New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-21
Pavenstedt, Bolo Pacha
Agent, Declares German
Money Saved Ridder
Some Paid Back to
Albert, Master Spy
Witness Reveals Berlin Plant
ed Agents Here While
Planning to Strike

The State Attorney Generals ono
Yesterday made public a farther install
ment OF the testimony OF Adolf Paven
stedt. eo-between in this country 10
Bolo Pacha, master spy Of Germany
This testimony discloses, among
other things, the fact that DR.. Bern
hard Dernburg, former German 90
lonial Secretary, paid $4,000 TO th'
late Herman Rider TO get the "Staats
Zeitung" out of financial difficulties
Dernburg was forced to leave this
country because Of his defence Of th'
Lusitauia atrocity. Pavenstedt alsC
SAWS that $4,000 of his own money wa
devoted to the relief OF the Stats
Zeitung."
81 expected that If 1t were bank
rup.," he testified, "the business woulC
be lost TO the Riders, who have al
ways followed a very good course FOL
the German interests here"
Pavenstedt's testimony also adds tc
the proof that Germany had decided or
war some time before hostilities began
in 1914.
Propaganda Preceded War
Ten days before the Kaiser declared
war on Russia, the witness said, Cap
tain Won Papen, The German military
attache at Washington. came to him
and said that he ard Boyd, the naval
attache. would like to have an office IN
New York "near the centre Of news
It was from this Office that these two
men directed much of the German
propaganda here.
Perley Morse. the. accountant en-
ployed by Attorney General Lewis IN
his investigation. said yesterday that
among Pavenstedt's effects he had as
covered two checks, enc to. w liam
Randolph Hearst's "Deutsches Jour
nal" the other to the American truth
Society. of which jeremiah A. OLeary
IS the head.
Journal" asserts that this was in pay
ment for an advertisement. MI
OTeary said last night that he had Int
tie knowledge Of the financial dealings
Of the society, but believed that tne
payment was "for literature"
Concerning the loan made, by Dern'
burg and Pavenstedt 20 the stats
Zeitung." Bernhard Rider last night
said that until week ago he had never
known that it had been made. eOntli
then. he added, it had always been MS
Arm belief that there was no German
money behind the publication.
Regarding the Ridder payment
Payenstedt made two contradictory
statements. One was that no one IN
the "Staats -Zeitung" knew that the
money was other than his. The other
was that he informed "the Riders
that he had a friend who was leaving
here who had been in the TRANSACTION
with him and he wanted the money pal'
off. He added, however, that he never
mentioned who the friend was.
Partly Paid Back
The witness testified that part Of the
$4,000 advanced by Dernburg was re
paid TO him, and that after Dernourt
left the country he paid some L
Geheimrat Albert, one OF Germanys sp!
masters, and that when Albert wa
leaving the country he asked him to de
posit the balance due, as II was paid, Il
the account of the Reichsbank, the Ger
man governments official depository:
Pavenstedt's testimony, in part, fol
lows:
Q.-I would like to ask you one o
two questions connected with IN
financing Of the "Staats-Zeitung.
Please state just what you know abou
that. Aust about the time when TN
war broke out Mr.. Herman Rider, tn
old gentleman who is dead, got int
verv serious financial trouble. ] ha
known him for some time IN super
fcial way. but he knew that | was
nrosuerous German here, and he cam
10 my Office and told me that he wa
in very serious financial trouble, an
asked whether | could help him b
loaning him $4,000, which he told m
at the time would save him-save IN
position. told him ] would think IN
matter over. and | went 70 see ID
Dernburg. who was here at the time
and told him that the "Staats-Zeitung
was in danger Of getting bankrupt an
might be sold out 10 other hands, an
so on"
always Followed Good Course"
Q.-Now. what did you tell Dr. Dern
burg about il being sold out 70 othe
hands? Al expected that if 1t wer
bankrupt the business would be lost I
the Riders, who have always followe
very good course for the German IN
terests here.
O.-Who were the other hands tina
were proposing to buy 1t out at tn
time? A.-They told me that 1t Nigh
20 to competitors, TO other newspaper
who might not have a friendly feeling
No name was mentioned.
The witness then continued:
81 asked him If he would put mp tn
money. Then DR.. Dernburg said: Wei
| tell you. will give $4,000 Of it
you will give $4,000 want you in
terested.' he said. So ] talked 70 m
partners about IT, and the firm Of Am