Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-11
u. S. IS BLOCKED
IN DAUGHERN CASE
Defense Upheld in Objections
to Move Linking King
With Alleged Fraud.
By the Associated Press

in the Daugherty-MilIer case when IS
tried to introduce evidence TO show
that John T. King. one-time Republl.
can national committeeman from Con.
necticut, destroyed records that might
have linked him in an alleged COM
spiracy.
United States Attorney Buckners
called John Durkin. Kings private sec'l
rotary for six years. and sought 10
bring out through him testimony adj
duced at the first trial, which showed
that book containing papers relating
to the transfer of $1,000. 600 of as
sets of the American Metal Co. dis.
appeared from Kings home in Bridge
port after a congressional investiga'
ton of the transfer had been started.
Objections Are Sustained.
Repeated objections from defense
counsel halted this trend of testimony
when they were sustained by Judge
Knox.
Through Durkin the Government,
however. got into the record eX-
hibits 10 which, defense offered vigor-
Gus objections.
A Waldorf Hotel register sheet
showing Jess w. Smith. Daugherty's
handy man. was registered there
August /, 1921, was admitted. Then
the Government got admitted can
ceIed check drawn by King on the
Chase National Bank for $4,000. The
check was made out to cash and
| the money was drawn by King him.
| self
BY this, Buckner explained, the
Government hoped the jury would
infer that the $25 900 was given to.
Smith as his share of a $4,000 re
tainer" Richard Merton. German
metal magnate, had given King.
Tells of Liberty Bonds.
Durkin also gave testimony about
! the deposit of $4,000 of Liberty
| bonds Merton gave King. but this was
| covered by an attorneys stipulation
and the Governments attempt TO
show that it was included in King"
| income tax return. although X
| considered ii a legitimate pay--N
was obstructed by defense, objt-
sustained by Judge Knox. The
ruled that Durkin had not h rel
| of this matter until a date subs taa-
to the time of the alleged conse ~-v.
! Mrs. Edith Walker. floor clerk +
| Hotel McAlpin, New York, was at
| to tell of Miller occupying the su nj
| T.. Coleman du Pont during part o. hs
| time the Government alleges cons9ir-
acy was in force between Mh.g~,
Daugherty. King and Smith.
Merton Repeats His Story
| Mertor yesterday was called to tell
! his story of the transfer of the 81
: ,000. 200 assets of the American Metal
| Co., seized during the war as enemy.
| owned property, from the alien prop .
I erty custodian to the Societe Suisse
| Pour Valeurs de NIetaux.
| Merton related that he came to the
1 United States in 1921 to see If he could
| have. the American Metal assets res
leased to the Societe Suisse, for which
| he was agent. He said he met King
| and told him his mission.
King. he said, declared he could help
| him. that services of lawyer were
not necessary in having the claim all
| lowed. Then King introduced him tn
| Smith. Later on, Merton said, he was
| introduced to Miller but he. could not
recall whether King or Smith did the
| introducing. Miller, he said. told him
he had just been installed as alien
! property custodian and didn't know
much about the affairs Of that office,
1 but that if he would come to Washing
| ton he would be turned over to an
| authority on alien property matters.
Came to Capital Again.
So Merton went to Washington. met
i
| C. f.. Williams, Miller's assistant.
! Williams. he recounted, told him his
clain1-based on debt owned by the
| Societe Suisse-Should be revised, TINS
part of the claim left out and the sole
| basis of the claim made non-enemy
| ownership.
Then Merton went back to Ger
many. got essential papers and re-
turned to America. After some delay
he went to Washington. where Smith
had already taken his claim papers.
He put up at the Shoreham Hotel, he
said next door to 1.-THE little house in
III street, where Daugherty and
Smith were living, and only short
distance from the Department OF
Justice building.
Without being questioned further
about the validity of his claim, Merton
said Smith told him the claim was
passed.
In the meantime. Merton testified.
an agreement was made between Mer-
ton and King that King should he
paid per cent of the total of the
claim for services in obtaining pay
ment. Merton also testified he gave
King a retainer of $50 900 before
returning 10 Germany.
Gave Dinner in New York.
After the claim was passed Mer-
ton returned 10 New 1OFb. Al MS
invitation Miller. Smith and King
came to the RitzCarlton Hotel. the
night of September 80. 1921. TO have
dinner with him. As Miller took his
seat he handed Merton two checks
that totaled $6,453 .977.97. The three
sat at a table and drank two bottles
of champagne. Then Merton present
ed each of his guests a gold cigarette
case, for which he paid lat least $500.
and i dare saw more"
The next day. Saturday, October /.
1921, King went with Merton to Gold
man, Sachs & Co. s Office and Merton
gave him 1891 900 in Liberty bonds
BY previous witnesses, the govern
ment contends it has shown that by
following the trail of these bonds by
their serial numbers. $4,000 were
traced to the accounts of Daugherty
In the Midland National Bank at
Washington Court House, Ohio, Of
which his brother, Nal s. DauEherty,
is president Likewise, $40, 900 were
traced to the brokerage and banking
accounts of Miller in New York and
Wilmington, Del Smith, the Govern
mani Oonfonda also cot