From dee Owx San Francisco, Sept, 19.
Another official scandal is occupy-ting the attention of this country, he former Attorney-General (Mr. Harry M, Dougherty) and the former Alien Property Custodian Mr, Thos. MIN, Miller) are charged with, having shared in a $291,000 Commission which was paid in conthexion with the payment of $7,000,- 000 to the Societe Suisse Pour Valeur des Metaux, as a result of Yhe war-time seizure of stock the American Metal Company, which was owned by Germans but was transferred to the neutral Swi Corporation, In the maze of a mass of contradictory evidence it transpires that thet Federal Jury have not yet been able to prove that Daugherty and Miller received any of the money.
The principal witness, Mr. Richard Merton (head of the German syndi-ete) said he received: a commission of $250,000 for putting the deal through with the officials of Government departments who paid out the seven million dollars. He also testified that he paid $50,000 as a retainer and $391,000 in Liberty bonds to the late Mr. John T. King for expediting his claim at Washington. He farther told the counsel for Mr. Miller that he "had no suspicion or knowledge or intimation or formation whatever that any offic the United States was to re any of the money paid to King." insisted that the idea of paying a sion originated with hin Belf, The United States Government, however, charges that Daugherty and Miller shaved in the commission paid and defrauded the] Government of thelt "honest, un-Dinssed and unprejudiced service:
passing the claims.
'When Mr. Richard' Merton first arrived in s, merien in April of 1921, his mission was to attempt to recover the assets of the American Metals Company—the Germ concern. He admitted that he had a weak ow claim was not strong, transfer of the stock to the Soci Suisse, a few. days after America entered the war, was oral." All the same, he did not come to the United States, he told Federal Attorney Buckner, with the idea of finding a "clever politician." And then he Bet out to explain.
America "Most Decent" of Allies Merton drew a picture of what: 'he thought America wi nation much different from land, France or others of he Allies. "I did not think Ameri exactly friendly," were his words, "but I certainly knew that they} would be more decent than the others." And so, though he felt he hod not a legal leg to stand on, Merton threw himself upon the; merey of U. 8. Government officials, feeling that they had no desire to Seize private property or to impound it without just and sufficient]
ise. He thought that his claim would be collected if he could show that what he called the "oral transfer of stock" was legal. Then had to clear up other _little peculiarities, which did not appear very clear at the hearing, and which to the average person are not yet clear. He said "My idea was to show that although the Metallgesellchaft. owned shares, Of the stock of the Societe Suisse, that company was indebted Societe Suisse for the amount of the shares of the American Metale Company, which had been offered as guarantee. The guar:
nade to prevent the S ud its adjunct institution. the Swiss Bank. from going into bankruptey. In any case it was not my intention, to' reveal the relation. of the Metaltzgescllschaft witl necessary," for he admitted that a revelation of this relation would preju hi claim, roves The evidence brought out that it] was perfectly clear in Merton's mind that he was taking a hance, He knew that with only the slightest modicum of legality in his claim, he would be an exceedingly fortunate individual if he collected of ownership. he stated that the oral transfer of the shares of the American Metal Company."was Jcaused by pressure exerted upon him and his brother by Leopold Dubois, president of the Swiss Bank Jand a director of the Societe Suisse." The Federal Attorney thought, he!
id, that these two institutions were one and the same, but Merton testified that the Societe Suisse was} Jo holding company for shares of the metal bank and—the Metallgesellschaft. He was then lasked why the Societe Suisse had not asked the American Metal Com. pany to show on its books the transfer of its shares to the Societe Suisse, and Merton, eolouring up, replied in a long and involved manner that he still owned the stock at that time. As a German officer, however, he did not wish to that, would] part that Germany would ultimately lose the war, and he said that on general business principles he had thought it advisable actually to away the stock absolutely necessary, an was quick to add that this action "there was no intent to deceive, but only to protect."
Text read from the printed page and cleaned; old type leaves the occasional error.