Evening star., 1927-02-16
POLITICS INJECTED
in NDAUCHERTY CASE
Testimony Holds Bonds Were
Used as Payments on Funds
Advanced to Smith.
By the Asaoctated Press.


FEDERAL COURT. NEW YORK,
February 1s.-Testimony 10 show that
Liberty bonds traced to Harry NJ.
Daugherty, former Attorney General.
we're given him IS payments on funds
advanced In political matters was
given today at the Daughertv. Miller
trial.
Daugherty and Thomas w Miller.
former alien property custodian. are
charged with defrauding the United
States OF their best services in con.
nection with the transfer of $1,000
600 of impounded assets OF the Amer.
lean Metal Co. Previous testimony
showed the late John T. King, then
Republican national committeeman
from Connecticut. was paid fee"
of SAL 900 for aiding Richard Merton.
agent of the Societe Suisse Pour
Valeurs de Metaux, I'm obtaining the
impounded assets The fee" was
paid $4,000 by check and 1891 900 I'm
Liberty bonds.
Five Bonds Traced.
Taking the serial numbers. the Gov
ernment traced FIVE of the S10,o
Merton-to- King bonds to Daugherty's
account in the Midland National Bank
at Washington Court House. Ohio.
Nal s. Daugherty, president Of that
bank and brother of the former
cabinet member. under cross-examina-
tion today said that Jess W. Smith.
Harry Daugherty's right.hsnd man.
brought the bonds to the bank and
gave them to him as part payment on
$s5.Ooo deficit in a political fund
which had been advanced by him.
Smith came into the bank all ex.
cited" NAL testified. Just a few DAYS
before he committed suicide. He hand
ed me those five bonds, check for
So, 900 and 81 900 in cash. Here. take
these, he said to me, handing them to
me, and put them on that deficit
I'll give you the rest later. Harry
never knew OF this transaction until
after Jess had killed himself
NAL Daugherty also testified that
check for $2.125 was given him by
Smith as payment on a S2.500 note of
Smiths that Harry Daugherty held.
Says Sheets Were Burned.
Nal was called for crossexamina-
ton as the trial began for the day.
He had testified yesterday about miss
ing records Of the Midland National
Bank, one of two Washington Court
House, Ohio, banks. of which he is
president.
He told of how his brother. Harry
Daugherty, burned ledger sheets
! which the Government contends
| would have shown that part Of an al
legged bribe of $441 900 went to Harry
Daugherty's account.
Leaning back in the witness chair.
| Nal Daugherty sketched the history OF
| the Daugherty family. His mother.
| he said. was in her ninetieth year,
still living on the spot of ground In
Washington Court House where she
was born.
Tells of Rise.
Harry Daugherty, he said, Is 81
years old, two years older than him.
self. He told of how. at the age of 10.
he became janitor in the Midland
National Bank, rose to bookkeeper.
and after filling every position in the
bank became president. He is also
president Of the Commercial Bank, he
said.
Harry Daugherty. he said married
early, and in 1890 moved to Column
bus to practice law. He told of how
they mingled in politics. and of how
Harry became an Ohio legislator.
Harry, he said. married when
young. His wife. Nal said. was an
| invalid when Harry was Attorney
General and was in the hospital.
Going into the receipt of Liberty
| bonds bearing serial numbers of those
Richard Merton. agent of the Societe
Suisse paid the late John T. King,
then Republican national committee
man from Connecticut. Mai Daugherty
said that Jess W. Smith. Harrys
| friend, who "lived just across the
| street from me-" brought them into
the bank a few days before he COM
mitted suicide.