Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-10-21
More Facts Brought Out in
BoIo Pasha Investigation
Are Published by Official
Authorization.
GERMAN AMERICAN
EDITOR GETS MONEY
DR., Dernburg, Who Left New
York After Sinking of LuSi-
tania, Shown to Be DiSburs-
er of Benefit,

tBs hoHNtN1 JOURNAL sPgctAl LkAskp NlpHl
New York, Oct. 20,--Perley Morse
expert accountant retained by Merton
r.. Lewis state attorney general, to
investigate the transactions in this
country of Paul Bolo Pasha, German
spy and propagandist, made public
today testimony given by Adolph Pa
venstedt, former head of the banking
house of G.. Amsinek 4 Co., to the ef-
feet that he loaned $4,000 to the late
Herman Ridder publisher of the New
York Stats Zeitung. Pavenstedt has
admitted Bolo's negotiations with
Count Won Bernstorff the German am
bassador to the United States, were
conducted through him. Amsinck &
ce.s innal,a+ o. ian funds for Bolo
Kept From Riders knowledge.
Pavenstedt's testimony showed S15,-
900 of the payment came from Dr.
Bernhardt Dernburg, former German
colonial minister and director of Ger
man propaganda in this country, but
that neither Mr.. Ridder nor any mem
Der of his family ever knew Of Dern-
burgs connection with the transac'
tion.
Mr. Ridder came to him about the
time the European war began. Paven-
stedt said, and asked loan of $2O.-
oO0. Without Mr.. Riders knowledge
Pavenstedt went to Dernburg ane
told him of the situation. He said he
told Dernburg the Ridders have al
ways followed a very good course fol
the German interests here"
Where Money Came From.
"Then ] asked him if he would put
up the money" Pavenstedt testified
Dernhurg replied that because HI
wanted him (Pavenstedl interested
he would give $4,000 II Pavensted
would give $4,000.
'I talked to my partners about 4
and the firm of Amsinck & Co. frs
advanced the 5000 with the 5000
of Dernburgs. but / afterward per
sonally took the money from my &C
count because the partners objected
to my having it one the books because
it did not belong, they said. to the bus
mess, continued Pavenstedt's testi
rlony. Nobody ever knew DR. Dern'
burg was the man who supplied mos
of It. The Ridders never knew 1t
They do not know 1t today"
Bore Hearsts Endorsement.
Mr.. Morse he said, with the consent
of the attorney general, displayed two
other checks bearing Pavenstedts sig,
nature in addition to one made paya'
BILE to the Stats Zeitung. Each was
for fifty dollars. One was to the
Deutsches Journal, dated January IL
1916. One Of the Endorsements II bore
was wv. r. Hearst" The other was
to the American Truth society, dated
January 81, 1917. The first endorse
ment was that Of jeremiah O'Leary
president.
Pavenstedt testified he had no rec
objection of these checks and inquiry
into them was dropped.
Statement by B. III. Ridder.
The following statement concerning
the Ridder transaction was made to-
night by Bernard II. Ridder:
THE fact that part of the money
advanced to Herman Ridder by Mr.
Pavenstedt in 1914 came from DR.
Dernburg was never known to Her
man Ridder, as far as we know. Mr.
Riders sons knew nothing of the
transa ction excepting that when Mr.
Riders financial difficulties became
acute notes of G.. Amsinck were pre-
sented for payment together with
other notes.
"These notes were placed in the
hands of note-holders' committee
The notes were all iquidated by the
Stats Zeitung on or before March J
1915.
None of Herman Riders socs. mol
any one connected with the Staat,
Zeitung Enew Mr. Pavenstedt had nc
advanced his own money to Mr.. Rid
der. Mr.. Pavenstedt being a man ol
wealth, it never occurred to any one
he would secure money other than hi,
own in a transaction involving only
$40, 900.
Obligations We're Large.
Herman Riders obligations to.
tailed millions of dollars. The none,
borrowed from Amsinck & Co. was
used in the International Typesettint
Machine company ard was not Dor
rowed for the Staats Zeitung. which
never had occasion to borrow money
Before applying for a license thu