Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-10-21
MONEY LOANED TO R|DDER
BY B0L0 PAsHA's AGENT
Late Publisher OF New York Stats
Zeitung Got $4,000 From
Adolf Pavenstedt.
PART CAME FROM DERNBURG
Checks Bearing Signature OF Head OF
Amsinck Banking House Carry In
dorsements OF jeremiah O'Lcary
and w. II. Hearst.
IBy Associated Pressl

NEW ~ ~ ASsoelatsd presslo p
Morse. expert accountant retained by
Morton f. Lewis. State attorney-Een-
eral. 10 Investigate the financial trans
actions In this country OF Paul Bolo
fasha. German spy and propaganda.
no" under arrest II. Paris. made puti'c
today testimony given by Adolf Pa
Tehstedt, former head Of the banking
mouse OF G.. Amsinck &: Co, to the
erect tina: nc lent $4,000 to tho late
herman Rider. publisher CT the New
iofkcr Stats Zcitung. pavcnS;cdt has
admitted that Boio's negotiations with
Count Won Bernstorr. the German am
bassador to tho United Stutcs. were
conducted through him. Amsinck &
CO. handled German funds for Bolo
PaVcnstcdts testimony concerning
Tho Ridder check was given on October
II. but not made public until to-day.
FOR reasons connected with the pur-
poses Of The investigations" 1t showed
that $4,000 of the payment came from
DR.. Bernhard DcrEnurg, former Ger
man colonial minister. and director Of
German propaganda In this country. but
that neither Mr.. Ridd.r nor any menu
Der CT his family ever knew of Dcrn-
burCs connection with the transaction.
FOR LOAN OF $50. 900
Mr.. Ridder came TO him about tho
titne tho European war began. Pa
vendstedt said. and declared he was
In serious financial trouble. He asked
loan OF $4,000. without, Mr.. Riders
knowledge. pavenstedt went to bern
burg and told him the situation He
said be told Dernhurx tho Riders
have Always foljowed ~aod
course for tho German interests hare"
Then l asked him II he would put
up the money" Pavendstedt testifl I'd
Dernburs replied. no said. that because
he wanted him (PavenstcdD inter
ested" no would give $4,000 II Paven-
stedt would give $1,000
j talked to my partners about It.
and tho Arm OF Amsinck & Co. first
advanced the 5000 with the $4,000
OF Dernburg's. but 1 afterwurd per-
sonaliy took tho money from my &C.
count, because the partners objected TO
my having 1t on th- books. but II did
not belong. they aAid. to the business"
continued Pavens,edts testimony
In the REORGANIZATION or the Stats
Zeitung, which was then eHec,ed.
Favenstcdt said. he became direc.
tor of tho publication.
iou "efe thcp the representative,
as director. Of DR.. DernburE a. well as
the Amsinck Company" Pavens,cdr
WAS asked
The witness replied: Yes was
supposed to be the only man who had
given the money"
PAYMENTS OF INTEREST
MADE TO DERNBURG
Prior 10 Dr. Dernburs'u departure
from the United States. payments Of
Interest on the loan were made 70 him
by Pavsnstedt from tho earnings of
the Stats ZeitunE. the testimony
showed. After Dernburg left the coun-
try the payments were made to DE-.
Heinrich Aleer;. commercial a,tache of
the German embassy at Washington.
and upon his departure from the United
states, three or four payments were
made TO Kuhn, Loeb K Co, Pavenstedt
TESTIFIED. to tho credit OF tho Reichs-
bank. OF Berlin.
Mr. Morse. with the consent, no said,
Of the attorney displayed two
other checks bearing Pavenstedt's sig
nature. in addition to the one made nay
able TO the Stats Zcituns. Each wa.
for $50 One was to the Deu,sche,
Journal. dated January IL 1915. Ons
OF tho Endorsements II bore was thar
OF W. r. Hearst. The other was 10
tho American Truth Society, dated
January 81, 1917. The frs, indors.-
meht was that of jeremiah OLeary
president
Pavenstedt testified he had no rec
election of these checks. and inquiry
into them was droppec