New-York tribune., 1918-07-10
Tells HolU
Rumely Got Control
OF "Euening MaiP'

"While DR.. Rumeiy was negotiating
for The Mall and representing him
self and his associates as 100 per cent
American, | was approached by Hugo
Schweitzer, avowedly acting in the in
terests of Germany with an offer of
S250,000 more for the property than
Rumely was apparently having. diff
Guilty in raising. 1t seemed obvious
that the Germans would not send two
would bid against each other; it
seemed equally obvious that Rumely,
as he said, was not allied with the Ger
man crowd which, report had it, were
in the market for an organ. SO sold
to him"
Henry L. Stoddard, former owner Of
"The Evening Mail" and now in charge
Of the property, representing the bond
holders, and with the approval OF A.
Mitchell Palmer, the Custodian Of Alien
Enemy Property, thus explained yes
terday> how he came to sell the prop
crty to DR.. Rumely, now accused by the
government of using funds of the Inn
perial German government for the
purpose.
at would now scem,' added Mr. Stod-
dard. "that Rumcly misrepresented the
situation, but | cannot for the life of
me see where Germany got one cents
worth of value for each dollar ex-
pended. 1t is conceded by the govern
war, has been 100 per cent American.
have seen to it that there could be
nothing else to it. All that was pub
lishcd as ! recall. was series of ar
ticles '0n how German women are help
ing in the war. 1t was series any
paper might be glad TO print. But it
seemed a bit like propaganda and told
Rumely he had better drop il. lie
, did"
Warning to Kumely
According to the story told by Nh
Stoddard and the statement printed
over his signature in "Thc Evening
Mall yesterday, his doubts about
Rumely were aroused by persistence of
reports that he was pro-German and
that the money he was using was Ger
man money, so much so that when the
country went into the war he warned
Rumely that he must run an absoslute
ly straight paper above suspicion in
every way.
"Otherwise," he said, "Rumcly was
told that the bondholders would take
advantage of an emergency clause in
the mortgage allowing them to take
possession Of the property were any
thing done to menace its value. Rune
ly agreed to this course, and followed
"When Rumely came to me The
Evening Mail' was losing money, and
was anxious to get rid of it. | first
heard of him through s. s. Mcclure,
who said he was a progressive young
fellow who wanted to take over the
property. He was, Mcclure said. an
American. Soon after | met Rumely,
and Mcclure did not appear in the
transactions again.
1.-The Mall at that time had bond
ed Indebtedness Of 100000. most Of
the larger part held by me. There
was considerable floating debt, and
people he represented. who, he said,
were Americans, would pay S635, 900
would turn over to him the property
tree Of all except the bonded debt and
100000 in cash as working capital.
This Rumely had difficulty for a while
in raising, so much that I had about
concluded the deal was gon. to fall
through, when he suddenly appeared
one day, said he had the money and
the deal was closed
"Of the $685., 900 but $4,000 was left
after paying the floating debts and pro-
vding Rumciy with his 100000 work
ing capital.
Schweitzer Turned Down
"Whilc these negotiations were on
Schweitzer appeared. He came not
once, but several times, and each time
was told he could not have the prop
erty. |. seemed very obvious that he
was representing the Germans seeking
an organ in New York and that the
Germans would not be bidding against
themselves seemed equally obvious.
Also, while these negotiations We're
on the Lusitania was sunk. 'The Mall
took a most vigorous position on this.
and on It's editorial Dr. Rume!y warm
~ congratulated me. His was exactly
the attitude no one working in Ger
manys interest would be expected to
take.
Il had no explicit information as to
the source of Dr.. Rumely's money. and
mad no right or power to inquire into
it. told him of the Schweitzer visits
and the reports of a German syndicate
beng IN the market for Il paper. and
ne assured mo that every one connect
ed with him was American Certainly
his counsel were-Messrs Cravath and
henderson. There was nothing, to in
dlcate German origin Of these funds,
and again and again he pledged his
solemn word that his was American
money.
However, after Rumely took The
-h"li' anu against my counsel, articles
appeared from time to time in The
Mail that, as Attorney General Lewis
says. were more anti British than pro
German; then came the outrages on the
high seas that compelled our govern
ment to go to war. On these The Mail
stood squarely with the government,
ana slnce then not 4 line has been
printed that was not helpful to the
government and its purpose
THE pro- German reports. however
would not down. Meantime Rumely
was losing more and more money. He
acted as though ne had $4,000. 900
oack OF him, and insisted on scrappine
a perfectly good plant and putting
%zoo.oo0 IN the new plant we have here.
On this building, which belongs TO the
city, he expended $50 900 Mcclure he
sent all over Europe and TO Asia.
lie undertook other costly enter
prises abroad, and at home he had
nan dozen me.. on the road all the
time getting opinions on his various
soclallstic ideas. This. too. at a time
when the paper was losing money and
1t was apparent that the hords coul6
not be paid when they fell due. in Oc
tOber '-
Follows r. RS Advice
Il was in doubt as to what should
pc done. In this situation | went IN
Colonel Theodore Roosevelt and laid
the facts before him. We met at lunch
con IN the Union League Club, where
lor tnree hours we discussed the situa-
tlon from every angle. His conclusion