New-York tribune., 1918-06-15
Government Rests
Its Case Against
Emerson Motors
Judge Denies Dismissal
Motions Except in Case
of w. A. Morgan

The government rested its case yes
terday against the Emerson Motors
defendants in the United States Dis
trict Court here.
Immediately the defendants attor-
neys, led by George Gordon Battle,
chief counsel for the accused broker,
N. F. Wilson, made the customary mo-
tions for dismissal and instructions for
verdict Of mot guilty" For the
most part they based their plea on the
had been produced to establish the ex-
istence Of conspiracy of all the de-
PENDANTS to use the United States
mails to defraud.
In every instance save one Judge
Martin T. Manton, presiding, denied
the motion. In the case Of the de-
fendapt William A. Morgan, however,
the court reserved decision until Mon
day, when the defence is to begin it's
opening plea.
Morgan Made ''The Truth" Report
Morgan is the man who, according to
the evidence of government witnesses,
came on to this city from Boston in
the autumn of 1916, after The Tribune
had exposed the background of the
stock selling campaign of the Emer
son promoters, and prepared a So
called "whitewash" report of the COM
pany's methods, standing and potenti-
alities, on what the prosecution holds
investigation. Under tn. heading "The
Truth" this report, sign.d by the Nor
gan-Gardner Service, vas published
subsequently as "reply' to The Trib-
une's article by the men who were said
to be collecting millions from the pub
lie on the representation that they had
a project which could rival success
fully the Ford automobile.
The government holds that the pro-
duction of this report by Morgan, after
his attendance at a special conference
IN the Emerson offices, is sufficient Of
itself to implicate him in the alleged
conspiracy. In arguing from this
standpoint yesterday james w. Os-
borne. I'd, Assistant United States At
torney, laid great stress on the gov
ernment's contention that Morgan was
aware of the use to which his report
was to be put and that he was already
IN possession of a detailed adverse re-
port on the company.
That seems rather far Fetched" the
court remarked at one stage of Mr.. Os-
Dorne 8 argument.
Last night Morgan's attorneys were
confident their client would be released
on Monday.
The proceedings yesterday for the
most part were mere recapitulation
been the prosecutions intention to con-
clude with the tales of a number of
persons who, under the lure of the
Emersonian advertisements, had been
induced to invest in the now defunct
scheme. But, owing to the courts de-
sire to hasten case which has al
ready been In process since Nav 23
Mr.. Osborne did not summon these
persons
Statistician Recalled
Elwood Berkeley, the statician who
examined the books of the Emerson
Company and of several of the other
defendants for the Department of Jus.
tice, was recalled and subjected to 6
long cross-examination by STANLEY
Fowler, in the course of which it va
shown that the three-cent value Nh
Berkeley put on Emerson common was
figured on liquidation basis and die
not in the phrase of Mr.. Fowler, make
any allowance for "business prospects,
Then, as it's final Witness the gov
ernment called Garet Garrett, assistant
editor of The Tribune and author Of
the original expose Of the Emerson
campaign.
Mr.. Garrett identified copy of thi:
article. which had already been placed
in evidence, and testified as to the au
thenticity Of the conversations it re
corded with the principals in the EN-
erson scheme.
Asked by Mr.. Osborne if he remem
bered telling N. F. Wilson, on the oc
casion Of this interview, of q visit O.
his to the Office of the defendan
Chaney, the witness replied:
II recall saying that the brokers' OBJ
vlously were making exaggerated state
ments," To which he added that Mr.
wilson had replied that he himsel1
knew the brokers were doing this, but
An account by Mr.. Garrett of how
The Tribune's investigation of the EN-
erson exploit was undertaken, as tn,
result Of numerous complaints receive,
/ by the financial department of thi,
papers readers, was cut short when tn,
Bureau Of Investigation uptown, ant
then subsequently how he PERSONAL,
came to take up the matter in an eff
fort to obtain quicker action for tn,
papers readers was cut short when tn,
court sustained an objection of on,
of the defending attorneys.
In the course Of the witness's cross
examination, Stanley Fowler, repre-
senting the two Campbells. evinced con
siderable curiosity as to the precis
time the article in question was frs
sent to the printer; but this, after tn
| lapse of nearly two years, Mr.. Garret
was unable to recall for him.
$3.50 Bales of Enemy-O Owned
Cotton Bring Hiph Price