The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1917-10-04

! by Schmidt to the Berlin bank:
Paid Charles Gledhin s4S3,500. Fin
! al payment.
Where Money Came From.
! NEW YORK, Oct, 1.-The we'll of
gold from which German Ambassador
Eernstorf drew apparently inexhaust-
| ible millions for Germany's propa-
! ganda work here and abroad, is be-
! lieved by New York legal authorities
to have been located at LAST.
In statements to the United Press
today, the authorities indicated that
trace had been found of pouring out
of literally millions of dollars-much
OF it to Americans-on Count Won
lBernstorff's orders through the Deut-
ches bank. Hugo Schmidt, prominent
German banker here, and head of the
Deutches bank, first mentioned
through the Bolo Pasha intrigues, is
to be examined by those probing the
case this afternoon.
The neutsches bank here is
q branch of the institution of the
same name in Berlin.
Millions upon millions of dollars
and securities have passed through
the Deutsches bank" said Perley
Morse, expert accountant entrusted
with investigation of the Bolo Pasha
and other intrigues IF the source
and destination Of these sums and Sc
curities became known, the informa
ton would no doubt be valuable for
the apprehension of many men close
ly connected with Germany"
The widest possible search for just
this information is now under way
by New York authorities.
Officials indicated today that the
new government inquisitorial powers
conferred in the trading with the en-
envy act might be turned over for the
present exclusively toward running
down the -leads" already uncovered
in the Deutsches bank.
"a thorough investigation of the
books and dealings of the Deutsches
bank and the activities of Hugo
Schmidt offers an unlimited field for
the United States authorities which
has not been exploited" said Attorney
General Lewis of New York today
Lewis has been especially entrusted
with the preliminary investigation by
the state and the government as well
as by the French ambassador, who is
interested in the matter because Of
the completely of Bolo Pasha
I'VE are leaving no stone unturned,"
Albert Becker, deputy attorney gen.
eral, told the United Press, to un.
cover the whole matter and have
found many crossing trails. A report
Of all information we obtain regarding
ether financial transactions of a sus-
picious character is being made di-
rectly 70 Washington"
TT was not definitely disclosed to-
day whether Attorney General Lewis
has been authorized to go further
than investigation of the Bolo Pasha
/ intriguing which he formally disclos-
! ed last night. This showed that
Bernstorff. through financial transfers,
cIeverly cloaked through the Deut-
sches bank, had paid Bolo Pasha near
lly s1,SO0,0O0 for influencing the
French press.
The system Of German propaganda
needed a strong financial backing"
Perley Morse said. "The best way of
tracing the whole scheme. in my mind,
l. is through the money end"
What makes the investigation OF
immediate and prime importance as a
war measure is the belief limited at by
officials today that Bernstorff was only
enc of the active heads Of the Ger
man espionage and propaganda sys-
tenn. Through full investigation it Is
hoped that other agents may be I'M
earthed.
Attorney General Lewis is exam
lining many witnesses at his head
quarters in the Murray Hill hotel.
Some of this testimony is directly in
line with the Bolo Pasha case and is
being transmitted to the French gov
eminent for use against the levan-
tine agent, now held in strict custody
at Paris.
Other witnesses it became known
are being cross examined for the pur-
nose OF eliciting information Of all the
Deutsches banks transactions. Among
those of the latter class who were ex-
pected to be examined was Hugo
Schmidt himself. Lewis refused to
say what Schmidt would be question
ed about. Other officials today point
ed out that selection Of banking in
stitution as the fountain Of German
gold from which streams were to be
delivered for propaganda was exceed
ingly clever, because behind the
screen Of the banks heavy business
the trail would be lost
What Was the Objective?
WASHINGTON. Oct. 1.-The OBJ
jective of vast sums of German gold
flowing into the United States from