Omaha daily bee., 1918-03-18
OF GRAFT
IN WOOL DEALING
SECURED BY U. S.
Will Furnish Transcript of Evl-
dence to War Trade Board;
May Revoke All
Licensees.
INV Associated press.l

New York. March IA mass OF
direct testimony and documentary
evidence indicating the connection of
certain American wool importing and
manufacturing concerns, with an
alleged conspiracy to insure German
interests a balance OF power in the
worlds textile markets after the war.
was in the possession of state author
ities at the close last night of all in
quiry conducted by State Attorney
General Lewis.
Deputy Attorney Becker, who had
indicated that a transcript of the
evidence taken will be furnished the
war trade board at Washington, which
it is expected will revoke the ex-
porting and importing licenses OF
those firms which it may be found
violated their trade agreements by
acting as dummies in the purchase
for German account of wool and
textiles in South Africa, Australia
South America and elsewhere.
Acted AS Agent.
A feature OF today's session of the
inquiry was an admission by Otto
Kuhn, wool manager OF the Botany
Worsted Mills of Passaic, NJ J. that
his company had acted as the agent
of German interests in bringing wool
from British colonies into the United
States in 1915. This was done he
said after the company had agreed
to abide by restrictions imposed by
the Textile Alliance, Inc, a semi.
official agency to which the Amer
ican and British governments gave
regulatory powers designed to pre-
vent those materials from reaching
Germany.
Preceding Kuhn as witness
Thomas Prehn, naturalized German
president of the Botany mills, tes.
tilted that a majority of the com
pany's stock was owned by Germans
although many of the German-owned
shares were held in trust by Amer
leans. According to Mr.. Becker, the
wool boarding scheme was con.
ceived by Eugene Schwerdt, a
wealthy wool merchant OF New York
and Boston, arrested February rs
and now awaiting internment as ar
enemy alien.
1t was during the attorney gener.
ais investigation of the activities ir
this country OF Bolo Pasha, now
under sentence of death for treason
in France, that first evidence of the
plan were found in the papers o.
Hugo Schmidt, formerly the Amer
ican agent of the Duetsche Bank ot
Berlin.
War Too Long.
"As the belief was prevalen
throughout Germany at the outbreal
of the war that hostilities would con
tinue only a few months, Mr.. Becke
believes these papers show the pro
moters of the scheme originally in
tended only to enable Germany t,
obtain sufficient wool for militar,
and industrial purposes during tn
war. But when the British fleet drew
blockade along the German an,
neutral European coasts, the deput,
attorney general declares, the con
spiracy developed into one of hoard
ing the wool until peace should b,
concluded.
This would have resulted in Ger
man interests having large &C
emulation of textiles to minimiz
the effects of possible British
economic embargo against German,
after the war;" said Mr.. Becker.
That Schwerdts plan received
liberal financial support from th
Deutsche bank, was indicated by cor
respondence read into the record
of the inquiry. This bank acted a
financial agency in all alleged illega
transactions and, in some cases
allowed its name to be used a
consignee.