The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-10-04
B0L0 TRAPPED
BY DATA FOUND
IN N. Y. BANKS
Got $1,683,5O0 Through
BpmstOrff and Called on
Hearst Here.
MONEYS SECRET TRAIL
Fund to Start Peace Drive In
French Press Traced by
State Officials.
MONEYS SECRET TRAIL

Bolo Pasha made use of two Of the
best known banking institutions In
America. p Morgan 4 Co. and the
Guaranty Trust CompAny-in transfer-
ring s1.6s3.50O in German gold TO
France In the guise OF American dollars
for the purpose Of Influencing the French
press. This was made public yesterday
BY Merton E. Lewis, Attorney General
Of New York. who at the request OF the
French Ambassador conducted an inves-
tlgation into meanderings Of the money
Bolo took from the country.
The evidence collected by Mr.. Lewis
also shows that Bolo Pasha called at
the home of william Randolph Hearst.
complimented Mr. Hearst on the beauty
OF his dwelling place. and few days
before leaving for Europe was present
at a dinner in Sherry's at which Mr..
Hearst was also q guest It is also indi-
Gated that Bolo Pasha met the publisher
OF the American on other occasions.
Mr.. Lewis's report to the French Gov
ernment, which forms the basis OF the
charge on which Bolo Pasha was ar
rested In Paris also shows conclusively
that the money was transferred to his
account after being treated In a way to
conceal It's origin on direct orders from
Amba ssador Won Bernstorff TO Hugo
Schmidt, director In this country of tho
Deutsches Bank. the official bank Of the
German Government. The money event
ually found Its way into the New YORK
branch Of the Royal Bank Of Canada
and Into J. p. Morgan Co. from which
It was sent to France without even the
slightest suspicion that II came from q
German account
Method Of Transfer.
This was done by using cashiers
, checks drawn on the Guaranty Trust
! Company and the National Park Bank
In which institutions the Deutsches Bank
had accounts. and transferring the
money to Amsinck 4 Co.. q banking
, house Of Hanover Square. The trans
action at this stage was a paper one
and was known only to Adoiph Paven
stedt. then senior member Of Amstncl
& Co., but since eliminated from thu
! house because Of his German affllia
! tions.
BY MEANS Of cashiers checks draw
on Amsinck q Co. and signed by Mr.
, Payenstedt with the firm name tn,
, money was then sent to the Royal Banl
/ of Canada, where II was deposited to The
account OF Boo Pasha. From tn
peutsches Bank accounts 20 Bolo Pasha'i
account the trail of the money had beer
40 carefully concealed that no one sus
pected but that il was the property of {
patriotic Frenchmsn
/ The devious path taken by the none,
in its transfer was definitely fixed b!
the Investigations made by Perley Morse
| an accountant who was placed In oharg'
OF the work by Mr.. Lewis and who. will
the aid Of twenty assistants, managet
to piece together in ten days every on,
OF the transactions 80 that they present
complete picture Of what Bernstorff
Pavenstedt and their aids had been \
such pains to conceal.
New Field Opened.
The careful searching OF the dlsposi
ton Of the funds of the Deutsches Bank
which since the beginning Of the va
have dwindled to almost nothing ha
revealed a number OF similar transac
tions. and with the names involved ha
opened up a new field Of investigation
for the Department of Justice. 1t
believed that because Of this delvin
into the uses to which German none
was put II may be possible to clear u
many more phases OF the Gerna
financial system back Of the intricat
spy and propaganda activities In thi
country.
The formal statement by Mr. Levi
yesterday follows:
Attorney General Merton E, H,ewt