The New York herald., 1922-05-06
WOULD LIKE BORAH
TO PROVE CHARGE
State Department Has No Evi-
dence Bakhmeteff Put u. s.
Loan Into Realty.
PROOF OF 1T is INVITED
Russian Envoy Negotiated
Payment of 100000 to U. s.
by Private Loans.

Special Dispatch TO THE New York HERALD
New York Herald Bureau.
Washington. ID. g., May ..
If Senator Borah Qdaho) has proof to
sustain his charge that part of the $751;
700 900 lent by the United States to Russia
during the war has been used for the
purchase of real estate in this country
or for any purpose other than the legiti-
mate prosecution of the war, State De-
partment officials would be interested in
seeing II. IT was said no such informa-
tion has come to the attention of the
department
AlLo II was said at the State Depart
ment that Ambassador Bakhmeteff ac-
tually has been the means OF procuring
to Americans payment upon obligations
which otherwise never would have been
paid. Less than three months ago, 1t
was pointed out, Bakhmeteff was sue
cessful in obtaining payment of $600,0O0
on account of the so-called Turkish
acceptances."
These obligations. incurred by the Rus
the fact that from the beginning of the
war until the entrance OF the United
States into the conflict the American
Embassy at Constantlnople had charge
sian refugees and In other ways the
United States expended sums to the ex-
tent of 100000 in thus caring for those
interests up to the departure of Ambas-
sador Elkus in April 1917.
Ambassador Bakhmeteff recently ne
gotiatcd the payment of this amount In
full, it is asserted, not out of the $751;
100000 advanced by the United States
but from private loans in London and
Paris.
1t is assumed by the State Department
that the Senate subcommittee which in
vestigated the matter two years ago
made a thorough inquiry and that the
report rendered by it was accurate.
Nevertheless the department will take
cognizance and welcome proofs Of any
charges of irregularity which may be
made.
The charge that Ambassador Bakhme-
teff had appropriated part of the $751;
100000 Russian loan to his own use was
declared yesterday TO De IanLaStiC Dy
Serge Ughet. Russian financial attache.
M. Ughet said Russian diplomatic agents
in this country could not discuss the loan
question until the State Department had
taken certain steps. He declared, how
ever. that every penny had been ac-
counted for apparently to the satisfac-
tion of the Washington authorities.
The allegations made by Senator
Borah have been the subject Of an in
vestigation made by Russian Soviet
agents in this city This investigation,
IL is stated, failed to produce anything
in support OF Senator Borah's assertion.
The best that the Soviets have been able
to CLEAN is certain alleged information
upon which they base charge that
large part of the loan was used by Am
bassador Bakhmeteff to finance anti
Soviet propaganda.
Charles Recht. who has represented
the legal interests of Soviet Russia
In this country since the deportation of
Ludwig Martens Soviet Ambassador"
is now on his way to Genoa for con-
ference with the Soviet plenipotentiares.
Rose Weiss, law partner Of Recht ana
Soviet legal agent in his absence. said
yesterday Martens took overseas with
him all the data relative to the expendi-
ture of the $1S7 900, 900. The Russian
representatives at Genoa have been
anxious to obtain this information to
use Il i'm rebuttal of possible claim by
the United States that the money had
been expended In Russia.