New-York tribune., 1918-02-15

influence in France. His title, pa
cha, was received from the Khedivc
of Egypt, when, for six years, he acted
as financial adviser to the Khedive and
was the French governments repre-
sentativc.'
In an undoubtedly clever manner
Bolo Pacha managed to transfer ST.
$4,000 of German government funds
to his personal credit with the Morgan
ilrm. His fellow conspirators in this
deal were no less than Adolph Paven-
stedt, head of Amsinck & Co., an ex-
porting and importing firm; Hugh
Schmidt, New York representative of
the Deutsche Bank, of Berlin; Coun;
Johann Won Bernstorf, German Am
bassador to the United States, and
Gottheb Won Jagow, Foreign Minister
of Germany.
1t was Pavenstedt's testimony to At
torncy General Lewis which was the
principal factor in Boo's conviction.
Pavenstedt and Schmidt arc now in
termed here.
For the story of the transfer of the
funds one has only to turn to the cor
respondence Of Son BernstorN with his
government as made public by Sccrc-
tary of State Lansing. The ENJOYS tel
the matter follow:
"No. 679. February 26-l have re-
ceived direct information from an en-
tirely trustworthy source concerning n
political action in one of the enemy
countries which would bring abou.
peace. One of the leading personali-
ties of the country in question is seek
ing loan of one million seven hun
dred thousand dollars in New York, for
f.,h l.
forbidden to give his name in writing.
The affair seems to me to be one of the
greatest possible Importance. Can the
money be provided at once in New
York? That the intermediary will keep
the matter secret is entirely certain.
Request answer by telegram. A verbal
report will follow as soon as a trust
worthy person can be found to bring it
to germany. BERNSTORFF"
"No. $50, Feb. 29.-Answer to tele
gram No. 679. Agree to the loan, but
really serious project, as the pro-
vision of money in New York is for us
at present extraordinarily difficult. If
the enemy country is Russia, have
nothing to do with the business, as the
sum of money is too small to have anv
serious effect in that country. SO, too.
IN the case Of Italy, where it would not
be worth while to spend so much.
"JAGOW."
"No. 6S5. March Please instruct
Deutsche Bank to hold nine million
marks at disposal of Hugo Schmidt
The affair is very promising. Further
particulars follow.
"BERNSTORFF."
"No. 692, March 2O.-With reference
to telegram No. 6s5, please advise our
munster in Berne that some one Will
call on him who will give him the
password Sanct Regis who wishes to
establish relations with the FOREIGN
Office. Intermediary further requests
that influence may be brought to bear
upon our press to pass over the change
IN the inner political situation in
France as far as possible in silence in
order that things may not be spoiled
by German approval.
"BFRNSTORFF."
"No. 206. May 81 The person an
Nounced in telegram No. 692 of March
20 has not yet reported himself at
Legation at Bcrne. Is there any more
news on your side of Bolo?
"JAGOW."
Won Rernstorf turned the 81, ,6s3 900
obtained from the Deutsche Bank over
to Schmidt, who turned it over to
Favenstedt. who put the money in the
Royal Bank, and finally transferred it
ID Bolo's account with the Morgan firm.