Norwich bulletin., 1922-10-27
G lc|udes the
 GrOtOn Iron Works
In Govt Proceedings Against Virginia Shipbuilding Cor poration.

Alexandria, Va. Oct. 26.-Attempts by counsel for the government to withdraw all charges Of conspiracy and fraud laid against Charles W. Morse, New York shipbuilder. and his various companies in the case now in progress here, failed to- day when Judge Waddill, in the federal court for the eastern Virginia district, refused to entertain the motion. The court upheld attorneys for the companies in their contention that it would be most unfair to their clients to amend the bill so drasticaHs at this late day after the charges had been so widely published
 The governments motion was submit ted by former Senator Edgar T. Brack. ett of New York; acting as special as- sistant ot Attorney General Daugherty in the case against the Morse companies.
 Earlier in the day Senator Bracket had moved to eliminate from the case all reference to the Groton Iron works of Groton, Conn.,. which was named with the Virginia Shipbuilding corporation in 1 the governments suit to recover about $1S.000s000. advanced to cover construc- ton expenses, Objection was made on the ground that the same charges of
 fraud" lay against the Groton company
 as against the other defendants. If that defendant is dismissed. 1t is l
 Bracket explained. William A. Barber. chief counsel for l Morse, then read in detail paragraph 25 of the complaint bill, which charged that the defendants had "conspired together 1 to defraud the United States government l by obtaining large sums of money to
 which they were not entitled' through
 manipulation of the stock and assets of the individual corporation.
 "We now have the government coming here" Barber continued, and saying We will exonerate one of the conspira- tors and will leave the others"
 l sIt has not been and is not the inten- ton of the government to offer in this
 trial any evidence under the twenty fifth paragraph of the bill" Mir. Bracket told the court.
 Judge Waddill after a short consider.
 ation, denied the motion as to the Groton company and that which would
 have eliminated all reference to conspdr.
 acy and fraud wherever appearing. Unless counsel can give some specia.
 reason the court ruled, T do not thina : we should stop here to amend the bill' !, An exception was taken on the part o the government. indicating that, in cas, of appeal. the refusal of the 2court t permit withdrawal of the charges woult be one of the points carried to the highe, courts.
 Counsel for the Morse companies de clared tonight the actfon of the govern
 ment in effect was "a confession of CT TOT" and indicated a complete collaps of. the case. They locked for early issu : ance of a decree fr4t1 the local eenr : bringing this phase of the case to a for !; nal conclusion. There would remain th counter-suits-tha of the govern11aen !; against the Virginia company for SIS. | o0o.o00 and of the Virginia con1pan = against the government for S6,o0o ,o0o al D leged to be still due on the ships con !; structed under the emergency fleet con s tracts,
 A separate suit is pending in Connec 0 ticut wherein the Groton Iron work
 seek to collect s1S,OoO,0oo from the gov a ernment as balance due for constructio 5, of number of ships