About this time, also, the German Government began its policy of discouraging American business in Germany.  Ambassador Gerard had had a long wrangle with the Chancellor over a bill which was introduced in the Reichstag shortly after the beginning of the war to purchase all foreign oil properties “within the German Customs Union.”  The bill was examined by Mr. Gerard, who, for a number of years, was a Supreme Court Judge of New York.  He discovered that the object of the bill was to put the Standard Oil Company out of business by purchasing all of this company’s property except that located in Hamburg.  This was the joker.  Hamburg was not in the German Customs Union and the bill provided for the confiscation of all property not in this Union.

Mr. Gerard called upon the Chancellor and told him that the United States Government could not permit such a bill to be passed without a vigorous protest.  The Chancellor asked Mr. Gerard whether President Wilson and Secretary of State Bryan would ever protect such a corporation as the Standard Oil Company was supposed to be.  Mr. Gerard replied that the very fact that these two officials were known in the public mind as having no connection with this corporation would give them an opportunity of defending its interests the same as the Government would defend the interests of any other American.  The Chancellor seemed surprised at this statement and Mr. Gerard continued about as follows: 

“You know that Germany has already been discriminating against the Standard Oil Company.  You know that the Prussian State Railways charge this American corporation twice as much to ship oil from Hamburg to Bremen as they charge the German oil interests to ship Roumanian oil from the Austrian border to Berlin.  Now don’t you think that’s enough?”

The interview ended here.  And the bill was never brought up in the Reichstag.

But this policy of the Government of intimidating and intriguing against American interests was continued until diplomatic relations were broken.  In December, 1916, Adolph Barthmann, an American citizen, who owned the largest shoe store in Berlin, desired to close his place of business and go to the United States.  It was impossible for him to get American shoes because of the Allied blockade and he had decided to discontinue business until peace was made.

Throughout the war it has been necessary for all Americans, as well as all other neutrals, to obtain permission from the police before they could leave.  Barthmann went to Police Headquarters, and asked for authority to go to the United States.  He was informed that his passport would have to be examined by the General Staff and that he could call for it within eight days.  At the appointed day Barthmann appeared at Police Headquarters where he was informed by the Police Captain that upon orders of the General Staff he would have to sign a paper and swear to the statement that neither he nor the American firms he represented had sold, or would sell, shoes to the Allies.  Barthmann was told that this statement would have to be sworn to by another American resident of Berlin and that unless this was done he would not be permitted to return to Germany after the war.  Mr. Barthmann had to sign the document under protest before his American passport was returned.