Arizona republican., 1917-10-22
.DERNbURC NAME |S MT MENTIONED
 IN TRANSACTIONS
Republican A. p. Leased Wirel

NEW YORK, Oct. 21.-Periey Morse, expert accountant retained by Merton l.. Lewis, state attorney general, to investigate the financial transactions in this country of Paul Bolo Pasha, German spy and propagandist, made public today testimony given by Adolph Pavenstedt, former head of the banking house Of G. Amsinck x Co., to the effect that he loaned Sz0,000 to the late Herman Ridder, publisher of the New 4orker Staats Zeitung. Paw enstedt has admitted Bolo's negotia- tons with Count von Bernstorff, then German ambassador to the United States, were conducted through him. Amsinck X Go. handled German funds for Bolo.
 Pavenstedt's testimony showed $15, 0G0 of the payment came from Dr. Bernhard DernDurg. former German colonial minister and director O1 Ger man propaganda in this country, but that neither MT. Ridder nor any mem Der of his family ever knew of Dern- burg's connection with the transaction. Mir Ridder came to him about the time the European war began, Paven- stedt said and asked q loan of $20000 Without Mir. Riders knowledge Paw enstedt went to Dernburg and told him | the situation He said he told Dern- burg the Riders have always fol- 1 lowed very good course for the Ger man interests here.'
 Then I asked him if he would put up the money" Pavenstedt testified. | Dernburg replied that because he wanted him (PavenstedO interested" !" he would give $15,000 if Pavenstedt would give S5,000.
 ] T talked to my partners about it | of Tplz k- vanced the 5000 with the $15,0CO of 1 Dcrnburg's. but l afterwards person. ally took the money from my account 1 because the partners objected to my | having it on the books because 1t did not belong, they said, to the business, l continued Pavenstedt's testimony. Nobody ever knew Dr. Dernburg was the man who supplied most of it. The Bidders never knew it. They do not l know it today"
 Mir. Morse, with the consent, he said, of the attorney general displayed two other checks bearing Pavenstedt's S signature in addition to the one made payable to the Staats Zeitung. Each was for $50. One was to the Deutches Journal dated January 12, 1916. One of the endorsements it bore was .'W. l R. Hearst The other was to the 1 American Truth Society, dated Jan uary 31, 1917 The first endorsement was that of Jeremiah O'Leary, presi- | dent.
 Pavenstedt testified he had no rec ollection of these checks and inquiry | into them was dropped.
 The following statement concerning 1 the Rider transaction was made to- night by Bernard H. Ridder:
 "The fact that a part of the money 1 NTr Inv MT Pavenstedt in 1914 came from Dr. l DeTnburg was never known to MT Herman Ridder, As far as l know | Mir. Bidders sons knew nothing of the | transaction, excepting that when MT | Bidders 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-holdeTs committee The notes were ail liquidated by the Staats Zeitung on or before March l 1916.
 None of Mr. Bidders sons, nor any one oonneceed with them or the StaatS Zeitung, kneW MT. Pavenstedt had no' | advanced his own money to MT Rid der MT. Favenstedt being a man oi wealth it never occurred to anyone ht l would secure money other than his own in transaction involving only $20,000
 s"Mr. Herman Riders obligations totalled millions of dollars. Int money borrowed from Amsinck & Co was used in the International Typeset- ting Machine company and was no borrowed for the Staats Zeitung, whicl never had occasion to borrow money
 Before applying for a license th' details of this transaction were givel to the authorities (the department o
 justice and the poor office) the yer. day MT. Pavenstedt made us acquaint ed with his transactions with Dr. Dern
 burg"
 Y. H. Polachek, publisher of tn
 Deutsches Journal. explaining tn
 check fromPavenstedt received by tha publication, said:
 "The check for $50 was paid to al advertising solicitor of the Deutsche
 Journal for space reserved by Mir Pay
 enstedt in the twenty fifth anniversar,
 edition of the Deutsches Journal
 "'The endorsement on the back 0
 MT. Pavenstedts check is the endorse
 ment which appears on all check
 banked by MT. Hearst's papers in Ney
 York
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