The New York herald., 1922-06-05

internal injuries.
approximately ss.o0o.oOo was placed in
special accounts with that bank to be
used for certain specific purposes
These funds also were subject to the
Ambassadors disposition. Pursuant to
an understanding had with the National
City Bank, however. no withdrawals
" ere to be made from the liquidation ac-
count without the banks first notifying
the Treasury and ascertaining whether
it objected to the particular disburse-
ment proposed.
1T further appears that from Decem-
ber i, 1917, when the liquidation ac-
count was opened. to March 4. 1921,
when the account was closed, additional
deposits were made therein aggregating
total amount of about $2s.000.o00.
The funds so deposited resulted chiefly
from the sale of Russian property in
this country and the charter hire from
certain Russian ships.
Character of Disbursements.
This made the total deposits in the
liquidation account aggregate about
S76, 900. .000 and the total disbursement
from this account for the period in
question also amounted to about $751;
100000. From the reports of the Rus
sian representatives. 1t appears that
these disbursements were made for sup
plies, transportation, storage, inspec-
tion, interest on loans by the United
States Government and on private loans
fioated in this country, salaries and
upkeep of the Russian Embassy and
consulates and other Russian institu-
tions In the United States. and various
miscellaneous purposes 1t Is further
shown by such reports that payments
on contracts for supplies amounted to
approximately $36,000,000. and that
about S10,O00,000 was expended for In
terest on said loans. 1t will be noted
that these two items alone are greatly
in excess of the portion of the liquida-
ton funds estimated by the Russian
Ambassador to have been derived from
American Government loans.
From the pertinent records 1t ap.
pears that the settlement of the con-
tracts outstanding in this country al
the time of the fall of the provisional
Government was effected by the Rus
sian Ambassador in cooperation with
representatives of the Department Of
Stater-of the Treasury, and of the Wal
Industries Board, with the result tina
/ the outstanding contracts were settled
by payment. cancellation and othel
means, without loss to American con
tractors This settlement, / should say
may well be regarded as a noteworthy
achievement in view Of the extent o.
the liabilities involved in such con
tracts and the comparatively limited
amount of cash available here to thu
Russian Government for use in respec
thereto.
Lfauidntion Virtually Completed
"on February IA, 1874, the Treasur,
was informed by the Russian repre-
sentatives that the liquidation of th'
outstanding liabilities of the provisional
Government of Russia in regard to con
tracts placed in the United States hat
been for the most part completed, ant
an arrangement was thereupon entered
into whereby the liquidation account a!
such was closed out March 4, 1921, ant
the balance therein, amounting 20 SfV,
426.34. paid to the Treasurer OF m
| United States and applied on accoun
of interest due and payable on Russian
obligations held by the United States
IL was agreed by the Russian repre-
sentatives, however, that sums wnici
might still accrue to them from the re
naming business of liquidation whicf
WOul6. prior 10 the ClOSlhB Odt Va sAi'
liouidation account have been payabi'
into that account. should likewise d
applied on interest due on said obiiga
tions.
.sSuch sums to the aggregate amount O
s337.766.73 have actually been paid sine
March 4. 1921, by the Russian represent
atiyes to the Treasurer of the Unite'
states and applied on interest due on In
Russian obligations. 1t Is the under
standing of the Treasury that the fund
so paid were realized chiefly from furthe
sales of the Russian Governments prop
erty.
''As you are aware. all OF the iuforma
tion above given with respect to loan
made by this Government to Russia. an'
the greater part of the data set forth II
regard to the liquidation of the RUSSIAN
Governments financial obligations in I'M
country after the fall of the Provisiona
Governments have heretofore been mad
public in various reports and other docu
ments'
Mr.. Bakhmeteff after attending ser
vices Yesterday morning at the Hussiai
st. Nicholas Cathedral, 10 East Ninety
seventh street. LEFT to visit friends o.
Long Island and could not be reached
last night.