The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1918-07-09

fixed at $4,000 instead OF S5O,OOO as
originally asked by the Federal COun-
sci when Rumely was arraigned be-
fore L. S. Commissioner Hitchcock
on the charge OF perjury. The hear
ing in the case, involving allegations
that the Mail is owned by the German
Government, was deferred two weeks.
New York, July Edward A.
Rumely, Vice President, Secretary
and publisher of the New York Even
ing Mail, was arrested late yesterday
afternoon by agents of the Govern
ment, charged with perjury The
charge grew out OF statement filed
with A. Mitchell Palmer, the Alien
Property Custodian, in which Rumely
asserted that The Evening Mail was
an American-owned newspaper. The
Government is in possession OF eyi-
dence which, it is held, shows that in
stead of being owned by Americans,
the paper is in fact ownd by the I'm
perial German Government, which on
4 July l, 1915, paid to Rumely, through
Walter Lyon, of the former Wall
street house of Renskorf, Lyons
Co., the sum Of s7S5,OOo, which trans
ferred the control OF the newspaper
/ to the Kaiser.
Following the announcement OF
\ Mr.. Rumely's arrest the Attorney
General said that the Investigation.
which had eliminated so sensationally
Just before dusk OF yesterday, had
been under way for several months,
the Federal and State authorities
working hand in haad ard with the
cooperation OF 4. hiithei Palmer
No BAH was fixed at the time OF the
commitment bat fate last night Il
was announced that bail had been
fixed in the sum OF 100000 and that
friends OF the accused publisher were
trying to get bondsmen.
In many respects the financial fea-
tures of the transactions which the
Government charges transferred the
control of The Evening Mail from
American to German interests were
similar 10 the plan followed by Bern
storff. Adolph Pavenstedt, and Hugo
Schmidt in transferring the huge sum
! which was paid to Bulo pacha, the exc
cuted French traitor, TO debauch
French public opinion in favor of a
Gcrman-made peace. In the case OF
Bolo. tho funds, which totaled about
Sl,70O0,00O passed through q number
Of banks before they reached BolO.
In this case, according to the Gov
ernment agents, there we're also sew
cral transfers. After The Evening
,lsil had passed into Rumely's con
, te0i. the Attorney General said last
n.ght, il soon began to lose money
~ tn its change from prO-Ally to
,go-German sentiment its subscription
r lists began to dwindle and its income
! stJa other sources began to decline
To result was that, beginning in Jan
: daly, 1918, and up to the time that
S Ecrnstorif was dismissed from the
i United States The Evening Mail, ac
S c0sding to the Government agents
cot the Kaiser an additional $626,000
or a total, including the purchase
hDr.co, Of $1,361.000
In announcing the arrest of Mr.
q ,Rumely, and subsequently, in making
public some of the details of the in
J. ternational transaction. Attorney Gen
n e:ai Lewis, referring TO the total sun
q of 1851 900, added the comment tha
this amount represents the tota
- moneys paid so far as has been traced
" by the Federal and State officials III
to the present time
DR.. Rumely was the founder of tn,
lnierlaken School, of which he il
R president and has written severa
books embodying novel IDEAS on edu
cational matters.
! After having attended the Uniyers
ity of Noue Dame and the Uniyersit.
of Heidelberg, he studied at tn,
University OF Freiburg which in l90
= granted him the degree of doctor o
+ medicine.