The Birmingham age-herald., 1912-01-13
TREASURY CRISIS
 BECOMING ACUTE Persian Minister Makes Threat to Punish
 Americans

Ienefan, January lz-l ne tSaSuiy crisis has taken an extraordinary turn. Acting under the instructions of the cab net, M. MoInard the Belgian ex-director of Persian customs, today summarily took possession of the treasury offices, refus- ing to recognize the status of F. E.. Cairns, the American, who was left in charge by Morgan Sinister, the deposed treasurer-general, when the latter left Teheran yesterday for the United States
 M. Mornard, in acquainting MT. Cairns and the other American officials with the contents of the cabinets message, told them that if there was further delay in turning over the treasury. not only would they be dismissed from their posi- tions, but punished.
 This procedure is all the more mex plicable as Mir Cairns has shown no dis position to retard the work of trans ferring the office to the commission ap- pointed to take over the duties of the treasury generalship.
 It is stated that M Mornard asked the Americans whether they were willing to serve under him as the treasurer gem eral and they declined to do so. The appointment of the Belgian as treasurer general appears to have removed all hope of preserving the financial organization formed by MT. Sinister.
 Washington, January 12.-F. 10. Cairns, a young American who was left in charge of the Persion treasury by w. Morgan Sinister, the deposted treasurer general, when he left Teheran yesterday for the United States, today cabed Chairman Sulzer of the House committee on for eign affairs an urgent appeal for help. He charged the Persian government with refusing to release the other Americans from their contracts and said the state department at Washington was 'influ- enced by American Minister Charles w.. Russene against their claims
 MT. Sulzer announced he would infme- diately take up with Secretary Knox the matter of helping the IA American officials whose rights, he said, should be protected by the United States govern ment.
 MT Cairns cablegram dated at Teheran fellows:
 "Fourteen American officials affected by Russian ultimatum, equally with Sinister, desire release on same terms. Have presented claims to Persian gov ernment for full salary of unexpired term, travelling expenses and allow ances. Anglo-Rusian legations support ing claim in good faith
 Persian cabinet will obey their in- structions. Department of state influ- enced by American minister here, en- deavoring to destroy our claims. Is obessed with idea of compelling Ameri- cans remain In Persia regardless of our desires. and unbearable condition. Your assistance through state depart ment imperative"
 The state department has supported Minister Russell at Teheran in his diff ferences with the IA American employees of the Persuian treasry it was said this evening. The minister has been in structed with contenting himself with securing an {~itable adjustment of salaries from the Persian government.
 The state department issued state- ment later which indicated the nature of the response that will be made by the department to any inquiry by Rep resentatiye SulZer, to whom the young Americans sent their cablegrams. The statement makes it appear that MT. Sinister had been paid $35,000 by the Persian government in full satisfaction of his claims. He had a contract call ing for a compensation of $10,000 per annum for three years. After that time the contract was to be voidable upon six months and a bonus of the salary for that period of time. So, although Shus- ter had served less than year, the Persian government paid him for three years and six months service. The IA American employees, under Mir. Sinister. wish to quit the service of Persia un- der the same conditions, although some of them only served a month and none of them more than six months. As the Persian government had not dismissed these men, Secretary Knox saw no le- gal ground for supporting their claims, but he instructed the American minis ter to do what he could to obtain an amicable adjustment
 One week ago these Americans cabled the department that their situation in Persia would be intolerable after Shus- ter's departure and that the minister failed to press their claims. They asked the state department to present strong note to the Persian government, talk ing the ground that their contract had been violated.