Norwich bulletin., 1922-02-28

bined, confedersted and agreed togeth-
er, and with divers other persons un-
known to commit offenses against the
United States" Each Of the offenses
alleged to have been committed, accord
ing to the indictments. consisted of the
defendants knowingly and wilfully,
and for the purpose of cheating, swind-
ling and defraudng the fleet corpora
tiop in which the United States is
stockholder, making false and fraudu-
lent statements to the fleet corpora
ton"
The names of William G. McAdoo,
former secretary of the treasury, and
Attorney Stuart G. Gibboney, were men
toned in the indictments as having
conveyed to shipping board officials
statements alleging excellent financial
condition of the Virginia Shipbuilding
Corporation. 1t is not claimed that
these men, acting as attorneys for the
corporation knew Of the alleged fall
sity of any representation made by
Morse or any of the others indicted 1t
was stated in the indictments that MIR.
McAdoo was said to have submitted to
the fleet corporation and to John Bar
ton Payne, its chairman at that time,
document containing the statement that
more than s1.000.000 in cash had been
contributed by the Virginia stockhold-
ers and invested in its plans and as
sets; that an offer of $4,000 for each
Of three vessels, under construction by
the company, had been made and an
other statement that at least $1,400,00
was due the company.
1t was also asserted that some of the
accused authorized Mr. Gibboney, VIII,
! then was said to have been acting as
state orally to the board of trustees of
the feet corporation that the Virginia
company had spent s1,S1S,000 on It's
plant.
| Reason For Two Indictments.
The object of the grand jury in re-
turning the two indictments which car
ried the identical allegations and state
ments and defendants, District Attorney
| Gordon announced, was for the purpose
Of assuring absolute certainty of the
governments right to prosecute the
| charges against the defendants, as it
might be contended. he added. that the
emergency feet corporation was not
the United States.9
In the second Indictment the preamble
was devoted to the establishment of the
/ authority of the shipping board to ere
ate the emergency feet corporation and
to build ships and yards. 1t then re-
. peated the history OF the contracts let
| 10 the Morse companies and included an
! agreement said to have been entered in
to on March 13. 1920, between the heey
| corporation and the United States
| Transportation company, Inc whereby
the latter was appointed TO act as the
| fleets managing agent to manage and
| operate as cargo carrying craft such
vessels as had been and were to be
| completed by the Groton Iron Works
and as might be assigned to It. The
| transport company was to account for
! all receipts and to pay to the feet cor
poration the net revenue derived, it was
stated.
Mr.. Livingstone, one Of those indict-
| ed. is vice president of the America n
| National bank here and for many
years has been identified with the bus
mess and financial interests which have
controlled the Washington and Old Do
minion Railway, of which he is presi-
dent.
Mr.. Morse, on January 3, 1910, was
| sentenced to serve Is years in the At.
lanta penitentiary for n1isappropria-
ton of funds of the National Bank OF
North America, but was paroled or
January Is, 1912, by President Tar
who had been advised that if longer In
carcerated MI. MORSE would probably
succumb to tuberculosis.
The Investigations by the shippin.
board which resulted today in the In
dlctments of Morse and his associate
were begun last June when the presen
shipping board personnel assumed Office
Chairman Lasker and General Counse
Schleinger had their attention brough
to Morse's transactions with the board
il was said soon after taking office an
Investigations subsequently, they in
| formed the department of Justice war
, ranted, in their opinion, action by tn
government
While the government was probin
e into the Morse contracts the shipbuild
er sailed for Europe and a few days la
ter at the direction Of Attorney Ger
b erai Daugherty returned to the Unite
s States.