The evening world., 1918-12-20

scribcd tho activities OF Hugo
Schmidt, whom he described aa a
commercial propaganda agent rather
than political agent lilo told how
largo consiEnmcnts Of copper. cotton
jutc. tobacco and other commodities
were secured by tho German Govern
mcnt from America through neutral
sources, which finally resulted in the
Tightening OF tho German blockade.
Becker said tho German Govern
ment was "gravely disappointed" in
it's hopes OF financing its propaganda
scheme through Kuhn, Loeb * Co. OF
New York.
German officials, he declared. be-
lieved that the standing OF the Arm OF
M. NJ. Warburg & Co. OF Hamburg,
Germany. would give them an infiu-
cnco with Kuhn. Loeb q Co.. through
Otto ". Kahn, one OF It's officers; but
the bank imposed such diff,cult condi-
tlons that they had TO 20 elsewhere
for financial arrangements.
In discussing the Kuhn. Loeb q
Co. incident. Mr.. Becker gave tho
committee an account of an affidavit
made by Count James Minotto, an
Italian subject and son-in-law OF
Louis Swift, whose interment was
ordered by President Wilson. In that
affidavit Count Minotto told OF a con-
ference he had with Mr. Kahn after
his return from Europe in 1918 In
which an Investment in tho Anglo
French loan by Kuhn, Loeb & Co.
was discussed. Mr.. Kahn was quoted
as saying that while his firm had not
invested in the loan, he and Mortimer
schirr did not deny having personally
invested in It.
Senator Wolcott of Delaware OBJ
jcctcd to this testimony on the ground
OF irrelevancy and in the discussion
by the committee Mr.. Becker said the
purpose of reading the affidavit was
TO show that in 1915 Kuhn, Loeb n
Company were painfully neutral"
Senator Nelson asked IL the NJ. NJ,
Warburg Company OF Hamburg was
related in some way TO Paul NJ. War
berg, formerly member OF tho
Federal Reserve Board. The witness
replied that such was the case.
Mr. Becker said also that the pur-
pose was TO show that while MI
Kahn was telling tho French Govern
ment that they had subscribed TO the
Anglo French loan they were also
telling the German Government that
thoy had not subscribed. In this
connection Senator Reed OF Missouri
asked whether the loyalty of Paul M
Warburg was being questioned. and
Mr.. Becker said very emphatbcally
that there was no such question In
yolved.
There is not n man who has beer
moro loyal 10 our country than Pau
Nj. Warbdrg, and ! think that the
country will suffer materially by his
| having left the Federal Roserv'
Board" remarked Senator King oi
! Utah.
Senator Nelson also remarked that
he had met Mr.. Kahn while the lat
! ter was in Minnesota and bhat he was
! satisfied that there was no more loya
| citizen than he.
\ portion Of an AFFIDAVIT made q
year ago by q person whose name
]
J withheld from the record yesterda!
until the committee had stricken on
| irrelevant portions of IL was nd'
| mitted to the record to-day. The afh
| daVit deals with a conversation be
/ tween the unidentified person. Coun
L Won Bernstorff, former German Am
bassador, and w, II, McCombs, tb
former Democratic National Com
mittee Chairman.
The conversation is alleged To hav
taken place at "A camp in the Adiron
dacks in the winter or 1914, and I
have dealt with Bernstorffs effort
to obtain a newspaper TO take Ger
many's side of the war. The uni
Identified person was quoted as say
ing that the New York sun woul
not accept an advertisement for th
sale OF securities unless IT was show
positively that the Investment woul
be legitimate one.
~ have my eye on Hearst and
expect he will be the man." BerT
storff remarked, according to III
n affidavit.
\ The affidavit. which was finally aC
mitted to the record, finally says Il
Y unnamed person making the stat
ment had several conversations wit
Won Bernstorff in tho camp of II
Adirondacks and at one time Ber1
II storff severely criticised HERNIA
Ridder. publisher OF a German lam
uage newspaper in New York. VIII
n he thought, was doing their cause
N great deal OF harm.
n The affiant declared that about
u year later. after he had seen ''thi
Hearst was publishing a Germa
paper" he mentioned 1t 70 the Coui