The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-02-10
INTEREST MONEY
ON BRIDE BOND TO
HARRY DAUGHERTY
Evidence at Second Graft
Trial duplicates Harding

IIlal lMpllCdteS HdTulIlg
A S2,i25 check representing coupon
interest on 100000 in bonds was
sent TO harry M. Daugherty, former
United States attorney general, by
the late John T. King, Connecticut
politician, according to testimony in
troduccd today by the government at
the Daugherty-Mille conspiracy trial.
The government was attempting to
show ownership by Daugherty of
100000 in liberty bonds, part Of the
1891 900 ''fee" alleged to have been
received by King for putting through
the $1,000 900 claim for return Of
German owned property Of the Amer
lean Metal Company.
Record of the $2,125 check was
missing from the Midland National
Bank, the Daugherty Ohio bank, it
was testified.
This, and testimony connecting the
late President Harding with the
'house of revelry" or the green
house" which Daugherty and Jess
Smith shared in Washington at the
time, it is said. some of the worst of
the graft deals were put through
there, were the high lights in yes
tcrday's proceedings.
Harry's Butler Talks.
The intimacy between former At
torney General Harry NJ. Daugherty
and the late Jess w. Smith, his con-
fidentisl aide was testified to by Wal
ter Miller, butler.
Smith and Daugherty lived alone in
a house in Washington for nine
months in 1921 after Daugherty took
office, the witness said. Miller said
he was employed by Edward B. Nc
Lean, Washington publisher, and
went to work for Daugherty when
Mclean loaned his house to Daugher-
ty and Smith. Smith afterwards
committed suicide, or was murdered,
about the time the graft revelations
began.
Harding Dined With Them.
The butler admitted under cross
examination that many high govern
ment officials visited the house where
Daugherty and Jess Smith lived. On
one occasion, he said, President and
Mrs. Harding dined there.
Charts Bond Sales.
The schoolroom atmosphere of the
court, caused by United States At
torney Buckner's famous blackboard,
on which he traces the intricacies of
the bond movements, was heightened
when the prosecution distributed to
the jurors a number of charts. These
also dealt with the alleged passage of
liberty bonds Of large denominations
from the hands of Richard Merton,
German financier, to the credit of
Daugherty, Miller, John T. King, late
Connecticut politician, and Jess Smith,
late right-hand man of the former
attorney general.
Defense objection 60 use of the
charts was overruled.
The prosecution is tracing the $780,
600 in bonds alleged to have been the
share of Thomas w. Miller, former
alien property custodian, for. aiding
in approval of the claim.
Virginia Mullen, former employee Of
the Federal Reserve Bank, Philadel-
phis, testified that Vincent A. Carroll
Philadelphia lawyer, in Feb, 1928, ex-
changed $4,000 in bonds in the deal
for others which the government
showed were traced to Miller's brok-
erage houses in Wilmington, Del, and
New York City.
StcnOs. and Cashiers Testify.
Charles Herman, another emploSe
of the Philadelphia Federal Reserve
Bank, corroborated Miss Mullen's tes-
timony.
Sophie Hillman, stenographer in the
alien property custodian's office in
Washington, previously had testified
to records showing that Carroll was
employed by the department and re-
ceived $4,000 for services rendered
Delbert Gallagher, assistant cashier
for Laird, Bissell and Mead, brokers
OF Wilmington, Del, testified con-
corning the receiving of the bonds
which the government alleges went
INFO Miller's brokerage account.
Throughout the bond tracing, Aaron
Sapiro, of Chicago and San Francisco
counsel for Miller. objected to the
evidence as irrelevant to the charge
Of conspiracy.