New-York tribune., 1918-07-13
Hylan's Civil Service Head,
Hearst Follower, Is Out
by u. S. Order
Alleged Spy Leader
Thought Arrested
Seizure of Transatlantic Is
Followed by Charges
of Espionage

MOTIFS Cukor, member of the Mu-
nicipal Civil Service Commission since
the first of the year and made presi-
dent of that body only a few days age
by Mayor Hylan. was one of the di-
rectors of the Transatlantic Trust
Company to be dropped when A. Nit
chcll Palmer, the Alien Property Gus
todlan, forced a reorganization of the
bank. Mr.. Cukor, it is understood, was
originally made member Of the COM
mission at the request of William
Randolph Hearst.
The Commissioner is n Hungarian by
birth. He has figured in politics in the
city Tor number of years and has
been instrumental at different times
IN swinging the support Of the various
hungarian organizations to different
candidates. He was active in the Hearst
interests in that respect ut different
times.
Think Spy Leader Caught
In statement on the Transatlantic
Trust Company affairs issued yestcr-
day, Francis p. Garvan, director of
the New York Office Of the Alien Prop
erty Custodian, concluded by attach
ing without comment the translation
of speech said to have been made
August 10, 1915, by Mr. Cukor.
GUIDO Won Steer, former private sec
retary 70 Emperor Francis Joseph of
austria Hungary, who was taken in
custody BY agents of the Department
or Justice Thursday at the Offices OF
me the Transatlantic Trust Company, has
peen IN complete charge Of the espion-
age and propaganda activities of the
agents o. the Tcutonic countries in the
united States since we declared war
on Germany, according to Federal
officials
This was learned yesterday. when
Charles dc Woody, Of the Denartment
OF Justice, in talking Of the case of the
Transatantic concern, said that, as far
rs his agents could ascertain, Won Steer
was employed in the trust company as
director OF its "confdential agents."
Mr. de Woody refused TO discuss the
matter $urther, except to add thos 5 ,he the
investigation is being pushed and
uevelopments arc looked for within a
snort time. Agents OF the department.
are checking up Won Steers fre-
ouent visits to Allentown. Penn. where
1T is known he had an establishment
suspected of being the Eastern head
quarters Of Teutonic spy ring.
Succeeded Won Bernstorf
Won Steer came to this con,+,,,
shortly before the United States en-
tered the war. He was installed imme-
dlateiy rs head Of the confidential in
vestlgatlng bureau Of the Transatlantic
rust company. Later, according to :,
well Informed Federal authority. when
Count Won Bernstortf and his cntonraq,
le1t Tor Germany, Won Steer was picked
our as the man to direct the sDy work
N America. -
Having been schooled in that DANGER
GUS GUS system OF intrigue Of the Central
Powers while private secretary ~ o'S, E,a' a.
Peror francls Joseph, he was looked
upon by his German masters AS . MAN
TO De trusted, and it is understood that
Nasl sums OF money were put at his
olsp2sai to carry on the work started
oy DTS. Dernburg and Albert. after
captain FSanz Won Rintelen was appre-
hendcd "PpN
Funds Being Traced
ne Fede,al authorities are OF the
opinion that the same comDlicated
ihethod OF the transfer Of the funds
IN the Bolo Pacha and Dr.. Pumelv
cases was followed. The matter Is be-
ing investigated and all expenditures
oS Von Steer checked up He is being
Ieid at the Mercer County Jail pendini.
me result OF the Investigation. Ii he
IS - NOT 1n'e:ned he may be tried in the
Federal courts for violation Of the
espionage act
y, IN statement on the Transatlantic
Trust Company's affairs. Francis p
Garvan, director of the New York
Office of the Alien Property Custodian
told how the bank was used as a con-,
meeting link between Alstro- -Hungar-
iahs IN TINS country and the mother
land.
Since the outbreak of thc war, Mr..
uafvan declared the bank has encour-
aged the purchase of German and AVS
TRAN war bonds by its d,positors.
Mr.. Garvan said that tor the last
Two years the bank, which has an East
SIDE branch at 109 Avenue A. declared
dividends OF per cent and per cent.
AT the time of its organization there
We're a number of directors including
alexander Won Neuber, Who were Aus
lrlan aliens, the law occurring that
ch!y one of the directors be an Amer
lean citizen.
lie added that 100000 kronen had
toen placed with the bank and that
on 100000 kronen only y per cent
interest was charged by the Austrian
government. The trust company claimed
20 be an Austro- Hungarian Institution
ard this claim WAS also made bv the
German consul.
Had 10000 Subscribers
Just prior to the wa. 1S2. 900 900
kronen had been sent to Austria Mr.
GerVan said, and he declared that the
bank had 10000 customers. The nun
Der OF deposltors was given AS IA 900
Most of the depositors we're obtained
~ bank advertising in foreign Ian
Guage newspapers.
Even after the decla ration of war.
MI Garvan said. the advertising was
continued. urging workingmen to de-
post their money under a special
agreement by which it would be sent
TO Austria after peace was restored.
lie added that 10000 900 lronen from
the sale of Austrian war bonds and
100000 kronen from the sale of Ger
man war bonds had been sent to
Austria.
MIR. Garvan assured depositors that
the bank had ample funds to pav them
off in fail, and that there was no reasnn
for them being alarmed.
The bank will now be run as an
American institution" said Mr. Car
van, lat about one-tenth of the formar
cost to depositors, and immigrants will
gradually be brought around to Amer-
lean methods"
The Cukor speech was delivered at
luncheon given hv AlayanIar, ,,ox n