New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1925-10-31
conn. POLITICIAN
Named IN CRAFTS
John 7. King Said TO Have
Received S50,00O
MILLER ALONE INDICTED

Only American Accused I'm Allen
Property Custodian Office Probe
As King Escapes Because He Gave
Testimony.
New York, Oct. 81 R-For what
the government regards as ST.
100000 fraud involving bribes total
ling s441,0Oo; prosecution Of Col
onel Thomas w. Miller, former alien
property custodian, is to pressed
vigorously, the department Of JUS
tice announces.
The government is ready for i'm
mediate trial after investigation Of
matters involving the American
Metal company, begun when Harry
NJ. Dougherty ended his career as
attorney general. The occurrences
under fire were during the Harding
administration.
As the result of payment IN cash
and Liberty bonds of 100000 by
the United States to agents OF the
two Merton brothers of Frankfort
on Main, the following disburse-
ments were made by the brothers,
it is charged:
King Got $4,000
To John II. King, former repub-
lican national committeeman from
Connecticut-s50,O0O, Of which he
paid the late Jesse Smith $4,000.
To Miller. Smith and King-$S9l,- -
0C0 in Liberty bonds after the broth
ers, through agent were reimburs-
ed by the United States for wartime
seizure OF stock Of the American
Metal company.
The charges are without founda-
ton in the view of Colonel Miller as
expressed through his counsel. His
official action was entirely proper
he Insists, and the grand jury was
hoodwinked" by witnesses in secret
Miller, whose home in Wilmington
Del, will appear here next Wednes.
Gay for arraignment.
Miller Alone Indicted
Miller Is the lone American un
der indictment. King escapes prose
cution by his testimony before th'
: grand jury. The Merton brothers
, two Swiss associates, and three cor
=, porations-two Swiss and one Ger
man--ara also under indictment,
The foreign individuals indicate'
can escape prosecution by remainin
] abroad, but 1t Is the expectation o
the department of justice that TIL
I Merton brothers will come volun
. tarily and face trial because Of thei
= extensive interests In this country
Z If none of the aliens appear for tn
. trial the Indictments vii, stand o,
> record and they can be arrested
e the should come to the Unite
f States later.
Besides Colonel Miller the de
3 fendants are Richard Merton @
= Frankfort on Main, Germany, pres
!dent of the Metallgesellschaft
f captain In the German army dur
: ing the war; Alfred Merton c
! Frankfort on Main. Germany
d president of Mctallbank; Leopol
: Du Bois OF Basle, Switzerland
e president of the Swiss bank OF BaS
IL tev Fitz Zahu Geigy of Basle, Swi'
zerland, president of the Soc1e'
n Pour Valeours De Meteaux; Metal
y. gesellschaft, q German corporate
II of Frankfort -on-Main.
IS Conspiracy Charged
+ When A. Mitchell Palmer ";
- alien property custodian, shori
~ after the United States entered II
~ war, he seized 40 per cent of II
~ stock Of the American Metal con
~ pany OH the ground that it WI
owned by Metallbank and Metallg
IN sellschaft. The shares were so
n and 1t Is now alleged that there w
Of a conspiracy to defraud the Unite
h. States by paying the proceeds to u
n Societe Suisse Four Naleurs |
re Meteaux. q Swiss corporation Co
er trolcd by the German defendant
es 1t is laleged that Colonel Mill
lie knew the Swiss concern was CO
r trollcd by Germans.
Among the witnesses before {
ut grand jury was Roxie Stinson,
or vorced wife OF Jesse Smith, CO
II, fidante of Daugherty. Smith W
W found dead two years ago in
n Washington apartment. His mar
'sI had been mentioned In connect
with various scandals investigat
g by the senate.
Is Another witness was Har
ee Daugherty's brother. Nal, who
~ Nv bank was a depositary for all
"a property funds. CASTOR b. Mea'
M and his secretary, Elmer Jernecl
now serving time at Atlanta. we