The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-28
MORSE AND 8 SONS
AMONG "a INDICTED
Continued from First Page.

Watt headed. THE Statement of the
United States Steamship Company"
which went on to say that an appraisal
Of the Virginia Shipbuilding Company
OF Alexandria, Va, and one OF the Gro
ton Iron Works. Groton, Conn. had been
made by Arm of certified public acA
countants and valuation ftheir prop
critics had been placed at $12.b00.000.
Both of these corporations were de-
scribed as subsidiaries OF the United
States Steamship Company.
The Virginia Shipbuilding Company.
according to the indictment. owed
81 600. 900 to the United States Shipping
Board on advances. Tho Groton Iron
Works was named as having owed to
the Shipping Board $1.63s.333. These
loans were to be extinguished by work
IN the construction of ships on a S22.-
600 900 contract. The statement was
also made that there was an equity
balance in the two concerns or Ss,bl4,-
566.
The mailing OF a letter by Gbsnbard
S. Foster from the offices OF v. .
Foster & Co.. 20 Broad street. was an
other ovsrt act mentioned. The letter
was dated May 26. 1919, and discussed
the advantage OF Investments in the
steamship company. Another letter from
Charles W. Morse to Herbert 8. Hobby,
1i16 Pennsylvania Building, Phiiadel-
phia. dated November 10. 1919. went on
at length regarding the affairs OF the
companies. The indictment described
Mr.. Hobby as being lone Of the class
who desired to invest in good stocks"
Barber & Gibboney were mentioned
in long letter sent from the offices
of Barber. Watson & Gibboncy, l6o
Broadway. to Henry Evans. at so Mai
den lane. on December 81 1919. In this
letter the organization of the United
States Steamship Company of Delaware
was referred to. according to the IN
dictment. and It was said the purpose
OF this company was to acquire the
capital stock Of the United States
Steamship Company of Maine and the
United States Transport Company OF
Maine.
The letter was said TO have suggested
that the new Delaware corporation issue
100000 shares OF capital stock of nom
inal or no par value, and that 400, 900
shares of this stock be us-d to buy
twenty-four vessels. of 225,000 net tons.
subject to O. mortgage of $36,0O0,00O
These ships were described as belong
ing to the Virginia Shipbuilding Com
pany.
The United States Transport Com
pany. the~Groton ship yard. the Noank
ship yard. a lease on pier 81, Hudson
Navigation Company also were referred
to in this communication. which placed
valuations Of si2,5S5.00o on all OF the
property.
Immediately after the indictment
Gibboney and Barber issued statements
Mr. Gibboney said:
ANY suggestion that I have been
connected with conspiracy to use the
mails to defraud Is preposterous. When
l learned that an investigation was
being conducted by Shipping Board
attorney who had been appointed
special assistant to the Attorney-Gen-
eral, submitted myself to him for ex-
animation and offered to produce every
paper and disclose every fact in my
possession.
II further requested OF him that / be
permitted to appear before the Grand
Jury. waive immunity and be permitted
20 testify. This application. which
am informed II has been the practice
uniformly to grant in this district, was
denied. as was a subsequent request
direct TO the Grand Jury. so that they
we're not in possession OF all the facts.
II am entirely innocent Of the crime
charged and ask the public and my
friends to suspend Judgment until /
have had an opportunity to establish
my innocence. and / shall demand an
immediate trial"
Berber made this statement:
II have not read the indictment and
do not know what charges are made
am a member has from time to time