To Force Regulation?

In Manhattan, U. S. A., Charles Recht, U. S. attorney for the Soviet Government, announced that he had filed 200 suits against the New York Life Insurance Co. and the Equitable Life Assurance Society in an effort to obtain over $2,000,000 due to Russian holders of pre-revolution policies issued by these concerns.

J. F. Dulles, representing the New York Life, alleged that this litigation had been started in an effort to secure recognition for the Soviet Government by Washington: "It is the Soviets' belief that the U. S. firms involved cannot successfully defend these suits until the Soviet Government is recognized."

Observers recalled that under the Tsarist regime some $40,000,000 in financial reserves was deposited in Russia by U. S. insurance firms to guarantee the payment of their policies. The Soviets have allegedly seized these reserves, and in consequence the policies concerned have been declared void by the issuing companies.

Attorney Dulles commented further upon this situation: "Legally speaking, the acts of an unrecognized government are a nullity. Thus . . . pressing these claims will operate to induce recognition [of the Soviet Government] as a method of making available to the U. S. companies the actual defense to the claims" [which rests on the acts of the Soviet Government].

Attorney Recht flayed these insinuations: "I am acting, in this instance, for the Credit Bureau of Moscow, a firm sanctioned by the Soviet Government but independent of it. . . . There is no idea of bringing pressure to secure recognition for the Soviet Government. . . . Claims of a similar kind aggregating $40,000,000 are now being filed against U. S. insurance companies by numerous legal firms retained by private citizens of Russia."