Imperial Valley press., 1926-10-11
HAD BEEN
OUT NEARLY
THREE DAYS
(Contiue2 from page ~

acy 10 dcfraud the government,
will be Subpocnacd and compelled to
testify before Senator Borah S sen.
ate committee investigating alien
property under plans made by
Borah TODAY.
Trial Month Old
Daughertv and Miller went on
trial in the old Post Office building
adjoining City Hail park here on
Sept :.
Although the ease dealt with mil.
lions Of dollars and the principals
were widely known, the large cour
room on the third floor OK the
S,odgy building was seldom crowd.
ed. those who attended the trial
were for the most part students of
politics and law, eager to see in
action three of the clevercst law
ycrs of the times.
| Colonel William Rand, noted for
corporation and criminal law, was
counsel for Miller. Max u. Stcurr.
! brilliant in cross-cXamination with
! II wide reputation as a trial attor-
nev, was counsel for Daughertv, and
! Emory X. Buckncr, United States
! attorney, who has made history hv
the paddock, -. headed the govern.
nIent forces.
! The indictment, handed down on
May :, charged Daugherty and Mil,
! Ter with conspiracy To defraud the
/ government of their good and hon.
est serNices,' alleging that they au.
! th0rized the transfer of $7.0O0.0 .00U
| IN cash and securities from the gov.
crnment 5 custody to the Socictc
Suisse pour Nalcurs de Mctaux
/ w*thout adequately weighing and
! searching the Swiss corporation s
i claims.
The 100000 represented the as.
sets of the American Metal corpor.
alton. formerly owned By bankers
| and manufacturers of Frankfort,
Germany. and as such seized under
the Trading with the Enemy act
! after the United States had enter
ed the war. The claim presented
ny Richard Merton, former German
! army captain, was based on the
contention that the German com.
pani"s had transferred the stock to
, the Swiss corporation by an ora!
agreement before the assets were
mpOunded.
In previous Indictment the
swiss and German corporations and
bankers were jointly charged with
conspiracy. This Indictment was
superseded, however because of the
obvious difficulties in prosecution
King Received Money
According to the testimony of
Merton during the trial, he gave
Sl4l, ,000 in Liberty Bonds to the
ate John T, King, Republican na
'ional committeeman from Connec-
lieut.. OF this amount. $4,000 was
" retainer and the rest "a five pc.
ent commission Tor services in get
ing tie claim approved.
The government: then sought 10
slow. although bribery was not spn-
officially mentioned in the indict.
mcnt, such charge having been
outlawed by the statute Of limita,
tions, that some of these bonds had
'"und their way to the bank ac.
counts of the two defendants.
Buckner 5 young assistants had
'urned detectives and their pains
taking efforts were put before the
urv. Five Liberty Bonds of $l0,-
600 each were traced to Miller.
Others were traced TO Jesse Smith,
confidant of Daugherty, who com
mitted suicide after the alleged
transactions.
One of the high pens OF the
trial came when Nal Daugherty.
brother of the former attorney gen
eral, and president Of the Midland
National Bank Of Washington
Court House, Ohio, admitted from
the witness stand that his brother
had destroyed records of the bank
containing the accounts Of Smith
and the Daughcrty brothers.
Through the mass Of evidence
there ran the thread of friendship
among the highcrups" Of the
Harding administration, which al
ready had provided sensational
rublic scandal by investigation of
the naval oil leases.
In fact, it WAS from the senate
hearings into that case that Daugh.
ertyMiller prosecution developed,
an investigation having been order.
ID into alleged irregularities Of the
attorney general s office.
Neither Daugherty nor Miller
testified in his own defense. Three
3ubordnates, George f.. Williams,
hdna X. johnson, Jr., and Guy ID.
Golf, now United States senator
from West Virginia, leading defense
witness, accepted responsibility for
passaoc of Merton 4 claim.