chosen for more serious work. Some were used for propaganda; others
were given definite espionage assignments. The espionage and
propaganda divisions of the Nazi machine in this country are separate
bodies. They overlap only in serving as a recruiting ground.

The smuggling of anti-democratic propaganda off Nazi ships entering
American ports was exposed by the McCormick Congressional Committee,
but it stopped only for a brief period. The Nazi ships which bring in
propaganda also bring secret instructions to agents here and take back
their reports. To eliminate tell-tale evidence, Dr. George Gyssling,
Nazi Consul in Los Angeles, has paid out cash to leaders of the German
propaganda machine on the West Coast. Affidavits to this effect are in
my possession.

The headquarters for the West Coast propaganda machine which dabbles a
little in espionage, is the _Deutsches Haus_, 634 W. 15th Street, Los
Angeles. The building is supposed to be merely a meeting place for
German-Americans and sympathizers of the Hitler regime. Actually its
functions are far more sinister.

The _Deutsches Haus_, before it was turned into a center of Nazi
activity, had been a typical Los Angeles home. When the Nazis took it
over, they ripped out several of the front rooms and turned it into a
barn-like affair with a skylight overhead and a raised platform from
which speakers sing the praises of Hitler and fascism. In the rear
part of the hall is a combined bar and restaurant where the
German-Americans drink their beer and whiskies and plot the smuggling
of propaganda from Nazi ships and the carrying on of espionage against
American military and naval forces.

I use the word "plot" for precisely what it means. From this house,
naturalized American citizens and native Americans direct espionage
and propaganda activities paid for by a foreign government and
designed against the peace and security of the United States.

The leader of this group, Hermann Schwinn, was appointed by Minister
of Propaganda Goebbels in Germany and is the recipient of personal
letters of praise from Adolf Hitler for his work. Schwinn is a
naturalized citizen,[12] a comparatively young man in his early
thirties, ruddy-faced and with a thin, quivering mustache on his upper
lip. This little Fuehrer's office is just off the meeting hall and
adjoins the small bookstore where the purchaser can get pamphlets,
books, and newspapers attacking democracy.

When I called upon Schwin