the Skelly Oil Co., Tulsa to Waite Phillips
of the Phillips Petroleum Co.

Like his former colleague Harry A. Jung, Steele works on the big
industrialists by whispering confidentially that he has sources of
information about which he can't talk much but which make it possible
for him to keep the industrialists informed about "subversive
radicals." For a reasonable price and perhaps a contribution to a
worthy cause, Steele would supply the industrialist with "confidential
information for members only" which would keep him up to date about
the radicals threatening America. The "confidential information" must
not be shown to anybody else. Extreme caution is necessary lest the
radicals find out about the "information service." With all this
hocum, secrecy and whispering, the industrialist becomes a member at
so much per not realizing that the information thus peddled can be got
for three cents a day--five cents on Sundays--by buying the _Daily
Worker_. It's just one of the little patriotic rackets the boys have
cooked up.

Working closely with Steele is James A. True of the James True
Associates, another precious racketeer who stepped from patrioteering
into efforts to organize in conjunction with Nazi agents a secret
armed force in the United States. With True in this effort to
establish a Cagoulard organization in this country, were some of the
most active Nazi agents and patrioteers.

FOOTNOTES:

[18] Not to be confused with Prof. Paul H. Douglas of the University of
Chicago, a highly reputable scholar and a stanch defender of democracy.

[19] Father Coughlin was finally reprimanded by the Vatican for his
unpriestly attacks upon the President.

X

_Underground Armies in America_

Early in 1938 native Americans, working with Nazi agents, completed
plans to organize a secret army along the general lines of the
Cagoulards in France. The decision was made after the liaison man
between Nazi agents here and plotters for the secret army met with
Fritz Kuhn and Signor Giuseppe Cosmelli, Counselor to the Italian
Embassy in Washington.

The liaison man is Henry D. Allen, who moved from San Diego to 2860
Nina St., Pasadena, Calif. Allen, the reader may recollect, helped
Schwinn organize the Mexican Gold Shirts which unsuccessfully
attempted to seize the Mexican Government. Allen is still active in a
plot to overthrow the Cardenas Government, working at the moment with
Gen. Ramon F. Iturbe, a member of the Mexi