Evening star., 1927-02-09
MILLER UNDER FIRE
IN BOND TRANSFER
Witnesses Say Securities
Given to King Found Way
Into Others Account.

By the Assocf ated Press
NEW YORK, February q.-Tha
Government turned it's legal guns on
Thomas w. Miller. former alien
property custodian. today at the trial
OF Miller and Harry NJ. Daughertv.
former Attorney General
Most OF the morning was spent in
an attempt to show how some OF the
Liberty bonds which Richard Merton.
German metal maRnate, gave John T.
King. one-time national Republican
committeeman from Connecticut, had
turned up later I'm the Midland Ma
tfonal Bank at Washington Court
House, Ohio, OF which DauEherty's
brother Nal $. Daugherty, Is presi
dent.
Fight Turns on Miller.
Then the broadside on Miller be-
gan. After calling a witness who
Identified Government transportation
vouchers showing Miller Travelled TO
Philadelphia, February s. 1928. the
Government called Miss Virginia Mul-
len, a clerk in the Philadelphia Fed
ersl Reserve Bank She identified n
application for exchange of bonds
made by Vincent A. Carroll. former
alien property custodian bureau at
tOTneN, on that day.
The application showed that two
$4,000 bonds were exchanged for Car.
roll. he taking 20 bonds OF 81 900
de enOmination I'm their stead.
witness was then called to show
that transpOrtatio vouchers from
Philadelphia To Wilmington. Deli
were issued to Miller for the same
day.
Bonds I'm Miiler's Name.
Then Delbert Gallagher. "a shier for
Laird. Dissel & Mems. Wilmington
brokerage and banking house. was
called. He testified that "a Of the
81 900 bonds Carroll exchanged at the
Philadelphia Federal Reserve Rank
were deposited the same dsv to the
account Of Miller. He did not know
who deposited them
The mysterious disappearance of
original records of the exchange of the
two $4,000 for 20 $1,000 Liberty
bonds was told by Charles HERNIA n. .
employe of the Philadelphia Reserve
Bank. He said woman represent
ing herself as an investigator for the
Department of Justice asked for
copy Of the application made by Car
roll. After her departure the orig
inal could not he found. he said. .,
Vera " Veail. assistant cashier Of
the Midland National Bank, took the
stand as the first witness Of the day.
after a delay of half an hour. Attor-
neys consumed the time in a confer
enCe
Miss Veail testified that Nal Daugh-
erty often signed Harry Daugherty's
name.
Myrtle Norton. woman investigator
Of -
placed Miss Veail as n witness. She
testified that on April 2S. 1922. cou.
pOns on 500. 900 in Liberty bonds were
cashed at the Guarantee Trust Co. in
New York. 1t was shown that the
proceeds of these, amounting To 81, ,125.
were deposited to the account of King
Miss Veail then took the stand
again and United States Attorney
Buckner brought out through her that
81, ,125 was deposited the next day in
the Midland National Bank at Wash
ingtOn Court House, TO the account of
Harry NJ. Daugherty. The deposit slip
was marked New York. S2.125," and
was in Nal Daugherty's handwriting.
Assistant Cashier Testifles.
Three witnesses testified yesterday.
Miss Neail told of four $4,000 Lib
erty bonds. bearing serial numbers
of bonds Merton gave King for his
aid in having the Merton claim
passed, being received at the hank.
They were received in November
1928. two years after Merton gave
them to King. They were sold she
said. TO Otis & Co. of Cleveland
The sale of the bonds brought
S39.335. This, she said. was credited
10 the bank. But on the same day
this sum was received-November
19, 1924 certificate of deposit for
a similar sum was issued to Nal s.
Daugherty. This was taken up De-
cember 81, 1923. and on the same
day nine certificates of deposits
amounting to $49,335, were issued to
Harry NJ. Daugherty.
Buckner then brought out by
questioning Miss Veail that on De-
cember q, 1928. Nal Daugherty had
a balance of only S35,271.36. and that
the proceeds Of the bonds had to-
be used TO issue a certificate of de-
posit for $49.335. The S49.335 In
cluded $4,000 that was not ac-
counted for when court adjourned
Clarence Dauphinot, Office managed
of Goldman Sachs and Co., banking
and brokerage house. testified that in
October. 1921. two days after Miller
handed Merton checks totalling Sc l
453,s77.97, King. whom ne knew for
Is years, came into the office with
Merton. While they were there he
said, Merton was given 1921 900 inI
liberty bonds
Miss Neail testified she had been in !
structed in 1923 by Nal s. Daughertyl