Lipsky Answers Opposition Charges; Political Motives Behind Move, He Says

That the opposition element to the Zionist Organization of America, which met in a conference in Washington, D. C. on Sunday, is motivated by political aims, which involve the control of the World Zionist Organization, as well as control of the Zionist Organization of America, was asserted by Louis Lipsky, president of the Zionist Organization of America in a statement made in reply to the charges directed against him at the conference. In his statement Mr. Lipsky pointed out that Judge Julian W. Mack was a member of the Board of Directors of the American Zion Commonwealth when the Zionist Organization originally decided to sponsor the Commonwealth as a Zionist institution.

Mr. Lipsky declared the statements made by the opposition with regard to the administration of the affairs of the American Zion Commonwealth not only a distortion of the facts but “greatly misleading” He said that Mr. Samuel J. Rosensohn, one of the opposition leaders, had been chairman of the Finance Committee when all actions taken with regard to the American Zion Commonwealth were ratified, and that it was Mr. Rosensohn who made many of the suggestions with regard to rehabilitating the American Zion Commonwealth through the funds of the United Palestine Appeal.

The opposition element now is composed, in the majority, of those men who had been ousted from the organization in 1921, when they had staged a fight against Dr. Chaim Weizmann, president of the World Zionist Organization, Mr. Lipsky stated.

As to the charge of extravagance in the present Zionist administration, the statement declared that the expenses of the United Palestine Appeal have been “far below the expenses of the Palestine Restoration Fund, the fund raising agency during Judge Mack’s administration.”

The statement proceeds: “In particular, the opposition is aiming at the frustration of the efforts of Dr. Weizmann, backed by the Zionist Organization of America, to build up the Jewish Agency as the instrument of a united Jewry for the upbuilding of Palestine.”

“The criticism with regard to the American Zion Commonwealth is, to say the least, a distortion of the facts and grossly misleading,” Mr. Lipsky stated. “The American Zion Commonwealth was organized in 1917 as a Palestine land-selling and developing institution. It was not conducted for the profit of its shareholders or of any individual. It has had the moral support of the Zionist organization as far back as 1918, when Judge Mack was president of the Zionist Organization of America, and was himself one of its directors. The American Zion Commonwealth made commendable progress up to 1926. It purchased Balfouria and developed it. It purchased Herzlia and developed it purchased Haifa Bay lands, which are regarded as enormously important for the future development of Palestine. It is responsible for the purchase and development of Afule. During the course of its career, the American Zion Commonwealth has purchased more land than is now possessed by the Jewish National Fund, the principal national land-buying institution of the Zionist organization.

“Then the large immigration of 1925 ceased, and Palestine suffered an industrial and financial depression. The American Zion Commonwealth found itself with large tracts of unsold land, that could not be completed. Any number of American Jews had purchased land from the American Zion Commonwealth, and there was danger that title could not be delivered. In addition, the American Zion Commonwealth had utilized all its credit in Palestinian. institutions. The American Zionist Administration was faced with the alternative of either letting the American Zion Commonwealth fall, or giving it cooperation and support in extricating it from its temporary difficulties.

“It was the general opinion of almost all those who interested themselves in the matter that this was a responsibility not only of the Zionist Organization of America, but also an interest of the United Palestine Appeal, which would have suffered in prestige and in its collections had the many American purchasers been made to take a loss, or had their land not been delivered to them. It was therefore deemed advisable by all the authorities in the Zionist movement–including the London Zionist Executive, through Dr. Weizmann, and the Jewish Colonial Trust, through Dr. George Halpern, that it was the duty of the United Palestine Appeal to intervene and give its cooperation. Whatever money was authorized and advanced by the United Palestine Appeal is covered by the estimated assets, which when made liquid, exceed its liabilities. A plan is now being developed which will, when completed, in all probability return to the United Palestine Appeal the money which it has advanced to the American Zion Commonwealth.

“The transactions relative to the Zion Commonwealth were conducted through the Finance Committee of the United Palestine Appeal of which since 1926–the period in which the matter developed–Samuel J. Rosensohn, one of the group of critics was chairman. It was on his motion, and at his recommendation that this appropriation on the part of the United Palestine Appeal was made. He acted as the attorney for the American Zion Commonwealth, when the appropriation referred to was made. These transactions also had the full, expressed approval of the Administrative Committee of the Zionist Organization of America, and all matters involving the signing of notes and their endorsement were ratiffed by the bodies concerned.

“In fact, a detailed report on the American Zion Commonwealth was made at the last annual convention of the Zionist Organization of America in Atlantic City. At that Convention, the present Zionist administration was given an over-whelming majority vote of confidence. The Zionist delegates, after hearing all the facts, which have not changed since, gave their full approval to the policy adopted by their officers. It would have been a gross neglect of duty and responsibility if the American Zionist administration and the United Palestine Appeal had not aided in the rehabilitation of the American Zion Commonwealth.

“The transaction regarding the Palestine Securities arose first out of the American Zion Commonwealth, and it involved the taking over of a going concern by an arrangement with the Zionist Organization of America. This activity was an attempt on the part of the Zionist Organization of American through the Palestine Securities to develop a market for the sale of the mortgage bonds of the General Mortgage Bank of Palestine. Quite a large campaign was developed for the sale of these bonds. An influential group of business men was interested in the Palestine Securities. After subscriptions amounting to about $250,000 had been received, it was found that there were difficulties to get the mortgage bonds issued in terms of dollars instead of English pounds. It became necessary for efforts to be made, on the part of the directors of the Palestine Securities, to secure the translation of the bonds from pounds into dollars. There were considerable delays, owing to the difficulties of moving the Palestine Government to agree to the proposition. In the meantime, however time was lost and the subscriptions that had been secured in good faith dwindled away and at the end of the period, the Palestine Securities was, as a result, left with a deficit. If there is any blame to be attached to this matter, it was due to delay in Palestine and not due to any act of the American Zionist Administration.” the statement declared.