German Spies in England: An Exposure

by William Le Queux

There cannot now be the slightest doubt that thousands of these German employees were, before the war, really in the pay of German firms, and were busily engaged in sending to Germany all the information they could possibly pick up which would tend to help the German and injure the British merchant and manufacturer.

I hope they have over-reached themselves, and that when the war is over we shall see a great deal less of the English worker being supplanted by spying Germans, whose apparent cheapness has been the costliest labour Englishmen have ever employed.

"Never trust or employ a German, and always make him pay cash" ought to be the British commercial motto for the future.

Stieber died in the early nineties, but he was succeeded by others quite as clever, and even more unscrupulous than himself, some of whom—though by no means all—have become faintly known to us through the revelations made in the too few cases of espionage where prosecution has been undertaken by our sleepy authorities. I say "very few," of course, in the comparative meaning of the phrase. Actually, there have been a fair number of cases, but when we consider the slyness of German methods we must come to the conclusion that not a fraction of the whole have been dealt with, in spite of the amusing claim of Mr. McKenna that he has succeeded in smashing the German spy organisation in this country. Our leniency in this respect is a matter of amazement to people in France, and other countries where, from bitter experience, the German spy-peril is better understood, and it is also a matter of some resentment. Every blow at England, it is argued, injures the cause of the Allies as a whole, and the worst blows are likely enough to be struck by the undetected and unpunished spy.

In almost every case of espionage in England in recent years, the name of Steinhauer, "of Potsdam," has figured prominently. He is, at the moment, the chief of the Kaiser's spy-system, and there is no doubt that he fully enjoys the confidence and friendship of his royal master.

Steinhauer—as he is known to our Secret Service—is an officer in the Prussian Guard, and is about forty years of age. Personally, he is a man of charming manners, of splendid education, and of excellent presence, capable of taking his place—as he has frequently done—in the very best society. Steinhauer—the man of a hundred aliases—acting under the direct instructions of the Kaiser, and with the closest support and co-operation of the German military authorities, established in England such a network of naval and military spies as, when it was tardily discovered, fairly made our authorities aghast.

The allegations I have made in these pages are borne out by Mr. McKenna's own admission, that hardly anything was done in the matter until about the year 1911; yet, as I have indicated, long before this the Germans were actually plotting war against England, and were preparing for it and looking forward to the day when they might hope to wage it with every prospect of success.

The following extract from a public statement by the Home Secretary is worth quoting. It will be noticed that Steinhauer's name is not mentioned, but there is no doubt that he was the head of the organisation of which the Home Secretary speaks.

Mr. McKenna stated in his remarkable and somewhat ludicrous communiqué of October 9th, 1914:—

"The Special Intelligence Department ... was able in three years, from 1911 to 1913, to discover the ramifications of the German Secret Service in England. In spite of enormous effort and lavish expenditure by the enemy, little valuable information fell into their hands.... There is good reason to believe that the spy organisation, crushed at the outbreak of the war, has not been re-established.... How completely that system had been suppressed in the early days of the war is clear from the fact disclosed in a German Army Order—that on 21st August the German military commanders were ignorant of the dispatch and movements of the British Expeditionary Force, although these had been known for many days to a large number of people in this country."