The Fargo forum and daily republican., 1918-07-09
GERMAN MONEY USED
BY RUNELY
CONTINUED from page 1.)

that in doing so he acted on behalf
Of the Imperial German government. !
Concealed Source of Money.
In an announcement last night Of !
the arrest Of DR.. Rumely, Attorney
General Lewis declared that the
money was paid to Rumely from de-
posits of the German government
standing in the name Of DIR. Albert,
or of Albert and Won Bernstorff,
jointly, in this city The total SO far
traced. he added. is S1,361,00
The transfers Of money, Mr.. Lewis
said were concealed in this manner:
Albert procured various banks
where the German government had
accounts, to issue cashiers checks to
the order Of one Walter Lyon, a mem
Der Of a former Wall street firm.
This firm in turn paid the money
over to Rumely or to the S. S. Nc
Clure Newspaper corporation, which
had been organized by Rumely for
the purposes Of the transaction.
In some cases, Albert drew the
money in cash and delivered it to
the attorneys Of the embassy Messrs.
Hays, Kaufman and Lindheim, who
took the cash to Renskorf, Lyon and
company. They in turn made pay
ments to Rumely. In one transac-
ton $4,000 in bills was handled in
this manner. Rumely then drew his
notes to the order Of Walter Lyon,
covering the transfers in money and
pledged stock in the S. S. Mcclure
Newspaper corporation to secure the
loans.
Made No Disclosures.
"Dr. Rumely. in his report to the
n1f
disclosure Of his relations with AL
bert or Won Bernstorff or the I'm
peEial Ger IN government. Instead
he reporteu that he owed 100000 to
Hermann Sielcken, now deceased,
that the notes which he had given
Renskorf, Lyon and company, ac-
companied by a pledge of the stock
Of the S. S. Mcclure Newspaper
corporation, had been surrendered
to him in exchange for the $780, 900
note in September, 1917. In other
words, by giving his note for $780,
600 he had obtained a return Of notes
aggregating in excess Of $1,300,000
and stock representing a controlling
interest in The Evening Mail.
''Rumely has claimed recently that
1t was Sielcken who put up the
money in the transaction. Previous
1y he had stated Mrs. Busch had con-
tributed to the fund. Mrs. Busch, |
however, denies it, and the Columbia
Trust company, executor Of Hermann
Sielcken as well as Mr.. Sielcken's |
partners in the firm of Crossman |
and Sielcken, state that so far as they !
know, Mr.. Sielcken had nothing to |
do with this transaction"
Attorney General Lewis declared |
that Mrs. Busch, referred to in his |
was Mrs. Adolph Busch, |
widow Of the ST. Louis brewer, who |
was questioned recently by govern
ment officials upon her return from |
Germany.
Had Wide Interests.
DR.. Rumely's interests were varied, |
for, besides being engaged in the |
newspaper business, he was secre- |
tary Of the NJ. Rumely company, Of |
La Porte, Ind, which manufactured |
agricultural implements, and, as |
founder Of the Interlaken school, Of |
which he is president, had written |
several books, embodying novel |
Ideas on educational matters.
After having attended the uni |
versity Of Notre Dame and the uni
versity Of Heidelberg, he studied at |
the university Of Freiburg, which in |
1906 granted him the degree Of doc |
tor OF medicine.
In a statement last night Assistant |
State Attorney General Becker said: |
''The entire amount which went |
into the purchase of The Evening |
Mail was derived from the sale Of
German war bonds in this country,
and American citizens furnished the
money to acquire the paper which
was to be used for the purpose Of
carrying on German propaganda.
Stoddard's Firm Stand.
while the deal was made with
Henry L. Stoddard for the paper,
there is no evidence that Mr. Stod-
dard knew it was German money.
Mr.. Stoddard retired from the man
agement OF the paper and still holds
most of the outstanding bonds. When
the United States declared war
against Germany, Mr.. Stoddard
threatened to foreclose the bonds un-
ess The Evening Mail expressed
oyalty to this country in every
way"
The bondholders of The Mail and
Express company took possession Of
Inc evening Mail this morning ana
we will see to it that the true
Americanisn for which we stand will
be reflected in the columns Of the
'aper," said Henry L. Stoddard,
president Of the company, in, a
statement last night.
Mr.. Stoddard said he had known
or two weeks the government was
searching the source Of the funds
With which DIR. Rumely purchased
The Evening Mail from him and his
associates, but that he was astound-
ID to hear the money was obtained
n the manner charged.
Asserting he was gratified that the
Investigators had expressed confld-
'nce In his ignorance Of the transact
ion, Mr.. Stoddard declared that 1T
$ true, as Deputy Attorney General
Becker states, that just before this
.ountry entered the war, insisted
o Or. RuneIy that the course OF the
'aper should be unswervingIy, un-
lesitatingly and aggresstvely patrio-
lie and loyal.
II told him that unless this were
lone the bonds on the property heidi
~ himself and my friends would be II
at their maturity on
october j, 1877" Mr., stoddard said.
i also insisted that If he had anyt
sgCniaf who eTY3egteN alfrh