Omaha daily bee., 1911-07-31
LEARNS ORIENTAL POLITICS
Il Having Trouble with vacillating
and Timid Government.
BELG1ANs AND RUSSIANS OBJECT
European Diplomats Intrigue to Get
Ahead of Him.
BANKS STAND BY TREASURER
|sBppOrted by Financial Institutions
shuster In Able TO Carry Out His
own Financial Policies In
Spite of Opposition.

LONDON, July SOW. Morgan Shuster.
the American who recently took the post Of
treasurer general of the Persian govern
ment has already had opportunities to
learn much Of politics and business under
a weak oriental government pulled and
pushed about by the intrigues and threats
Of European diplomats His first troubles
have been with one of the most powerful
chiefs OF the government and with the
Russian and Belgian interests which COM
bined to break his power. Thus far the
American has more than held his own.
Reports have come to London from
agents Of British houses in Teheran which
give an interesting story of the unsuccess-
full stand the Russian minister, M. Poklev-
NId. and the Belgian director general Of
customs M. Mornard, backed by the Bel
igan charge daffaires, made against Mr..
shuster and the national council. The
council passed a law on June 13 investing
the treasurer general with the control of
oil revenues and the sole power to sign
checks on government funds.
NJ Mornard previously had drawn checks
4 en- the customs funds. He refused to recog-
lAize the new law and claimed that he still
had that power Checks which he signed
Nwere 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 issued
duplicates which the bank honored. This
brought matters to a crisis.
wouId withdraw Employees.
The Belgian legation announced to the
Persian government that It would not per-
he Tlalo 0f n rano
who form q large proportion of the force,
TO serve under Mr.. Shuster II the law was
10 be carried out The Russian minister
went further and declared emphatically
that he would introduce Russians to ad-
minister the customs before he would sub
init to Mr.. Shuster's single-handed control.
Several foreign obligations, including the
Interest on foreign loans. mortization, the
payment Of the Cossack brigade and the
pension Of the deposed shah. were a charge
on the customs Of the north. The Russian
and Belgian diplomats took the stand that
these interests were imperilled by Mr..
ShusteF's administration and also denied
4he power Of the national council TO pass
such a law as that OF June Is. Mr. Shus-
ter thereupon gave written notice to the
Imperial bank and the Russian bank that
no disbursements would be made from
/ the customs receipts until all liens upon
Nthem had been paid and invited them to
send representatives at any time to ex-
amine the books and accounting methods
OF the treasury.
Bankers stand by ShuEter.
All of the banks supported Mr.. Shuster,
J and the council, which has supported him
enthusiastically since his arrival, stood by
him also The cabinet was frightened by
the Russian minister's threat and wavered
for some time. After weeks argument
the treasurer-general prevailed upon the
minister of foreign affairs call upon
Mr.. Mornard to comply with the law.
Then the opposition collapsed. In the
presence OF the cabinet and OF Mr.. Shus-
ter, the Belgian director general Of Gus
toms gave a formal undertaking to ao-
cept the law and he and Mr.. Shuster
I parted on good terms. II was understood
' In Teheran that before Mr.. Shuster left
Washington the Russian ambassador there
assured him Russia would not oppose his
financial reforms