The New York herald., 1922-05-07
Hughes Transmits Russian
Enjoys Statement With
out Any Comment.
SAYS IT rs ACCURATE
Ambassador Declares He Is
Not Responsible for Sem
enOff's Presence in U. s.
Special Dispatch to THE New York HERALD
New York Herald Bureau,
Washington, ID. c., May G,

|
New York Herald Bureau,
Washington, ID. c., May G.
! Secretary Hughes sent to the SEN
ate to-day a long statement by Boris
Bakhmeteff, Russian Ambassador, de-
nying in detail the charges made few
days ago by Senator Borah Odaho)
that part of the >$1S7,729,750 ad-
vanced by the United States to the
Provisional Government of Russia at
the outset of the war went into the
personal account of the diplomat, even
to the extent of the purchase of real
estate.
The charges, which included the dec
laration that Mr.. Bal1hmeteff was re-
sponsible for the presence of Gen.
Semenoff In the United States, the
Russian diplomat branded as ground
less, The funds left over after the
collapse of the Russian Government,
Mr.. Bakhmeteff declared, were ad-
ministered under the supervision of
the State Department and the Treas
ury Department of the United States.
Secretary Hughes sent the Bakhme-
teff statement to the Senate without
comment. He addressed it to Vice
President Coolidge and the letter was
read in the Senate.
Senator Borah, when the letter had
been read, declared the statement was
in no sense an explanation of the situa-
Ia eoil CT fn
understand what had become of about
SIS, 900, 600 of the money left in Mr..
Bakhmeteff's hands when the Russian
Government was overthrown, He added
that it would be far better IL the Rus
sian. instead of writing letters to be
submitted to the Senate through the
State Department, should appear before
Senate committee and submit to cross
examination.
Most of Money spent.
THE United States Treasury advanced
to the Provisional Government of Rus
sia the sum of $1s7, ,729, $780," Mr. Bakhme-
teff declared. Most of that money was
spent by the Government before its Gall.
Following the overthrow of the Gov
ernment an arrangement was entered
into with the Department of State and
the Treasury Department by which the
remainder of the funds derived from
the United States credits. as well as all
other available funds on Russian Gov
ernment accounts in this country, ir-
respective OF their source or previous
destination, was segregated into a spe-
cial liquidation fund. The purpose of
this fund was to liquidate Russian lia-
bilities I'm the United States.
Disbursements of this fund were
made with the consent of and in CO.
operation with the United States Treas
urer. Complete accounts were ren-
dered. TO the last penny. of the dis
bursement of this fund. It may not be
out of place to recall that the Senator
who led the discussion was a member
of Senate committee which on April
"A. 1920, rendered a report to the Senate
on Russian propaganda. which report
reads I'm part as follows:
The Department of State furnished
fun documentary evidence dealing
with the disposition of moneys which
had been advanced to earlier Russian
Governments from the Treasury of
the United States, and with which
purchases of war and industrial ma
terials had been made in this coun-
try. In this connection Martens in
his testimony had given the commit
tee to understand that a misappro-
priation of American money had
taken place His testimony on this
point however. was of a most cur
sorry and hearsay nature and the
documents furnished by the State
Department and contained i'm the rec
ord provide q complete accounting
for all these. moneys and materials
purchased Herewith. From these
documents IL appears also that the
maintenance of the recognized Rus
sian Embassy in this country and the
carrying on OF its related activities
are provided for by funds accruing
from a loan privately negotiated in
this country and in England.
Russians Benefited.
'Tn the Senate discussion It was as
serted the Russian people have never
received any benefit from any part of
this money. The funds were used for
the benefit of the Russian people, to
maintain the honor and dignity of the
Russian nation by discharging obliga-
tions which Russia had incurred to citi-
zens of the United States. AS the report
OF the Senate committee states. no
money was used for the maintenance Of
the Russian Embassy.
"In the course of the discussion in the
Senate it was remarked that money paid
for the purchase OF materials from the
Russian provisional Government was
not credited to the Russian account with
the United States. Such moneys were
deposited In the liquidation fund, the ex-
penditure OF which was under the con-
troll OF the Treasury Department.
ut was intimated, If not charged. that
l improperly used money, derived from
United States credits, even to the extent
OF purchasing real estate, and of fraudu-
lently taking title in the name of cor
poration. The Treasury controlled the
distribution OF funds. and naturally
would not allow such disbursements
Not only did | not acquire real estate in
the city or New York or in the city Of
Chicago with United states funds, but
never acquired any real estate in any
city with any funds, neither in my own
ramc nor In the name OF any corpora
tion, or under any guse whatsoever.
"'rhe reference made TO a Greek priest
leads me 60 guess that the matter prob
ably IL connected with the Russian or
thodox church In North America. As
Il is we'll known. Russian church affairs
In the United States have been in a de-
plorable condition since the Bolshevist
revolution. Various factions existed
within it. Charges and countercharges
were made. Appropriations which in the
past came from the Russian Holy Synod
having been discontinued, the material
condition Slid into state where church