Evening star., 1921-02-21
CREDITS TO EUROPE
mot |NPROCRAM Of
,FR|ERSONSAyS
Solicitor General Denies Al
legations of Hearst in An.
swering Injunction Suit
FUND LOANED KERENSKY
NOT UNDER OUR CONTROL
Balance of Loan Deposited Under
Name of Revolutionary Gov
ernment, He Saws.

Denial that any portion of the
money advanced to the kerensky gov
ernment of Russia is still under the
control of Secretary Houston was
made by Solicitor General William L.
Frierson in brief filed today with
the District Supreme Court in re-
sponse to the suit brought by Will
nam Randolph Hearst of New York,
dS taxpayer. - enSOin the Secretary
OF the Treasury from further fnan-
| ciaf transactions with foreign govern
! mentS
The brief also denied there was any
! intention on the part of the Secretary
OF permitting funds under his con-
troi 10 be paid to the Kerensky or
any other Russian government Mr.
| rrierson declared there was no occa-
SION Tor an injunction. as the de-
iendant has no intention of estab-
llshing further credits to any foreign
governments. las must have been
known to the plaintiff when he filed
his bill"
With regard to the payment of the
unexpended balance now existing in
favor of NCzechoslovakia, France.
Greece, Italy and Liberia. the solicitor
general contended. "the faith of the
government was pledged" because
! these credits were established under
authority of Congress.
Balance Was withdraw,
Describing the transaction between
/ this government and the Kerensky gov.
ernment, the solicitor general declared
the credits were established and ad-
vances made Just as they were made
10 any other foreign government ana
when made were entirely free from the
control OF the Secretary Of the Treas
ury."
1t is not true, Mr.. Frierson said.
G I'm
favor of the Kerensky or other Rus
sian government. nor that any funds
belonging to the United States have
been placed in the National City Bank
! or any other bank subject to the check
OF the kerensky or other Russian gov-
ernment with the approval OF the Sec
retary.
At the time of the overthrow of the
kerensky government. Mr.. Frierson
explained. the balance of the credit in
manned In the hands of the Kerensky,
representative in this country about
$56,000.0oo. @s55Es 80 49,
ls the Property Of Rns.ia.
While this money had been paid
over just as advances to other gov
ernments were paid" the solicitor
general asserted, 'and the Secretary
OF the Treasury had no control over
III. ne was anxious to see that it was
applied to the satisfaction of obliga-
tions which the kerensky government
had incurred in this country, and sue.
ceeded in securing an agreement by
which it was deposited in the Ma
tIonal city Bank to the credit of the
kerensky government or it's repre-
sentatives. with an understanding
that the Secretary of the Treasury
should be notified before Withdrawals
were made from the deposit.
rms money did not belong to the
United states. since it had been previ4
ously paid to the representative of
the kerensky government. and the
arrangement referred to was made
because that representative was will
ing to have the funds then in his
hands applied to the satisfaction of
American debts"
In submitting that no iniunction
should be issued. Mr.. Frierson assert
ed that the Secretary did not admit
that the plaintiff has status en-
tltllng him to call in question the
various credits or that the court has
any jurisdiction to determine the con-
tropersies.