GERMAN SCANDAL.

Taranaki Daily News, 5 February 1921, Page 9

GERMAN SCANDAL.

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 manyRoyal personages. The Chief actor in these smuggling operations was a certain Herr Grosser. For some years before the war, it is related, he ran a “bucket-shop” in London. A couple of days before the war broke out he fled back to Holland, and there he was employed at a bank as a clerk at a salary of £7 a week, butdater he joined the German Army, and served for some time on the West front as an officer of artillery. Here he came into contact with royalties and members of noble families, wh(|m 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 benefited.

As Grusser and Co. of Amsterdam, he went in for business of all sorts, mostly of the shadier character—such as food smuggling and profiteering. Later a Dutchman joined him as partner, and the firm became Grusser, Philipson and Co. When the revolution broke out in Germany Grusser was wealthy enough to take into his employment lackeys, chauffeurs, and servants discharged—at a week’s notice and without pensions—from royal households. His fortune was now reckoned at close upon £2,000,000. DOLLS STUFFED WITH JEWELS. Herr Grusser’® smuggling methods were exceedingly clever. With money, put at his disposal by his distinguished clients he bought articles for which there was a demand abroad, obtained export permits from 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 things as toys, Teddy Bears, and dolls, which would be 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 practocally without examination. A ROMANTIC CAREER. After the flight of the ex-Kaiser and his son, Herr Grusser began to cultivate energetically those acquaintances he had made in the field, <and soon he was persona grata in the highest society and in the most important business circles. For some time after the end of the war he paid frequent visits to Holland, where he often visited the ex-Crown Prince on his island of banishment. He was instrumental in furnishing the exile with plentiful supplies of provisions. 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 the ex-Crown Princess. She in return entertained Herr Grusser and his family at her residence in Potsdam.

ALL THE PRINCES AS SMUGGLERS. Royal and noble clients were 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 ex-ruler’s sons had dealings with this glorified bucket-shopkeeper, especially, it is said, Prince Eitel Fritz and Prince August Wilhelm<who both married very wealthy wives. Prince Oscar 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 Grusser'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 thd Hohenzollerns, was famous by the name of the “Red Prince,” and was greatly interested in several rich Rhineland mines.

GENERAL LUDENDORFF’S FORTUNE. Allegations are 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 has it that he came by this great sum of money in shape of shares as a gift from prominent German industrial magnates in the year 1917. Before the Pope offered his mediation to bring the war to an end, Ludendorff was numbered among the moderates, but ho afterwards blossomed out into a wholehogger regarding annexation, and holding out to win. GRUSSER ESCAPES. The Government legal official working under the control commission of the Ministry of Finance, the duty of which, is to prevent fortunes being smuggled abroad, received informaion from agents in Holland that Messrs. Grusser and Philipson were engaged in that “trade.” He proceeded at once to seize the documents and books of the “bank.” The evidence he obtained was immediately placed before the authorities,' who were so astounded at the details of the case that they hesitated to give orders for certain arrests which were asked for. During this delay Herr Grusser obtained his vitse 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 belonging to the Court set, but commoner® belonging to trade and industrial circles are involved.