The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-02-09
Trace Bonds In
NewDaugherty
Bride Trial
Evidence Shows Nearly Half
Million Dollars Graft

WASHINGTON, Feb. s. - United
States Attorney Emory r. Buckner
delivered his opening address to the
jury in the second Daugherty trial
and government witnesses began to
testify Immediately afterwards, trac-
ing the course Of bonds used in the
bribery.
Harry Daugherty, former attorney
General, and famous "anti-red" driv-
er, is on trial with ThomasSW. Miller,
former alien property custodian. They
are accused Of accepting bride of
SAL 900 in cash and Liberty bonds
for turning back to its German own
ers s7oO0,O0O worth of property of
the american Metal Co.," held by
the alien property custodian after the
war was over.
Buckner pointed out to the jury
that the governments case did not
require showing the government suf-
fering any monetary loss through the
action of the defendants. He said
that it was merely necessary to show
the defendants had deprived the gov
eminent of their "honest and unpre-
judicial services" through the alleged
conspiracy and that the validity Of
the claim had nothing to do with the
matter.
How They Split.
Thomas w. Miller, former alien
property custodian received $4,000
and the late John T. King, Connect
cut politician, received $4,000 as
their part from the 1891, 900 alleged
bribe for putting through the return
of S7O000 900 in seized war time as
sets, u. S. Atter Emory R. Buck
ner charged in his opening jury adj
dress.
Buckner declared that he would
show this "divvy" through the trac-
ing of Liberty bond coupons to the
brokerage houses of Miller in Will
mington, Del, and in New York and
through deposits in Daugherty's bank
IT Washington Court House, Ohio.
The 1891 900 in bonds, Buckner as
serted, was paid by Richard Merton,
German financier, to King for put
ting the deal through.
Jess Smith the Go-Between.
Buclxner told the jury he could
not show any conversations between
Daugherty and Miller concerning the
claim but would show that Jess
Smith, Daugherty's aide, brought
Merton to Miller.
The introduction of bond tracing
testimony as the first move by the
government reversed the tactics of
the prosecution at the first trial,
which resulted in a disagreement of
the jury. In the original action the
status of the 100000 claims and the
testimony Of Merton occupied the
carly days of the trial.
In Mails Bank.
Employees of Nal Daugherty and
Of brokerage firms took the stand.
Solomon Raschkind told of giving
Merton a receipt for the bonds, which
the government charges that Harry
M. Daugherty, former United States
attorney general, and Thomas w.
Miller, former alien property custo-
dian, shared.
Miss Vera Veail, assistant cashier
of Nal Daugherty's bank in Wash
ington Courthouse, Ohio, was the next
witness.
Miss Veail testified regarding the
bonds deposited in the bank headed
By Nal, who is a brother of Harry
Daugherty, and which later were sold.
Miss Veail testified that Nal
Daugherty signed his brother Harry's
name to checks many times" She
said she did not remember ever see
ing Harry sign a check himself.
Harold Corbin, attorney for Daugh-
erty, offered to stipulate the accuracy
of the bank records introduced by
United States Attorney Emory r,
BucBner.
Trading Bonds.
A check for $49,165 made out in
December, 1923 to Harry M. Daugh-
erty was identified by Miss Veal and
was emphasized by Buckner. The
United States attorney then brought
out that the S49,165 was traded in
for five $4,000 Liberty bonds, al
legged to be part of the $391,0 900 worth
OF bonds in the Merton-King deal.
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