Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-10-06
MYSTERY MEETING
CONTINUED from Page one)


effort to prove that Harry Daugherty
and Thomas w. Miller, former alien
property custodian, conspired to de-
feat the government in allowing tho
release of 100000 Of impounded as
sets of the American Metal Company
in 1921.
Government evidence has shown
that some $4,000 worth of Liberty
bonds, which formed a part of a fee
given the late John T. King by Rich.
ard Merton. German metal magnate,
for putting the metal claim through,
turned up later in Miller's account
and In the Daugherty bank. Gaps in
the chain Of evidence were occasioned
by discovery that various records of
the financial transactions of both
Daugherty and Jesse w. Smith, Harry
Daughertys political handy man, had
disappeared from the Midland bank.
Nal Daugherty told of receiving a
subpoena in December Of last year to
appear before a grand jury in New
York which was giving the metal
company release.
He said he Immediately went to his
brothers home in Columbus, Ohio.
with his personal attorney, n. c. Gil
burn. The next day they went to
Washington Courthouse and the fol-
lowing morning, a Sunday, all three
met at the Midland Bank, where they
stayed from about 80 o'clock until
about 9.
"Harry had STAYED with you at your
home that Saturday night? Buckner
asked.
eyes"
"Then why did you go to the bank
for your conference? Could not Mr..
Cliburn have come to your house,
and could you not all have conferred
there"
my wife was not very well and
we didn't want to disturb her"
But couldn't you three have talked
for half an hour without causing any
disturbance to Mrs. Daugherty
Il suppose we could
"And it was a Sunday and the
bank was closed?"
THAT is right
mo one there but you three"
mo, no one was there
Did YOU Buckner Numbered at
the witness, "or your brother or your
attorney at that time remove from
their proper places in the bank deposit
slips, daybook sheets or the copy of
remittance letter to another bank, all
of which had been subpoenaed but
none of which have ever been pro-
duced?"
I'VE did not" the witness replied.
did you take any of these records
out to look at them
I'VE did not"
do you know whether they were in
their proper places at that time or
whether they were even then miss
ing?
II do not"
While Nal Daugherty was under d.
rect examination of Max D. Steuer,
counsel for Harry Daugherty. he told
how five $4,000 Liberty bonds, which
were a part of the Merton-King money,
came to be in his bank and their pro-
ceeds later credited to Harrys account.
"On May %. 1925" he said, Jesse
Smith came into the bank and asked
for me. He was very excited and dis
turbed. He handed me the five bonds,
check for $4,000 and $4,000 in cash,
which he told me he would fix up the
deficit in the political campaign fund
of which my brother was in charge"
The witness then testified that
Smith had assisted Harry in raising
money for a permanent Republican
fund in Ohio, but that there was
def1cia of between $4,000 and $4,000.
Harry had for the past 10 years been
insisting that Smith make an account
ing of his collections and that several
LINES he had asked Nal to impress
On Smith the necessity of this. No
such accounting was ever made, so
far as the witness knew, but instead
the bonds, check and cash were turned
in to cover the bulk of the deficit. The
bonds were told and the proceeds cred
tied to Harry because he was in
charge of the political fund.
Steuer objected strenuously during
the day to a line of questioning by
Buckner which he believed was based
on the assumption that Daugherty
might be held responsible for acts of
his subordinates, ever though he dio
not know anything about them.
Jurge Mack said the testimony could
go in on the ground that it might show
Daugherty had CLOSED his eyes" to
what his subordinates were doing.
This, he held. would constitute con-
spiracy to defraud the government OF
his best services.