Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-02-28

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been investigating the war
some of his associates, with
Others named in the indictments a
presented to the District Of Columbi,
supreme court include r. 0. White o
New York, former president of tn,
United States Transport company
George NJ. Burritt of New York; r
NJ. Much of Augusta, Maine; W. W
Scott. Washington attorney; Z. d
Christie of Alexandria, Va; Nehemiah
Campbell of New York, and PhiliK
Reinhardt Of Baltimore, former gov.
eminent auditor at the Virginia ship.
building plant.
Return Two Indictments
Two indictments were returned, one
charging conspiracy to defraud the
conspiracy to commit offense against
i the government.
The conspiracy as charged by the
government accuses those named of
making false statements as to the
value of their plant and assets and
thereby obtaining loans from the ship
ping board They are also charged
with having secured money for ship
building purposes and to have used the
same for personal interests in the way
Of improving their plant. 1t is also
alleged that large quantities of mater
ial for shipbuilding belonging to the
Emergency Fleet corporation were
secured and then sold and the money
converted to the use Of the alleged
conspirators.
Those indicted either were or still
are connected with the Groton Iron
Works. Groton, Conn, the Virginia
Shipbuilding corporation, Alexandria,
"a, or the United States Transport
Company, Inc, which concerns are
known as the Morse companies.
Maintains His Innocence
Morse in a statement issued through
ms attorneys after the indictments
had been returned. declared the pro-
ceedlngs against him were the result
OF "anlmus" on the part of Attorney
General Daugherty.
confidence was expressed by Morse
that he and his sons would have no
difficulty in freeing themselves from
TINS unjust indictment in any court Of
Justice"
Morse served term in the Atlanta
penitentiary as the result of his con-
vletlon in 1910 of violation of the
banking laws. He was sentenced to
10 years and after serving two years
OF ms sentence was released by Presi-
dent Taft who committed the sentence
on representation that Morse could
not live longer than six months.
Mention McAdoo's Name
The name of William G McAdoo
former secetary Of the treasury and Of
his law partner, Stuart G. Gibbony, are
entered IN the indictments as having
conveyed the statement to the officials
OF the shipping board that the Vir-
sinia sh1pbuliding corporation, one of
lhe morse companies, was in excellent
financial condition. The Indictment in
this connection states. however. that
the facts were misrepresented TO Mr..
N1cAdoo.
The contracts between the Emerg.
'ncy Fleet corporation and the GrOton !
ron works and the Virginia Shipbuild
ng corporation. on which the charges !
esnltlng in the indictments were based. |
involved sum said to approximate |
'4o,VEo,Un. Fletcher Dobyns of Chi
ago speciaf assistant to the attorney
General, who prosecuted the inyestiga-
IONS for the government. declined to
stimate the amount of money ont of
which. it is alleged. the United States
vas defrauded, but it was understood
he sums which the government alleged
we're misappropriated amounted to sew
raj million dollars.
Detailed Charges
The indictments charged the defend
nts specifically with falsely pretend
ng to the shipping board and the fleet
orporation that the shipbuilding cor
orations they represented would be
Bile to erect and equip from their own
inds shipbuilding plants of sufficient
lze to enable them to carry out con-
racts given them by the fleet corpor-
ton. and to proceed without delay
the construction Of vessels.
The intention of the defendants. il
as alleged. was to obtain large sums
money from the fleet corporation
falsely representing that the sums
ouid be used for construction of yes
els, and to divert large sums from
Zip construction for the erection and
lulpment of plants and housing facili-
es, and thus convert the funds to !
lie use of the shipbuilding corpora
ons and themselves, and to delay ship Z.
instruction.
Sold Material. Claim e
Large quantities of material were
'tained from the fleet corporation by
re defendants for the construction Of !
ssels and later, the indictments
arged, the defendants sold great ,
asses OF the material and converted =
G proceeds of the sales to the cor
rations and themselves. 1t also was b
arged that the defendants induced ii
e shipping board officials to turn -
er to the Virginia Shipbuilding cor J
ration such of the vessels as would =
finished at the Virginia plant and -
the United States Transport com
ny, Inc, such of the vessels as were Z;
lit at the plant of the Groton Iron 3
'rks, at Groton. Conn, under man
ing and operating contracts whereby u
use corporations were to operate the ~ =.
FPS IN interstate and foreign COM a,
rec and to account to the shipping d,
ard for the revenue resulting from d.
n operation. At the time the ships al
re turned over. the indictments bt
Urged, the defendants expected and OF
ended to fail and refuse to account n n
large part of such revenue and he
convert large part of the revenue W
the use of themselves and to fail 81
refuse to liquidate the greater part sh
the charges against the vessels in y
red in their operation and to permit .DGy
b charges to become liens upon 1 ps
m (which the fleet would have to cl: