The sun., 1918-07-12
TRACE mail" FUNDS.
AdoIphus Busch's German War
bonds Figure In Inquiry.

Harold Harper, Assistant United
States Attorney and Alfred l.. Becker,
Deputy Attorney-General. continued their
examinations yesterday of witnesses in
an effort to establish further the source
Of the funds employed by DIR. Edward
A. Rumely In the purchase of the Eue-
ming Mdu. AS fast as Mr.. Becker COM
ploted his interrogations he turned the
witnesses over to Mr.. Harper. who uues-
toned them and later took them before
tho Federal Grand Jury. which is con-
steering the evidence against DR.. Ru-
nelly. who is ut present free on $35, 900
bail on n charge Of perjury in II sworn
sta tenent regarding the ownership OF the
newspaper that he made to A. Mitchell
Palmer, Alien Property Custodian.
Frederick ]. Powell of 16o Broadway,
attorney for DR.. Rumely. refused to dis
cuss tho developments of the case In
any way or even to see newspaper men.
A similar reticence was encountered at
the offices of Hays. Kaufman Lind
l. elm, 60 Wall street. tho attorneys who
are said to have acted in the final nego-
tiatons by which DIR. Rumely obtained
absolute control OF the Evening Mai by
exchanging his own unsecured note for
500, 900 for earlier notes and Evening
Mail stock aggregating $4,000. Ar
thur G. Hays admitted yesterday that
his firm had acted as attorneys in tire
transaction, but declined to go into any
further details.
The firm OF Hays. Kaufman & Lind
helm acted as attorneys for the Imperial
German Embassy. and 1t was in its GUS
tody that the Government will allege the
notes and stock of the EUeniHD Mall al
legged to have been acquired by money
supplied by DR. Heinrich Albert and for
mer Ambassador Won Bernstorm finally
went. 1t is further alleged that these
securities were turned over by the law
firm of DR.. Rumely in exchange for his
own note for 100000 payable to Her
man Sielcken. a former coffee merchant
Of New York. who died in Germany on
October s, 1917.
Buschcs Took SI,OOO,OOd Bonds.
1t developed yesterday from eXamna-
ton of witnesses by Mr.. Becker that Ger
man war bonds to the amount of about
500 900. 900 marks. or about Sl0000O,O 900.
had been sold In this country previous
to our entry into the war by agents OF
the German Government. OF this amount
| 100000 was said to have been taken
! by Adolphus Busch. A. A. Busch and
Mrs. Lily Busch of St. Louis 1t Is
alleged that the money realized ny the
account OF DR.. Albert. commercial at
! tache of the German Embassy. and
Count Won Bernstorff, and that II was
| part of this money that went into the
purchase of the Erening Mail
| Much of the balance of the money In
said to have been sent to Count Won
! Luxbourg, German Ambassador to Ar
! gentina, to whom the Government ex-
! pects to show Count Won BeruStorff sent
100000 just previous to the latter's re-
! turn to Germany.
! Among the other buyers Of the Ger
man war bonds Deputy Attorney-Gen-
eral Becker announced, was former Cap
| tain Henkes of the Sixteenth United
| States Infantry. who was returned from
| France. tried by court-martial and SEN
| fenced to serve twenty-ninc years IN
| Fort Leavenworth fo- violating his oath
| Of allegiance to the United States.