Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-10-23
$4,000 WAS LENT
TO RIDDER, BOLO
ACCOUNTANT SAYS
$4,000 of Money Was Put
Up by DR.. Bernhard Dern-
berg, Adolf PavenStedt, Of
AmSinCk & Co., TeStifieS

NEW YORK. Oct. 20.-Perley Morse,
expert accountant retained by Morton
+. Lewis, state attorney general, TO in
vestigate the financial transactions in
this country of Paul Bolo Pasha, Ger
man spy and Propagandist now under
arrest in Paris, made public today tes-
timony given By Adolf Pavenstedt, for
mer head of the banking house of G.
Amsinck and company, to the effect that
he lent $50, 900 to the late Herman Rid
der. publisher OF the New Yorker Stats
Zeitung. Pavenstedt has admitted that
Bolos negotiations with Count Won
Bernsrorff, the German ambassador to
the United States were conducted
through him. Amsinck and company
handled German funds for Bolo.
Pavenstedt's testimony concerning
the Ridder cheek was given on October
II but not made public until today "for
reasons connected with the purposes of
the investigation. 1t showed that
$4,000 of the payment came from DR..
Bernhard Dernburg. former German CO.
lonial minister and director of German
propaganda in this country. but that
neither Mr.. Ridder nor any member of
his family ever knew of Dernburg's
connection with the transaction.
Mr.. Ridder came to him about the
time the European war began PaveE-
stedt said, and declared he was in Sc
rious financial trouble. He asked a loan
of $40, 900. Without Mr.. Riders knowl-
edge Pavenstedt went to Dernburg and
told him the situation. He said he told
Dernburg the Riders have always fol-
lowed a very good course for the Ger
man interests here"
Then 1 asked him II ne would put
up the money" Pavenstedt testified.
Dernburg replied, he said that because
he wanted him (Pavenstedt) interest
ed he would give $4,000 if Paven-
stedt would give $4,000.
81 talked to my partners about it and
the firm of Amsinck and company first
advanced the $1,000 with the $4,000
of Dernburs's, but l afterward person
ally took the money from my account
because the partners objected TO my
having it on the books, because it did
not belong. they said, to the business"
continued Pavenstedts testimony.
In the reorganization of the Stats
Zeitung, which WAS then effected, Paw
enstedt said, he became a director of
the publication.
You were then the representative, as
director, of DR.. Dernburg as well as
the Amsinck company" Pavenstedt was
asked.
The witness replied Eyes, 1 was sup
posed to be the only man who had CIV
en- the money.
Nobody ever knew that Dr. Dernburg
was the man who supplied most of 1T.
The Riders never knew it, They do not
know it today"
Prior to DR.. Dernburg's departure from
the United States, payments of. interest
on the loan were made to him by Paven-
stedt, from the earnings of the Stats
Zeitung. the testimony showed. After
Dernburg left the country, the payments
were made to DR.. Heinrich Albert, COM
mercial attache of the German embassy
at Washington, and upon his departure
from the United States three or four
payments were made to Kuhn, Loeb &
Co, Pavenstedt testified, to the credit
of the Rechsbank of Berlin.
Mr. Morse, with the consent, he said,
of the attorney general displayed two
other checks bearing Pavenstedt's sigma
ture in addition to the one made payable
to the Stats Zeitung. Each was for $50.
One was to the Deutschs Journal, dated
January IL, 1916. One of the indorse-
ments il bore was that of w. r. Hearst.
The other was to the American Truth
society, dated January 81, 1917. The
first endorsement was that of jeremiah
O'Leary, president.
Pavenstedt testified he had no recollec-
ton of these checks and inquiry into
them was dropped.
The following statement concerning
the Ridder transaction was made tonight
by Bernard H. Ridder:
THE fact that a part of the money
advanced to Mr.. Herman Ridder by Mr..
Pavenstedt in 1914 came from DR.. Dern-
burg was known only TO Mr.. Pavenstedt
and DR.. Dernburg, and was never known
to Mr.. Herman Ridder, as far as we
know. Mr.. Riders sons knew nothing
whatever of the entire transaction, eX-
cepting that when Mr.. Riders financial
difficulties became acute the notes, of
G. Amsinck was presented for payments
together with notes of the Guarantee
Trust company, Jacob H. Schiff, Metro
politan bank and others.
These notes were placed in the hands
of a note holders committee. The notes
were all liquidated by the Stats Zeitung
on~or before March 1, 1916.
None of Mr.. Herman Riders sons,
nor any one Connected with them or the
Stats Zeitung knew that Mr.. Paven-
stedt had not advanced his. own money
to Mr.. Ridder. Mr. Pavenstedt, being a
man of wealth, it never occurred to any
one that ne would secure money other
than his own in a transaction involving
only $4,000.
"Mr Herman Riders obligation to-
tailed millions of dollars. The money
borrowed from Amsinok & Co., was used
in the International Type Setting Ma
chine company and was not borrowed for
the Stats Zeitung, which never had Oc-
casion to borrow money.
Before applying for a license the de-
tails of this transaction were given to
the authorities, (the department of jus
tice and the postoffice) on the very day
when Mr.. Pavenstedt made US acquaint-
ed with his stransactions with DR.. Dern-
burg"
V. H. Polachek, publisher OF the the
Deutsches Journal, explaining the Chez,
from Pavenstedt received by the publ
cation, said:
The check for $50 was paid to an
advertising solicitor of the Deutsches
Journal for space reserved by Mr.. Paven-
stedt in the twenty-fifth anniversary
edition of the Deutsches Journal.
1.-The endorsement on the back OF