Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-04
7O-Hour Session Results in
Finding Former Alien
Property Officer Defrauded
u. S. of Best Services.
EX-ATTORNEY GENERALS
INDICTMENT. DROPPED
Huckner Refuses to Prosecute Case
Third Time, He Tells Court.
Jurors Say They Stood 10 to 2
for Conviction of Daugherty
at One Time.
BY the Associated Press.

BY the Associated Press.
NEW YORK. March 4.-The jury
in the Daugllerty- Miller trial today
fo,snd former Alien Property Custo-
dian Thomas W. Miller guilty OF con-
.spiracy, but disagreed on verdict
Tor fromer Attorney General Harry
III. Daugferty.
Daugherty and Miller were charged
with conspiracy to defraud the
United States of their honest and
unbiased services in allowing CLAIMS
for S7OO0!OOO proceeds of the sale OF
impounded American Metal GO.
shares.
The Jury was out 20 hours.
The Jury filed into the courtroom
snnarently wearied by their long de-
.Iberations. The judge said: Il nave
received another note from you say
ing If is YOUR unanimous opinion that
in the case Of one defendant YOU are
homeless of a. verdict"
1t one time. jurors said, they stood
IN to for convicting Daugherty.
Asks Nolle PROSE-.
United States Attorney Emory r.
Ruckner, after the verdict on Miller
and the disagreement on Daugner.s,
asked Judge Knox to nolle PROSE- the
indictment against Daugherty.
The court complied. Maximum
sentence In Millers case u Two years
imprisonment and $lu.VVV nns'
Aaron Sapiro. Millers counsei, saio
an appeal would be taken.
In reply. to Judge Knox the jurors
answered that they were unan
inaonsly4 agreed on 2 ss.f disagreement.
frr ana defendant.
The Jury was polled and eacn
Juror affirmed this. !.
"Gentlemen.''' ne said, what is
your verdicty ..1a.
1--WE and" the foreman said: lnaI
the defendant Thomas W. Miller Is
guiltv as charged in the Indictment.
Takes Verdict Quietly.
There was a rustic of excitement
I'm the courtroom as reporters tried
to get out the bolted door. Miller
sat quietly. -,
change. -. .,
did not finch. ,.
them yet.
Ruckner then told the court he had
tried the case twice and would not
try it third time. He asked a
nolle PROSE- for Daugherty. Judge
Knox said he felt Buckner was Justi'
fed in bringing Daugherty to trial. as
the evidence showed, and that ne aiso
was justified in asking Tor none
PROSE-.
Bail for Miller was continued pend
ing appeal. 1t was set at $4,000.
Date of sentence will be arranged
by counsel and Judge Knox.
Was Legion Founder.
Miller, lieutenant colonel during
the war, is the son of former COVER.
nor of Delaware. He was active in
the foundation of the American
Legion. He was once secretary of the
State of Delaware, and later Repre-
sentative from the same State. He
was appointed alien property custod
ian by President Harding in April
1921, shortly after Daugherty became
attorney general.
After the indictment against him
had been nolle pressed, Daugherty
smilingly thanked the court and the
Jurors. He then left the court on the
arm of his brother, Nal Daugherty.
II am an innocent man. Daugherty
said, his voice breaking, even as he
JAd6C ANIOA tltc
former Attorney General in acknowl
edgment of Daugherty's thanks.
In a conference after the court was
cleared 1t was agreed that motions
! for a new trial for Miller would be
made next Tuesday.
Charges Against Pair.
Daugherty and Miller were charged
with having released $1,000 900 worth
OF property seized under the trading
with the enemy act after having been
given. according to the Government
''hypodermic injections of graft" by
John T. King. late national Repub
lean committeeman from Connecticut
The prof5Srty was the proceeds oi
49 per cent of the stock of the Ameri
can Metal Co. owned by two German
companies controlled by the Merton
fanily of metal magnates.
Richard Merton came to this coun
try after the war to seek return o1
the property through the Alien prop
erty custodian Office and retained
King to put his claim through the
Government offices. He paid King a
fee of S44l 900 and the Government
charged that part of this money fount
its way to Daugherty and Miller
through the agency of the late Jes:
w. Smith, DaughertyS politica
handy man. The Merton claim wa.
passed in 1921.
Tried OH Conspiracy.
BY the time'the Government officials
were indicted the statue OF limitation.
prevented prosecution for bribery
and SO they were charged with con
Spiracy against the Government they
served, the period of limitation fol
conspiracy being six years. The,
were brought to trial for conspiring Il
defraud the Government of their full
and impartial services in permitting
passage of the Merton claim.
The first trial began in Septembel
of 1926 and lasted for more than {
month, ending in disagreement Of th'
jury after it had set a record fol
length of deliberation. The most i'm
portant witnesses We're Merton. wins
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