Evening star., 1926-09-17
DAUGHERTY PAPERS.
PRESENTEDAT TRIAL.
Expense Accounts Shown to
Prove He Was in New York
When Merton Was Paid.
BY the A ssoriated Press,

BY the Associated Press.
NEW YORK, September 17.-The
Government today placed on recoiu
documentary evidence tending 10
prove that Harry NJ. Daugherty was
in New York on September 30, l9Zl,
when Thomas w Miller gave Rlcnaro
Merton, German metal magnate'
checks for s6,453,9I9.97 at cnam-
payne dinner in the Ritz-Carltoh
Hotel.
Daugherty and Miller are on trlai
charged with conspiring to de1rauo
the Government of their fair ana un.
preiudiced" services as Government
officials in permitting the release 10
Merton Of assets of the Aiiiel 10. 1o',i
Metal Co. in1pounded during tne wal =.
At that time Daugherty was Attorney
General and Miller alien property Gus
todian.
United States Attorney Buckner
placed on record travel vouchers, ran
road and Pullman records showing
that Daugherty and Jesse w. Smlth
returned from a trip to ONO on sep
tember 30 and their expense accounts
were shown to prove that theE We're
still in New York on September 50.
Similar records were also oftered 10
show that Daugherty and Smilh were
in New York on April 10. the sam
year. This date the Government iidS
stated is that of the original meetlnS
between Merton. Smith and the late le
John T. King. Republican leader;
Merton has testified that he Obtained
release of the American Metal assets
after he paid King a fee OF Stt4 'oo"'
Official FIRST Witness.
The first witness for the day was
Charles f.. Stewart, admlnlstrati'e
officer in the Department OF Justlce
since 1914. ..,
In the previous days of the IRA
20 witnesses had been examined anu
some 90 exhibits had been thrown INTO
the legal forge. These exhibltsElel
ters. telegrams, checks and travel
youchers-the prosecution has prom
iSed to link into a connected chaih
of evidence proving the guilt of the
defendant.
Stewart said that he met Smith tor
the first time at the Harding inaugu-
ration. He said that Smith came TO
his office in the Department of Justice
building and introduced himself. The
witness said that he saw Smith
good MANY times" later. here and
there around the department. in his
own office, in Mr.. DaughertE'S office
and elsewhere.
Smith Drew Funds.
Stewart identified documents show
ing that Smith. whom the Govern
ment asserts was not Government
employe. was paid 81 a day subsistence
while in Washington. The docu-
loI mill n
pOsed to be an employe resident in
columbus. Ohio. and entitled to S4
per dav subsistence allowance While
away from there. Stewart identlfled
an account for April. 1921, on which
Smith was paid $122.S2. On another
for December. 1921, Smith drew a
similar amount. 4 number OF these
subsistence accounts and railway
TRANSFORMATION vouchers. on Whlch
Smith travelled at Government eX-
pense were introduced as exhibits.
The subsistence account for Decem-
ber. 1921, was signed by Daugherty.
Stewart related how he assigned
Smith a room in the Department OF
Justice Building in washington on
Daugherty's order. The witness Sald
he understood that Smith. was con
fidential employe of the Attorney
General.
The next witness called was John -.
Harris. controller of the Department
of Justice.
Says Payment Justified.
Under cross-examination stewart
nreviouslv had identified letters and
nhotostat copies of letters interchang-
ed by himself and DauShertE in April
1922 regarding Smiths expense ac-
count Max ID. Steuer, counsel for
Daupherty. read these letters to the
i1ry. They showed that Smlth eN'
nense accounts had become the SUD-
iect of criticism within the Depart
ment of Justice and that DaughertE
had offered to make restitution OF
80 3S198. which was the total OF
smiths expenses to April 2S. 1922.
In a letter in reply to DauSherty.
Harris stated that he considered that
smith had done important and
valuable work for the Government
and that his expenses had legally
been paid under a special approprla-
tion ont of which expenses of all en-
ploves not regularly appointed as
employees of the Department OF JUS
tice were paid.
Under direct examination Harris
testified that he had signed Smith 3
expense vouchers on the theory that
smith was a confidential investigator
for the Attorney General and was
engaged in the reorganization OF
Daugherty's staff,