New-York tribune., 1918-12-21

as one OIL the InoSI aStu'c a'lu oueevoS
full of the German agents. More than
$4,000 papers, the record of three
years work. have been taken from
Schmidt's files, and Mr.. Becker based !
his testimony on these.
Schmidt had two main jobs along |
with little propaganda he sa'd;;. !
G) To endeavor to replace WIN
American banking credit the British
credits that had been lost in conse-
aucnce of tho European war, and GU |
to devise ways and means OF financing
expectations to Germany and getting
them through the British blockade |
In this he was helped by certain
American banks, and as their work
was inmical to British interests
while America was neutral, the chair
man decided that the facts were per-
tinent.
Letters showing the means by which
this was done were introduced. Simi-
larly German exchange from south
America was negotiated, having bills
drawn by Spanish dummies, sent to
Hugo Schmidt in New York, indorsed
organized by Schmidt for that purpose,
and sold to banks, who would proceed
to collect them in London In case a
guarantee we're demanded from the
bank, Schmidt would furnish this from
the Deutschcs Bank in the form of q
separate letter, which did not go for
ward with the draft, and thus betray
it's character, but was kept by the
bank.
During the period OF our neutrality
Schmidt succeeded in getting into Ger
many through the f1eutsche Bank alone
So, 272 27G worth of wool, $2S7 ,250 Of
| pto &lf3 eco of cnnned salmon, $497,
600 of rubber, $566, 100 Of dried apples,
$255 900 of lard, S65O,0OO of copper,
$500 Of wax, 10000 bales of cotton,
1900 bales OF tobacco and 218, 174 bags
of coffee. Part of these TRANSACTIONS
were open, however, and in exchange
for dyestutfs.
A list of more than a hundred names
of dummies to whom mail was sent for
German agents in America and other
neutral countries was submitted. He
closed his direct testimony by telling
the aliases under which some prom
inent Germans were mentioned in these
letters:
Charles Wendall-Count Johann Won
! Eerns torff.
William Foxley-Thc German In
perial Foreign office.
John Franklin-Count Zimmerman,
German Imperial Minister of Foreign
Affairs.
Bolo was arrested Immediately after
ward, Becker added.
Becker Explains Mistake
Senator Reed-On October 3 you got
the deposition Of Pavenstedt. I want
to ask you, now, if it is not a fact that
there was given out October a, from
your office, either by yourself or the
Attorney General or some body acting
for chem, this statement:
Mr.. Becker-You mean about Boy-Ed?
Senator Reed-About William Ran
! dolph Hearst
Mr.. Becker-About Boy-Ed and Won
Papen being at the dinner? That is
what | wanted 10 explain, and can,
if you wish.
Senator Reed-All right, sir.
Mr.. Becker-In the accounts report,
as originally submitted, there was a
paragraph that merely represented
rumor, | take it, which, stated that
very notable dinner was given at Sher-
ry's one time, at which William Ran
dolph Hearst, Bolo Pacha and others
were present. | remember distinctly
that in the original form of the ac-
counts report the names Won Papen and
boy-Ed were mentioned there, which,
OF course, was impossible
/ Now, the statement that was given
out contained no reference to Mr.
Hearst whatever. He was not men
toned in it. Then the reporters began
to ask questions, as they always do,
and one Of them, whose identity | do
not recall, said:
What about Mr.. Hearst in this
matter" or something of that sort.
What were his relations to Bolo?' and
Mr.. Lewis replied so far as 1 know,
his relations were purely social. There
is no proof of anything else
THAT is substantially the state
ment AT any rate, that is the sub
| stance of it Chpn In and bob
the morning papers, some of them,
appeared the statement which some
keen-eyed reporter had gotten out of
this account and the report which
was entirely erroneous, that Boy-Ed
and Won Papen were present
Tried to Jolly Reporter
II did not see the thing. did not
know it was in the morning paper at
all, and reporter came in to see me
about noon at the Murray Hill Hotel,
where | was stopping, and said:
" How was my report this morning?' p
think, or something of that sort. He
may have been from The Tribune, or
some other paper.
II wanted to jolly him along, and |
said: Fine, fine work. or something of
that sort.
"The matter was not brought to nv
attention that the report contained the
statement about Boy-Ed and Won Papen
; being present, which could not be true
But that, apparently, was treated by
somebody else as warrant for the as
. sumption that this statement, that had
appeared in one of the papers to the
effect that Boy-Ed and Won Papen were
| there, was correct.
News of this reached Mr.. Hearst
/ it has been played up to by the
: papers as great anti Hearst line
reached Mr. Hearst in California: 81 !
he gave out a statement to the effect
that he never met Bolo but once. re
that was at this dinner, and that il