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"The Government here have lost their nerve as a result of the impending Congress, the Hapag case, the Ancona incident, and the explosions and fires in munition and powder works, and like all private individuals here are allowing themselves to be terrorized by the anti-German ring. Hence the anxiety for the recall of Papen and Boy-Ed.
Fay's admission to the police contained these statements: "I saw Captain Boy-Ed and Captain von Papen on my arrival in this country. Captain Boy-Ed told me that I was doing a dangerous thing. He said that political complications would result and he most assuredly could not approve of my plans. When I came to this country, however, I had letters of introduction to both those gentlemen.
Albert, the financial representative in New York, for the establishment of these factories would have countered the German policy of bringing political pressure by refusing dye shipments. Dr. Albert's reply to Boy-Ed contains the following phrase: "With regard to the dyes, I got into touch with local experts in order to determine what truth there is in the news.
The connection of Captain Boy-Ed with the case suggested the defense that the implicated officials consulted with him as the only representative in the United States of the German navy, and were really acting on direct orders from the German Government, and not under the direction of the naval attaché.
I also telegraphed as follows to my Government on September 5th: "Explanations of von Papen and Boy-Ed herewith as requested by Military and Naval Authorities: "'State Department request my recall. Reasons for this given to Ambassador. Case of Stegler and my two supposed meetings with Huerta. Stegler case settled since March. Stegler in matter of his pass proved a liar.
Lansing, the Secretary of State, however, informed me that, as a matter of fact, Rintelen, while in England, had confessed himself to be an emissary of the German Government. I then heard from Captain Boy-Ed that Rintelen, by representing himself as empowered to purchase large stocks of raw material for Germany in the United States, had obtained a considerable advance from the Embassy's funds.
The German spies, like Boy-Ed and von Papen, arranged to blow up American munition factories and held dinners waiting for a telephone message saying that the magazine had just exploded or the depot had taken fire or a scow had been sunk, after which they drank the health of the man who lighted the match.
A German organization, the National Labor Peace Council, was indicted on this charge, as well as a wealthy German, Franz von Rintelen, described as an intimate friend of the German Crown Prince, and several Americans known in public life. In most of these cases the name of Captain Karl Boy-Ed, the German naval attaché, or Captain Franz von Papen, the German military attaché, figured persistently.
This fact was one of the main reasons for the American Government's request in December, 1915, that Boy-Ed should be recalled.
Congress was about to assemble, and it was therefore to be expected that the Government would take steps to strengthen its position. Mr. Lansing asked me on 1st December to call on him and informed me that the American Government had requested that von Papen and Boy-Ed should be recalled, as they were no longer personoe gratoe!
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