The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1918-02-26
CORRESPONDENCE FOUND
BROUGHT ABOUT ARREST
was EndeaVoring to Corner the Wool
Market Of the World TO Be Turned
over to Germany After the Close Of
the War-son of Man to be interned
Was in Belgian Air Service.

New York, Feb. 25.-Alleged to be
agent in the United States for Ger
man interests which have been seek
ing to corner the worlds wool mar
ket, Eugene Schwerdt, a wealthy wool
merchant of New York and Boston
was arrested here today as an anemy
alien and will be jnterned.
Schwerdt's alleged activities were
disclosed to the fededal authorities by
the attorney general Of New York
state, Schwerdts name having APP
peared IN the correspondence of Huga
Schmidt, banker, and alleged paymas-
ter IN the Bolo Pasha case. which the
attorney general Investigated.
According to Deputy Attorney Gen
eral Alfred d. Becker Schwerdt was in
correspondence with II. f. Albert. for
mer financial agent here for the Ger
man government Although claiming
to be Belgian citizen, Schwerdt was
IN fact born in AIuenster Germany
He resided in Belgium but came to
the United States in 1911 at the time
OF the German bombaldment of Ant
aerp.
A letter made public by Mr. Becker
Wes written by Schweldt to Albert in
January, 1911 Schwerdt informed Al
bert OF the wool situation in America
and outlined plans for obtaining con
troll OF wool stocks for German con
sumption after the war MIR Beckr"
said il was -ieuficant that in his le,-
Ter Schwerdt alluded to himself as a
German and TO France as "the enemy. -
There can be no question" Mr.
Becker said in n formal report to the
state department. that Schwerdt has
considered himself a German; that his
sympathies are German. that he
has been engaged in the wool trade
in behalf of German interests and
masqueradins under American names
aud that a. the present time he is
endeavoring to disseminate his real
sentiments and those of his SON.
In general he was not so far as
appears a German government agent.
but was acting on behalf of German
manufacturers clients of the Deutsche
bank The papers show that Schwerdt
went so far as to arrange for the
charter of North German Lloyd
steamer to carry the wool to Ger
many certain length of time after
the close OF the war"
Among forty thousand papers which
the attorney general seized from
Schmidt during the Bolo Pasha in
quiry were number of, letters writ
ten by Sthmidt in connection with
the wool accumulating plan One OF
these according to Mr. Becker, intro
duced Eugene Schwerdt. Jr.. employed
by Charles +. Webb, Philadelphia
wool importer, to German manufac-
m1ers interested in South America.
The junior Schwerdt was in the Bel
sian aviation service at the age Of
II during the first months Of the war
With this war record it was easy for
him to profess pro-ally sentiments
'
Younger Schwerdt was actually en-
gagged in the German scheme OF round
inc up wool stocks according to Mr.
Becker as agent for Schmidt and the
branch of the Deutsche bank in this
city
The original purpose of Schmidt
and Schwerdt MI Becker declared,
was to qnhie Germany to obtain suf-
ficient wool for military and indus
trial purposes. Two cargoes valued
together at several hundred thousand
dollars actually did get through TO
Germany during the early part of the
lwar The war lasted longer than
schmidt, Schwerdt and their assist
ants expected and the British drew
Gordon tighter along the German and
neutral European coast Confronted
by the probability that further ship