The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-13


Of Justice for interrogation. The actual
questioning will begin next week.
1t wa siearned, however. that the Gov
ernrnent's agents have made consider
able progress In clearing UP the status
OF the mysterious Won Steer, who was
one OF the four men arrested, but whose
connection with the bank was not ex-
actly clear. II appears from fnforma-
ton in the hands of Chief De Woody
and Rufus w. Sprasue OF the Alien En-
envy Bureau. that Won Steer was act
ually private secretary to the late
Emperor Frapcis Joseph. and II Is al
legged that he came to this country to
take charge OF a particular branch OF
the new enemy propaganda work.
In a statement issued yesterday by
Mr.. Garvan. who is In Immediate charge
of the affairs OF the bank. II was SAID
that the, Institution employed a number
Of confidential agents to meet steamers
and escort Austro-Hunsarian immi-
grants to boarding houses, all OF which.
1t is alleged, tended to discourage these
immigrants from becoming American
citizens. Won Steer. It appears, was In
active charge of this branch OF the work,
sometimes making his headquarters IN
New York and sometimes In Allentown.
Pa, where an investigation OF his activi-
ties is now In progress.
Further particulars Of the method or
collection and manipulation OF a huge
corruption fund to be used in furthering
German propaganda In the United states
and elsewhere came TO light yesterday.
The demand Of United States Senator
King of Utah that the Government should
undertake a sweeping Investigation INTO
the disposition of a sac. 100000 German
war fund In this country brought state
ment from Deputy Attorney-General
Alfred l., Becker yesterday to the effect
that such an investigation had been
under way in New York State for same
time and mat he was In possession OF
evidence to show that ''N1told millions
had been collected for the purpose ana
that prior to the dismissal Of Count Won
Bernstorff. the German Ambassador. at
least sixteen New York banks had acted
as repositories for funds acquired by
the sale OF German war bonds.
Last Money to Argentine.
1t would appear that Count Won Bern
storffs repeated transfers of funds from
one bank to another were SO frequent
that the Attorney General had little dif-
ficulty in tracing the course of money
invested In. German war bonds by SYM
of the money, 1t IL said. was sent to
Mexico. South America and some even
to Germany. but according 10 state
ments that were made yesterday the
trail left IL so. wide that 1t offers but
another evidence Of a lack of efficiency
In Won Bernstorff's methods as an in
triguing diplomat
II was also learned yesterday that
the accounts of Won Bernstorff and DR..
Heinrich +. Albert. the commercial at
tache Of the German Embassy and the
paymaster OF Won Bernstorff and Won
Papen piotters. were closed out Just be-
fore the Count returned to the father
land at the request of the United States
Government. The last important trans
fer was one for 100000 to Count Won
Luxbourg. the German Ambassador to
Argentina. who was later handed his
passports by that Government
Francis p. Caravan, local representa-
tive OF A. Mitchell Palmer. Custodian
of Allen Property. who II developed yes
terday had taken over control OF the
Transatlantic Trust Company Just previ-
Gus to the Arrest of four officials OF the
institution, issued statement reas-
surfing depositors that the banA 10 sol.
vent. The arrest and detention OF the
four officials by agents Of the Depart
ment Of Justice in no way reflected
against the solvency of the bank. 1t was
said.
las far as the depositors are con.
cerned," said Mr.. Garvan. the b-nk has
ample funds to pay them Off In full and
there Is no reason for them to become
alarmed