Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1916-11-13
Self Styled International Spy
Arrested on Charge of At.
tempted Blackmail Smiles
as He Tells His
Story.
LETTERS AS EVIDENCE
Federal Authorities Retain
Documents Found on Pris-
oner and Will Present
in Court.
SAID TO BE INNOCENT
Letters Explained as Written
by Cousin of Countess
About Home Affairs.
DEVELOPMENTS IN CASE
DEVELOPMENTS IN CASE

Washington, Nov. l2-Karl Arm
gard Graves, self-styled interna-
tional spy and magazine writer, was
arrested yesterday by agents of the
Department of Justice and charged
with attempting to extort $4,000 from
Countess Won Bernstorff, wife of the
German ambassador, by threatening
to publish letters alleged to contain
matter showing her infirmities and
failings." Officials of the embassy
also allege that Graves had in possess
sion what apparently were confiden-
tial coded diplomatic dispatches from
the German government to Count Won
Bernstorff.
The prisoner told the federal agents
he obtained all the documents from
persons who smuggled them past the
British censors on the steamship
Oscar II. The warrant upon which he
was arraigned tonight and held on
$1,000 bail for further hearing
charges him also with bringing into
the District of Columbia letters stolen
in Hoboken, N. j., where the Oscar II
docks.
Objects 70 Word.
In statement after his arraign-
ment, at which he entered plea Of
not guilty, Graves asserted that he
had no intention of blackmailing the
countess, that he objected to the use
of the word blacknail and that the
papers he had in his possession we're
purely diplomatic" in character.
Much interest was aroused in off
cial quarters at the indirect exposure
of the manner in which persons and
officials in Germany apparently are
avoiding the British censorship in
communicating with the German ern-
bassy here.
The arrest of Graves furnished a
dramatic conclusion to negotiations
which had been in progress for week
between him and Prince Hatzfeldt,
counsellor Of the German embassy.
Graves is said to have come to Wash
ington last week and called at the
embassy.
Reputation Of Graves.
He was known there as the man
who had published widely what he
alleged to be important secrets of the
German war office and the Hohenzol-
lerns. He alsoswas known as man
who previously had described himself
as a iflmeber Of the German secret
service and later as an employe in the
foreign field of the British foreign
office.
"The master spy" he called himself.
Officials allege that upon entering
the office of Prince Hatzfeldt he made
it known that he had in nNhis posses
sion the papers which brought about
his arrest today. One letter which he
exhibited was to Countess Won Bern
storff from her son. an officer in the
German army. He said, according to
statement made by federal officials to-
night, that he had other letters which
would prove Embarrassing" for the
countess should they be published.
The official dispatches were said to
be useless to him for the reason that
he could not decipher them. He is
alleged to have asked for $4,000 in
cash if he delivered the papers. He
also is alleged to have asked Prince
Hatzfeldt to prepare and sign state
ment that the money had been paid
for services rendered the German gov
ernment.
He Makes Threats.
Embassy officials say Graves threat
ened to turn over some of the docu
ments to White House officials if the
$4,000 was not Forthcoming.
The letters showed no postriark and
officials of the embassy were con-
WINGED that they had been obtained in
some manner from a confidential mes
senger whose identity is undisclosed.
Prince Hatzfeldt promised to take the
matter under consideration.
Federal officials declare Graves
gave Prince Hatzfeldt, certain time
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