New Britain herald., 1921-02-21
PATERSON DENIES
 HOUSTON CHARGES
Solicitor General Files Brief in
 Regard to Kerensky Loan.
SUIT BROUGHT BY HEARST

States That No Money Is Placed In
 Bank at Disposal of Russian Gov
 ernment.
 Washington, Feb. 21.-Denial that any portion oi the money advanced 10 the kerenSky government of Rus- Sla IS still under the control of Sec retary Houston was made by Solicitor reneral William l.. F'rierson. in a prlef hled today with the district su. preme court, in response to the suit brought by William Randolph Hearst Of New York as a taxpayer, to enioin the secretary of the treasury from further financial transa ctions with foreign goVernm entS.
 Contents of Brief.
 The brief also denied there was anv intention on the part of the secretary of permitting funds under his con- trol to be paid to the Kerensky or any other Russian government. Mr. Frier- son declared there was no occasion for an injunction as the defendant has no intention of establishing fur ther credits to any foreign govern ments 'as must have been known to the plaintiff when he filed his bill.'
 With regard to the payment of the unexpended balances now existing in favor of Czecho- -Slovakia, 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.
 Transactions Described.
  this country and the Kerensky gov ernment, tho solicitor general de- clared the credits were established and advances made just as they were mado to any other foreign govern ment and when made wero entirely exempt from the control of the sec retary of the treasury"
 It is not true, MT. Frierson said, that there is any existing credit in 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 a1ay other bank subject to the check of the Kerensky or other Rus sian government with the approval of the secretary.
 At the time of the overthrow of the Kerensky government MT. -Frierson explained the palanCe or CreOlL m US favor waa withdrawn and there re- mained in the hands of the Kerensky representative in this country about $56, 900.
 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 it. he was anxious to see that 1t was applied to the satisfaction ot obliga- ticns which the Kerensky government had incurred in this country, and succeeded in securing an agreement by which it was deposited in the Ma tional City bank to the credit of the tatives with an understanding the sec retary should be notified before with drawals were made from the deposit.
 Not II. s. Money.
 "This money did not belong to the United States, since it had been pre- viously paid to the representative of the Kerensky government and the ar rangement referred to was made by that representative who was willing to have the funds then in his hands applied to the satisfaction of Arneri can debts"
 In submitting that no injunction should be issued MT. Friorson asscrt ed that the secretary did not admit that the plaintiff had status entitl- ing him to call in question the various credits or that tho court has any tQr- isdiction to determine the controver- SieS.