New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-01
Farreaching Federal In
quiry Begun After Selz-
ure Of A. d. MelOy.
BACK FROM ENGLAND,
IS TAKEN ON LINER
Companion Is Prisoner Of Brit
ish as Agent of Germany
Conspiracy Charge Made.

An investigation which promises
sensational disclosures in regard to the
activities Of German agents in Mexico.
for the alleged purpose of fomenting
trouble in that country to the en-
barrassment Of the United States, was
begun yesterday by the Federal Grand
Jury. The inquiry followed the arrest
by the Federal authorities OF Andrew
d. Meloy, a real estate operator and
promoter in Mexican enterprises. on a
charge of aiding Franz Ritelen, Ger
man, in an attempt to obtain fraudu-
lent American passport Meloy gained
considerable notoriety severai years
ago through his association with DR..
r. c. Flower, an alleged stock swindler,
whom he testified against
Meloy was taken from the Holland
America liner Nieuw Amsterdam upon
her arrival at Quarantine yesterday BY
agents of the Department Of Justice.
He was arraigned before United States
Commissioner Houghton and held in
$4,000 bail for examination on October
Z. Anticipating his arrest, Meloy had
sent q wireless message TO the National
Surety Company. arranging for his bail.
Raymond II. Sarfaty. Assistant
United States District Attorney. who
represented the government at Meloy's
arraignment. started the investigation
before the grand jury Immediately
afterward. Miss Metty +. Brothy,
Meloy's secretary, who returned from
England with him and his wife. was
the only witness examined yesterday.
She will be recalled. together with
other witnesses to-day.
Passport Case Only an Incident.
"The Meloy passport case is only an
incident in this grand jury investiga-
ton" said M. Sa-iaty. The govern
ment has information and leads which
will take some time 10 present 10 the
grand jury. Ii is likely the court VIII
extend the time of the September
grand Jury TO further the inquiry
The complaint filed with Commits
sioner Houghton was drawn b. Lewis
VI. Can.rell. special agent Of the De
partment Of Justice, and was made
both against Meloy and Ritelen. Rite
len assumed several aliases. Cantrell
alleged. among them being Hansen
Edward V Gates" and Edward '.
Gasche." The defendants are charged
with conspirinG. on July 10, in causing
10 be obtained from the Secretar- OF
State q passport to be issued &c
Ritelen.
The complaint further states that on
. Ia, tho NJ
under the name of Gates and took
the oath of allegiance to the United
States. On August 3. il is alleged, Meloy
wrote a letter to the Secretary Of State
in which he said that he had been
asked to identify Gates" and declared
that he had known him for years as
a wine agent; and that he, Gates
came from Pennsylvania and had
visited Meloy at his home at GAO River
side Drive. where Mrs Meloy had met
him.
Said To Be German Secret Agent.
2itelen is said to be confidential
agent Of the German government who
was sent to this country recently on
secret mission. According TO the
Federal authorities, Ritelen, then under
the name Of Hansen, was active IN this
country in purchasing munitions OF war
for the German government. For
some reason he decided TO cut short his
stay here i'm the latter part OF July.
He sailed for England early in August
on the same boat, the Holland-Amerl-
ca liner Noordam. with the Meloys.
He was arrested at Falmouth by the
British authorities, and is now IN an
English detention camp.
Ritelen failed in his attempt 70 get
hut obtained
Swiss passport under the name of Ed
ward V. Gasche, il was said. Meloy
and his wife and secretary were taken
off the Noordam in England with Rit-
ellen. and, il is alleged, papers found in
Miss Brothy's satchel disclosed the
conspiracy to obtain the fraudulent
passport. Meloy was sent back TO the
limited States. A Washington lawyer
who has acted as legal adviser in this
country to CarranZa, the Mexican Con-
stitutionalist, returned on the Nleuw
Amsterdam with Meloy, it was said.
Meloy is an American by birth. He
has an Office at So Liberty Street. He
is knowa 10 have extensive business
interests IN Mexico, including the Mex
leo Western Railway Company and
other land and railroad companies in
that country. He is said TO be iden-
tilted with land developing enterprises
in New Jersey. lie declined TO discuss
his case.
saws Arrest Is Mistake.
josef NJ Proskauer, Of the firm Of
Elkus, Gleason & Proskauer. OF III
Broadway, Meloy's counsel, SAID last
night:
"1he government has made n grave
mistake IL the arrest of Mr.. Meloy. |
cannot discuss his case at this time. ex-
cept to say that he is entirely innocent
Of the charge brought against him"
Miss Brothy was not detained by the
government agents. She volunteered,
however, TO accompany her employer
on the coast guard cutter. She was
questioned by Captain William OBEY,
chief OF the special agents of the De-
partment Of Justice, at his office, AT %
Park Row, and was subppnaed TO APP
pear before the grand jury later. Cap
tain Ohley declined TO discuss the Mex
lean feature of the case
II Is known that Ritelen made tour
Of the United States and Mexico, AMI
while IN this country was known as
Fred Hansen. a purchaser II munitions
Tor the German government. The Fed
eral authorities believe he is high
official IN the service of his govern
ment Il was while on a secret mission
10 Mexico that Ritelen is supposed 10
have met Meloy a theory was ad
vanccd yesterday that Mexican mat
tiers IN July reached the point where il
was necessary for Ritelen and Meloy TO
90 10 Germany for conference with
German officials. In order that Ritelen
could get through the enemys lines