Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-07-09
Imperial German Government
Supplied Money to Purchase
Gotham Newspaper to Spread
Enemy Propaganda in Nation

lbl Mofning journal
New York. July S.---Dr. Edward A.
Rumely vice president and treasurer
Of the Mail and Express company
publisher of the New York Evening
Mail, was arrested here tonight in the
office of Attorney General Lewis,
charged with perhry in a report to
A. Mitchell Palmer. alien property
custodian.
The complaint against DR.. Rumely
charges that In making a report to the
alien property custodian regarding a
transaction. he failed to disclose his
relation with Count Won Bernstorff,
German ambassador to the United
states. and DR.. Heinrich Il. Albert,
commercial attache Of the German
embassy.
The warrant was issued by federal
commissioner upon the complaint of
Attorney General Lewis. who had
been conductinE 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 imperial Getman government.
The attorney general charged that
the German government paid to Rum
ley in several transactions connected
with the purchase of the Mail $780,
600. The payments. 1t was alleged,
were concealed until their details
were discovered by Investigators for
the department of justice and the
New York state attorney general.
Receive German Money.
In an announcement tonight of the
arrest of DR.. Rumely. Attorney Gen.
eral Lewis declared that the money
was paid to Rumely from deposits of
the German government standing In
the name of DR., Albert. or of Albert
and Won Bernstorff Jointly, In this city
The total so far traced. he added, 10
$1.361 900.
The transfers OF money, Mr. Lewis
said. were concealed in this manner.
ALBERT procured various banks
where the German government had
access, to issue cashiers checks to the
order of one Walter Lyon. a member
of the former Wall street firm of
Renskorf, Lyon e Co. This firm in
turn paid the money over to Rumely
of the s. S. Mcclure Newspaper cor
poration, which mad been organized
by Rumely for the purchase of the
transaction.
TN some cases Albert drew the
money in cash and delivered il to the |
attorneys OF the embassy, Messrs, |
Hays, Kaufman and Lyndheim. who |
took the cash to Renskorf, Lyon & |
Co. They in turn made payments to
Rumely. In one transaction, $75. 900 |
i'm 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. McClue Newspaper cor
poration to secure the loans.
Kept Relations q Secret.
''Dr. Rumely In his report to the
alien property custodian made no dis. |
closure of his relations with Albert or
Won Bernstorff. or the imperiaI Ger.
man government. Instead, he report
Gu tHdt He oWcu Y1uUsVVU 10 herman
Sielcken. now deceased, upon a note,
and he also reported that the notes
which he had given Renskorf, Lyon
& Co., accompanied by pledge OF, the
stock of the S. s. Mcclure Newspaper
had been surrendered to
him in exchange for the 500, ,OOQ
note in September. 1917. In other
words. by giving his note for 800, O06
he had obtained return of notes ag-
gregating in excess of $1,000. 900 and
stock representing o controlling in
.erest in the Evening Mail
''Rumely has claimed recently that
t was Sielcken who put up the money
n the transaction. Previously, he
lad stated Mrs. Busch had contribut-
ID to the fund. Mrs. Busch, however,
lenies it. and the Columbia Trust
company. executor of Herman
,ielcken. as well as Mr.. Sielcken'sl
partners In the firm Of Crossman &
'ielcken, stated that SO far as they
lnow. M. sielcken had nothing to do
With this transaction.n. /
& Attorney Gensfai lewis declared
hat Mrs Busch, referred to in his
tatements, was Mrs Adolphus Busch