New-York tribune., 1915-12-19
Lists of Agents in
Welland COnspir-
aCy Papers.
CLERK WATCHED
ALLIES ORDERS
Many Business Secrets
Stolen - PatrOlman
Makes Confession.

Astonishing additional evidence of
the extent TO which the business
mechanism Of this country is honey
combed with German spies was
brought TO light yesterday by Fed
eral agents. Early in the day evil
dence of German espionage in our
banking system was disclosed. In
the afternoon even the New York
Police Department fell under sus-
picion.
Following the arrest on Friday
night of Paul Koenig, arch plotter,
and chief of the secret service of the
Hamburg-American Line, who is
charged with having attempted to
destroy the Welland Canal in Can
ada, the hand Of the law reached
into the National City Bank in Wall
Street and dragged out a German
SPY, who was on the payroll Of
koenig.
A young clerk, Frederick
Schleindl, employed in the credit de-
partment, where much OF the bust
ness of the Allied governments came
under his observation, was taken.
Soon after Koenig was-in custody.
! on Friday night, his secretary,
Frederick Metzler, was tricked into
coming over from New Jersey to
this city, where he was arrested and
put on the grill for several hours.
Policeman Named in Case.
He told the authorities much more
| tran Koenig and his associates sus-
rected, and in the dark hours OF the
morning Schleindl was captured.
Hardly had the bank clerk been ar
raigned when Federal detectives
went to Police Headquarters with
/ information that involved one of the
Police Department itself, a police
man, Otto F. Matilda, employed IN
/ the warrant bureau.
His name and telephone number
ard other memoranda were found IN
the confidential books seized in the
offce of Koenig in the Hamburg
American Line Building, at 40
/ Broadway.
Mattola was suspended at once
ard made a confession to Deputy
I commissioner Lord, but his admis-
sions concerning his relationship
with Koenig were not sufficient, the
! Commissioner said, to warrant his
arrest. Mr.. Lord is confident that
/ the policeman had done nothing that
could be regarded as participation
in conspiracy against the United
States.
/ Nevertheless, the fact that servant
n the arch -conspirator had been found
onerating in the Police Department, a
service that the Federal authorities had
/ ofton called upon for assistance in run
ming down plotters, was regarded BY
the Secret Service men as an exceed
ingly portentous situation.
Koenig was regarded as remarkably
clever man. But for all his craft he
was not careful about the secretion OF
his private papers. Documents and
memoranda which, it is said, have been
q cold mine 70 the Department Of JUS
lice were found with little or no diff
Guilty. Data that have been deciphered
thus far have been of enormous help in
the men on the trail of the conspirs-
tors. An
Secretary Tells All.
! Another important detail that Koenig
/ overlooked was the selection of his
secretary. Metzier. The young German
who was taken unawares and put under
gruellinc cross-hre examination for
more than three hours after his arrest
is said 20 have made a complete con-
fsssion. His admissions under exam
ination and matter that he gave volun-
tsrilv welded complete chain of IN
eliminating evidence extending around
the United States from ocean TO ocean
from border to border
So great is the diversity Of plots and
co closely are they interviewer that the
Department Of Justice is said to be at
/ o. loss 20 know how to attack il without