South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-02-16
MORGANS FALL
FOR MARQUIS
Fake Spanish "ExCeIIenCy''
Seeks Fifty Million to
Get SPANS Aid.

NEW YORK. FEB. 16.-How a
$15-a-weeA telephone operator. pos
ing as His excenency, the Marquis
Edmond Rousselot di Castillot, con-
hdential representative Of his males
", King Alfonso XIII of Spain"
opened negotiations with the bank
ing house Of ]. p. Morgan K Co. for
a loan Of $5O,OOO,OOO 70 Spain and,
by promising that Spain would enter
the war on the side Of the entente
allies, brought the state department
into the matter. was revealed IL
the fedora. court here Friday when
three indictments were returned
against Edmond Rousselot under the
espionage law.
Rousselot was pressing his plan
for the loan when chance caused
his arrest on another charge, and
his castle in Spain quickly topple1.
william Pierson Hamilton of the
Morgan house, was foreman of the
grand jury which returned the In
dictments, and was familiar with
the entire transaction because ne
was the member OF the firm to
whom the matter was entrusted.
Lansing Objects to- Methods.
When the subject of the loan was
preached TO the bank by Rousselot
who had been properly introduced
by w. +. d. stokes Of New York
city. the bank Immediately com
municated with Sec'y Lansing, who
opposed the loan to the Spanish
government through an individual.
and suggested that it be taken up
through the regular government
channels. Rousselot objected to this
method of procedure. explaining
that the loan was TO be made per
sonally to King Alfonso and it was
because OF this secret arrangement
he could promise that Spain was to
join the entente allies.
The negotiations were still under
way and Mr. Hamilton had the mat
ter under consideration when Rous-
selot about three weeks ago, was
arrested on the charge of falsely
representing himself as Count Rous-
selot, French diplomat here on a
secret mission, and. being unable ID
obtain bail. was sent TO Jail This
led to inquiry, and the whole affair
was laid before the grand jury.
Ropes in a Woman.
II developed that Rousselot had
not confined his operations 10 bank
ing houses. but numbered among his
confding friends one woman from
whom he had borrowed $4,000 on
oil stocks of doubtful value, but for
the redemption of which he had
pledged his ancestral estates"
Another Of his friends was a
prominent actress, who told the au-
thorities she had been introduced to
Count Rousselot" and, believing
him to be in the French diplomatic
service. had visited an English war
ship in the harbor with him. AS his
credentials were well covered wi
seals which seemed 10 be all righ-.
they were taken over the ship and
shown every courtes., she said.
She admitted giving him an auto
graphed photograph which was later
\ found in his effects. on the promise
| that il soon would be with him ION
the battle front in France
Rousselot, with the money obtain
ed from the oil stocks, established
himself in "A suite in "A fashionable
/ hotel and there he received many
letters which are described as being
with crests and seals and
| addressed 10 him as Marquis
Count" and kings Messenger"
Wrote Letters TO Himself.
| These 6ocum ents, when examined
by the authorities, proved TO be let
ters apparently written by Rousselot
TO himself one Of them. purport-
/ ing TO have come from the king or
| Spain. bore a large red seal impress
ed by the stamp OF the commissioner
/ Of deeds of Westchester county, New
York. He also had a rubber stamp
/ bearing the words, "Ministre de Ia
Guerre." W. - the authorities al
lege ne used while posing as 2
French diplomat. When represent
/ ing himself as the agent of the king
| OF Spain he used a crest cut from
the advertising of a leading furrie-.
they declared.
4 little later, Rousselot moved 20
the Hotel Ansonia where he told
| Mr.. Stokes. the owner, that he was
King Alfonso's confidential agent in
this country. and in support Of his
statement displayed his collection of
credentials" He further explained
/ that he expected a visit from Jules
| JuSSerand. the French ambassador,
I but did not have the necessary funds
/ 10 entertain him. Mr.. Stokes ad-
vanced HIM $500. and one Of the
indictments has 10 do with this tran
SactiJn.