The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-02-21
DENY HOUSTON
HAS CON 7 ROL
RUSSIAN FUND
Brief Filed Answers Suit by
William Randolph Hearst to
Enjoin Secretary From For
eign Credits.
NO CREDIT IS EXISTING
fBv Associated Press)

WASHINGTON, Feb. 21. - Denial
that any portion of the money advanc
ed to the Kerensky government of
Russia is still under the control of
Secretary Houston was made by Solic-
itor-General William L. Frierson. in
prame court in response to the suit
brought by William Randolph Hearst
OF New York, as a taxpayer. to enjcin
the secretary of the treasury from fur
thur financial transactions with for
tisn governments.
The brief also denied there was any
intention on the part of the secretary
of permitting funds under his control
TO be paid to the Kerensky or any
other Russian government. Mr.. Frier-
son declare there was no occasion for
an Injunction as the defendant has no
intention of establishing further
credits to any foreign governments
"as must have been known to the
plaintiff when he filed his bill"
Contend Faith Pledged.
With regard to the payment of the
unexpended balances now existing in
favor of the Czecho-Slovakia. France
Greece. Italy and Liberia the solicitor
general contended 1.-The faith of the
government was pledged" because
these credits were established under
authority of congress.
Describing the transactions between
this government and the Kerensky
government the solicitor general de-
clared the credits were established and
advances made "just as they were
made t0 othor f0rnior,
and when made were entirely free
from the control of the secretary of
+ the treasury"
No Russian Credit
1t is not true Mr.. Frerson said, that
there is any existing credit in favor
, OF the kerensky or other Russian gov
eminent nor that any funds belonging
10 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 govern
ment with the approval of the secre-
| tary.
At the time OF the overthrow Of the
Kerensky government Mr.. Frierson ex-
planned, the balance of the credit in
| its favor was withdrawn and there
remained in the hands of the Keren-
sky representative in this country
about $56. 900, 900
| Secured Agreement.
! While this money has been paid
over Just as advances to other govern.
ments were paid" the solicitor
general asserted. "and the secretary
of the treasury had no control owe. it,
! he was anxious to see that is was ap.
rl1ed 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 Nation
~ City bank to the credit of the
! Kerenskv gov eminent or IFS represent
atives with An understanding that the
secretary of the treasury should be
notified il Withdrawals were made
from the deposit
Approved Arrangement
This money did not belong to the
United States. since it had been prev
iouslv paid to the representative OF
the Kerensky government, and the ar
rangement referred to was made be
cause that representative was wiIline
to have the funds then in his hands
applied to the satisfacti tion of Amer
lean debts"
In submitting that no injunction
should be Issued Mr. Prierson asserted
that the secretary did not admit tha
the plaintiff has status emitting bin
to call in question the various credits
or that the court has any jurisdiction
tc determine the controversies.