UPDATE 1-Soldier said he endured slurs from sergeant charged in death

* Sergeant accused of hazing shy Chinese-American soldier

* Negligent homicide charge could land him years in prison

* Seven other superiors also face charges in the case

(Adds details)

FORT BRAGG, N.C., July 25 (Reuters) - A black soldier

testified at a court-martial on Wednesday that he endured racial

slurs from the same U.S. Army sergeant whose hazing, according

to military officials, led a Chinese-American soldier to commit

suicide.

Private Marcus Merritt said he also considered killing

himself to escape the verbal abuse of Sergeant Adam Holcomb, who

Merritt said called him "niglet" and threatened to send him home

from Afghanistan in a body bag.

"He was in my face constantly," Merritt said on the second

day of Holcomb's military trial in Fort Bragg, North Carolina.

Holcomb, 30, is accused of hazing both Merritt and Private

Danny Chen, a 19-year-old born in New York City to Chinese

immigrant parents.

The sergeant faces a more serious allegation of negligent

homicide in connection with Chen's death. Military prosecutors

say Holcomb's physical mistreatment and racial harassment pushed

Chen to kill himself by gunshot in a guard tower in southern

Afghanistan last October.

Holcomb, who has pleaded not guilty, faces nearly 18 years

of confinement and a dishonorable discharge if convicted of the

charges against him.

Seven of Chen's other superiors from the Alaska-based 1st

Brigade, 25th Infantry Division were also charged in the case

and will be tried separately.

Holcomb's attorneys argue Chen killed himself because he was

failing as an infantryman and had been disowned by his parents

for joining the Army - an assertion Chen's mother and father

denied from the witness stand.

The service members who testified on Wednesday described

Chen as an inexperienced soldier who struggled with the heat,

routines and physical demands of deployment after joining a

small unit in Afghanistan in August.

NEVER MENTIONED SUICIDE

Specialist Zachary Bolin, a platoon medic, said he kept a

close eye on the new, young soldier. He said Chen was quiet and

shy at first, but Bolin noticed in the week before Chen's death

that he talked more and started hanging out with groups of other

soldiers.

"That took my guard down," Bolin said.

In late September, Bolin said Holcomb asked him to look at

Chen's back. Chen said it had gotten scraped up when the

sergeant dragged him across gravel after the lower-ranked

soldier left a water pump on in a shower against orders.

Chen never mentioned suicide, even when Bolin specifically

asked if he was considering it, the medic said. Five other

soldiers said they never saw signs Chen was suicidal.

Some said he did seem to get picked on or singled out more

than others for punishment. They said they heard Holcomb call

Chen racially derogatory names including "dragon lady," "Jackie

Chen" and "egg roll."

Several soldiers testified Chen never said whether the names

bothered him, but Private 1st Class Adrian Douglas said Chen

told him the references sometimes angered him. "But he felt like

he couldn't really do anything about it," Douglas said.

Holcomb's attorney said on Tuesday the sergeant only used

the term "dragon lady" and meant it affectionately in a military

culture where nicknames are common.

Private 1st Class Joshua Morgan said he and Chen were close

friends. Though Chen usually was in good spirits during their

deployment, Morgan said his friend confided that his parents had

disowned him.

Chen's father, Yan Tao Chen, denied on Wednesday that he and

his wife had cut off contact with their only child.

He said he thought "it was a glorious thing" that his son

joined the Army. "What I am most happy about is he was able to

choose what he wanted to do," he added.

(Editing by David Adams and Todd Eastham)