New Britain herald., 1926-09-14
GERMAN MAGNATE
 GIVES EVIDENCE
tended in his opening address tha tho claim was illegal.
 Knew Claim Was Weak

inc claim was illegal.
 Knew Claim Was Weak
 When Merton first arrived in America in April, 1921 to attempt to recover Che assets of the American Metals Co.,, he new his legal claim was weak. He testified to this to- day.
 His leg; claim was not strong. he felt because the transfer of the stock to the Soc.ote Suisse few days before American entered the world war, was oral.
 h answer 10 a question by United States Attorney Buckner concerning the late John T. King, former re- publican national committeeman from Connecticut, he said he did not come here with the idea of finding "a clever politician Mir. King also was indicted but died soon after wards.
 His Idea Of [. s.
 Merton said that he pictured America as a national much differ ent from England. France or others of the allies. q did not think Amer ica exactly friendly" he said. but | certainly knew they would be more decent 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 10 impound it without just and sufficient cause.
 Merton said his mind was split by two ideas. One was that the claim could be collected by showing that the oral transfer was legal This was an ownership claim. The other idea was to show that although the metallgeselschaft owned shares of the stock of the Societe Suisse, that company was indebted to the So- ciete Suisse for the amount of the shares of the American Metal O., which had been offered as a guar anty.
 Tho guaranty was made to prevent the Societe Suisse and it's adjunct ln- stitutions, the Swiss bank from go- ing into bankruptcy. This was debt claim.
 In any case. Merton said. 1t was not his intention to reveal the ro!a- ton of the metallgesellschaft until necessary. He said he felt that a revelation of this relation would prejudice his claims.
 After conversations with c. R. Williams, first assistant to Miller who was then alien property GUS todian, Merton said he learned that the claim would be made on the ownership basis and that it erentu- ally was made and paid on this basis.
 Buckner's Examination
 Under redirect examination United States Attorney Emory Buckner questioned Merton about his authorization as agents for the Societe Suisse Pur Valeurs De Metaux, for which Merton collected nearly s7,oo0,00o for American Metals company shares which had been seized by the government un- der the trading with the enemy act
 Daugherty and Miller the govern- mcnt charges shared bribes of SAL 600 which Merton said he paid as commission" to get a speedy re- Sponse. Merton said he paid the Si41,0o0. to John T. King, former republican national committeeman from Connecticut who died shortly after he wGA indicted with Daugh- erty and Miller. The present trial is based on a superseding indict- mont naming only Daugherty and Miller.
 Buckner's first question brought defense attorneys to their feet to make objections. Legal tilt followed legal tilt for half an hour with vari- ous degrees of success.
 Buckner then attempted to intro- duce government exhibits, letters written by Merton to John Foster Dulles, New York attorney and Leopold Dubois, president of the Swiss bank and q director of the Socicte Suisse. These letters were written in November, 1920. Waving Marton's letter to Dulles, Buekner described it. in a question he asked Merton. as proof of the fact that the idea of the transfer of the shares of the American Metal company or isinated in the reply Dulles made in 1920. The transfer, Merton had tes- tilod previously, was made in 1919.
 Steuer Protests
 Max Steuor. counsel for Daugh- ertv, jumped to his feet and heated ly declared that Justice cannot be shown either defendant with such