Indianapolis Times, Volume 38, Number 133, Indianapolis, Marion County, 9 September 1926 — Page 2

PAGE 2

MERTON, GERMAN BANKER, CENTER OF GRAFT CASE His Testimony May Send Daugherty and Miller to Jail. Bv United rrr* NEW YORK, Sept. 9.—Richard Merton of Germany, emerged today from the status of a person sometimes heard of but never seen/ into a flesh and blood creature and the center of probably the most remarkable prosecution for alleged governmental graft In American history. He is the Government’s star witness against former Attorney-General Harry M. Daugherty and former Alien Property Ciretodian Thomas W. Miller, now on trial here for alleged conspiracy to defraud the government. The immaculately attired, more or less romantic appearing man who shows the marks of world travel and of one who speaks many languages, controls many dollars and moves in many spheres, was awaiting the opening of court Friday to tell his story of how he brought about the return to interests headed by himself of $7,000,000 in property the Gov-

$3 ipupjii ilf f lißßpr Old \•• \ r MIIE mystery is out! “12” represents the number of years since \\ I esta^*s^mcnt fi rst KAY Jewelry Store. And “12” is !\\ JL going to mean something to the people of this city! 12 years 1 ago, in Heading, Pa., the first Kay store was built. In 12 years, 20 new | . Kay stores have been established throughout important' cities in the ' United States, making the Kay Jewelry Organization one of the greatest an( * stron £ es t in the world. This month we are going to celebrate the •I li ffTf; 12th anniversary of the Kay organization. We’re going to show what l ilf fm wonderful advantages we are able to give people in buying diamond^, Ijl i / 13 watches, silverware and the better kinds of jewelry. II ‘ ** Price today, is largely governed by quantity. It is easy to see that the Kay stores, buying in greater quantities than an individual store, get the i-L_ id..; I lowest prices possible. This means that our customers pay lower prices J here. And a retail J ewelr y organization as large as Kay’s means almost jl unlimited resources, thereby enabling each Kay store to sell to trustworthy people on easier terms of credit. It always pays to buy at Kay’s. 5 fpSpl A Stupendous 12th Anniversary Sale 1 Held In Every KA Y Store _ OQC IQTHOTTOW S Will that’s what we have planned! The values we have arranged are positive- > ly marvelous! Diamonds. Watches, Fine Jewelry, Silverware—all at senFtlll Po.SfG Advertise- sationally low prices and on credit terms that will be the talk of the town. This is going to be our way of expressing our apppreciation for mpnt it l ff\Y the great success that Indianapolis people have helped to make KAY’S! Don’t buy diamonds, watches or jewelry till you have seen our announceAnnual Anniversary Sale Values! ' Tomorrow FM-Pa g e Advertisement in The Times 1 for Our Sensational Anniversary Sale Values $ 5“ For Slogans Is Good 0 Kay.” Watch our ads. may be a winner. H^rV LLIlK Watch for Our Daily Advertisements in Which Winnings Will Be Announced - M

ernment seized from German owners during the war. His Expected Story Merton, who Is expected to say that he connived with Miller and Daugherty, is looked upon now as the main reliance of the Government in its efforts to send to jail those two high officials —the highest ever prosecuted foo an offense of that character. f ’ . Merton’s testimony is expected to recount how he metyTohn T. King, Republican politician'of Bridgeport, Conn.; through him met Jesse Smith, the somewhat mysterious confidant of Daugherty, who committed suicide, and finally, with the help of those men, met Daugherty and Miller with the result that the $7,000,000 in assets of the American Metal Company which he sought, tvas returned to him. * Check l'or $6,500,000 Merton actually received $(1,500,000, handed him, according to the prosecution, in the form of Government check brought here by Miller personally and presented at a gay champagne party in one of New York's finest hotels; a party at which Miller, Merton, Smith.- and KiQg were guests. Os the remainder of the $7,000,000, a total of $391,000 was in Liberty Bonds and U. S. Attorney Emory R. Buckner expects* Merton to reveal that these bonds went into the possession of King. Then, through records and other witnesses, the story of what King did with the bonds will he pieced together—a story expected by Rucker to reveal that Daugherty, King, Smith and Miller all received a part. Story Just Started s Merton started his testimony just before the close of Wednesday's ses-

sion of court. He progressed in his recital only to the point where he came to New York and met King. IThen adjournment was taken. But Merton’s brief period on the witness stand revealed him as a romantic character. Os medium stature, he was carefully dressed in blue, with black tie, highly polished shoes and spotless linen, his personality gripped the court room. The eight women in attendance fairly caught their breath as he strode forward, with long steps and oonfldent manner, carefully seated himself and then gazed squarely at Miller and then at Daugherty—the two men he is claimed to have used in alleged illegal dealings and whom he now may help convict. A German Citizen Merton is the son of an English mother and German' father, and is a German citizen. He heads a powerful German firm —The Metallbank of Frankfort and the Metallgesellsehaft or Metal Trust of Frankfort; and the Societe Suisse Pour Valours Meteaux of Switzerland. The Metallbank and the Metallgellschaft owned the American Metal Company before the war. It was seized as alien property by the Government and came under Miller’s control. In 1921 Merton having first allegedly organized in Switzerland the Societe Suisse Pour Valeurs Metaux as a sort of holding company, sought return of the American metals assets to the Swiss concern. A “Blind” The method by which this return was accomplished is the basis of the present trial. The Government

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charges that the Swiss concern was merely a “blind” behind which Merton and his associates in Frank-fort-on-the-Main operated and that return of the property to the Swiss organization was illegal. The trial, only started, is expected to consume many days. Through it all will move the names of men who ! figure largely in the Senate's invest 1 .- j gation of the Department of Justice two years ago. Jesse Smith, Daugherty’s friend; Mai Daugherty, brother of the former Cabinet officer and a banker at Washington, Ohio; King and many others move through the story as important characters. Already it has been revealed that bank records of Mai bank covering dates of entries which might be important in the case, have been destroyed: but the Government has a mass of checks, records and verbal evidence, gathered over a year or more of investigation, which represents one of the most detailed cases the country's courts have sfcen. U. S. OFFERING taken New Treasury’ Issue Heavily Oversubscribed. Btt United Pre*s WASHINGTON, Sept. 9. —The new $350,000,000 Treasury certificate issue floated Sept. 7 was heavily oversubscribed and hooks will be closed tonight, Acting Secretary of the Treasury Winston announced today. Winston said there is a scarcity of Government securities on the market at present and this indicated a lower interest > rate would be fixed on the next financing issue. The new issue was per cent as compared with a rate of 6 per cent five years ago.

TWO UNDER EIRE, OUIT POLICE JOBS Woman and Patrolman Give Resignations to Chief. Police Chief Claude Johnson accepted the resignations of a policewoman and patrolman Wednesday night, following investigation of al-

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legations that they had frequented places where liquor was sold. Those who resigned were Hettie Brewer, Negro, 714 W. TwentySixth St., and Patrolman James W. Collins, 445 Parkway Ave. The policewoman resigned after Rose Majors, Negro, 40, of 1712 E. St., was arrested by Federal office**? who alleged they purchased “white mule’’ at* his stand at the State fairground. Hettie Brewer was said to be a partner in the operation of the stand. Collins was alleged to have been seen at the house of John Cox. 730>4 Ft. Wayne Ave., arrested by Fed-

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eal officers for selling beer. Attorney Edward Little, who was defending Cox, made the allegation that policemen visited the place and drank the beer. FARM BODY TO PICNIC Federation Outing Sept. Hat Turkey Run Park. First state-wide picnic of the Indiana Farm Bureau Federation is planned for Sept. 14 at Turkey Run State Park. The outing will he in connection

KEI-T; 9, 1926

with the fifth district meeting. Talks will be given on the proposed State income tax. Speakers include William H. Settle, federation president; > Albert Stump, Democratic candidate for United States Senate, and Secretary of State Frederick E. Schortemeier.

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