After this despatch was printed I was called to the home of Fran von Schroeder, the American-born wife of one of the Intelligence Office of the General Staff. Captain Vanselow, Chief of the Admiralty Intelligence Department, was there and had brought with him the Manchester _Guardian_. He asked me where I got the information and who had passed the despatch. He said the Navy was up in arms and had issued orders to the General Telegraph Office that, inasmuch as Germany was under martial law, no telegrams were to be passed containing the words submarines, navy, admiralty or marine or any officers of the Navy without having them referred to the Admiralty for a second censoring. This order practically nullified the censorship powers of the Foreign Office. I saw that the Navy Department was again in the saddle and that the efforts of the Chancellor to maintain peace might not be successful after all. But the conferences at Great Headquarters lasted longer than any one expected. The first news we received of what had taken place was that Secretary von Jagow had informed the Kaiser he would resign before he would do anything which might cause trouble with the United States. Germany was split wide open by the submarine issue. For a while it looked as if the only possible adjustment would be either for von Tirpitz to go and his policies with him, or for von Jagow and the Chancellor to go with the corresponding danger of a rupture with America. But von Tirpitz would not resign. He left Great Headquarters for Berlin and intimated to his friends that he was going to run the Navy to suit himself. But the Chancellor who had the support of the big shipping interests and the financiers, saw a possible means of checkmating von Tirpitz by forcing Admiral von Pohl to resign as Chief of the Admiralty Staff. They finally persuaded the Kaiser to accept his resignation and appoint Admiral von Holtzendorff as his successor. Von Holtzendorff's brother was a director of the Hamburg-American Line and an intimate friend of A. Ballin, the General Director of the company. The Chancellor believed that by having a friend of his as Chief of the Admiralty Staff, no orders would be issued to submarine commanders contrary to the wishes of the Chancellor, because according to the rules of the German Navy Department the Chief of the Admiralty Staff must approve all naval plans and sign all orders to fleet commanders.