New-York tribune., 1921-11-30
Indictment Of
Morse Sought
In Ship Fraud
Government Officers Will
Go Before Jury OH Dec.
. 5 TO Submit Findings
Of Four.Mollsh Inquiry
Others May Be Involved
Dobyrs, Who Conducted
Investigation, Will Sub
pnna Fifty Witnesses
From 7ne rrsoane's wosAsnoton Bareau

From The Trsbwne's Washinoton Bureaus
WASHINGTON, Nov. 29.--After q
four onth investigation, the govern
ment Is now prepared to appear before
the Federal grand jury Of this district
next week and urge that Charles w
Morse, New York financier and pro-
noter, be indicted for alleged fraudu-
lent actions growing out of his con-
tracts with the United States Ship
ping Beard during the war.
( It became officially known to-day
that Fletcher Dobyns, of Chicago, who
had been attached to the legal depart
ment of the United States Emergency
Fleet Corporation, has been appointed
q special assistant to the Attorney
General to present the governments
evidence against Morse to the grand
j,.ry. He will appear before the in
dieting body ON December 3 with all
the evidence gathered in the eXhaus-
tive investigation which he and ii spe
cial staff of investigators have been
engaged in since early in July.
Mass of Evidence Ready
While neither Mr.. Dobyns nor MEM
bers Of the Shipping Board would dis
cuss the case to-day, except to admit
that the investigation has been COM
pleted and the case will so before the
grand jury next week, it is known that
q mass of evidence has been gathered
against the New York shipbuilder. The
government will allege that through
fraudu 'ent actions Morse has benefited
by several millions of dollars.
Mr.. Dobyns will ask that subpenas
he served on upward Of fifty men who
were connected with the Shipping Board
and Emergency Fleet Corporation dur
ing the period of Morse's operations as
well as those who have been assisting
in the investigation. The official rec
ord Of the Walsh investigating commit
tee. which conducted an exhaustive
probe into the conduct of the Shipping
Board during the war, also will be placed
before the grand jury.
The grand jury will be told that soon
after the entrance of the United States
into the war Morse came to Washington
with certain men prominent in politi
cal life and secured contracts from tbs
government to build wooden and stse,
ships for the United States. These
contracts were for the building Of
twelve wooden hulls at Noank, Conn;
twelve steel hulls at Groton, Conn, anc
twelve steel hulls at the Alexandria
| Va, plant of the Virginia Shipbuildinf
| Company. The total amount involved
| in the contracts was approximately
| 40,0o0,0oo.
| Difficulties Have Grown
Morse and his associates got int'
! difficulties with the Fleet Corporation
and with their creditors early in thu
| life of these construction contracts, ant
1 these difficulties have grown to be NOR
I and more serious from that time t.
| the present.
| Soon after Mr.. Lasker became chair
man Of the Shipping Board, Genera
Counsel Elmer schlesinger began
survey of Morse's contracts with tn
board. This examination convinced tn
| Shipping Board officials that all o
Morse's transactions with the govern
ment should have the most careful in
vestigation. With this in view MI
Schlesinger in July induced Fletche
| Dobyns, of Chicago, to come to Wash
| ington to direct the inquiry into tn
Morse case. Mr.. Dobyns was an assist
ant to the Attorney General unde
President Roosevelt and successful
prosecuted John r. Walsh, president G
the Chicago National Bank. He acte
in similar capacity under Presider
! Taft