New-York tribune., 1918-08-03
u. S. Grand Jurors Make
Charges of Perjury
and Conspiracy
Accused of Hiding
German Ownership
Ex-Publisher's Bail Fixed
at $4,000 and Lawyer
Gives $4,000 Bond

0lveS Do,UUU BOND
Indictments charging Or. Edward A.
Rumciy. former publisher Of "The New
York Evening Mail" and $. Walter
Kaufman. former counsel for the Ger
man Embassy. with perjury and con
spiracy in conc'aline from the Alien
Property Custodian that the imperial
German government furnished the
money for ,he purchase of the news
paper. were returned yesterday by the
Federal Grand Jury
DR.. Rumely and Mr.. Kaufman who
is a member of the law firm of Hays
Kaufman & Lindheim. were later ar
Fagned before Judge Learned Hand,
and after pleading not guilty to the
charge were released on bail. The
$4,000 bail furnished by Rumely when
he was first arrested was continued
and the bail for the attorney was fixed
at $4,000. Morgan j. O'Brien appeared
as counsel for Kaufman, and Rumely
was represented by Frederick Powell.
After DR.. Rumely had pleaded not
guilty Mr. Powell asked that time be
given to his client to demur or change
his plea. Assistant United States At
torney Harold Harper suggested that
week be granted. On motion of Mr..
Powell the time was extended to ten
days.
Three indictments were returned. In
the first the two are codefendants
charged with conspiracy to omit a re-
port OF the German ownership of "The
Evening MALI in statement given to
the Alien Property Custodian, A.
Mitchell Palmer.
Perjury Also Charged
The second indictment charges DR..
Rumely with perjury in making this
report, the government holding that he
wifuily misrepresented the facts con
oerning certain shares of stock held By
enemy aliens. and the third makes
similar charge against Kaufman. who
was counsel for Dr. Rumety when the
report was submitted. The lawyer s
also accused of having represented the
German government IN the same trans
action.
II convicted the accused men may be
sentenced 10 five years each on the
perjury indictments and two years each
on the conspiracy charge. It was in
timHted last night that the government
contemplates obtaining additional in.
dictments against persons alleged to
have been implicated in the purchase
Of "Thc Evening Mail" by Germany in
another Jurisdiction. Where this ac-
ton Will be taken could not be learned
The perjury Indictment against Or.
Rumely charges that IN making his re-
tort to the Alien Property Custodian
he stated that he owed 500, 600 to Her.
man Sieicken on note dated Septcm.
ber u. 1917. payable AZ the National
CITY Bank two years from that date
rnd that he falsely represented the
facts IN that he was not indebted to
SIclcken al all. but to the imperial Ger
man government, the real owner Of
THE Evening Mail
Dr. Rumely's Debts
The Indictment then calls attention
% the fact that Rumely was Indebted
IN the sum Of si.3ol 400 on two notes.
enc dated january "a, 1917. for s55l.-
zoo. and one dated June / 1915, for
$780, These notes. with others. ac-
cording 20 the instrument. were paid
TO Rumely through Walter Lyon and
were used IN the purchase and upkccp
Of "rhc Mail" When these notes
amounted to Si.35t 600. according TO
thc indictment. Rumely issued the
100000 notc TO Siclcken through Kauf-
man lof lHf return OF all the previous
notes.
The Indictment alleges that Rumelv
sought TO convey the impression that
he was indebted to Siolcken. though in
truth what money he owed was owed
10 tho German Government. The in
dictment further alleges that on De
cember 4, 1917. Rumely was indebted
10 the imperial German government
Count Won Bernstorf and Dr.. Heiarich
En. taI -
man Embassy, n the sum OF $i30l 700
and that he failed 20 make known such
facts IT. his report to Mr.. Palmer
The perjury Indictment against
Kaufman is based OF report he made
10 the Alien Property Custodian in
December. 1917, in which he stated
that he held note of Rumely's for
100000 which belonged to Herman
Sielcken He received this note from
Rumely in return for notes amounting
to 81 ,301 700, which, it is alleged was
advanced TO Rumely by DR.. Albert for
the purchase Of "Thc Mail" by the Ger
man government.
Stock Ownership
TIE conspiracy Indictment charges
that at tho time the report was made
to the Alien Property Custodian Rune
ly held $3.50 shares of the preferred
stock and 6,657 shares Of the common
stock Of the s. S. Mcclure Newspaper
Publishing Company for the imperial
German government and that he and
the attorney sought to conceal this
fact.
Dr. Rumely last night issued the
first statement he has made since he
was taken in custody on July &. In
part the statement says:
81 welcome the opportunity TO pre-
sent the facts to an impartial tribunal
and await the outcome of the trial with
confidence. shall vindicate myself
at the trial, not merely by disproving
the charges made in the Indictment,
but by howing that | have always
been absolutely and aggressivcly loyal
60 my country, ard thaf | have as
sisted by every means IN my power in
the yigorous prosecution ~ the war
ard fse defeat of Gernanv chal
ienge any man to proagco q shrcd %
cfifence ters ~ &. haw that have
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