MOnSR-DJUGHERTY FEUD STARTED AS "ICE
K11U
FORGOT GLITTERING PLEDGES MADE IN PRISON
IV
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Banker -Promoter Ate Seap te Simulate
IH.. j;.,e
Illness While Lawyer Pleaded With
President Taft te Free ' 'Dying Man ' '
Who Premised te Make His Peliti
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cal Legal Liberators "Rich Men19
FRIENDSHIP BECAME HATE
WHEN EX-CONFICT RENEGED
ON $25,000 CONTRACT FEE,
Harding's Cabinet Shaken by Charges
When Attorney General Turiis
Official Guns en Client, Who Has
Been His Hoodoo Felder, Anether
Figure in Drama Which Has Wen
Natien's Interest, Has Unwittingly
Served as Ohioan V Evil Genius.
TS THE legal machinery of the Federal Government beinp used by
Attorney General Harry M. Daugherty te pay off an old grudge?
Is Charles W. Merse, New Yerk banker and promoter, te be "pun
ished" for failure te pay a $25,000 fee te Daupherty and his associates
when Daugherty was practicing law in Ohie back in 1011 and 1912?
Would Merse and his associates have escaped indictment and prose
cution new if Merse had "come through" ten years age or at any time
since, and paid Daugherty for getting him out of the Federal penitentiary
in Atlanta while serving a sentence for a previous offense?
And are Daugherty and Merse out te "get" each ether new te settle
old scores Daugherty trying te put Merse back in the penitentiary en
fresh charges of fraud and conspiracy in the world of high finance
Merse trying te discredit Daugherty before the country and force his
realgnation-frem the Cabinet, if net involve the Attorney General himself
in an action for conspiracy?
Strange questions? i regime of President Taft. It in-
They are raised by the develop- velves alleged offenses said te have
ments of the Merse-Daugherty feud, been committed in the terms of
The charges and counter-charges fly President Wilsen. Recently Merse
thick and fast. Interesting letters ' was indicted en evidence gathered
and documents, long hidden from ' by officers of the Government re
public view, suddenly appear in spensible te President Harding.
print and are read in Senate de- Once Merse and Daugherty were to te
bate. Stories that cannot be printed ' gether. New it' one ngninst the ether.
circulate about Capitel corridors
And Merse is under indictment en
charges pressed by the Department
of Justice, of which Daugherty, as
Attorney General, is the official
head. A banker and financier pros-'
ecated by his erstwhile lawyer, new
risen te eminence and power ! Surely
times de change!
Daugherty, one of the mighty men
of the present Administration; his
hoodoo, Merse, and his evil genius,
Themas B. Felder, who seems te be
constantly bobbing up te embarrass
Daugherty, unwittingly, in unpleas
ant complications.
Politics, War, Meney
in Sordid Jumble
Of course, there i3 a political as
pect te it al?. There always is in
Washington. Politics, finance, the
war nnd event thef .rrrA i !,
. "---"' the penit'iitlarv
course c-f three national administra- ..Thw enlj one mnn who cnn hf,p
tiens, all figure in the story. Someijeu te obtain our freedom." he told
of it is old. Part of it is new. Its ?'nrv " M'b-"1"'-,('- ''That man is
MMtfif,'nn, v v--i- : i .t Haf'1 IXuighertj, of Columbus, ft.
immlflcatiens reach back into the I Dauh-hert is as dose an any man in
THECONTRACT
ANDERSON, FELDER, ROUNTREE & WILSON
ATTOBNrA's-AT.I.WV
OFFICES 327-341 EQUITABl.K HI II.DINf,
Clifferd L. Andersen
James L. Andersen
Themas B. Felder, Jr.
Daniel W. Rountree
Charles G. Wilsen
Geerge P. Whitman
Atlanta, August 4th, 1911.
Mr. C. W. Meree,
Atlanta, Ga.
Dear Sir:
In further relation te the employment of Hen. H. M. Dougherty
and mytelf, permit vie te gay that wc will undertake te represent you.
in your civil and criminal matters upon the following basis
l: Yeu arc te pay Hen. H. M. Dougherty a retainer nf five thou.
sand ($5000.00) dollars and the actual expenses incurred by him i;
Iceking after your matters. Expenses net te exceed $1000.00.
S: l will pay such expenses as I may incur in connection then
with. .1: Yeu arc te direct counsel heretofore employed te vithdrn-u
your appeal in the habeas corpus proceedings heretofore instituted.
It: We are te receive, in the cvrnt wc secure an unconditional
pardon or commutation for you, the sum of $25,000.00, which is te be m
full compensation for services ridercd in connection with your appli.
catien for pardon.
5: We are te receive SS?c of whatcicr sums wc may he able te
recover by compromise or litigation in the matter of the Metropolitan
S. S. Company, said transaction being fully described in your letter
addrested te me dated August Snd, 1911. Jf we find it necessary in the
prosecution of these matters te have associated with another counsel
we are te select such counsel, subject, of course, te your approval, and
they are te be provided for out of your compensation.
6: In all matters herein undertaken in your behalf, vc are te
have full and absolute control, and you are. te accept implicitly our
counsel and advice.
Ne. SC, W. M.
, lt the above and foregoing terms arc sati$facte)y, you will signify
acceptance mereej m writing.
I remain,
Yours very truly,
THOMAS B. PKLDp:p
you can terminate this contract at nny Hmc after January 1st
It, by giving ten days' notice in writing.
!i
Lmiat ... . , .
4a? -""' " wove, i its, me
t
IFl
An eye for nn eve nnd n teeth for a
teeth." Let him who is littest sur
vive .'
Te take tip the story chrnnolngi chrnnelngi
cally Mere, a New Yerk hanker, trans
gressed th Natien' laws. This wn
rears age. Twelve thirteen while
Tnft was President. He was tried, con
victed, fentcneisl te fifteen years' im im
prienment and (-cut te the penitentiary
in Atlanta te serve his term.
Meney i powerful It can buy man)
tilings legal ervicrs, for example
Merse hail it. or win supposed te hne
it. That should be borne in mind.
While in the penitentiary he formed
the acquaintance of a newspaperman
nnmed 1 . 1. scclej , editor of an At
lanta paper Through Seelcy he met
a lawyer, r elder. Scelcv ii interested
In Merse's east phllanthrepieallj . lie
said afterward. I elder became Inter
ested an Merse ., lawyer net philnn
tnrepicniiy, it develop-, mat a
i beginning
the
I . Ul" ny elder called en .Merse in
THnf A B n Per nnr
, . -.u . uuvni.
wi aay,of August, 1011.
C W. MORSE.
.BBBBBb BEk. " SjMF SBBbB i' 7$6. iOUfa, ' M BBakBBBBBBBBBBf sSyBspBsBJBsBBBBBwBSVBBSBMMBMBWBMA III iLiu i
SSSSSSSSSSSSSa - BBRPrBf BHBBBBBBBBBBBB- .PABrBmBBwBHBBBBBBB f .fg?aBBBaBBBBBBHHLBBBBBY9rBv'QBEBr!s iVSSwiO'S A m aaBl
Charles W
the country
te President Tnft. Au.
therize me te employ him ami he'll pet
you out, if nnv one can.
"Ieiie;" Fald Merse. "I'mpley
him I"
Keliler wrote Paucherty. Daugherty
went te Atlanta. There were con
ferences in Atlanta. New erk. Wash
ington, Cincinnati. One da Merse ex
claimed te his ntternejs. l'elder nnd
Daugherty. ncrerdini; te Keldei-'s state
ment :
"(Jentlenun t will make you both
rich if jeu will git me out of here!"
That was n snecitir nremlie. A con
tract had bicn drawn nnd signed by
which Met se agreed te pay $2."i.000 and
expenses if thev obtained his full mid
unconditional pardon or commutation of
-s-uiriiur. ill iiiiiiiiinn nc Miiuiuceieci
te pay them $100,000 mere, If they
would get him out Then it way he
premised te make them rich.
The l.iwei witit te work te earn
their fee the fee they hoped te get.
Petitions were circulated. Thousands
signed them Mi Mere herself took
one te public officials in Washington.
The Attorney General of the United
States. Mr. Wickersham. was inter
viewed President Tnft wi interested
Daughertj called at the White lleuse.
In the meantime Merse showed signs
of breakdown. He became thin. He
coughed. Urlght's disease, n malady
of the kldnej.s frequently fatal te men
of middle use, was Indicated by ills
sjinptems. 'Ihere were ether complica
tions. Civil phj.sicians examined him.
Telegrams reached Wa-hingten.
Klnallj. after the heat of the presi
dential election wns ever, President
Taft said te Daugherty:
"I'll hate Merse examined bv a com
mittee of medical experts. If they s.-u '
he is in a irltlcal condttlen he x'ill be I
released. If net he won't."
Agnin tin- banker wns examined, this I
time by nnnj surgeons. He was worse, i
His condition was considered grave. The i
plnsidnns se reported.
One dav a lejcgram came te Wash-
'Ington from Atlanta
".Miii-si' ..in't lte a week If he stays
IITC.
BBaaaK'S9BaaaBaaaaaaBR&' ,!. btBLw WuLt,s
Attorney General Dougherty
Dinijjerh and 1 elder were in Wash- -j'mt is the background of the feud. Merses Career Is Full
ir.rften as the appeal for Merse s pur- Heeent events are better known. They nf vnprtnriitn F.twnia
den ic aihed its climax. One day there Uhnw Merse and two associates under, "' 3PtcCr nueius
was i leiif'-n-ncp in a newspaper etl'ue 'indictment In New Yerk en a charge of' Merf'b career ns a spectacular pro pre
The editor went te the White Ilnusi lensplrac te um- the mails te defraud, muter In New Yerk und elsewhere be
President Taft nnd the newspaper pub- I gi owing out of the sale of n Si", 000,(100 fere the World War was often charae
lishn hi'd n long oiiersutlen ever theteik issue of the Cniied Htates Steam- terized. both In and out of courtrooms
teletiheiiH In an hour or two tin1 edltei liin f'uiniMlil . .. Merse coriierullon. I mul In business conferences lesultlmi
came ba'k He can ml a pardon for
Merse Daugherty hud wen his fee!
Hi- and 'elder took the pardon te
Atlaniii Merse wns freed nnd lmstined
te Neu Yerk. A day or two inter heiwun m r luiurui-m uuiuiiiuu uv wic ir-
sailed for l.urepe. Ann tne xcu lias
i never hi en paid.
Wlint happened behind the scenes?
Several things. Fer Instances:
It inns appears that Merse, either of
Ills own initiative, or at the suggestion
of some en" interested in getting him
out of the penitentiary, sw allow cd soap
and did sevci.il ether unusual things
I which iiiuM-d him te become emaciated
' nnd show s inptems nf critical illness.
The phjhicinns who examined him were
deceived successfully. Presumably they
reported honestly thnt in their opinion
'Merse wns about te die, or nt bebt could
! net live long.
I Yet Merse recovered with surprising
speed and has pursued an active busl
ness career since shortly after his re
'lease. Documents nnd letters which have
.slnen become public show that Felder
Und Dnughertv tried te collect the SL'fi,
'000. nnd failed. They were offered
stock In this amount In the Merse Se
i curltles Company, one of the banker's
promotions. Daugherty declined te ne
Icept. Felder later did. Hut Daugh
erty. in-cording te his own statement,
iccelved nil told only "about XIO00."
I which, he declares, wns hardly liulf
1 enough te cover bis actual expeanM.
-- .w xxxtmum ' 2M , Miwam ;
LAW OFFICES OF 1 VVjl SBrffSJlsSffilr T i Zfl HfiH "
I Daugherty, Tedd & Rarey. WJf VHH '
Wyandotte Building, "Wmlfr "CSr Mm viKBl
celumbus, ohie. V(mmyfrfr&. flmSaanmJrl
H. M. OAUCHEHTY J. E. TODD ft. R. RAREY I.I MfmkfflW&L I mhSSSvalIbiBfr ''
lH UiBi M ISriJ- llBlSmlBliBfAr JjfivJ film
Aerii ae. 1013 IN Uln. rjfcfss : vMUMUMBLW '&&& Him
Mr. C. W. Mer3e,
KeTi Yerk City.
M? dear Sir:
I enclose you- herewith copy of the letter
setting 'forth the contract you made of August 4, 1911,
pith Mr. Felder. for his services and mine. Yeu will
observe-that I was correct In the statement that thei-e
wa3 a balance due of $25,000 v;hen you were commuted , 1
also hand you a copy of a paper you handed me in the
prison some tine after that tl:r.s, ind I have today
asked Mrs. Daugherty te send te you by express the
papers which I get fre.n Karry and ethers fre.n time te
time, nhich you 3peke te me about.
As 1 advised you I have telegraphed Mr.
Felder, and written him, te nest ne there ith you
next Monday or Tuesday. I will advise -you as seen as
!HHiiUUilll!tMUIMl!!lll!U!!l!li!!ilMllll,Jlll!
t
J&
uml the r. piesentatlens en which it was
sold , nnd under Indictment in the DIs-
trict of Celuiiibiu en charges of having
'h fniuded the (Jeveinment in connection
. .imiiuuimini, iiinnii, "
(iroten Iren Works f'empany, and ether
Merse corporations. The New Yerk.
Indlrtmcnt was procured In April. The
uurncr. "in iwum precu -uiiik laster
Wnshlncten ni ctment was returned In "'"" '". "'- ;".-. : ; ' i ' " " s..e uu Uik worn ns we
February. PvnK "et u,',':l,li!e "' l"'1 mrK nstive ns I could, leu pay the $1500 te me ,,V"-UI" " L-oiperauons. lie grndii
inti" -rUu rn,c i nuimy, it was cencenea ny even niB nnil ill pay his m ary." ' " ,""'" "'-r -c nnu went n
, .FrtV-":rri1.sr0,eher,. rne.nUs : h.K follute read, ten rank Thp fn1(lp ...,,,. lllfc ,, '"?. nte . steams lips. H,, ,,,
i .:",..."' ..".-. . ns a camnin ei inausiry wns inui te !. ... --- mih . ...... iumu s mc nicams im k
1 ' ""8r.." u. ;.p"rn".'i'1 . hH following his own school of ethics. """..;. ;: .. 'y.n'e?" .'"""r.".-. .'Ie,llls tnancial nietheds were almes
' ;..:. "',.. "L. i r",." ? "' " Ills individual process of "playing the :.":"' .JT '.'.VT '""" "lur. Muying variably the same, no mntter w
uiuKivrij mr nui iiuviiiK iirucrciien ,, n... i , i...i." njiimirnuu niiuecih nr i mun ,. i-..i i tti..iiA,i iiiu ,.in.. i.t..
!, .... .1 r ..... Ujil ..;.:iirat
new. te nrlnir Merso nnil the elheru inl"' v. :.:.: . . .
trial.
.. - .-- , . ... v.u v
Senatorial attacks in Daugherty come
principal!) from Demecrnts, with Hen Hen
nter Cnrawny, of Arkansas, leading
them. When they lirst began, Senater
Watsen, of Indiana, u warm friend of
TM lletmwtv'L I ll(.lin,l A tllll lnAen 111.
(he dei-larntlen that Dnugherty did net
get .Merse out 01 1 11c penitentiary, and
had received no fee for doing se.
1'arawav came back with proof of
Daughertv's connection with Merse's
affairs In the form nf the, centrnct nnd
correspondence disclosing the Inside
utei-y for the first time.
Daugherty. "smoked out," abandoned
his Initial silence and admitted bavins
revived a pait of the .fl.'.'i.OOO fee.
In the meantime
Merse awaitB prosecution for tbt e(
1 have a confirmation irem nun ei tms engagement.
Yours very truls1
One of letters written by Daugherty in which, it is said, he tried
te collect $25,000 fee for obtaining Merse's freedom
fense.s with which he is charged.
Dauchertj mjs. he won't re&ign from
the Cabinet, but will prosecute wur
frauds and Mer.e.
Democrats a.sk further llcht en
I DauK'herty's previous connection with i
Merse'b affatrt.
Daugherty retaliates by milking pub- " carted in te pinch nickels while
lie the names of these who signed a 1 fe ether neighborhood bon were play -netltien
nuklne h nnrden for Merse in i lnB hall en the let.
1012, among them Cordell Hull, of
Tennessee, then In Congress, and new
chairman of the Democratic Nntienal
Committee, nnd James M. Cox, of
Ohie, then in Congress nnd later In
1020 the Democratic nominee for
President of the I'nltcd States.
And from both bides comes the taunt:
"Smoke screen !"
from some Merse "snueeze" as that of
n super J. Hufus Walllngferd. Ice.
steamships, steel nnd industrials nil
took the fnne.v of the insatiate ambition
et the unquestienauiy slircwu anil SKllleil
manipulator in corporations, properties
and men.
". I V. . ... .,..... .
lnal ,ler,lp 'm nel,P'?y ' " n n'
i i ,. mpnna llrimiid tn he ncn-.lln,.
, and this barred him from
.eunclls in high finance, nnd
among "second-string men"
it.. , inr n
tonnetcli
kept him
of the street.
There is no questioning, however.
that Charles W. Merse has hnd one of
the most exciting nnd eventful nnd me.
' teeric careers of nny mnn of business In
America nf the last generation
. .. Huuiiiinn ill
'ration. Merse
k of his jeuth
was known trem the tiny
nu beini? "inenev tnnd.'
" .'".. 7.' -" ..
mark for himself when n mere boy thnt
he should amass a fortune of net less
than ten millions, nnd he stuck te his
nmbitien until he was conservatively
estlmnted te be worth, two years before
.! 1.- ...... . .
lie was seni 10 Atlanta 1'enltent nrv In
1!)0S. at least SfS'J.OOO.OOO,
Tim present bitter struggle with
DaufUerty recall the caliber of the man
1 .. ....
. fl.ri uiuiinii.n in uuoiureo L'l r 1nnn I .. t.
1 l 'v '. 'v ; $-1&& fillBHBBBBV I
l ' ' ' " A HflRflMBBBr
Bv .4BBa fe'1,RRy vSwvSaBBBr
ffn V'BhBHBhB '& yw S
Themas B. Felder
I .
pa4 " II
Iiii
''iilMtii!iiiUi
i who feucht his uiiRwcrinj;Tvav te power
land millions before his dewnfnll.
Mer(,p h(1H ROn) t,reURh lineugh of
, life's tense mnn.ents te be an old man,
' but he Is still minir nnd sireiif nml
resourceful enough te tight at the age of
Mxty-hlv. He was born In Hath, Me..
An early incident elves a clue or key
te Merse's whole subsequent cnlecr. lie
finished his public schooling in Hath,
nnd his father offered him a job at book
keeping at $Ifi0O a jenr a very respect
nble job In these times.
Yeung Merse objected thnt he wanted
te go te college. "It's either college
or this job," wild his father. "Mnke
your choice, for you can't hnvc both."
Hut the fnther was wrong. Merse
looked up another boy In the neighbor
hood. "Yeu knew hew te keep books, don't
jeu?" lie iisked.
"Sure." said the bev.
"I premised te keep dad's books this
1 5cnr, but I find I can't hnndle the
preposition. I'll pav jeu ?500 if you'll
de the work for me."
i Net even fiftv-flfty.
"IJene," said the boy
Mnrun r.tnrnml tn lilu f.l.n-
. "imi i, ,i,. ii '
. ' n. .t?,.thnUeb J mi offered me
nn ?',D'cl . we young Merse. "I've
doubtful whether any
N?""r p., hP0',l" '' '""'
I ?f, ',n '''" nbnut hnnl-hs
. ?.uU,,,en ,?f ",em'' !m,i ''"''S'm
1 taught
ted ne-
1 it, once It wns made.
i WIiIIa AfnviiA ii nu .lltl fuw....
n it n .
i.rmr(1 J1 i,far,n,'rl'i,11 ""ll ''" cousin,
i J,l,,rr.y ' ;,0e. They bought ice from
...... v ... ....,, nun in-reiiege lie
' , jH, ,lint harvestid It en the Ken
. T, . . . . - '" Illl-
, n,',,p,, U"r M"1 ""M " '" New Yerk.
V,01 yerl"? n ' lrsN"lN they built In n
' .-...... in cuiit'irn
?. r, . tfJl" "ui000 ions of he te a New
'"r, brewer and askul the brewer fn a
, Mif. . A....n TI. . . "
refcieiice. He was sent te a bank which
he found belonged te his customer n
mun ti m, I, .... ...lilt... . .. . ! M
....... ""iiii no minions ii,, , H r.
turn the brewer took a hand at asklnc
for refeiences, b
hJ1!!'1 ,, h,.u' nnn'' ' New Yerk,
but the brewer could iclcsidpli bis fetbsr
ICUf, UUt U S
JtsSln ' ' ;BsjpwsNX 777m
BBBkBnl IbbIbV7I1 1 w MbT fUJWmW. MkflBVB BMVPfBW
in Hath. A telegram CMme back which
lend :
"Wc don't knew wheie Charlie is or
wlint he i doing, but will back him in
unv thing he does."
More and Ills leusin made S.'O.OOO en
that one commit. Meise was 11 ileh man
nlnady when In- was griiduutid. Hlch
thrniigli his own cvrtiens,
The future pioinetir started out im
mediatelv into th.' wmld of big busi
ness. He never was 11 "piker." He
went Inte pine lands in the Seuth, sell
ing entile cuts of forests outright. He
supplied lumber te the Hath ship.v arils.
He went into ice en such a big scale
that he eventually earned the snbniiuet
of "Ice King." He tackled steamships,
operation and management and own
ership until he benej combed the. At
inutie Cea-t nnil trans-Atlantic lanes
with his lleets. He used se much money
in his tiausactinns that In- had te turn
te tiuauee as a natural step.
He get into banks and trust com
panies and finally achieved their out
right control in his giant scheme of in
terlocking business. This meant credit
nnd power te finance new purchases aud
lonbelldatlons.
Earned Early Reputation . .
by His "Hard" Dealing
l'p te 1000 Merse never attracted
public attention. He was simply re
garded as n successful business mnn,
although known and feared nlreadv for
his ability te drive n hard anil pcrhape
sharp bargain. He get Inte politics nnd
pla.ved with Tammanv by taking the
leaders into his big Ice consolidation,
which paid enormous profits.
The sebrlipiet "Ice King" wns the
beginning of the undoing of Merse, for
the title did net sit well with the rest
dents of the metiopelis, and there the
skids of unpopularity nnd adverse in
Iluenee were greased for Merse. Illvnl
politicians and newspapers began te
open up their broadsides and Merse was
Iniiipoenul and caricatured as absorbing
the "bleed money of Hie peer."
At this pencil Merse was beyond the
stage where money means an thing te
a man, except power. Hesldes Amer
ican Ire. which he 1 nnlrcll..,! I,n ...
lector nnd lending spirit In mure than
ally
mere
be-
ng."
: in-
hat hit
flv cytilniiiArl
U flu , lilu . '
In acquiring, for inhtance, a steam
ship line, he made nu offer te the own
ers, usually few In number, for most of
these companies were family nfTnlri
with little outstending indebtedness.
His offer accepted, he reorganized the
company. Hends were issued up te the
value of the physical property of he
eempniiyr equivalent te insurance ear
r ei . Ihose bends or the money from
their sale, innnccd the purchnse of the
inc. Hesldes the bends, stocks were
isMied te two or three times the amount
of he bends. Part of the stock was
held for control of the company and the
remainder sold. What was left vSS
profit. Merse ence told a broker that he
never issued n bad bend, but the broker
countered bv savlnir nn,. tnn, .ui""
with Merse stocks, for be wus "liberal
By such means Merse built himself
up te power nnil great wealth, but
when be was sent te prison his pjrnmid
of companies, with few exceptions, went
down with him nnd IiIm fei tunes vastly '
deteriorated.
Out of prison through the efforts of
Dougherty nnd Felder. he started in te
n pair his fortunes, meantime staving
off the importunities of these two law
yers, in whose minds rankled -Merses
glowing premises et f 01 tunc find nt least
reward for "legal services rendered."
Only n few dnjs out of prison nnd
while still in Washington, overture!
were made te Merse bv Feldcr te collect
the $l!."i.(MHI Daugherty-Felder fee. Ac
cording te documentary eitlcnce recent
ly niaile public ut Washington, Merse
agreed thnt ns seen as he returned te
New Yerk he .venlil send his check for
$2."i,(KK). nnd, as Felder stated in writ
ing, "nnd would tcry shortly thereafter
pay the $100,000." the bonus agreed
upon by Merse nt his own suggestion
while he still wns in prison.
Daugherty and Felder were n.ueh ns ns
tenlshed, 11 few days after Mr. Merse's
return tn New Yerk, te rend in the
newspnpers that he hnd sailed for Eu
rope. They were net only astonished
they were irate, for net n word had
come about that $''.", 000 check.
This was the Inception of the bitter
feu.l that sprung up between the power
ful Ohie political lawyer who wns te
become the Attorney General of the
raited States and the dethroned cap
tain of industry, who was making des
perate efforts te "come back."
Felder, who interested Mr. Dnugh
erty in Merse's behalf, has slnee
cffcctunlly "spilled the beans." The
sequence of events culminating ia
the recent sensational disclosures lead
ing rresident Harding te one of the
big crises of bis Administration as te
what should happen te Daugherty, fol fel
lows :
When the senior Merse sailed off te
Hurepe te "recuperate his health,"
which was charged te have been affected
only temporarily In Atlanta by his
eating of soap, and which said health
he speedily regained. Mr. Felder get
in touch quickly with Merse's son,
Harry Merse. The latter promptly
wrote Felder thnt his father's condi
tion was such he could transact no
business before going abroad, but that
en his return he would settle matters
with Daugherty and Felder.
Propaganda Campaign
Drought Quick Results
Thereafter appeared In the newi
papers of the country numerous ar
ticles Mijing there was nothing the mnt
ter with Merse's health, thnt his re
ease from prison hnd been procured
bv fraud or imposition upon highly
placed persons, nnd urging that Merse'
be sent back te prison. ,
Felder and Daugherty went Inte the
breach nnd defended Merse. Action'
wns stepped and'the stories began te die
nut. After a lapse of months" Mr.
Merse returned from Europe. Daugh
erty nnd Felder again lest no time is
getting te him. There were heated con
ferences and recriminations by Mr.
Daugherty. The latter refused te take
any stock In Mersc'is companies. He
wanted ensh or nothing, nnd if the
lutter, there was some day going te be
a heap of trouble for Mr. Merse, or
words te thnt effect.
Even his associate, Felder, failed te
pacify or mollify Mr. Daugherty, who
felt thnt he hnd been very poerlv treated
after his successful efforts for Merse.
Heth Felder and Daughe"rtv after
ward ngreed te forego the $100,000
bonus nnd they forget the premise
thnt they should be made rich, but they
did Insist upon payment of the fermil
fee of $iJ3,000 agreed te under con
tract. Mr. Felder still bus some "soap
wrapper" securities, en some of which
he raised home money, but the big share
of the fee due the two lawyers
mains unpaid.
Mr. Dougherty, who is credited by
President Harding with having "made
hlin," attained te one of the great legal
offices in the gift of the uatlen, and be- r
came Attorney General of the United
mates. In the ceursn of looking into
the much-dlscusscd war contracts, Mr.
Merse, his bete nelr, pepped ,up in the '
Hnlpping Beard's records una'treniaf'ic
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