The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-02-12
ChampagneOrgy
Before Merton
Paid Cash
Daugherty Graft Case Shows
King Hungry for Office


Tales of political ambition mingled
with the description of a gorgeous
booze party in the Daugherty- Miller
graft trial yesterday. Richard Mer-
ton, German metal nagnate, resumed
the stand and described a champagne
dinner which preceded his payment
of 1891, 900, the alleged bride on which
the prosecution is based.
Merton stated that the dinner oc-
Cured at a New York hotel on Sep
TENDER 80, 1921, and that on the next
day he gave the 1891, 900 to the late
John 7. King, Connecticut politician.
The money was paid in return for
the approval of a S7000,000 German
claim for war-seized property land
was alleged by the government to
have been split between Daugherty,
Miller, King and Jess Smith, friend
Of Daugherty's.
At the time of Which Merton spoke,
Harry Daugherty was attorney gem
eral of the United States, and very
vicious crusader against the "Reds"
under which term he included all Com
munists, of course, and various other
political groups.
Miller Had Strangle Hold.
Thos. w. Miller was alien property
custodian, and had in his control for
one thing, the 100000 properties
Of the American Metals Co., of which
Merton was an official and prominent
stakeholder. Jess Smith was known
as a powerful figure around the at
torney generals office, with some
mysterious power TO order and COM
mand subordinates in the department
of justice, and proprietor with Daugh-
erty of "the little green house," a
meeting place in Washington for po-
liticians, rich petitioners, and govern
ment officials. King was a Conecti-
cut political boss.
Miller Actually There.
The .proseeut an. then introduced
into evidence an expense voucher
signed by Miller showing that he made
a trip from Washington to New York
on the day the now famous dinner
took place.
Several employees of the hotel
where the champagne dinner was held
then testified to records of the af-
fair. Edith Walker, floor clerk of an
other hotel, testified that Miller used
the rooms of General Coleman Du
Pont, as a guest, on the night of the
dinner.
Another hotel employee said Jess
Smith stayed in New York on the
same night. Merton, according to fur.
Their testimony, stayed at a Wash
ington hotel from September 10 to
"a, 1921.
Durkin Hostile Witness.
John T. Durkin, Kings private Sec
rotary next testified that he took care
of his employers bank books and
private papers.
The late John T. King expected to
get the job of alien property custodian
in the Harding administration which
went to Thomas w. Miller, DurlSin
revealed on the witness stand
King Rich.
Durl1in, among other things, also
testified that Merton and King had
been interested in a steel product
which later turned out to be worth
less.
Durlxin outlined the career of King,
describing him as ga man of con-
siderable means, active in the affairs
of the republican party"
The witness said King was some
times called "the political boss Of Con-
necticut" and was a republican ma
tional committeeman. King made an
effort to retire from politics in 1924,
Durkin said.
Durkin was described by the govern
ment as "hostile witness" He evaded
all attempts to get from him the con-
tents Of letters the carbon copies Of
which had been destroyed, and said
King did not often phone Daugherty.
King Paid Jess Smith.
Durkin was questioned at length
by Prosecutor Buckner as to various
entries in Kings bank book. By
stipulation between opposing counsel,
the government introduced evidence to
show that on October Is, 1921, King
deposited $4,143.75 in coupons repre-
senting six months interest on $780,
900 in bonds, part of the Merton-King
"fee," in his New York bank. It was
also shown that King made out two
checks, one to Jess Smith on the same
date for S3,643.75, the other for $500
made out to cash.
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