The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-11
SPY FUND TRACED
BY FEDERAL JURY
Government Seeks TO SHOW
Capt. won Papcn Behind
Wclland Canal Plot.
HANDLED ALL THE GOLD

The Fedora! Grand Jury continued yes
terday its effort to trace the course Of
the funds aaid to have been supplied by
Capt. Franz Won Papen for the dynamit.
ing of the Welland Canal In September.
1914. Documentary evidence was shown
to the Grand Jurors indicating that
the Riggs National Bank in Washington
and the bana.ng firm of Knauth. Nachod
& kuhne in this city were two Of the
financial institutions through witch the
funds passed on their way to the men
who had undertaken TO carry out the
plot.
Harry Kitchen. an employee Of knauth,
Nachod 4 kuhne, was called AZ "A wit
ness to Identify checks drawn by Won
Papen on the Riggs bank and no.de pay-
able to knauth. Nachod 4 kuhne. Sew
eral If these checks bore a face valo,
Of 5000 each.
The paynaster OF the fund is said to
have been John r. Ryan. "A Buffalo law
yer and politician. who. according to in
formation in the hands of the Federal
authorities. did not know he was a tool
H. the alleged German plot in connection
with which Capt. Hans TausCher. hus-
BAN Of Nm Gadski. n representa-.
tive Of the krupps here. has been ar
rested. Ryan. IL is said. thought he was
. itIlutlfE IuIuS Io1 gram SDtCuidtlOH.
Another witness heard by the Grand
Jury yesterday was Horst Won der Goltz.
whose story caused the arrest " Capt.
Tauscher and the exposure OF the no
called Tausruer expedition to blow up
the Wclland Canal. Won der Goltz ac-
companied the expedition to Buffalo. and
upon it's unsuccessful conclusion went TO
London. where he was arrested as "A spy.
His return TO this country was made at
tine suggestion Of the British authori-
ties. Since his arrival Won der Goitz
has been before the Grand Jury several
times. His story is said to be so ex-
tensive as 10 require several more ses-
sions before II II completed.
Frank Thayer. concerning whose ron
nection with the ease the Federal
authorities are ;cticent. was the third
witness. lie vas followed to the stand
by a fourth man whose name In being
carefully guarded by the authorities.
Indictments may be expected at any
time.
Judge Mayer of the United States
District Court reserved decision yeeter-
day after hearing argument on a motion
made by Paul paeche for "A separate
trial from Robert Fay and Walter
Scholz. with whom he was indicted for
plotting to blow up munition bearing
ships. In his affidavit Daechc insists
1iSN 'N' 'Vi " va III a.
was 10 go out walking with him and
discuss the war over a glass of beer.
Daeche says that tn" statement now
IN the possession OF the Federal authori-
ties was drawn from him by third degree
methods when NE was arrested in Wee
hawken by Deputy Police Commissioner
Soul. Capt Tunn.y and Detective Ser
geant Barnitz. He admits that he has
known Max Breitung. cousin OF Edward
y. Breitung. another defendant in the
case. since they were boys together IN
SaalSfell, Germany. where baeches
father has a large manufactures plant.
DaecNe avs he went 10 Bridgeport
on October 10. 1915. to visi, friends and
rot. As the Government contends. to buy
explosives for Fay. paeche's attorneys
Otto r. Seggel and John ". Ockford
argued that 10 try him with men who
had already confessed their misdeed.
would impcril liz chances o; proving his
innocence. ON similar grounds Judge
Ma yer recently granted a severance TO
Max Breitung. Dr. Herbert, kienzle and
Engelhsr, ~BronkhSrs: IN the same case.
Assistant United states Attorney
Knox opposed the granting OF a sever
ance 10 bacchs.