The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-11
CALLRUMELY AKEY
TO INNER SPY CABAL
Federal Agents Expect to
Reach Circle Through
Publisher.
FOR REWARD AFTER WAR
Trade Favors and Personal
HOnors Believed to Have
Been PlOtters' Aim.


ward A. Rumely and the seizure OF the
Erening Mail were no more than pre-
minary moves In a game which the,
Government at last finds itself ready to
play out with enemy propagandsts in
America cropped up on every hand yes
terday.
Compared to the men the Federal au-
thorities are believed 20 be really after
the accused publisher is regarded as only
a tool, but tool which in the hands Of
Department OF Justice workmen will
likely prove to be double edged.
"Rumely is one of those sometimes
misguided and often deceived persons
who have been standing at the outer
edge Of the inner circle OF German prop
aganda," said a man who has been in
close touch with the investigation. at
Is that inner circle which the Govern
ment has set out to break up, and all
evidence shows that Rumely holds the
key to 1t. The first thing to do was to
nail him-and he's been nailed"
Circle still In Operation.
The so-called timer circle" has been
In operation since the beginning of the
war, and. the authorities are convinced.
is still in operation. 1t Is made up Of
men who have not hesitated to put their
wealth and their influence at Germany's
command, even since the United States
entered the war
frequently has been seen by Govern
ment agents within the last year, in
moves here and there throughout the
country, either to create opinion favor
able to Germany while the war is on or
TO pave the way for Germanys CONNER
oial and moral rehabilitation at the war 8
end.
1t is not the theory Of the Govern
ment that these secret allies in the
Cnitah States expect cash reimburse.
ment from the Kaiser for money spent
and risks taken, but that they expect
business favor and personal glorification
from Germany and in Germany when
peace has been restored.
Information has reached the Federal
Investigators that DR.. Rumely main
tanned secret headquarters at the Hotel
Belmont while he was in control Of the
Mail. and that he there held confer
ences with men who were never by any
chance to be seen about the Mails pub
lication office. Efforts are being made
to uncover the identity OF the Belmont
ccnferees, but 1t is anticipated that
Rumely will display an inclination to
talk more freely when he comes to fuller
realization Of the gravity OF his posi-
ton.
That Rumely Is not yet in a talkative
mood was indicated by the non-appear-
ance Of the statement which Monday he
promised he would make within TWEEN
ty-four hours" Frederick j. Powell
who Is preparing a defence against tbs
Government charge that the publisher
rerJured himself in a return designed &c
deceive the Alien Property Custodian al
to the real ownership Of the Evening
Nail. said in the afternoon that no sucf
statement would be forthcoming.
Has Direct Evidence.
Apparently, though. the Government
was not depending solely on DR., Rumel,
for the information 1t seeks. for 1t wa.
reported in the Federal Building that di
rect testimony concerning the personne
of the inner circle had already been pu
before the Grand Jury.
From one witness who appeared in thu
forenoon. it was said. the grand Jurors
had heard of a meeting at which thu
then Ambassador Won Bernstorff. DR.
Rumely and two American bankers wer,
Present. This was in 1915. and shortl,
before the EUening Mol. as the Govern
ment alleges, was bought with fund!
raised in German war loan drives in thu
United States
The identity Of the bankers is known
and it is expected they soon will be be
fore the Grand Jury themselves
Whether they are members of the firm
through which the money which Dough
the Mail is alleged to have been passed
and repassed is matter Of conjecture
sIush Fund of S1O,OOO.OOO.
According to one story which had it
source In Washington a slush fund o
s3O,00O,O00 had been handled by tn
pro-German merchants and bankers o
the inner circle. While Governmen
agents do not believe that anything Tx
that amount was spent in outright pur
chase of newspapers-and there is II
fact no evidence that any other pape
but the Evening Mail was bought-vas
sums are declared to have been dis
bLrsed in the form of subsidies.
Not only is the Government prepared
TO prosecute what it regards as a prim;
facie case OF perjury against tie forme
publisher of the Mail. but it Is ready Il
prove that DR.. Rumely was warm de
fender of the naval strategy which de
tleeu the SINKING OF the Lusltdnla. VIII
nesses are held in reserve who will
testify that when news of the Lusi
tanas fate was flashed to America
Rumely said he had knowledge the yes
sci had been armed fore and aft an
loaded with munitions"
Recalls PrO-German Advertising
District Attorney Swanns memor.
concerning what he had learned a
Rumely's activities took a turn for tn
better while the Grand Jury was hear
ing about the bankers The doctor, h
Recalled, had once been accused of hav
Ing supplied the money which paid 70
certain pro-German advertisement
printed broadcast early in the war.
The advertisements rad been place.
through the Hammerling Advertisin
Agency, which specializes in handling
copy for foreign language newspapers
Louis y. Hammerling, who is not onl
head Of the agency but president OF II
american Association OF Foreign Ian
Ruage Newspapers. was visitor at tn
District Attorneys office last January
lie wanted a prosecution for crlmina
libel begun against Frank Zotti, edito
OF the Croatian Norodni List. The basil
OF the alleged libel was the advertise
ment which was published in hundred
~ newspapers throughout the Unite
States, April g. 1915. urging American
10 demand an embargo on the exporta
ton OF arms and munitions
The advertisement was printed in tn
name Of Hammerlings association, an
Hammerlng said the cost OF II wa
borne by editors of the papers in tn