New-York tribune., 1919-01-24

ieai Germany as it lives in our hearts,
IN the hearts of those who were born
or on German soil. May they return en-
llghtened and make the truth known"
"A thorough investigation of the fl
hances of "The Staats-Zeitung" had
peeh made by Nathaniel Elsberg, as
slstant to Attorney General Lewis, at
tne request of the Military Intelli-
gence' Mr.. Stevenson said 1t was
Iound p;an that at the death of Herman
hldder IN 1915, the paper was more
than 100000 in debt the stock, all of
winch was owned by him, apparently
oe1ng pledged as collateral for various
loans. 80
:, Inc investigation had not shown any
direct payment of German money to
me paper, he said, except $4,000 bv
Dr. Dernburg, through Adolph Paven-
stadt. But G. Won Skahl, who was an
empioye of Won Papens, had testified
10 the interest which the German gov
efnment had taken in the paper. His
testimony was read from DISPOSITION
as follows:
"Dld you ever hear that Won Papen
or anyone else connected with the Ger
man authorities in this country had
peen besought to make a contribution
or :, otherWlse finance 1.-THE Stats
Zeitung?"
yes
when was that ."
Appeal Sent to Berlin
"Well, don't know when it was.
only saw the telegram that went to
Berlin"
Now you saw a telegram that went to
Berlin; who signed that telegram ?"
mat | don't know; only saw copy
IN Won Papen's files
will you tell US what that telegram
said ?"
"The telegram said that the Stats
Aeltung' was about to fail, or something
Ike that; that they had don't know
whcther the name of the creditor was
mentioned. | don't think so, because
would remember it-that they had to
nave near half a million dollars i'm
mcdIately If it should not fall into the
hands of people who would use it
a1a'nst 1;,s Germany, | think; something
Nov that was about when, if you
rem mber?"
1T must have been in December
1914, or January, 1915. | can place the
limits mt his way: 1t was after tho
tIerman fair that VIC held in the Tits
Hcglment Armory and which closed in
the first week in December, if rcmcm-
per; and 1t was before dinner which
took place in the German Club at the
end of January, when Mr.. Pavenstadt
invited me and talked about tho 'Staats-
Ieltung,' and when he said it had all
been arranged"
"What had all been arranged" ?"
"Ihc financial matters Of the
'Staats-Zcitung.'
You mean at this dinner in which
you say Mr. Pavcnstadt, which was ir
January, 1919, told you that the matte,
had been arrangcd?"
"Yes."
"Yes"
"That was held where. did you say?o
In the German Club.'
I'm Fifty-ninth Street. here in New
York" ?"
"ln Fiftynnth Street. yes"
Nov, to come back to this telegram
OF cable. you say You saw that in the
files in Won Papen's office?'
81 saw it in the files in Won Papcn's
Office, in filing the papers away"
on remember who signed that telc-
gram >"
81 think that tclcgram-I won't say
that. because | am not sure of it
think it was lIatzficld"
He was the counsel of the German
Embassy, was he, Prince Hatfield 2"
"Yes.'
"To whom was it addressed, if you
remember?"
"Well. to the Foreign Office, I think
10 the Foreign Office ~
"Yes."
Did you ever see any answer re-
ceivcd to that cablc?"
Yes, | saw the answer to that cable. ,
Contribution Authorized
"1hc answer was received shortl,
a'tcr the sending Of the cable %
"Well, don't know when it was re
celVed saw the papers in the files
sling them away"
What did the answer contain ?"
he answer was that the legation
was authorized to pay the money if
necessary"
The Stats -Zeitung" was reorgan.
lzed shortly after this, Mr.. Stevenson
said, by the issuing of 100000 pre-
tered stock, which was underwater
by Chandler Co, firm used in much
o. the German financing. To clear ur
the situation, holding corporation
was formed, the Stats -Zeitung Hold
lrg Company, the stock of which was
issued to the sons of Herman Ridder
VINO were running the paper, and bonds
TO the holders of notes and other obi
cations
The stock of this holding company
which had complete control of the
paper, was put in the hands of votjnp
trustees, who thus had full power over
the sheet. The chief of the trustees
was Adolph Pavenstadt, of G. Amsinck
d. Co., who introduced Bolo Pacha to
bernstorfi, and was active in German
work in America, and others were
julius p1,I} ST. sturzburg, Fritz Achcls, -
burghardt, son-in-law of George
Ehret, and William j. Amend.
Among those who put money into the
,"'Staats Zeitung" under this scheme
Mr.. Stevenson testified, we're George
Ehrct, who invested $4,000, the estate
of Jacob Schwartz and George f. Rup-
pert, Of brewing connections, and the
following: f. Erbslch, Henry H. Dyr-
sen, David K. Freudenberger, Henry
Heide, William Knauth Adolph Paven-
stadt, Adolph Kuttroff, William II
Mulligan, Albrecht Pagenstecher, Mrs
Anna Woerisheffer and William J.
Amend.
-------------s--