The Union daily times. [volume] (Union, S.C.) 1918-current, 1922-10-27
WOULD WITHDRAW
MORSE CHARGES

Alexandria, Va, Oct. 26.-Attemp
by counsel for the government t,
withdraw all charges Of conspirac,
and fraud laid against Charles w
Morse, New York shipbuilder, and hi.
various companies in the case now il
progress here failed today wher
Judge Waddill in the federal court
for the Eastern Virginia district re-
fused to entertain the motion. The
court upheld attorneys for the com.
panies in their contention that it
would be most unfair to their clients
to amend the bill 80 drastically at
this late day after the charges had
been widely published.
The governments motion was sub
mitted by former senator Edgar T.
Bracket, acting as special assistant
to Attorney General Daugherty in the
case against the Morse companies.
His action created surprise in the
crowded court room, which had lis
tened throughout the day to dull tes.
Simony regarding the financial condi
ton of the associated companies and
details of the contracts given, some
Of them by the emergency fleet cor
poration.
Earlier in the day Mr.. Bracket had
moved to eliminate from the case all
references to the Groton Iron works
of Groton, Conn.,, which was named
with the Virginia Shipbuilding cor
poration in the governments suit to
recover about $1s,OOO,OOO advanced
to cover construction expenses. Oh
lection was made on the ground that
he same charges of fraud" lay
against the other defendants.
IF than defendant is dismisses it
is dismissed as to every allegation"
Mr.. Bracket explained.
William A. Barber, chief counse
for Morse, then read in detail para
graph 25 of the complaint bill which
charged, tha. the defendants had "con
spired together to defraud the Unit,
ed States government by obtaining
large sums of money to which they
were not entitled through manipu
lation Of the stock and assets of the
individual corporations.
I'VE now have the government
coming here" MIR. Barber continued.
''and saying: We will exonerate one
|of. the conspirators and will leave the
others >" - - ~ -'-- ---''--, ,----'-'
at has not been and is not the in
tention of the government to offer in
this trial any evidence under the 25tt
paragraph of the bill," Mr.. Bracketl
told the court.
Judge Waddill, after short con
side, aticn, denied the motion as to
he Groton company and that which
to conspiracy and fraud wherever ap
pearing.
"Unless counsel can give some spe-
cial reason" the court ruled, II dc
not think we should stop here to
amend the bill"
An exception was taken on the par
of the government, indicating that ir
case of appeal the refusal of the
court to permit withdrawal Of the
hcarges would be one of the points
carried to the higher courts.
Counsel for the Morse companies
declared tonight the action of the
government in effect was "confes-
sion of error" and indicated com.
plete collapse of the case. They
looked for early issuance of de
cree from the local court brinGina
this phase of the Ease TO forma
conclusion. There would remain the
counter suits-that of the govern
ment against the Virginia company
for $18,00O,00O and of the Virginia
company against the government fol
sc, 100000. alleged to be still due or
the ships constructed under the emer.
gency fleet contract.
A separate suit is pending in Con.
necticut wherein the Groton Iror
works seeks to collect $13,000,00(
from the government as balance du,
for construction of number of ships