New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-05-07
Boral, Charges
Flatly Denied
ByBakllneteff
Ambassador Assures Sen.
ators, Through Hughes,
None Of $4,000 900
Fund Used Improperly
Knows Little Of Semenof
Idaho Critic Insists Envoy
Appear Before Committee
for Cross Examination

From Tho Trtbunc'S Washington Bureau
WASHINGTON. May g. - Boris
Bakhmetef, Ambassador Of the Rus
sian government, through Secretary OF
State Hughes made a statement to the
Senate to-day in which ne denied
charges that he had diverted funds
lent to Russia by the United States
The charges were made by Senator
| Borah. Mr.. Bakhmetef declared the
funds which he obtained from this
government had been used in behalf
of the Russian people, that they were
not used improperly in any respect
that none OF such funds had been in
vested by him in private property in
| this country, and that while General
Semenof called on him here he knew
nothing of Semcnof's plans and had
no connection with him
Senator BoTah, in remarks in the
Senate, renewed his demand that
! Bakhmeteff appear before committee
and submit to cross examination as to
what had become of the funds and as
to what passed between him and
Semenotf. Senator Borah said that on
going over Bnkhmcteh's report pur-
porting to account for the $4,000 900
advanced to him by this government he
! i O.
goo 600. He declared it was not salts
factory to him to have Rakhmeteff say
that his association with "this Mon
golan monster" was incidental and
without significance.
Semenotf Three Days in Capital
Previous to commenting on the
! Bakhmetetf letter Senator Borah said
| he had looked into the question Of
{ IIb az bay az h;
and found he was here three days,
April /, 9 and 8; that he visited the
/ Russian Embassy and visited the State
! Department, but did not see Secretary
/ Hughes. Senator Borah also read the
/ press announcement that the Soviet
| government on December 10, 1917. ad-
vlsed Mr. Lansing, then Secretary of
State, that Bakhmetef had been dis
missed, was refugee and no longer
represented the Russian government.
The Bakhmeteif statement was en-
bodied in d letter sent by the Secre-
tary of State to the Vice President
and presented to the Senate. 1t fol
| lows. in part;
a have received from Mr.. Boris
Bakhmetef, the Russian Ambassador
! the following statement in regard 20
the transactions which it is under
stood have recently been brought into
question in debate in the Senate:
"'The United States Treasury ad-
Yanced to the provisional government
of Russia the sum of S187 1928, 750.
Most OF that money was spent by the
government before its fall. Following
the overthrow of the government, an
! arrangement was entered into with the
! department of State and the Treasury
! by which the remainder Of funds de-
/ rived from the United States credits,
I as we'll as all other available funds on
Russian government accounts in this
| country, irrespective of their source or
! previous destination, were segregated
into special liquidation fund The
purpose of this fund was to liqudate
! Russian liabilities in the United States
Complete Account Rendered
Disbursements of this fund were
made with the consent Of and in CO.
operation with the United States
| Treasury. Complete accounts were
rendered TO the last penny Of the dis
bursement Of this fund 1t NAV not
be out of place to recall that the
Senator who led the discussion was a
member Of q Senate committee, which
OF April Il, 1920, rendered report
to the Senate on Russian propaganda,
which report reads in part as follows:
/
FULL documentary evidence dealing with
the disposition Of moneys which had
been advanced to earlier Russian gov
ernments from the Treasury of the
| United States, and with which pur~
chases of war and industrial materials
had been made in this country"
1t was intimated. if not CHARGED.
that | improperly used money derived
from United States credits even to the
extent of purchasing real estate, and
of fraudulently taking title in the name
Of q corporation. The Treasury con-
trolled the distribution of funds and
bursement. Not only did not acquire
real estote in the City Of New York or
! in the City of Chicago with United
states funds, but never acquired any
| real estate in any city with any funds.
| either In my own name or in the name
Of any corporation or under any guisc
whatsoever
Denies Link to Semenof
During the discussion much was
said about General ScmenofF. and. un-
less | misrcad. an effort was made TO
make It appear that ! am reasonable
tor him in this country; that | sympa-
thlze with his activities and plans. and
! that IN some way or other I am associ-
ated with him and have given him IS.
slstance. Such statements are gratui-
tous. The State Department knows
that j have had no connection with
, General Semenoff and am not associ-
| ated with him in any way. As a mat
| ter Of fact, knew nothing Of his in.
tended visit to this country. knew
and know nothing of Semenoff's plans "
Red Flags Fly as Health of
| ENH.raanr Drsnno L n.L