New Britain herald., 1926-09-08

ditions and to take out some of the papers which made reference to debt. Then we find Jess Smith talk ing Merton over to the department Of justice, where he had an office of his own and the entire run of the department. He took him to the office of Guy D. Golf, now United States senator from West Virginia, but at that time Daugherty's first assistant. He introduced Merton to Golf and told Golf he was a neutral making claim to the office of the alien property custodian.
 "Goff then sent for Adna R. John son, a young man from Ohio, whom Daugherty had put in complete con- trol of all matters relating to alien property in the department of jus uce. We will show you, in Harry Daugherty's own handwriting. the authorization to this young man of 26 to handle these matters,
 There was no discussion. No questions were asked. Mir. Golf said that his office wanted to be fair in all questions and to all persons hav- ing claims. This was the only time Merton was ever in the offices of the department of justice. He left there, returned to New York and went back 10 Europe to make the necessary changes in his papers.
 Before Merton made the trip to Washington, we will show that he saw John T. King in New York. King suggested that a retainer of S5O,000 would be in order. King was not a lawyer. He was just business man. We will show by Merton's testimony that King fur ther suggested a compensation of five per cent of the amount of the claim recovered.
 Merton paid him the s5o,ooo. This check has either been lost or destroyed. But he will show that Merton's account in the Chase bank was debited with s50,00o on one day and that Kings account at the Guaranty Trust company was cred ited with s5o.000 the next morn. ing. In the absence of the checks, after five years, we think this will be satisfactory evidence of the transaction.
 "On September IS, Merton came back to this country with his papers again. The next night he was at the Shoreham in Washington. The following day Jesse Smith took the papers to Miller's office and filed the claim in behalf of the Societe Suisse Pour Valeurs de Metaux, al- though the National City bank ap- peared on the papers themselves as handling the claim.
 Smith told Merton to stay at the Shoraham hotel so that he might be available to answer questions re- garding the claim. On September 21, 1921, the claim was filed in Daughortys office. These papers, filed by Jess Smith, in the offices of Col. Miller and Harry Daugherty, were the only documents in the case and the ones upon which all subsequent action by these two de- partments were taken"
 MT. Buckner said that the trans fer of s6,5o0,oo0 in cash and s5O0,- 900 in Liberty bonds was engineered personally by Miller. I've will show" he said, that s50,000 of these identical bonds were traced to Miller and found in his brokerage n in, N-av,- nr,r al
 King, he said, opened an account with Watson 6 Co.,, brokers, in New York and ordered them to sell S24,- GOO of the bonds. This was done and the check was so drawn that it could not be traced to King. The check, however, was found by accident and the initials J. T. K" were found on a corner of it.
 The check was trade for cash ier's check on the Seaboard Na- tional bank and later found its way to the Midland National bank, Washington Courthouse, Ohio.
 Mir. Buckner characterized this institution as a Nal $. Daughter ! ty bank" and said he would show that this bank with eight employees, ] the president, a brother Of Harry Daugherty, had accounts ! for Jess Smith and the two Daugh- i erty brothers. The check, he said. ] was deposited eight days after it had been issued to King.
 We will show" he said, that | Harry Daugherty, quite recently, 1 not an officer of this l bank, took some of it's original 1 records and personally burned them i