New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-31
SHUSTER'S JOB DIFFICULT
DIPLOMATS Make Trouble for
Treasurer General Of Persia.
BUT OPPOSITION COLLAPSEs
Customs Administration a Bone
of Contention with Russian
Minister.

London. July Wv Morgan shuster' inc
American fnancier who recently took the
most OF Treasurer General of the Persian
government. has already had oppor'uiii''ee
to learn much of politics and business
under a weak Oriental government puiieo
and pushed about by the intrigues anu
threats of European diplomats His hrse
troubles have been with one OF the most
powerful chiefs OF the administration ana
with the Russian and Belgian interests
which combined TO break his power. Thus
far the American has more than held MS
own.
Reports received in London from agents
Of British houses in Teheran give an In
teresting story of the unsuccessful stand
the Russian Minister, NJ Poklevski-Kozell'
and the Belgian Director General OF GUS
toms, NJ. Mornard. backed by the Belgian
Charge d'ATaires, made against Mr.. Sinus
ter and the National Council. The council
passed a law on June - investing the
Treasurer General with the control Of all
revenues and ,he sole power TO sign checks
on government funds
NJ. Mornard previously had drawn checks
on the customs funds. He refused 70
recognize the new law and contended he
still had the power. Checks which ne
signed We're refused by the Imperial Bank
OF Persia which Is an English corporation
handling a LARGE part of the government
funds. These checks were for salaries OF
customs employees. Mr. Shuster imme-
diately issued duplicates which the bank
honored This brought matters to a crisis
The Belgian Legation announced to the
Persian government that It would not per-
NIT. the Belgian employees Of the customs
who form large proportion Of the force
to serve under Mr. Shuster. The Russian
Minister went further and declared EN-
phatically that he would introduce Russian:
10 administer the customs before he would
submit to Mr.. Shuster's single-handed con
| troll
Several foreign obligations, including the
interest on foreign loans, amortization. tbs
| payment OF the Cossack Brigade and the
pension of the deposed Shah. were Z
| charge on the customs Of the North. The
| Russian and Belgian diplomats took I'll,
stand that these interests were impertllec
| by Mr.. Shuster's administrat ton, and ast
denied the power Of the National Council
to pass such a law As that Of June 13
Mr. Shuster thereupon gave written no
! tice 70 the Imperial Bank and the Russian
| Bank that no disbursements would b.
made from the customs receipts until al
| liens thereon had been paid and invited
them TO send representatives. at any tim
| to examine the books and accounting
methods of the Treasury.
All Of the banks supported Mr. Shuster
and the council, which has supported hin
enthusiastically since his arrival, stood b,
him also. The Cabinet, however. wa
! frightened by the Russian Minister'S threa
and wavered for some time. After a week
argument the Treasurer General prevailed
upon the Minister of Foreign Affairs t
call upon NJ. Mornard TO comply with tn,
J law.
Then the opposition collapsed In III.
| presence of the Cabinet and of Mr.. Shuste
the Belgian Director General Of Customs
gave a formal undertaking to accept IN.
I law. and he and Mr.. Shuster parted or
| good terms.
| It was understood in Teheran that before
| Mr. Shuster left Washington the Russian
Ambassador there assured him that Russia
would not oppose his financial reforms.