SENT TO GAOL

Timaru Herald, Volume CXLIV, Issue 20931, 10 January 1938, Page 5

SENT TO GAOL

SEQUEL TO EXCHANGE FRAUDS .. Press Association— By Electric Telegraph—Copyright • Received January 9. 7.30 p.m.) BERLIN, January 7 Arnold Bernstein, head of the Red Star Line, who was charged with violation of the foreign exchange regulations. was sentenced to thirty months penal servitude, two years loss of civil rights and was fined a million marks for the violation of the regulations and bribery. A co-director of the Red Star Line. Grumpel. was sentenced to thirty months imprisonment, and was fined 615.000 marks. Two other directors were condemned to fifteen and two months’ imprisonment respectively.

Early in December the Berlin correspondent of "The Times” said: There were good reasons for believing that the Hamburg merchant, Alfred Topper, the anonymous donor of the scholarships, was under detention, pending inquiries into alleged violation of foreign exchange regulations. Sixty other Hamburg residents were under suspicion. An anonymous Hamburg merchant, subsequently revealed as Arnold Bernstein. as a thanks-offering for the German Rhodes scholarships at Oxford, founded a number of annual scholarships, each valued at 3000 reichmarks, to enable students from the universities in Britain and the Empire to have a year’s study in Germany. They were to be called Hanseatic Scholarships, awarded without examination, but by recommendation, following an interview. The founder, it was reported, hoped the scholarships would further the closer relations and understanding between Germany and Britain, and promote consciousness of European solidarity. The same donor founded three annual prizes valued at 10,000 reichsmarks in Britain. Holland, and Scandinavia, for distinguished work in literature and arts.