Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-09-14
MERTON DECLARES
He KNEW HIS CLAIM
WAS LEGALLY WEAK
Says Transfer of Stock Just
Before War Declaration
Was Made Orally.
DENIES HE SOUGHT AID
OF "CLEVER POLITICIAN"
Trial of Daugherty and Miller
Marked by Many Tits
Between Counsel.

NEW YORK. September IA
When Richard Merton. German in
dustrialist, first arrived in America
in April 1921, to attempt to recover
the assets of the American Metals
Co, he knew his legal claim was
weak. He testified to this today at
the trial of former Attorney General
Harry NJ. Daugherty and Thomas W.
Miller former alien property custo-
dian, charged with conspiracy to de-
fraud the Government.
His legal claim was not strong. he
felt because the transfer OF the STOCK
to the Societe Suisse. few days ne
fore America entered the World war
was oral.
In answer to a question by Cnlteu
States Attorney Buckner concerning
the late John T. King. former Ike
publican national committeeman
from Connecticut, he said he did not
come here with the idea of hndlng
"a clever politician" Mr. King was
also indicted but died shortly after
ward
Morton said that he pictured Amer
ica as nation much different from
ENGLAND, France or others of the
allies. Il did not think America eX
actly friendly" he said "but | GER
tainly knew they would be more de
cent than the others.
Although he felt his case to be
weak. Merton said he also felt that
America had no desire to seize private
property or to impound it without
lust and sufficient cause.
Had Two Ideas.
Merton said his mind was split
By two ideas. One was that the claim
could he collected by showing that
the oral transfer was legal. This was
an ownership claim. The other idea
was to show that although the
Metallgesellschaft owned shares of the
stock of the Societe Suisse, that COM
panv was indebted to the Societe
Suisse for the amount Of the shares
of the American Metal Co, which had
heen offered as a guaranty. The
guaranty was made to prevent the
SoCiete Suisse and it's adjunct institu-
ton, the Swiss Bank, from going into
bankruptcy This was debt claim.
In any case. Merton said. II was not
his intention to reveal the relation of
the Metallgesellschaft until necessary.
He said he felt that revelation of
this relation would prejudice his
claims.
After conversations with G.. r.
Williams, first assistant TO Miller. who
was then Alien Property Custodian,
Merton said he learned that the claim
would he made on the ownership basis
and that 1t eventually was made and
paid on this basis.
Questions Merton's Authorization.
Under redirect examination At
Sorney Buckner questioned Merton
about his authorization Is agent for
the Societe Suie Pour Naleurs de
Metaux. for which Merton collected
nearly $1,000. 900 for American Metals
Co. shares which had been seized by
the Government under the trading
with-the enemy act.
The Government charges that SAL
600 which Merton said he paid as
commission" to King. who died short
~ after he was indicted with Daugher-
ty and Miller, to procure speedy
response was shared with him by
Daugherty and Miller The present
trial is based on a superseding in
dictment naming only Daugherty and
Miller.
Many Legal Tits.
Buckner'S first question brought
defense attorneys to their feet to
make objections. Legal tilt followed
legal tilt for half an hour with vari-
Gus degrees of success.
Buckner then attempted to intro
duce as Government exhibits letters
written by Merton 10 John Foster
Dulles. New York attorney. and Leo
pold Dubois. president of the Swiss
Bank and a director of the Societe
Suisse These letters We're written
In November. 1920. Waving Merton's
letter TO Dulles Ruckner described it.
in a question he asked Merton, as
proof of the fact that the idea of the
transfer of the shares Of the Ameri
can Metals Co originated in the reply
Dulles made in 1920. The transfer
Merton had testified previously was
made in 1917.
Max Stever counsel for Daugherty.
jumped to his feet and heatedly de-
clared that Justice cannon be shown
either defendant with such acting as
RuCkner is indulCinc in. He then
asked that the jury he discharged.
Il think Judge Mack said. that
you attach too much importance to
Mr.. Buckner's his'ricnic ability"
The attorneys then continued their
clash over the legality of these eX-
hihits
The rest of the morning session was
occupied by Ruckner in an effort to
establish by Nerton's testimony that
there was not in the claim submitted
to the Government a written ohliga-
ton whereby the Metal Rank and the
Metallgesellschaft became guara ntors
of the stock of the SoCiete Suisse
prior to the war.