Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-02-28
WASHINGTON
DAY BY DAY

Washington, Feb. 28.-Charles W.
Morse and eleven others were lndict,,
ed Yesterday by the Federal Grand
.I1rv ON charges of conspiracy to
defraud the United States Govern
ment and conspiracy to detraud the
United States Shipping Board, an
agent of the government. The m
dictments which charged the twelve
men with having diverted govern
ment funds to their own use were
presented in connection with certain
transactions of the alleged consplr-
ators whereby more than S5,oOo,ooo
was obtained from the Shipping
Board since 1917.
Besides Morse the following wer;
| indicted: Benjamin., Harry and Erwin
4 Morse, sons of Charles w. Morse.
Colin Livingston, president OF the
National Boy Scouts OF America and
prominent local banker; w. W. Scott,
! local attorney; George n. Burdettee,
New York attorney, Rupert M: Much
! former treasurer Of the Virginia
Shipbuilding Corporation, L. A.
! Christie, Nehamiah Campbell, of New
York, Philip Reinhardt, Of Baltimore,
Md, former government auditor sta
toned at the Alexandria plant, and
r o White, Of New York City pres
ident of the United States Transport
Company.
Various transactions alleged to
have been made by Morse and the
others all of whom held various OF.
fees in the Groton Iron Works OF
Groton Connecticut and the Virginia
Shipbuilding Corporation and the
United States Transport Company
are contained in the indictments re-
turned.
The charges made are that the men
obtained money from the Shipping
Board by making false statements
regarding the value of plant equip
ment, that funds deposited to the
credit of the various companies Tor
ship construction were used in plant
building, that false reports were
made regarding progress on con-
struction Of ships and funds obtain
ed.
II is also charged that in connec-
ton with the United States Trans
port Company of which Morse was
the principal stockholder ships on
which the company had an option
were used as freighters for the gov
ernment and the funds derived were
withheld by the alleged conspirators.
An additional charge is made that
certain plant equipment and ma
terial was sold without the authority
of the Shipping Board and the pro-
ceeds retained by Morse and other
officers Of the company.
The alleged shady transactions are
said to have covered period ex-
tending from June 1917 when Morse
was first awarded a contract to
build wooden ships until May, 1921,
when the United States Transport
Company was in full operation using
ships built at the Groton and Alex
andria plants of the Groton Iron
Works.
Records in the case according to
United States Attorney Peyton Cor
don show that the twelve men were
connected with the three different
organizations at various times the
Morses controlling the boards of di-
rectors of the companies.
1t is also shown that at various
times either Charles W. Morse or his
sons would hold the office of presi-
dent in one of the companies.
Mr.. Morse in a statement said:
"The Attorney General, | have
heard brought every effort to bear to
secure the indictment" the statement
reads, because of disagreement
over the fee l paid to him when ne
acted as one of my attorneys in OBJ
Continued on page three)