NEW GERMAN SCANDAL

Hokitika Guardian, 12 January 1921, Page 3

NEW GERMAN SCANDAL

WHOLESALE SMUGGLING

OPERATIONS

ROYAL FORTUNES TRANSFERRED

LONDON, November 26. Following upon a raid on a Berlin bank some sensational disclosures have been made concerning the transfer to Holland of the private fortunes of many Royal, personages.

The chief actor in these smugglingoperations was a certain Herr Grosser. For some years before the war, it is related? lie ran a “bucket-shop” in London. A couple of days before the war broke out lie fled back to Holland and there he was employed at a bank as clerk at a salary of £7 per week but late,r be joined the German army, and served for some time on the West front as an officer of artillery. Here lie came into contact with royalties and members of noble, families, whom he provided with numerous money-making “tips.” So it was that in 1916, though still an’officer on the active list, he obtained permission to go to Holland. There he carried out many business coups, from which his highly-placed

friends doubtless benefitedL As Grusser and Co., of Amsterdam, he went in for business of all sorts, mostly of the shadier % character-—such a.s food smuggling and profiteering. Later, a Dutchman joined him as partner, and the firm become Grusser, I’bilipson and Co. When the revolution broke out in Germany, Grusser was wealthy enough to take into his employ numerous lackeys, chauffeurs, and servants discharged—qt a week's notice, and without pensions—from royal households. His fortune now was reckoned as close upon £2,000,000. Herr Grussej-’s smuggling methods were exceedingly clever. With money put at his disposal by his distinguished

oliients he bought articles for which there was a demand abroad, obtained export permits firoin the Government for them, and sold them in Holland. He then placed to the credit of his clients a sum corresponding to the amount which had been given him, and he also pocketed the handsome profits made on such transactions. He used to go to Holland in a large automobile laden with trunks. In these trunks he would have such tilings as toys, Teddy Bears, and dolls, which would lie stuffed with jewels, paper money, and share certificates. Having a diplomatic passport, and being well recommended to the indulgence of the frontier authorities, his luggage always got through practically without examination. After the fight of the ex-Kaiser and his son, Herr Grusser began to cultivate energetically those acquaintances he bad made in the field, and soon lie was persona grata in the highest society and in the most important business circles. For some time after the end of the war lie paid frequent visits to Holland, whejr he often visited the ox-Crown

Prince on his island of banishment. He was instrumental in furnishing the exile with plentiful supplies of provisous. This “banker” and his family had a suite of rooms at the Esplanade Hotel, one of the most fashionable in Berlin There he was frequently visited by tho ex-Crown Princess. She in (return entertained Herr Grusser and ids family at her residence in Potsdam. Royal and noble clients wore soon swarming round Herr Grusser. No representatives of the ex-Kaiser were among them, so .that the exiled monarch's private fortune does not come into question. But all the <>xruler’s sons had dealings with this glorified bucket-shop keeper, especially it< is said, Prince Eltel FJritz and Prince Adalbert, who both married very wealthy wives. Prince Ciscor and Prince August Wilhelm, who are, comparatively speaking, poor men, were no less anxious about their fortunes, and they put all their worldly wealth in Herr G/russor's care. Some of the wealthiest personalities in Germany did likewise. Among them was Prince Wrede, son of that Prince Friedrich Leopold, who, the wealthiest of the Hohenzollerns, was famous by tho name of the “Red Prince,” and was greatly in*tersted in several rich Rhineland mines. Allegations were also made against General Ludendorff, who before the war

was a man of moderate fortune. It. is stated that he now has a fortune of 6,000,000 marks in Holland, sent there through Herr Grusser’s “bank.” One. allegation lias it that lie came by this great stun of money in the shape of shares as tt gift from prominent German industrial magnates early in the year 1917.

Tho Government legal official working under the control commission of tho Ministry of Finance, flic duty of which is to prevent fortunes being smuggled abroad, received riifonn'ation from agents in Holland that Messrs Grosser and I’hillipson were engaged in that ‘/trade.” He pJroeoetled. at once to

; seize the documents :ui<l lawks of the “hank.” The evidence he obtained was inimediately 'placed before the authorities, who were so astounded at the details of the ease that they hesitated to give orders for certain arrests which were asked for. During this delay Herr Grnsser obtained his visa for Holland, ! and the warrant for his arrest, which went after him, reached the frontier too late. Startling- disclosures continue to be made in the Reichstag, where the subject is under discussion, and a very large number, not only of people belonging to the Court set, but commoners, Ivelonging to trade and industrial circles are involved.