Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-05-06
DEN|ESNRONGFUL
USE Of RUSS FUNDS
Bakhmeteff Says Treasury
Knows of Expenditures.
T Bought No Real Estate.

Charges made in the Senate that
Boris Bakhmeteff, the last accredited
Russian ambassador here. had ille-
ultimately used money frop credits
extended by the United States to
Russia under the KerenskY regime
were denied by Mr.. Bakhmetef today
in a statement filed with the State
Department and forwarded by Secre-
tary Hughes to the Senate.
None of the money loaned the ker,
ensky government by the United
States. the ambassador said. had
been used for purposes other than
those known to the Treasury Depart
uent. He denied fatty the charge
that he had purchased real estate In
this country or had appropriated any
of the loaned funds for maintenance
of the embassy in Washington.
Referring in detail to the allega-
lions brought before the Senate by
Senator Borah. republican. of Idaho.
Mr.. Bakhmeteff declared that most of
the $1S7.000,000 loaned the Kerensky
government by the United States had
been spent before the Kerensky
regime collapsed in 1917, and that all
OF the remainder had been put into a
liquidating fund for settlement of the
claims of American interests in Rus
STA and of Russian nationals in the
j,
was expended with full knowledge
of the Treasury Department and was
accounted for ito the last penny" to
Treasury officials.
Denies Real Estate Purchase.
The report of the Senate investigat-
ing committee. of which Senator
Moses. republican, of New Hampshire
was chairman. was quoted in the
statement as corroborating the am
DdSSadOr'S hnf Of ha
American funds had been used for
maintenance of the embassy Mr.
Bakhmeteff also denied categorically
that he had purchased any real estate
In the United States. either in his
own name or through any corpora
tion or under any guise whatsoever
senator Borah's reference to a
Greek priest was interpreted by the
ambassador as. an indication that the
charges may have grown out OF the
activities of two Russian organiza-
tons In this country. the Russian Aid
Society and relief organization of
the Russian Orthodox Church.
The ambassador said that some
funds had been expended by these
two societies. partially for purchase
money loaned by the United States
mad been used in these transactions.
Presentation of Secretary Hughes
letter to the Senate brought from
senator Borah imm ediate1y a declara-
ton that he had examined the report
which purported to show what had
been done with the American loan.
and "I am wholly unable to account
for S7S.000,000 of the money"
Il have examined and re-examined
that report" said the Idaho senator.
II have had 1t examined by persons
who know much more about figures
than l do. but that S78.0OO.000 re-
mains unaccounted for, nor does the
letter show an explanation"
Wants Bakhmeten to Appear.
The Idaho senator said further that
the whole situation could be handled
more satisfactorily and be cleared up
more easily IL M. Bakhmeten would
appear before q Senate committee
and permit himself to be cross-ex-
amined.
Mr.. Borah remarked that he noted
from the Bakhmeteff letter that val
liable information" had been obtained
by, NJ. Bakhmeten in his interview
with Gen. "Semenoff.
TT would be worth much more,'
Senator Borah added, "it would be
much more interesting, il the nature
of the conference between this
pseudo ambassador and Monaghan
monster was made known"
Prior to the reading Of the letter
Senator Borah told the Senate that
he had found that Semenoff had been
in Washington three days early in
April and that the Cossack leader
had gone to the State Department,
but had not seen Secretary Hughes.
Semenoff had met only the officials in
the Russian division of the depart
nient, MIR. Borah said he Understood.