New Britain herald., 1926-05-08
TRACING \ "GIFT"
OF S381,0O0

star member Of the so-called Ohio gang" put into office with the election of the easy-going Warren C. Harding as President, has been indicted by the federal grand jury which has been Investigating the mysterious financial transactions incident 10 the American Metal Company case. The action of the former attorney general in at first refusing 10 appear before the grand jury, and then forced 10 so appear only after being cited for contempt Of court, naturally created 8 bad impression in the public mind.
 The custody Of alien property has been a bone of contention ever since the war and 10 many if has not been surprising that charges of various sorts resulted. These have figured in the public prints inter miltently, quite effectively leading many to conclude that there might have been an overplus of tempta- ! ton hinging upon the oversight of ! the property. The American Metal company case is only one of several that have required official inquiry or ono sort or another, but is made l particularly conspicuous through the identity of q former attorney general with ii.
 Of course, an indictment is mere ly an indictmcnt; it still needs to ! be proven. John T. King. Of Bridge port, one Of Connecticuts star an- reorganization politicians and for mer Republican national commit tecman, Is also in on the indict- ment once again. It was only last April that the former manager of Theodore Roosevelt's Bull Moose campaign - to mention still an- 1 other of his pristine political acti- vities was indicted on a charge Of filing a false income tax return. which is supposed 10 have had some relation to the American Metal case. Before that he had been indicted on a charge of per jury in connection with the return. As an indicted person. the Bridge port leader by this time holds some thing of q record in this state. All the indictments hinge upon the metals case, the grand jury evil ] dently charging that King shared in the S391OoO. did not include his alleged share in his income tax re- i turn. and now is included in the conspiracy indictment
 When Colonel Thomas W. Miller. of Delaware. is placed on trial, the i lid is expected 10 go off and much 1 first page sonsationalism is likely. 1 There is likely 10 he much of a ] poli''ca! nature made public. The story Of the American Metals com 1 pany deal is hat it was 51 per cent i American when the war broke out. and the 49 per cent was seized by Mitchell Palmer, sold and the pro- ceeds invested in $7.060,000 Liberty bonds numbered, registered and readily traceahln. Richard Merton, one Of tho former German owners Of the 49 per cent seized. came 10 1 lhe United States and tried 10 buy i back his former interest or part Of it. At first failing, he consulted with Averil Hartman, of New York, 1 with whom he had had business relations. and the latter introduced l him to John r. King. The latter, so the story runs, agreed to obtain the return Of inc property amount
 ing 10 S7,0c0.0o0, all in Liberties. i provided Merton would pay King a ! retainer of s50,000 - which was done. it Is claimed Altogether. SC it has been published in various
 journals without contradiction hy the alleged recipient, King received a total Of s112,0OO all told.
 King then took Merton to Wash ington and introduced him 10 Jess
 Smith now dead and the reputed
 official "tiyer" for the Ohio ganq
 and intimate of Daugherty. Smith
 agreed 10 the deal. the story runs
 and received 225,000 on account.
 Merton got his property back
 when he represented to Daugher. ! tvs office that as long ago as 19f:
 his interests had been hypothe.
 catod with the societe Suisse pour
 Naleurs de Metaux. Swiss con.
 corn. and that thls company wa.
 th" actual owner at the time Of the
 seizure. It being Illegal 10 seize the ] property of 2 neutral In wartime
 tho property was transferred. and
 tho transfer ultimately approved.
 This, in short - the details
 would 0ll several columns - is th,
 fundamental history Of the case. I
 does not include the details of two
 Americans trying 10 buy the g..
 ooo.0o9 interest before Merton did
 but they failed -- not getting u
 touch with he proper parties. i
 ct.D1G GiDpa .or,,r,,-I,+ at,