Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-09-18
Defence Protests
Witnesses in Vain in
Trial of Daugherty

New York, Sept. 17-(P)-The par
ade of prosecution witnesses contin-
ued their march today across the
trampled arena of the Daugherty-
Miller fraud trial.
Under continual protest of Max D.
Steuer, counsel for Harry NJ Daugh-
erty. attorney general of the Harding
regime, and William S. Rand, counsel
for Thomas w. Miller, alien property
custodian at the same time, a score
of minor, and major government Of
hclals were questioned.
Objections of counsel for the de-
PENDANTS, who are charged with de-
fraudinS the government of their
pest services In permitting release of
s7O00,OOO realized from the sale of
assets of the American Metal Com
pany impounded during the war,
were based on assertions that the
prosecution was "burying" the case
under mass of irrelevant testimony
Hardly witness took the stand to
day without Steuer rising to repeat
his objection and without Rand call
ing out that his blanket objection
was still operative. Especially was
objection taken by the defense te
the swearing Of government EN-
ployes for the purpose of identifying
documents such as checks and trave
vouchers.
I'VE are willing to admit the valid
ity of any government papers," Mr.
Steuber repeatedly announced
To each objection government at.
torneys responded that all was sub
ject to connection and would all tenc
to prove the guilt of the defendants
AS rule Judge Mack over ruled tn,
| objections and permitted the ques
tioning of witnesses and entering o.
, documents to proceed, but occasion.
ally he held that the concessions O.
defense counsel rendered testimon,
unnecessary.
Louis ]. Bailey. former chief of the
bureau of investigation, told OF tn,
activities of Jesse w. Smith in tn,
j Department of Juice under Daugher.
| tvs reign as attorney general. On
| of Smiths first acts. according t,
| Bailey was to install himself in al
! Office and to send for a list of all EN-
! ployes of the department. Smith de
manded that opposite each name 6
! notation be made showing whether
| the employee was a Democrat or Re
| publican. The list came back t
him, Bailey said, with marks showing
the employees that were to be retain.
ed and those who were to be discharg
| ed or transferred.
Few changes were made, Bale,
| testified, but only "a lot of talking
on his part saved old and trusted
employees from official axe" Bale,
| said that shortly after Daugherty
assumed officec he told him that any
| time he had important matters t.
discuss with him and he (Daugherty,
| was too busy. 'just tell them tc
, Smith sand he'll let me know abou
! them"
John D. Harris. controller Of the
| department of justice, was used by
| the government to identify expense
| accounts and transportation paid fol
| or issued to Smith. Harri-- said he
knew Smith was not an appointed
i employee of the department, but thai
| he signed the subsistence accounts
because Daugherty had told h "
Smith was doing CONFIDENTIAL inves-
| tigation work for him.
Under cross examination. Harriss
| was used by the defense to add tt
the record letters lntercndnSeQ DS
Daugherty and him in April 1872:
| anent Smiths expenses. The letter
showed that Smiths expenses hae
become the subject of criticism, but
in a final reply to Daugherty's Offer
| to refund S2,3S1.9S. the total o.
Smiths expenses to April IS, 1922
Harriss' reply stated that the ex-
penses were legally paid and JUST.
fed by the Importance and value OF
Smiths work
The government used Charles E
Stewart, administrative officer of the
department of justice, to identify
railroad vouchers and expense ac-
counts for Daugherty and Smith that
showed them in New York on Apr
10, 1921-the date of alleged rem
devious with Merton. King and Mil
Ter and September 80, 1921, tbs
date of the champagne dinners II
the Ritz Carlton Hotel when Miller
handed Merton two checks for c6
453,979.97. Two days later, Merton