a large number of communications from Germany, chiefly from Potsdam, and Ernst himself sent many communications to Potsdam and Berlin. His letters were posted in different districts of London, while the letters coming from Germany to him were written on English note-paper and enclosed in English envelopes, which the prisoner had forwarded to Steinhauer for use—in one instance the paper and envelopes had been sent as “samples,” the package being so weighty that Steinhauer had to pay excess postage at the other end. By opening both outgoing and incoming correspondence the authorities were placed in possession of a mass of valuable information as regards not only Ernst, but also other members of the system in England.

For the purpose of the correspondence with Ernst, Steinhauer was alleged to have adopted the alias of “Mrs Reimers,” and Ernst himself, the prosecution stated, changed his name from time to time, having letters addressed to his shop as to “J. Walters, care of K.G. Ernst,” and sometimes to “W. Weller.” These two names were the prisoner’s own suggestion to Steinhauer. The latter sent letters not only to Ernst himself, but also missives to be forwarded to various places, including Chatham, Sheerness, and Portland Harbour. These letters were opened by the authorities under powers which they possessed for dealing with such cases, and tracings were taken before the letters were delivered.

Ernst was requested by Steinhauer to find out all that he could about certain persons named, on the ground that they were connected or believed to be connected with the Intelligence Department of the War Office. One of the firms upon which he was called to make inquiries and report had an office in the City opposite to the office occupied by the late Captain Stewart, who figured in the German courts in an espionage case, and subsequently was imprisoned in a German fortress. In one of the envelopes sent to Ernst by Steinhauer were two letters, one of which was addressed to a British sailor, and the other to a German located at Portland Harbour. Further, the prosecution alleged, Ernst was in constant communication with persons named Kruger and Krumer, in connection with espionage work, while one of his letters referred to a magazine article which described the defences of the East Coast. Another letter contained reference to the espionage case against Parrott, which took place in the autumn of 1912. After January of 1914, Steinhauer requested Ernst to make inquiries about a person living in Somerset, and to this Ernst replied that he could not spare the time to do so, though he had previously gone up to Sheffield on business of a similar nature.

Here, with the taking of some formal evidence, the first hearing of the case closed, and at this point Mr S.Y. Tilly, who had been retained for the defence of the prisoner, said that if he had been in possession of the information outlined by Mr Bodkin it would have made a difference in his procedure in the case. He had been assured by the prisoner and the prisoner’s friends that Ernst was a perfectly straightforward British subject: but, in the circumstances revealed by Mr Bodkin’s statement, he felt compelled to withdraw from the case. The act was sufficiently unusual to excite comment on the part of the court authorities; but Mr Tilly withdrew.

The second hearing took place on October 5, 1914, when the first witness called, a clerk in the secretary’s office at the General Post Office, deposed to having opened and copied the letters which bore as postmark either “Potsdam” or “Berlin.” These letters were written in German, and many of the envelopes contained letters which were to be reposted by Ernst to other addresses. Some of the letters to Ernst were signed “St.,” and one of them, bearing the postmark “Berlin 6-1-12” contained an envelope addressed to “Mrs Seymour, 87, Alexandra Road, Sheerness.” Mr Bodkin explained that this was the pseudonym and address of the man Parrott, who figured in an espionage case in the autumn of 1912.

Another letter to Ernst, the witness further deposed, was dated “Potsdam, January 25, 1912,” and signed “St.” It contained a request that envelopes, bearing the printed name of the makers, should be sent to the writer. Then, on February 12, the same correspondent addressed Ernst: “Please post the enclosed letters at once, and send me, if you please, fifty envelopes as sample which you sent. Then write me a letter, if you please, a letter in good English, in which a customer asks for letters to be forwarded to him on the Continent addressed to ‘Poste Restante, etc.’”

There were enclosed with this missive two letters, addressed respectively to “F. Ireland, Mess 2, H.M.S. Foxhound, care of G.P.O.,” and “A Schutte, 5, Castletown, Portland Harbour.” Another letter produced, bearing date of January 23, 1912, signed “St.,” and dated from Potsdam, contained the following:

“According to information from newspapers, a fireman has been arrested on the English cruiser Foxhound. If that is Kr’s nephew, then it is certain he was dragged into it through the carelessness and stupidity of Kr. Perhaps you can get into communication with K., but by all means be cautious. If my suspicions are correct, then Kr. will be watched. Above all—caution. Should you have an opportunity to speak to him then ask him at the same time respecting a certain Schmidt he once recommended to me. He (Kruger) must be cautious, and especially show no address. That is to say, only go there when you know there is no danger to you. I mean, he must not start speaking German to you in the presence of others. Please let me hear something soon.”