HANDLING MONEY FOR EVIL ENDS
Von Igel also handled money for von Papen. For instance, on March 27, 1915, the latter gave to his secretary a cheque payable to his order for $1,000 and on the counterfoil of his cheque-book he wrote “for A. Kaltschmidt, Detroit,” who since has been accused by the Canadian authorities as an accomplice in the project against Canadian armouries and munition factories. It was von Igel, furthermore, who cashed many cheques for von Papen, the proceeds of which were to go to secret agents starting on missions to the enemy’s country. He carried confidential messages which von Papen would not put in writing. He handled the code books in compiling and deciphering messages. He carried orders to Koenig, conferring with him and directing him when to meet von Papen.
When von Papen was preparing to leave the country at the request of President Wilson, he began to turn over his documents to von Igel for safe keeping. He gave him instructions as to the custody of the papers and the cleaning up of work left undone. In his regard, he undoubtedly followed Dr. Albert’s instructions put in a letter from San Francisco: “If you should leave New York before my return, we must try to come to some agreement about pending questions by writing. Please instruct Mr. Amanuensis Igel as precisely as possible. You will then receive in Germany the long-intended report of the expenses paid through my account on your behalf.”
So von Igel, as a trusted clerk, took unto himself the duties of confidential man for von Papen and for other big Germans who began but were obliged to leave unfinished certain projects in this country. There were many lines of information and activities converging to von Papen, afterwards to von Igel. After von Rintelen left this country, part of his schemes were entrusted to von Igel, who saw men with whom von Rintelen or his assistants had dealt. For instance, he has been indicted jointly with Dr. Scheele, Captain Gustave Steinberg, von Rintelen’s aid, for complicity in a plan to ship articles abroad under fraudulent manifests and thus deceive the Allies. One of these schemes was to export lubricating oil, much needed in Germany, to Sweden as fertilizer. Some of the payments for this purpose were made after von Rintelen sailed for home.
With von Papen gone and Koenig arrested, von Igel became a somewhat important person, taking upon himself the attaché’s prestige and a lot of Koenig’s work after the latter’s arrest. Many, many cheques were cashed by von Igel in the four months intervening between the attaché’s departure and the former’s arrest. He carried on von Papen’s work in a miniature way, conferring with many secret agents, giving orders and preparing reports in code for despatching to Germany.
While von Igel, in point of family, education and confidential association with the big German agents in America, is an important link in the Teutonic spy chain, Paul Koenig (“P. K.”), is more striking because of his rough activities, his underground connections and his associations with law-breakers. He was a sort of business manager of Germany’s secret service in the eastern part of America.
“P.K.”
“P. K.,” as his hirelings called him, was a sort of boss, an unmerciful autocrat in the lower world, physically fearless, trusting no man and driving every man to work by the use of violent abusive language, boastful of his skill, physical prowess and his craft. In appearance, he gives this impression. A tall, broad-shouldered man, he has bony fingers and arms long and powerful reaching almost to his knees. His dark, sharp eyes dart suspiciously at you from beneath black, arching eyebrows, showing defiance and yet a certain caution. A truly typical person he is for the work for which he was selected, and though perhaps a little too boastful, such supreme confidence undoubtedly is a necessary attribute of any man who would acquire any degree of success in such undertakings.
Koenig is another product of the Hamburg-American Steamship Line—the Kaiser’s very own. Prior to the war he was superintendent of the company’s police, having a half-score men under him and keeping watch on the pier workers or investigating complaints received by the management. He had grown to that task from similar training in the Atlas Service, a subsidiary corporation. He had spent years among longshoremen, bossing them and cursing them. He knew wharf rats, water-front crooks, and was thoroughly acquainted with their schemes—as naturally such a man would be. He understood thoroughly how to handle men of the rough type.
When the war started and von Papen was searching for an assistant organizer, he found in Koenig’s little police force a splendid nucleus of just what he needed. At his request the Hamburg-American Line quickly put Koenig at von Papen’s disposal and straightway von Papen began to link up to Koenig’s police a number of channels of information, to supply him with reservists for special assignments, to suggest to him how to spread out and instal spies in various places to gather important facts. Koenig accordingly became the business manager of a part of Germany’s secret service, not only gathering information, but acting as a link in the labyrinth system employed by von Papen in communicating with the reservist or agent selected to do certain work in behalf of the Fatherland.