Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-07-09
Publisher of New York Eve.
ming Mail Secures Re-
ductiOn on Bail Bend.
RELEASED ON
BONDS OF $35, 900
Hearing Of Case, In Which Govern
ment Alleges Mail Is Owned by
Imperial German Government, De-
ferred for Two Weeks-Purchase
Price Alleged to Have Been Secured
From Sale of German War Loans.

Rumely, vice president and treasurer
of the Mail and Express Company
publisher Of the New York Evening
Mail, was arrested here last night In
the office of Attorney General Lewis,
charged with perjury In a report to A.
Mitchell Palmer, allen property GUS
tcdian
Further developments In the case
were indicated in the announcement
that broader investigation would be
started soon. Accounts were said to be
working on the goods Of the Mail and
Express Company with a view to as-
certaining how the money received by
Rumly from German sources was eX
pended.
New York, July 9.--Assertions that
Dr. Edward A. Rumly, publisher of the
Evening Mail. had placed all his letters
at the disposal of the department of
Justice, led to his bail being fixed at
s35, 900 instead of $4,000, as originally
asked, when DR.. Rumly was arraigned
today on a charge of perjury.
\Hearing In the case involving allega-
tions by the government that the Mail
Is owned by the German imperial gov
ernment was deferred for two weeks.
1t was thru the checking Of financial
international In scope. by
which it is alleged the New York Eve
ming Mall became the property of the
imperial German government, state and
federal authorities caused the arrest
late yesterday Of DR.. Rumly.
Instead of being American owned. as
DR.. Rumly, who is vice president. sec
retary and publisher of the Evening
Mail, Is alleged to have stated to A.
Mitchell Palmer alien property Gus
todian, the Mail in fact, according to
Merton f. Lewis. state attorney gen.
eral, and Harold Harper, assistant
United States district attorney, Is
owned by the imperial German gov
ernment. =
War Loan Fund Used.
The arrest Of DR.. Rumly. which
caused sensation in newspaper circles
here, followed several weeks Of investi
CATION covering the financial transac-
tions for the purchase Of the Daily
Mail.
The first suspicion that German
money paid for the Mail came thru
examination of the books Of Hugo
Schmidt, the German fiscal agent in
this country.
The money, amounting to $1.261 900.
used in this transaction. which At
torney General Lewis carefully traced,
was obtained in this country thru sale
Of German war loans.
"The documents in the case" said
Mr.. Lewis. indicated that Rumly pur-
chased the stock of the Mail from
Henry l.. Stoddard. in June. 1915. the
money paid by Rumly being drawn
from deposits at various banks In the
city of New York. the accounts stand
ing in the name of Bernstorff. the for
mer ambassador OF Germany at Wash
ington, and DR.. Heinrich Albert. who
was known, believe, as the COM
mercial attache Of the embassy. The
money was drawn from the Joint ac-
counts Of Bernstorff and Albert.
Carefully Concealed Transfers.
"The transfers Of money was con-
cealed as follows:
"Dr. Albert procured from varioua
banks where the German government
has deposits to issue checks in the
name Of one Walter Lyon. a member
Of the former Wall street firm Of
Renskorf. Lyon & Co. This firm, in
turn. paid the money back to Lyon
who then transferred 1t back to Rumly
We have the checks which figured in
these various transfers"
DR.. Edward Aloyslus Rumly was a
and educator before he
purchased the Mall. AS a manufactur-
er he purchased the Mail. AS manu-
facturer he did much to develop the
tractor as substitute for
horse power in plowing. DR.. Rumly
was born In LaPorte. Ind, thirty six
years ago, and was educated at Notre
Dame University.
The complaint against Dr. Rumley
charges that In making a report to the
alien property custodian regarding the
transaction. he failed to disclose his
relation with Count Won Bernstorfr.
German ambassador to the United
states, and DR.. Henreich F. Albert,
commercial attache Of the German
embassy.
The warrant was issued by federal
upon the complaint of
Attorney General Lewis, who has been
conducting an investigation for some
time into the affairs of the Mail
The attorney general charged that
Rumely purchased the stock of the
Mail and Express company in June,
1917, from Henry l.. Stoddard. and that
In doing so he acted on behalf Of the