Norwich bulletin., 1922-02-28


sons. Erwin. Benjamin and Harry Morse,
ard eight others alleged to have been
associated with him IN connection with
wartime shipping contracts, were today
indicted by the federal grand jury on
charges Of conspiracy to defraud" the
United States and the Emergency Fleet
corporation
Those indicted, in addition to Morse
ari his sons. were:
Colin r. Livingstone. former president
Virginia ShiphuiidinE corporation, ana
president Of the Boy Scouts Of America
George ". BUrditt attorney for the
Morse interests. especially the United
states Transportation, Co, Inc.
Nehemiah X. Campbell Of New York
assistant treasurer United States
transportation Co. Inc
Runert N Much. Augusta Ne. assist
ans treasurer Virginia ship5uilding cor
porsuou-
W. ". scott Washington. D. c.. attor-
nsy Tor Virginia shipbuilding corpora
ton.
Philip ReinharVit. auditor for United
States Fleet corporation. Alexandria. Va.
LEONARD b. Christie treasurer Virginia
81 f.ptuildinE ce<aorstion.
Robert o. White, assistant treasurer
Groton Iron works and president United
Two indictments we're returned, both
covering identical transactions and ac-
using The same persons. One charges a
-onsplrscy % defraud the United States
and tho other a conspiracy to commit an
'0ense sEains, the United States by de-
'raud'ug the United States shipping
soard
United States Attorney Peyton Gordon.
t WAS stated will require the defendants
a=- 81
Freme court FOR srraignment when thev
-zn b released under $4,000 bond in
each case
IN settlement issued after the indict-
mcuts were returned Mr.. Morse charged
tiat The Indictment. which IS terribly
1nIusr- as VIII he proven laser. I believe
Fss secIred because Of personal feeling
aEslnst me- on the part Of Attorney Cen
-r-i pauEherty and certain present Off
,ais ~ tne United States shipping
ran4 Ar Morses attorney, Wilton J
lambert said that indictments against
Mr Mcrse and. his associates would
refer have been returned had they been
l'ermitred 20 ap1car before the grand
jury and that The defendants all will be
1runlpty acquitted as soon as the real
and actual evidence" II presented
The contracts between the Emergency
Fleet corporation and the Groton Iron
- HNN|t lAlH Ut HNlNa HllNnUlQinE cor
11rafl0n, on which charges resulting. in
.he indictments were based. involved an
im0unt ss q 70 approximate {fs, 600 900
No eElmate was made however in the
.rflctments ~ the full amount which the
DEFENDANTS are charged with having mis-
appropriated. and Fletcher Dobyns Of
lh.caEo. special assistant to the attor-
1ry general. who prosecuted the investI-
-sfions for the government. declined af-
= HHI H-HHT TnHaH-
Innate the amount Of money out Of which
p alleged the United States was de.
f-auded, but * was understood the sums
which Tire government alleged were mis-
appropriated amounted 10 several million
dollars
False PretensIons.
The indictments charged the defend
7nrS specially with falsely pretending to
he shipping board and the feet corpora
Jon that the shipbuilding corporations
hey represented would be able to erect
and equip from their own funds ship
'uIdinE plants Of sufficient size to en-
abe them 10 carry out contracts given
-neu by the feet corpora ton and to uro.
,ced without delay 20 the construction Oh
fesseis. The intention Of the defend.
ants it was alleged. was 10 obtain large
sums of money from the feet corpora tior
'y falsely representing that said sum,
rou'd he used for construction Of vessels
and ~ divert large sums from the shi,
,n0efric,ion Tor the erection and eolin
renf of plants and housing facilities am
tfus convert the funds 10 the use Of tn
s1iphuisdinE corporations and themselve
and 70 delay ship construction.
The Indictments further charged tha
tho defendants falsely pretended tha
large sums OF money were due from In
Gee corporation as progress payments
ani obtained The money when they knev
it vas not due. Similar charges wer
made tna- WHEN the defendants repre-
sented that their corpora tions had invest
81 lsrze amounts in shipbuiiding plant,
and for hat reason alleged the plant
were adequate security for loans an
advances. they defrauded, all the tim
moving in truth and in fact the co,
porauons would not have invested
-hcir said plants the large sums attrit
1fed 10 them
sold Masses Of Material.
Large quantities Of material were Oh
.si-ed from the feet corporation by III
ieferisnts FOR the construction Of vesse
and later. the Indictments charged. til
1--endsuts sold great masses of the ma
-eriE and converted the proceeds OF III
-a'rs to the corporations and themselve
was also charged that the defendant
rlucf; the shipping board officials
u-n over 10 the Virginia Shipbuildin
-h.-porz tior slch of the vessels tha
Wouii b. finished Al the Virginia plar
und to fh~ United States Trsnsportatio
Co. Inc. such Of ihe vessels that WEI
bulk At The Pant Of the Groton Ire
WORKS at Groton. Conn, under mansgir
and operating contracts whereby the,
operations we're 70 operate the ships
Interstate and foreign commerce, and
account 10 Tire shipping board for II
re-srue resulting from such operstio
81 The time the ships ware turned owe
The Indictments charged. the defendaii
ry0cctsd and intended 20 fail and refu.
to account for large part of suoh rev
nue. and 70 convert a large part Of u
revenue 70 the use OF themselves and
fsl and refuse 70 liquidate the great
part - the charges against the vesse
irrurre-i IN thsir operation and to perm
such charges 70 become liens upon ther
NAch re feet corporation would have
pay.
OHeuses Against United States.
The Indictments further charged TIL
continuously throughout the period
line exteding from April rs. 1917.
he day # The finding Of the indie
1eni, the defendants "conspired, cor