New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-06
Investigation of Pacha
May Expose Pacifsts,
Perley Morse Declares

If the United States government or
the State Of New York continues fur
Their the investigation of Bolo Pachas
activities here l am confident that the
professional pscifsts and others in
America who received German money
for Teutonic propaganda will be re-
vealed. In the comparatively mesgre
investigation made by myself, under
the direction of Merton f. Lewis, State
Attorney General, have traced more
than s5O,000,0O0 in funds and securities
hat were at the disposal Of Count Won
BernstorfT.'
This statement came yesterday from
Perley Morse, who investigated the
financial relations Of Bolo with Count
Won BernstorfT. When it WAS repeated
TO Attorney General Lewis he said: 81
stand for that statement"
The work Of the State Attorney Cen
eral, carried out at the request of Jules
Jusserand. the French Ambassador, is
now ended, since il merely called for
an inquiry into Bolo Pacha's relations
with the enemy. OF the S50,O00,0OO
traced by Mr.. Morse 81 $50 800 went TO
Bolo Pacha. which he used, along with
other millions obtained from German
agents in Switzerland, in bribing
French newspapers and writers in an
effort to create an anti-war sentiment
preliminary to the launching OF Ger
man plot for a separate peace with
France.
Hugo Schmidt, American agent for
The Deutsche Bank, the last witnes,
examined by Attorney General Lewis
gave added proof that Heinrich Albert
the Imperial Privy Councillor, was pay
master for Teutonic plotters Wolf vor
Igel. who, with Captain Boyd and vor
Papen, engineered most OF the acts OF
'errorism Of the Teuton agents, carried
IN his own name several bank accounts
that were actually Albert's, Schmidt de
clared.
Biggest Banks Used
Schmidt's testimony showed that tn,
biggest banks and brokerage houses IL
the city had been used for the deposi
tories OF German corruption funds snC
securities Among the banks anc
brokerage firms named by Schmidt were
the Guaranty Trust Company. th,
Chase National Bank the Bankers
Trust Company, the Central Trus
Company, the Equitable Trust Com
pany, Kuhn, Loeb & Co. the Corn Elk
change Bank, Shesrson. Hamill & Co.
Muller, Schall & Co., Goldman Ssch'
and Blair & Co.
Adolf PAvenstedt, the gobstwsen FOL
Won Bernstorif and Bolo Pachs and on,
Of the guests at the dinner given a
Sherry's by Bolo Pachs. which was at
tended by William Randolph Hearst
directed the payments Of the 81 ,6S3, 500
10 Bolo, according TO Schmidt.
The following transcript of Schmidt:
testimony regarding Bolo's activities
was made public yesterday by Mr.
Lewis:
Q.--Can you state any reason why
Mr.. Psvenstedt should not have con
fded in you, as a loyal German, the
real nature of these transactions?
A.-Well, knew Mr.. Pavenstedt
was very intimate with the ambas-
Sador. That is all | knew. | was
not
Q.-Mr. Pavenstedt WAS well known
20 be a close friend OF Won Bern
storf, was he? A-Yes, at least he
was very often together with him.
O.-And as | understand you the
ambassador directed you personally
10 place these sums at tho disposal
of Mr.. Pavenstedt? A.-Yes.
Q.-And did he direct you 70 com
DIV with Mr. Pavenstedt's request as
10 the manner of payment and so
forth? A.-Yes. He said: Follow
the instructions o. Mr.. Pavenstedt,
$50 you were controlled by MI
Pavenstedt as 10 the manner OF car
rying out the transaction? Ale
told me: "Mr. Schmidt, tomorrow
want 100000" Then ! paid him and
he paid TO Amsinck. IL might inter
est YOU 20 hear that I made more pay
ments for Count Bernstorf.
OFF you wish 10 be frank ABOUT
that. A.-Yes Certainly. | had only
one other payment.
Q.-It is little outside OF the
scope Of the immediate inquiry? A
Yes. You see ] am personally inter
ested. You don't get the impression
| am political. ] had nothing to do
whatever with politics and took very
great care 10 remain outside. and u
was not 30 very easy for me 70 do II.
Inst 70 make this impression on you
hat besides this payment. ! paid
eoTo mn "a tho CoYn