Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-10-21
REVEALS THE USE
OF GERMAN FUNDS
Dr.. Dernburg's Part in Loan to
Late Herman Ridder Incl
dent of Inquiry.
TRAILING OF. BOLO PASHA

BY the Associated Press.
NEW YORK, October c0.--Perley
Morse, expert accountant, retained by
Morton E. Lewis, states attorney gen.
eral, to investigate the financial trans
actions in this country of Paul Bola
Pasha. German spy and propagandist
now under arrest in Paris made public
today testimony given by Adolf PaVen-
stedt, former head of the banking house
of c.. Amsinck & Co. to the effect that
he lent $4,000 to the late Herman Rid
der publisher of the New York Stats
Zeitung. Pavenstedt has admitted that
Bolo's negotiations with Count Won
Bernstorff. the German ambassador to
the United States, were conducted
through him. Amsinck CO. handled
German funds for Bolo.
Pavenstedt's testimony concerning
the Ridder check was given 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
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-
Jul . COAucCtlOA with tAS IL lIdASdSlio31.
Ridder Asks Loan of $4,000.
Mr.. Ridder came to him about the
stedt said. and declared he was in seri-
Gus financial trouble. He asked a loan
of $4,000. Without Mr. Riders knowl-
edge Payenstedt went to Dernburg and
Dernburg the Riders have always
followed a very good course for the
German interests here"
Then 1 asked him if he would put up
the money" Pavenstedt testified. Dern-
burg replied, he said, that because he
he would give. $4,000 If Pavenstedt
would give $1,000.
L talked to my partners about it and
the firm of Amsinck & Co. first ad-
vanced the $4,000 with the $4,000 of
Dernburg's, but l afterward personally
took the money from my account be-
cause the partners objected to my -hav-
ing it on the books. for the reason it did
not belong, they said, to the business"
continued Pavenstedt's testimony.
Becomes a Director.
In the reorganization of the Stats
Zeitung which was then effected. Paven-
Stedt said, he became a director of the
publication.
You We're then the representative, as
director. of DIR. Dernburg as well as the
Amsinck Company" Payenstedt was
asked.
The witness rerjtsds ssYey was sup
posed to be the only man Who had given
the money. Nobody ever knew that DR.
Dernburg was the man who supplied
most Of it The Riders never knew it.
They do not know 1t today
Prior to DR.. Dernhurg'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 Reichshank of Berlin.
Mr.. Morse. with the consent, he said,
of the AttorL-y General. displayed two
other checks bearing Pavenstedt's sig
nature in addition to the one made pay
able to the Stats Zeitung. Each was
for $50. One was to the Deutsches
Journal. dated January IL. 1916. One
of the Endorsements it bore was that
of w. r. Hearst. The other was 10 the
American Trust Society. dated January
81. 1917. The first Endorsement was
that of jeremiah O'Leary, president
Pavenstedt testified he had no recol-
lection of these checks and inquiry into
them was dropped.