I made no objection that the German government did not have a perfect right to create this monopoly and to put the American controlled company entirely out of the field, but insisted upon a fair compensation for all their property and good-will. Even a fair compensation for the property and good-will would have started the government monopoly company with a large debt upon which it would have been required to pay interest, and this interest, of course, would have been added to the cost of oil to the German consumers. In my final conversation on the subject with von Bethmann-Hollweg, he said, "You don't mean to say that President Wilson and Secretary Bryan will do anything for the Standard Oil Company?" I answered that everyone in America knew that the Standard Oil Company had neither influence with nor control over President Wilson and Secretary Bryan, but that they both could and would give the Standard Oil Company the same measure of protection which any American citizen doing business abroad had a right to expect from his government. I also said that I thought they had done enough for the Germans interested in the Galician and Roumanian oil fields when they had used the Prussian state railways to give these oil producers an unfair advantage over those importing American oil.

Shortly after this the question of the creation of this oil monopoly was dropped and naturally has not been revived during the war, and I very much doubt whether, after the war, the people of liberalised Germany will consent to pay more for inferior oil in order to make good the investments of certain German banks and financiers in Galicia and Roumania. I doubt whether a more liberal Germany will wish to put the control of a great business in the hands of the government, thereby greatly increasing the number of government officials and the weight of government influence in the country. Heaven knows there are officials enough to-day in Germany, without turning over a great department of private industry to the government for the sole purpose of making good bad investments of certain financiers and adding to the political influence of the central government.

In May, 1914, Colonel House and his beautiful wife arrived to pay us a visit in Berlin. He was, of course, anxious to have a talk with the Emperor, and this was arranged by the Emperor inviting the Colonel and me to what is called the Schrippenfest, at the new palace at Potsdam.

For many years, in fact since the days of Frederick the Great, the learning (Lehr) battalion, composed of picked soldiers from all the regiments of Prussia, has been quartered at Potsdam, and on a certain day in April this battalion has been given a dinner at which they eat white rolls (Schrippen) instead of the usual black bread. This feast has been carried on from these older days and has become quite a ceremony.

The Colonel and I motored to Potsdam, arrayed in dress-suits, and waited in one of the salons of the ground floor of the new palace. Finally the Emperor and the Empress and several of the Princes and their wives and the usual dignitaries of the Emperor's household arrived. The Colonel was presented to the royalties and then a Divine Service was held in the open air at one end of the palace. The Empress and Princesses occupied large chairs and the Emperor stood with his sons behind him and then the various dignitaries of the court. The Lehr Battalion was drawn up behind. There were a large band and the choir boys from the Berlin cathedral. The service was very impressive and not less so because of a great Zeppelin which hovered over our heads during the whole of the service.

After Divine Service, the Lehr Battalion marched in review and then was given food and beer in long arbours constructed in front of the palace. While the men were eating, the Emperor and Empress and Princes passed among the tables, speaking to the soldiers. We then went to the new palace where in the extraordinary hall studded with curious specimens of minerals from all countries, a long table forming three sides of a square was set for about sixty people. Colonel House and I sat directly across the table from the Emperor, with General Falkenhayn between us. The Emperor was in a very good mood and at one time, talking across the table, said to me that the Colonel and I, in our black dress-suits, looked like a couple of crows, that we were like two undertakers at a feast and spoiled the picture. After luncheon the Emperor had a long talk with Colonel House, and then called me into the conversation.

On May twenty-sixth, I arranged that the Colonel should meet von Tirpitz at dinner in our house. We did not guess then what a central figure in this war the great admiral was going to be. At that time and until his fall, he was Minister of Marine, which corresponds to our Secretary of the Navy Department, and what is called in German Reichsmarineamt. The Colonel also met the Chancellor, von Jagow, Zimmermann and many others.

There are two other heads of departments, connected with the navy, of equal rank with the Secretary of the Naval Department and not reporting to him. These are the heads of the naval staff and the head of what is known as the Marine Cabinet. The head of the naval staff is supposed to direct the actual operations of warfare in the navy, and the head of the Marine Cabinet is charged with the personnel of the navy, with determining what officers are to be promoted and what officers are to take over ships or commands.

While von Tirpitz was Secretary of the Navy, by the force of his personality, he dominated the two other departments, but since his fall the heads of these two other departments have held positions as important, if not more important, than that of Secretary of the Navy.

On May thirty-first, we took Colonel and Mrs. House to the aviation field of Joachimsthal. Here the Dutch aviator Fokker was flying and after being introduced to us he did some stunts for our benefit. Fokker was employed by the German army and later became a naturalised German. The machines designed by him, and named after him, for a long time held the mastery of the air on the West front.