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.From Memoirs of Max Warburg,"The Kaiser thumbed the table violently and shouted, Must you alwaysbe right? but then listened carefully to Max s view on financialmatters."72In June, 1918, Paul Warburg wrote a private note to Woodrow Wilson, "Ihave two brothers in Germany who are bankers.They naturally nowserve their country to their utmost ability, as I serve mine."73Neither Wilson nor Warburg viewed the situation as one of concern,and Paul Warburg served out his term on the Federal Reserve Board ofGovernors, while World War I continued to rage.The background of Kuhn, Loeb & Company had been exposed in"Truth Magazine", edited by George Conroy:"Mr.Schiff is head of the great private banking house of Kuhn, Loeb &Co.which represents the Rothschild interest on this side of the Atlantic.He has been described as a financial strategist and has been for yearsthe financial minister to the great impersonal power known asStandard Oil.He was hand-in-glove with the Harrimans, the Goulds and theRockefellers, in all their railroad enterprises and has become thedominant power in the railroad and financial world in America.Louis Brandeis, because of his great ability as a lawyer and for otherreasons which will appear later, was selected by Schiff as theinstrument through which Schiff hoped to achieve his ambition in NewEngland.His job was to carry on an agitation which would underminepublic confidence in the New Haven system and cause a decrease in152the price of its securities, thus forcing them on the market for thewreckers to buy."74We mention Schiff s lawyer, Brandeis, here because the first availableappointment on the Supreme Court of the United States whichWoodrow Wilson was allowed to fill was given to the Kuhn, Loeblawyer, Brandeis.Not only was the U.S.Food Administration managed by Hoover sdirector, Lewis Lichtenstein Strauss, who married into the Kuhn LoebCompany by marrying Alice Hanauer, daughter of partner Jerome__________________________72 Max Warburg, Memoirs of Max Warburg, Berlin, 193673 David Farrar, The Warburgs, Michael Joseph, Ltd., London, 197474 "Truth Magazine", George Conroy, editor, Boston, issue of December16, 191287Hanauer, but in the most critical field, military intelligence, Sir WilliamWiseman, chief of the British Secret Service, was a partner of Kuhn,Loeb & Company.He worked most closely with Wilson s alter ego, Col.House."Between House and Wiseman there were soon to be fewpolitical secrets, and from their mutual comprehension resulted in largemeasure our close cooperation with the British."75One example of House s cooperation with Wiseman was aconfidential agreement which House negotiated pledging the UnitedStates to enter into World War I on the side of the Allies.Ten months153before the election which returned Wilson to the White House in 1916 because he kept us out of war , Col.House negotiated a secretagreement with England and France on behalf of Wilson whichpledged the United States to intervene on behalf of the Allies.OnMarch 9, 1916, Wilson formally sanctioned the undertaking.76Nothing could more forcefully illustrate the duplicity of WoodrowWilson s nature than his nationwide campaign on the slogan, "He keptus out of war", when he had pledged ten months earlier to involve us inthe war on the side of England and France.This explains why he wasregarded with such contempt by those who learned the facts of hiscareer.H.L.Mencken wrote that Wilson was "the perfect model of theChristian cad", and that we ought "to dig up his bones and make diceof them."According to The New York Times, Paul Warburg s letter of resignationstated that some objection had been made because he had abrother in the Swiss Secret Service.The New York Times has nevercorrected this blatant falsehood, perhaps because Kuhn, LoebCompany owned a controlling interest in its stock.Max Warburg wasnot Swiss, and although he had probably come into contact with theSwiss Secret Service during his term of office as head of the GermanSecret Service, no responsible editor at The New York Times could havebeen unaware of the fact that Max Warburg was German, and thathis family banking house was in Hamburg, and that he held a numberof high positions in the German Government.He represented Germanyat the Versailles Peace Conference, and remained peacefully inGermany until 1939, during a period when persons of his religion werebeing persecuted.To avoid injury during the approaching war, when154bombs would rain on Germany, Max Warburg was allowed to sail toNew York, his funds intact.At the outset of World War I, Kuhn, Loeb Company had figured in thetransfer of German shipping interests to other control.Sir Cecil__________________________75 Edward M.House, The Intimate Papers of Col.House, edited byCharles Seymour, Vol.II, p.399.Houghton, Mifflin Co.76 George Sylvester Viereck, The Strangest Friendship in History,Woodrow Wilson and Col.House, p.10688Spring-Rice, British Ambassador to the United States, in a letter to LordGrey wrote:"Another matter is the question of the transfer of the flag to theHamburg Amerika ships.The company is practically a GermanGovernment affair.The ships are used for Government purposes, theEmperor himself is a large shareholder, and so is the great bankinghouse of Kuhn, Loeb Company.A member of that house (Warburg)has been appointed to a very responsible position in New York,although only just naturalized.He is concerned in business with theSecretary of the Treasury, who is the President s son-in-law.It is he whois negotiating on behalf of the Hamburg Amerika ShippingCompany."77On November 13, 1914, in a letter to Sir Valentine Chirol, Spring-Ricewrote, (p.241, v
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