Arizona republican., 1921-02-22
HOUSTON DENIES JURISDICTION IF
 COURTS IN JOAN INJUNCTION SUIT.
Senate And Courts Hear Ar guments On Government Loans To Foreign Powers During War and After Signing of Armistice
TRepubIIcan A. ?. Leased Wlrel

WASHINGTON. Feb. 2f.-Foreign loans extended by the treasury during the war and since the armistice were vigorously defended by government of ficiols today in reply to protestations against any further exercise of the governments loan powers.
 Secretary Houston resumed testi- rpony before the senate judiciary com nittee on the Reed bill, directing stop page of further loan negotiations with the debtor nations. Solicitor General Frierson responded in court to the sult brought by William Randolph Hearst xp prevent further financial transac- X <ions with foreign governments.
 2 Mir. Houston was excused from fur ther appearance after he had pre- scented correspondence covering nego- tiaitons and had pointed out the inn possibility of his reading them in fuli in the few days preceding March 4. He, however, left Nicholas Kelly as sistant secretary. in charge Of foreign loans, at the disposal of the committee.
 Mir. F'rierson filed with the District of Columbia supreme court a brief re- viewing transactions with the foreign powers and declared there was no necessity for injunction brought by Mir. Hearst as a taxpayer as Secretary Houston had no intention of estab- fishing additional credits in favor of any foreign powers. He reviewed con- ditions under which money was ad- yAnced to the Kerensky government of nssia. He also asserted Secretary Houston did not concede that the plaintiff possessed a status emitting him to call in question the varied credits or that the court had any Jurisdiction to determine such a con- troversy.
 Counsel for AIr. Hearst replying, de- clared that the supreme court of the United States had never refused to entertain a suit by a taxpayer to pre- vent a federal official from disposing of the money or property of the United States in an alleged unlawful manner It also was maintained taxpayer has all the interest that is required to re- strain an executive official.
 The senate committee today con fined it's efforts to the French, CZecho. Slovakia and Liberian loans and an nounced 1t would examine papers ir the case of each transaction until i had established whether the loani were legally made. Secretary Hous ton said he did not regard the armis tice as causing "a situation .whicl would prevent advances under tn law" and that existing statutes gav' him authority to continue loans unti the president issued a proclamation o peace. He added that he did not be ncve any nation would ask for ney loans.
 Tho recent statement of w. G. Me Adoo opposing the general policy o foreign loans, was injected into tn discussion by Senator Shields, Demo crat of Tennessee, who inquired if Ml McAdoo had followed this policy dur ing his administration and whethe Secretaries Glass and Houston ha acted contrary to Mir. McAdoo's policy
 Secretary Houston replied he di not know what MT. McAdoo meant an read from the ex-secretarys report t show credits totalling $S,171 ,976, ,66 had been established up to Novembe 15, 1918. MT. McAdoo was furthe quoted as saying he would recon mend enactment of legislation extend ing authority to establish credits i favor of foreign governments for
 reasonable period and within reason able limits to meet the needs growth otrt of the war"