New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-07-08
Americans Sue
ToFind Millions
Of Bakhr1leteff
Fund Ex-Russian Envoy
Left With Attache When
He Sailed Expected to
Come to Light at Hearing
Pledged for Debts Here
Exporters Insist Old Omsk
Regime Survives and the
Judgment Can Be Satisfied

New light will, it is expected, be
shed on the disposition of the money
intrusted to Boris Bakhmeteff, until
recently Ambassador of the Provisions
Russian government at Washington,
when arguments are heard on Monday
IN the State Supreme Court In supple
mentary proceedings instituted by
Claude M. Nankivel and James Mac
Gregor Grant, Inc, exporters, against
the National City Bank, Kidder, Pea
body & Co., and individual defendants,
to recover judgment already granted
the plaintiffs for S96,392.3S against the
Omsk AllRussian government The
facts regarding the new legal steps to
be taken in the matter became known
yesterday.
1t is the contention of the com
plainants that while Bahkmetcff was
correct in informing Secretary Hughes
that all the money advanced him for
the account of the provisional govern
ment has been accounted for to the
satisfaction of the Treasury Depart
ment, at the same time the Russian
envoy also had charge of several mil
lions of dollars sent to this country by
Admiral Kolchak, General Denikine
and others, for the specific purpose of
repaying obligations to American
firms. This money, according to Nan
kivel and Grant, Bahkmeteff has never
accounted for, and it is now in the pos
session of Serge Ughet. financial at
tache to the Bahkmeteff mission, in
whose care the missions affairs were
left when the ambassador sailed for
Europe at the end Of June. 1t is said
that if claim can be established to
these funds by the compliments, the
way will be opened for other Anne rican
firms to recover money lost in the fall
of the Kochak regime.
Autos Seized in Transit
The particular action on which judg-
ment was recovered by the two export
ers was the formal requisitioning by
Admiral Kolchak's Omsk governmen mt
of twenty-one out of a shipment of
100 motor cars at Vladivistok in 1918
The seventy-nine cars remaining were
requisitioned by the Czecho-S lovakian
contingent in Siberia, which immedi-
ntely made a full cash payment. The
automobiles originally were sent to
Siberia by the American houses on an
order by the Zemstvo Union. Kolchak
was overthrown and shot a year later
by the Bolsheviki, without ever having
paid for the cars which he received.
A previous suit against the same de-
PENDANTS in this matter resulted in a
decision that since the Omsk govern
ment was never recognized by the
United States it could not be sued as
a government, but was suable as a for
eign corporation. The present action
was brought, therefore, against Mr.
Ughet as the representative of the
Omsk government here, and evidence
was produced to show that he had
made contracts in this country in that
governments name.
The supplementary proceedings
against the National City Bank and
Kidder, Peabody & Co., begun after a
Judgment had been granted, are based
on the assertion that the banking
houses named are the repositories of
the money Ughet has been administer
ing on behalf of the Kolchak govern
ment.
The plaintiffs declare that these
funds left in Ughet's hands should be
used to repay American creditors, and
that the agreement under which they
were sent to this country contained a
stipulation to that effect They add
that Ughet has admitted to them that
these funds exist, that they have a
letter from Bahkmeteff referring to
IfSIIl, anu IIdC tucy nave uUCuIucuIdIJ
evidence that they have been used by
Bahkmeteff and Ughet for purposes
other than that for which they were
intended.
Light OH Borah's Charges
In this connection it is pointed out
that Senator Borah made charges
against Bahkmeteff to the same effect
in the Senate, but that nothing came
- Sc Il h
did not realize that two sets of funds
connect the facts which he had about
the supplementary treasure with the
$1S7, 100000 loan by the United States
government to Bahkmeteff as Keren-
sky's representative.
The defendants in the pending suit,
it is said, declare that the Omsk all
Russian government no longer exists,
having come to an end when Kolchak
and his Prime Minister were shot, and
therefore is not suable. In answer to
this the American firms are submitting
photo-static copies of the order by
which Kolchak transferred his powers
to Ataman Semenoff as proof that the
government still lives, and that conse-
quently Ughet, as its representative
here, is liable for debts which it has
contracted or will contract.
In addition the plaintiffs contend
that even if the Omsk government
could be proved to be defunct it is
like q business that has been stopped
but not dissolved, and that it has been
paying out money to persons whose
title to it is inferior to that Of Kol-
chak's various American creditors.
The attorneys for the plaintiffs are
Zabriskie, Sage, Kerr & Gray. and
the defendants counsel is Coudert
Brothers.