The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-08
RUMELY BORROWED
S750,O00 FOR MAIL,
Believed His Dealings Were
With Sielcken, He
Testifies.

Final agreements for the purchase of
the Epenino Mail, DR.. Edward l. Ru-
nelly, testifying yesterday in his own de-
fence in the United States District Court,
said were arranged in the office of DR..
Heinrich Albert, German fiscal agent
here, on May 7, 1917. DIR. Runely said
that at this conference DR.. Albert at
tempted to keep the amount to be loaned
by Herman Sielcken, the millionaire
American coffee merchant, who was liv-
ing in Germany, as low as possible. 1t
was agreed finally that $750,o00 should
be advanced to be used in the purchase
of the newspaper, he said.
At the meeting in Or. Albert's office,
DR.. Rumely testified, DIR. Albert said he
would get In touch with an attorney
who represented Sielcken. and mentioned
S. Walter Kaufman, who Is one of the
defendants in the present trial. The at
torney. DR. Albert said should become a
member Of the board of directors and
the financial committee OF the newspaper.
SO as to protect Sielckens interests while
said he never heard OF Kaufmann' nor
Walter Lyons until that time. Walter
Lyons, member of the banking firm OF
Rennskorf & Lyons, was the go between
in the purchase OF the Epening Mail
After that meeting. DIR. Rumely said.
all his business was with Lyons, and he
believed all his dealings. at that time.
were with Sielcken. He said that he did
not know that Kaufman or any member
of the law firm of Hays. Kaufman &
Lindheim was in any way connected
with the Imperial German Government.
DR. Rumely said that at all times he
controlled the editorial policies Of the
paper and that neither DR.. Albert nor
Kaufman ever instructed him to pre-
sent German views OF war conditions.
He testified that In 1856. when Col
Theodore Roosevelt was candidate for
the Republican nomination for Presi-
dency, he had several conferences with
the late George w. Perkins relative to
buying n half interest In the Euenistg
Mol. in order to further the interests
of the Roosevelt candidacy. DR.. Rumely
described Perkins as having been an
"angel' for the newspaper in previous
years and having offered financial as
sistance on two occasions.
Figures were introduced In the testi-
mOny Dy LIT. ftuIIlely SHOWING the lObScS
sustained by the Evening Mai during
period extending from 1915 to the
middle OF September. 1917. In 1915 the
losses were s15f.271. during 1916
about $4,000 and from the first OF
1917 until the middle Of September of
that year. the newspapers treasury suf-
fered a 100000 deficit. The first two
weeks of September brought loss OF
more than $1,000 day In paying run
ming expenses. the witness said
When the $4,000 in bonds of the
Evenin1 Maj matured In September
1917 DIR. Rumcly said he went to \.
Walter Kaufman and barred his finan-
cial embarrassment. He threatened to
give UP the stock. which was then
pledged to Kaufman as security for
the loan. The terms OF the loan were
DR.. Rumely the right to give up the
stock and In that way discharge the
loan.
After dckering with Kaufman. the
witness said. Kaufman agreed to- sell
out the entire stock interest Of DR..
Rumoly for 100000.