_The following report appeared in_ THE NEW YORK TIMES _June 11, 1915:_
Gustav Stahl, the former German soldier who made an affidavit that he
saw four guns mounted on the Lusitania on the night before it sailed
from this port on its last voyage and who disappeared immediately
after the affidavit was made public, was produced by Secret Service
men before the Federal Grand Jury yesterday afternoon at a proceeding
to determine whether Paul Koenig, alias Stemler, who is the head of
the detective bureau of the Hamburg-American Line, and others unnamed,
had entered into a conspiracy to defraud the United States Government.
The fraud is not stated specifically, and the charge is a technical
one that may cover a variety of acts.
Stahl, who speaks little English, affirmed through an interpreter to
the Grand Jury that he had seen the guns on the Lusitania. He was
questioned for two hours and a half and told his story with great
detail.
As he was leaving the Grand Jury room he was arrested by United States
Marshal Thomas B. McCarthy on a complaint made on information and
belief by Assistant District Attorney Raymond H. Sarfaty that Stahl
had committed perjury in his testimony before the Federal Grand Jury.
Stahl was held in bail of $10,000 by United States Commissioner
Houghton and locked up in the Tombs.
Stahl was the only witness heard by the Grand Jury in the proceedings
against Koenig. It was learned that Stahl had been in conference with
Koenig before he made the affidavit, and that his affidavit had passed
through Koenig's hands before it went to Ambassador Bernstorff, who
submitted it to Secretary of State Bryan.
The proceedings against Koenig were initiated to establish the charge
that Koenig used improper influence to induce Stahl to make the
affidavit.
While Stahl was waiting in the Marshal's chamber in the Federal
Building, after his arrest, for the arrival of Edward Sandford, a
lawyer, of 27 William Street, who had been assigned to act as his
counsel, he was asked, through an interpreter:
"Would you be willing to spend twenty years in jail for your
Fatherland?"
"Make it a hundred!" he replied, in German, and then broke into a
hearty laugh.
Stahl is about 27 years old and slightly under middle size. He has a
round, somewhat rosy countenance, dark hair getting very thin in
front, and parted in the middle, dark-brown eyes and a small,
closely-cropped dark mustache. He was calm and smiling, ready with his
answers, and very insistent and emphatic in repeating that he had seen
the guns on the Lusitania.
He was neatly dressed in a dark mixed suit, with a new straw hat, a
green tie on which was a stickpin with a dog's head in porcelain,
brightly polished tan shoes, and lavender socks with scarlet-embroidered
flowers.
Following is the complaint on which he was held:
Raymond H. Sarfaty, being duly sworn, deposes and says that
he is an Assistant United States Attorney for the Southern
District of New York.
That on the 10th day of June, 1915, there was then and there
pending before the Grand Jury of the United States in and
for the Southern District of New York, a certain proceeding
against one Paul Koenig, alias Stemler, and others, upon a
charge of having conspired to defraud the United States, in
violation of Section 37, U.S.C.C.; that on the said 10th day
of June, 1915, the foreman of said Grand Jury, Frederick M.
Delano, an officer duly empowered and qualified to
administer oaths in the proceedings before said Grand Jury,
duly administered an oath to the said Gustav Stahl, that he
would testify to the truth, the whole truth, and nothing but
the truth, with respect to the aforesaid matter then being
presented before the said Grand Jury; that the said Gustav
Stahl, at the time and place aforesaid, and within the
district aforesaid, and within the jurisdiction of this
court, after said oath was administered, knowingly and
fraudulently committed perjury, and that he testified in
part, in substance, and effect as follows:
That on the 30th day of April, 1915, the said Gustav Stahl
went aboard the steamship Lusitania at the City of New York,
in the Southern District of New York, with one Neal J.
Leach; that while on said steamship he saw four guns on one
of the decks of said steamship, two forward and two aft;
that the said guns were mounted on wooden blocks; that the
said guns were covered with leather.
That affiant is informed and believes, and therefore avers,
that, whereas, in truth and in fact, the said Gustav Stahl
did not, on the 30th day of April, 1915, go aboard the
steamship Lusitania at the City of New York, in the Southern
District of New York, with one Neal J. Leach, nor did he,
the said Gustav Stahl, go aboard the steamship Lusitania on
said last mentioned date; and the said Gustav Stahl did not
see four guns on the deck of the said steamship, two
forward and two aft, nor did he, the said Gustav Stahl, see
four guns on the deck of said steamship mounted on wooden
blocks; nor did he, the said Gustav Stahl, see four guns on
the deck of said steamship covered with leather.
That the said matters testified to before the said Grand
Jury by the said Gustav Stahl, as aforesaid, were material
matters in the investigation aforesaid; against the peace of
the United States and their dignity, and contrary to the
form of the statute of the United States in such case made
and provided.
That to disclose the source of affiant's information at this
time might defeat the ends of justice.
Wherefore, affiant prays that said Gustav Stahl may be
arrested and imprisoned, or bailed, as the case may be.
This complaint was read to Stahl when he was taken before Commissioner
Houghton, being interpreted for him, sentence by sentence. When the
name of Neal J. Leach was read as the alleged steward who had taken
him aboard the Lusitania, Stahl exclaimed: "Not Neal." In his
affidavit he had described the steward as "A. Leach." A steward named
Neal J. Leach went down when the Lusitania was torpedoed.
When that part of the complaint was read which said that Stahl had not
seen guns on the Lusitania, he exclaimed in German:
"Yes, I did see them."
After the complaint had been read, Commissioner Houghton asked about
bail. Assistant District Attorney Roger B. Wood, who conducted the
proceedings before the Grand Jury, said:
"Ten thousand dollars, not a cent less."
Commissioner Houghton fixed bail at that figure. He then asked Stahl
if he had anything to say, and the prisoner replied:
"Before I say anything I would like to see several gentlemen."
Commissioner Houghton then asked if he had a lawyer. Stahl replied
that he had not, and that he had no means to employ one.
"Shall I assign one for you?" asked the Commissioner.
"No," replied Stahl; "I should like to have Mr. Sandford, who acted
for me yesterday and the day before."
He referred to Edward Sandford of 27 William Street, who was counsel
for Carl Buenz, a Director of the Hamburg-American Line, and for other
officials of that line, who were indicted by the Federal Grand Jury on
March 1 on the charge of conspiring against the United States by
making out false clearance papers and false manifests for the
collection of customs in connection with the steamships Fram,
Somerstadt, Lorenzo, and Berwind, which were loaded with coal and
provisions intended for the German cruiser Karlsruhe and the auxiliary
cruiser Kaiser Wilhelm der Grosse.
Commissioner Houghton assigned Mr. Sandford as counsel for Stahl. The
Commissioner then asked Stahl if he had any friends in the room, to
which Stahl with a smile, replied in the negative.
"I would like to have the date of June 24 set for the hearing," said
Assistant District Attorney Wood. "The Grand Jury which is now holding
this investigation will probably continue its hearings until then."
Commissioner Houghton fixed the date accordingly.
After the hearing adjourned Stahl was asked where he had been since
his disappearance. He replied in German:
"I told the Grand Jury all I have to say."
He was asked where he would live if he got bail.
"I don't want anybody to know," he said. "I have had so many visitors
in the past few days that I don't want any more, if I can help it."
He was asked if he was a German reservist, and he replied that that
was his business. Other questions got the same response. He denied
that he knew Paul Koenig, the Hamburg-American detective, but he
admitted he knew Stemler, which is a name sometimes used by the
detective. When he was informed that he was to spend the night in the
Tombs he said:
"Will Stemler be with me?"
He seemed disappointed when he was told that he would have to go there
alone. Stahl was asked if Josephine Weir, who had signed a
corroborative affidavit, knew of his whereabouts during his hiding. He
refused to answer this question, but of Josephine Weir he said in
English:
"Oh, that's a nice girl."
Stahl sat smoking a cigar and laughing in the best of temper until a
flashlight powder was exploded unexpectedly. He put both hands to his
face and hid in a corner made by a wall and a filing cabinet, but when
he realized that his picture had been taken he ran to a man whom he
thought to be a Federal employe, and protested in German. A little
later Mr. Sandford arrived with another interpreter and went into
consultation with his client.
Stahl went to Albany on June 4, the day after his affidavit was made
public. While a search was being conducted in this city and
surrounding cities by Federal agents and newspapers, Stahl was in
hiding in Albany, his expenses there being paid for him by a
confidential adviser sent with him.
Instead of relaxing after a few days, the search for Stahl grew more
rigorous. When it was seen that there was little chance of keeping
Stahl in permanent seclusion and that the extraordinary character of
the disappearance of the German Ambassador's chief witness against the
Lusitania was arousing intense nationwide interest, Paul Koenig, the
Secret Service man of the Hamburg-American Line, decided that it would
be better if he were found at once.
On Monday of this week Koenig and Mr. Sandford called on Inspector
Lamb of the Customs Service and told him that Stahl was at Albany and
would be available if the Federal officials wanted him. Superintendent
William M. Offley, of the special agents of the Department of Justice,
had at that time some strong clues as to Stahl's whereabouts.
On Tuesday Stahl and his personal conductor arrived in this city from
Albany and were met by Superintendent Offley and Special Agents Adams
and Pigniullo. Stahl was taken to the office of Superintendent Offley
in the presence of Mr. Sandford, who was asked to take part in the
proceedings in the interests of fair play, although he was not then
Stahl's lawyer.
At this examination and at a second one held on Wednesday, Stahl
repeated his charge that he had seen guns on the Lusitania. He showed
great familiarity with the details of the construction of the
Lusitania.
At the end of the examination it was urged by representatives of the
Hamburg-American Line that Stahl should stay under the watch of the
Federal agents in order that, if he told a different story later,
there could be no charge that outsiders had tampered with him. Stahl
remained with the Government detectives on Tuesday, Wednesday and
yesterday, although he was not under arrest. When he appeared
yesterday before the Grand Jury it was under a subpoena.
Assistant District Attorney Wood said yesterday that the charge of
perjury had been lodged against Stahl on the strength of the statement
by the Collector of the Port, Dudley Field Malone, that there were no
guns aboard the Lusitania.
"We can bring fifty witnesses," he said, "to prove that the Lusitania
had no guns on board and that Stahl is guilty of perjury."
Mr. Wood was asked if there was any evidence that Stahl had ever been
in the employ of the German Consul-General at this port or of Captain
Boy-Ed, Naval Attaché of the German Embassy, who is said to be the
head of the German Secret Service here. Mr. Wood refused to discuss
either question. When he was asked if the investigation promised to
involve any man of importance, he said:
"I don't know. We are holding the Grand Jury investigation to find out
all that we can about the case."
After consulting with Stahl, Mr. Sandford said that he would not
represent the prisoner but would seek to get a good lawyer for him at
once. When asked if he represented Koenig, he refused to say. He was
asked if he knew anything about the charge against Koenig. He said:
"No. The charge of attempting to defraud the Government is a charge
on which the Government can get anybody at any time for anything."