Evening star., 1922-01-23
GRAND Jury I|.|.|; BEGINS
MORSE CASE PROBE
Great Secrecy Surrounds In.
quiry Into Dealings of
ShipbuiIder.

The federal grand jury today began
an inquiry into the transactions of
Charles w. Morse, New York ship
builder. and others with the United
States Shipping Board. Morse is under
bond of $4,000 to answer any indict-
ment that may be returned against
him, having returned from France
last December at the request of At
torney General Daugherty and waived
examination before United States
Commissioner Hit. The investigation
by the grand jurors is expected to
occupy several weeks.
United States Attorney Gordon re-
fused to admit that he had begun the
formal presentation to the grand jury.
but the presence of several witnesses
known to have been summoned in
the Morse case confirms the rumor
that the inquiry is at last under way.
The prosecutor declined to give the
names of the witnesses he has sum-
moned or to outline in any way the
result of an investigation of the book S
of several corporations with which
Morse was connected and which were
brought to Washington from New
York and elsewhere under subpoena.
Opposed Book Inspection.
Wilton ]. Lambert. local counsel for
MIR. Morse, at first opposed the in
Spection by the grand jury Of the books
of the c. w. Morse Company and ship
building corporation. He claimed that
Mr.. Morse was the sole owner of
the stock of the Morse company, to re-
quire the submission of the company's
books would be to make Mr.. Morse bear
witness against himself. As to the other
corporation, it was claimed it had never
done business with the Shipping Board.
Later Mr.: Lambert withdrew his oppo-
sition and the books were surrendered
Gordon has had a corps of experts from
the Shipping Board examine the books
and presumably is now ready to show
to the grand Jurors the evidence of
transactions which. in the opinion of
the legal department of the Shipping
Board, indicate a conspiracy to de-
fraud the government
Maj. Gordon declared emphatically
that no information would be given out
concerning the result of the eXamina :
tion of the books except in the grand
jury room where the oath of secrecy
taken by the grand jurors will surround
the evidence.
Early in December Mr.. Morse sailed
for France and before he had crossed
the ocean the Department of Justice
sent radiograms to the ship and to
France in an effort to prevent his
landing. Mr.. Morse cabled Attorney
General Daugherty on his arrival
asking permission to delay his return
for several days that he might con-
suit specialist. claiminb that he was
sick. Mr.. Daugherty answered with
request for an immediate return.
Mr.. Morse then took passage for
America and came at once to WASH
ington, where December 13 he gave
bail before the United States commits
sioner. The warrant on which the
bail was given charged a conspiracy
and embeZzlement.
1t was expected that the Morse in
quiry would be commenced at once.
but as the then grand jurors had only
a short time before the termination of
their service and because of the
necessity of inspecting the books OF
corporations in which Mr.. Morse was
interested it became necessary to
defer the presentation of the case to
the grand Jury.