World War II: First German Spy Ring in America (1936-38)


Figure 1.--The first NAZI spy ring in America recruited from Friends of the New Germany. The FBI broke the ring, but most of the conspirators escaped. The FBI was still inexperienced at dealing with spies. The trial was a senational 1938 news event. Up until this the Hollywood studios had refused to address the growing NAZI threat in films, in part becasuse of the lucrative German film market. Warner Britgers was the first major studio to take on the NAZIs with 'Confessions of a NAZI Spy'. And surprisingly, it was reasonably accurate. Here one of the conspirators, Kurt Schneider (Francis Lederer), an unemployed malcontent who fancies himself a clever spy has a shoeshine boy pick up the blank passports he has been ordered to obtain. The boy hands Mitchell the package and offers him the 40 cents change. As Michell begins to walk away the FBI arrest him. 'Confessions' was a controversial film at the time. Some thought it an unwaranted piece of propagabnda. Virtually no one in America realized how understated these early NAZI films were.

Members of the Friends of New Germany along with Abwehr agents organized the first German spy ring in America. The Abwehr agents traveled back and forth on German oceanliners. We do not yet have details on the operations, but there were operatives found in defense plants. The ring was uncovered when a Scottish mail man notice all the foreign letters arriving at the home of a woman on his route. It was an Abwehr mail drop. In addition one of the conspirators was very amateurish leading to his arrest and interoigation by the FBI. FBI agent Leon G. Torrou led the investigation. It led to a highly publicized German spy trial held in New York before the War (November-December 1938). Eighteen individuals were accused of spying. Apparently the FBI was not yet geared up for prosecuting spies. The FBI only suceeded in bringing four of the conspirators to trial. The others escaped or were spirited out of the United States by German agents. Among the Abwehr agents were Johanna Hofmann, a hairdresser on the German liner Europa. Dr. Ignatz Griebel provided the FBI information about her. All four were convicted. Warner Brothers decided to produce a film on the German spy ring, a coirageous decesion at the time. The studio sent writer Milton Krims to New York to cover the trial. The result was "Confessions of a NAZI Spy" (1938). It was the first of the anti-NAZI film turned out by Hollywood. And surprtisingly for Hollywood, it was fairly accurate. It was controversial because at the time, the primary concern of most Americans was keeping out of the developing war in Europe. German-American Bund leader Fritz J. Kuhn tried to block the release of the film by filing a $5 million libel suit against Warner Brothers and requested a temporary injunction against the film's exhibitors. Propaganda Minister Goebbels, a film buff, was outraged with the film. His outrange was because no Hollywood studio until this had dared attack the NAZIs in their films, in part because of the lucrative German film market. Goebbels issued an official warning to Hollywood studios and actors that the Reich would ban all future films that used cast or crew members employed in the film. Some actors attempted to disguise their identity in the credits. Goebbels also ordered the German film industry to produce a series of "documentary" films highlighting American unemployment, gangsterism, and judicial corruption in retaliation. The Germans after occupying Warsaw (September 1939), hanged theater owners who had shown the film.

Friends of the New Germany

Members of the first German spy ring came from Friends of New Germany. The United States is a nation of immigrants. And German immigrant played a role in American history beginning with the Revolutiionary war. In the 19th century with the influx of European immigranhts from more countries, a range of fraternasl and social groups appeared. These became well accepted in America. The Friednds of New Germany was different. It was organized after Hitler seized power (1933) and Americans watched the developmednts in Germny with comnsiderable diquiet in movie newreels. The studio avoided addressing the NAZIs in movies, but Hitler, book burings, zand masrching NAZIs were featured in the newreels. While many Germns were impressed with Hitler's ranting speechess were not. And it was disquiting to see the the Friends of the New Germany in America itself. Actually the original name was Friends of the Hitler Movement which was quickly changed to the less threatening Friends of the New Germany. On paper, the United States might seemed to offer considerable opportunities to the NAZIs. Germans were the lagest single immigrant group and some 30 million americans were of German ancestry. Despite the histionics of the Friends and claims of support, only a handful of German Americans expressed any support. Of all the countries with sizeable German populations, only in America and Switzerland did Germans rejedct Hitler and the NAZIs. Hitler and the Germasn Foreign Ministry knew thst the Friends could be counter productive. The louder they were, the more anti-NAZI feeling they generated. Yet for Germany, the most advantageous policy was for America to remain neutral and unarmed. And while thee was not way of turning Germasn-Americans against America, a major element in the isolationist movement was the heavily German Mid-West. For this reason, the German Foreign Ministry ordered German nationals not to participate in the Friends so it would be an entirely American organization. Yet neither Hitler or Ribbontrop could bring themselves to entirely abandon the Friends and successor organizations. The Friends president who was involved in the sp rung fled (or was spirited away) to Germany. He was replasced by Fritz Kune. The name of the organization was changed to the Amerika-Deutscher Volksbund / German American Bund. These chaanges were entirely cosmetic, the ethos of the organization and the people involved were the same. [Remak, p. 38.]

Abwehr

Abwehr agents organized the first German spy ring in America. The Abwehr agents traveled back and forth on German oceanliners.

Espionage Activities

We do not yet have details on the operations, but there were operatives found in defense plants. The primry interest seems to have been industrial espionage rather tha sabatoge. Of course this was before the War. Among the Abwehr agents were Johanna Hofmann, a hairdresser on the German liner Europa. Also arrested were Rumrich and Vossand Glaser.

Discovery

The ring was uncovered when a Scottish mail man notice all the foreign letters arriving at the home of a woman on his route. It was an Abwehr mail drop. In addition one of the conspirators was very amateurish leading to his arrest and interoigation by the FBI. FBI agent Leon G. Torrou led the investigation.

Trial

It led to a highly publicized German spy trial held in New York before the War (November-December 1938). Eighteen individuals were accused of spying. Apparently the FBI was not yet geared up for prosecuting spies. The FBI only suceeded in bringing four of the conspirators to trial. The others escaped or were spirited out of the United States by German agents. Dr. Ignatz Griebel provided the FBI information about her. All four were convicted.

Background

Most Americans in the 1930s were primarily concerned with the Depression. When Hitler and the NAZIs began to appear in the movie newsreels, it was disturbing but the Dpression and their jobs were what most people were concerned about. This was still the case in 1938 and determined the outcome of the 1938 Congressional by-election. But events in 1938 moved to change this focus. First was the Abchluss in Austria. This was raspidly followed by the Munich Crisis and Kristallnacht. This all could be pigeon-holed as a European problem as the isolationists insisted--a European problem which American should stay about of this time. At the end of tghe year a sensationsl trial occurred in New York of 18 NAZI spies (November-December 1938). The implications were obvious, the NAZIs could not be resticted to Europe. Eventually they woulkd come after Amnerica. Public opinion was still asrdently against American involvement in another war, but after 1938, public opinion wouls steadily shift if glacially toward increasing opposition to the NAZIs and strenthening national defense.

Confessions of a NAZI Spy (1939)

Warner Brothers decided to produce a film on the German spy ring, a courageous decesion at the time. The studio sent writer Milton Krims to New York to cover the trial. The result was "Confessions of a NAZI Spy" (1938). It was the first of the anti-NAZI film turned out by Hollywood. And surprisingly for Hollywood, it was fairly accurate. It not only was a spy thriller, but there was a good bit about the Friends of the New Germany, including boys and girls in edcampents masrching around in Hitler Youth uniforms. It was controversial because at the time, the primary concern of most Americans was keeping out of the developing war in Europe. German-American Bund leader Fritz J. Kuhn tried to block the release of the film by filing a $5 million libel suit against Warner Brothers and requested a temporary injunction against the film's exhibitors. Propaganda Minister Goebbels, a film buff, was outraged with the film. His outrange was because no Hollywood studio until this had dared attack the NAZIs in their films, in part because of the lucrative German film market. Goebbels issued an official warning to Hollywood studios and actors that the Reich would ban all future films that used cast or crew members employed in the film. Some actors attempted to disguise their identity in the credits. Goebbels also ordered the German film industry to produce a series of "documentary" films highlighting American unemployment, gangsterism, and judicial corruption in retaliation. The Germans after occupying Warsaw (September 1939), hanged theater owners who had shown the film.

Sources

Remak, Joachim. "Friends of the New Germny: The Bund and German-American relations," The Journal of Modern History Vol. 29, No. 1 (March 1957), pp. 38-41.

Torrou. Leon G. Nazi Spies in America (Random House, 1939).









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Created: 11:09 PM 12/5/2010
Last updated: 8:32 AM 12/6/2010