Evening star., 1926-09-27
|DEPOS|TS FEATURE
DAUCHERTY TRIAL
Sale of Bonds and Credit of
Sums to Brothers Brought
to Light.
By the Associated Press.

| By the Associated Press.
! NEW YORK. September 27.-The
Government today began the four
teenth day of the conspiracy trial of
I Harry NJ. Daugherty and Thomas w.
! Miller. with an attempt to trace to
the former AttorneH- General a further
$4,000 of an alleged bribe of $441 900
paid to hasten release of s7,000,000 of
seized German properties. The trial
was resumed after adjournment since
| Friday.
Last week United States Attorney
Emory r. Buckner brought out testi
mony and exhibits to show that over
500, 900 had figured in Daughertys
| bank accounts, the records of which
| he destroyed because they showed
nothing
To Miller's banking and brokerage
accounts $4,000 had previously been
| traced.
The s441 .O0O-s391 900 of which was
Liberty Loan bonds-was paid to John
I. King. late Republican national COM
mitteeman from Connecticut. to in
| fuence the release of the impounded
assets of the American Metal Co.,
which Richard Merton, German metal
! magnate, claimed in the name of the
Societe Suisse Pour Valeurs de
MetauX. The Government contends
the claim was false.
Bonds Sent to Cleveland.
Vera V. Neail, assistant cashier of
the Midland National, Bank, testified
she sent to Otis & Co. Cleveland bank
ers, four $4,000 Liberty bonds bear
ing serial numbers that were on four
bonds Merton gave King. The bonds
were sent November Il. 1923. Miss
Neail said. on orders of Nal S.
Daugherty.
In its outline of the case, the Gov
ernment said it depended for proof
OF its conspiracy charge upon its
ability to convince the jury that
King was working in behalf of
! Daugherty" when he treated with
Merton
After Otis & Co had sold the bonds.
a check for s39.335.5e was sent to
Nal S. Dausherty, it was established
by a stipulation between Max D.
Steuer. counsel for Daugherty. and
United States Attorney Buckner
When it arrived at the Midland Ma
! tional Bank. Miss Veail testified, it
was not placed in NAL S. Daugherty's
account. but took a certificate of de-
posit. which, she said. was the same as
a cashiers check. Two weeks later,
according to bank ledger sheets, this
/ sum was paid. but the record did not
show to whom the money was paid
Mails Account Credited.
Another ledger sheet. however.
showed this sum credited as cash"
to Nal S. Dausherty's account. Sub
! sequently. it was shown by bank
records, Nal S. Daugherty paid Harry
, NJ Daugherty s49.165.
: The Government is on the trail of
! five Liberty loan bonds Of $4,000 each.
! 1t was not shown that the difference
: between the check and the sum paid
! Harry NJ. Daugherty was connected
, with the fifth bond.
. The s49.165 was paid Daugherty by
/ a certificate of deposit. Credited to
I him on the same day-December %,
? 1e23-were three $1,000 and five So 900
! certificates of deposit. as we'll as the
! S49.165 The ledger sheets show these
! payments were mysteriouSly connoted
! 5 x s. 900 equals $4,000" and
] } x $1,000 equals $4,000.
! New Name Mentioned.
: 1t was brought out by Buckner that
! the "5 81 900 referred to a certificate
4 of deposit issued to u. E. Gray
! name not previously mentioned in
/ the trial.
The certificate of deposit for s4e.1s5
! was paid July Il. 1924. and on the
/ same day five other certificates of de-
! post of $4,000 were issued
, can Si9.l65 certificate be split
! up into five or ten thousand dollar
certificates?" Buckner asked Miss
Neail
Yes" she replied
And where in the banks accounts
/ can go to find that such a swap. in
! case nothing more than a swap oc-
Cured. was really made"
! You'd have to get the certificates" "
Steuer then conceded that the trans
! action was only an exchange and that
these certificates represented no actual
cash transa ction. Only one of the
! $4,000 certificates was paid. Miss
! Neail testified.
Steuer said he made his concession
( without imputation that Harry NJ
Daugherty had ever received any of
! the money involved in these certifi.
Gates.
! By the time the FIVE $4,000 certifi
Gates of deposit were issued. testimony
revealed there was s1.1o0 interest due
on the s49,165 which was credited to
/ Harry NJ. Daugherty.
( Buckner in a tilt with Steuer. said
! he had no desire to leave the impress
| sion upon the jury that the certifi-
Gates. except one for $4,000 were ac-
| ,uallv paid in cash to Harry NJ
| Daugherty. The one certificate was
| paid August 81, 1924. and was in
/ lorso1 ~ Nal 9 and Harry NJ Dauch