Evening star., 1923-07-04
GOVERNMENT NEAR
END IN MORSE CASE
Court Admits Confession of
{ U. S. Auditor Alleging He
Was Paid Graft.

There was no session of the Morse
conspiracy case today. Justice Staf-
ford and the jury are celebra ting
Independence day. Counsel for the
government held a conference to de-
eide if there remains any more testi-
mony which should be given to the
jury, and the lawyers for the defense
are shaping up the motions which
they will submit for an instructed
verdict in favor OF the defendants
The government probably will rest
its case tomorrow.
The prosecution is pleased with
the ruling of Justice Stafford late
yesterday afternoon admitting In
evidence a confession by Philip Rein
hardt, who. while acting as auditor
for the fleet corporation at the Alex
andrla plant, received girts from the
Morses and admitted that he was
negligent in the matter of approving
vouchers presented to him. Some
even were approved at his home. he
said. when he had none of the papers
in the matter before him. AS an eX-
cuse Reinhardt declared he felt he
was in the power of the Virginia
Shipbuilding Company because he had
accepted the favors. The confession
as received in evidence reads:
Tells of Alleged Gifts.
II Philip Reinhardt, was employed
by the United States Shipping Board
and Emergency Fleet Corporation as
resident auditor from May. 1918, until
some time in March, 1919. as the resi-
dent auditor of the Virginia Ship
building Corporation at Alexandria,
after 1 had been working at the
Virginia Shipbuilding Corporation
for about week or two / was in
need of ready cash, so l approached
n. -a11 a
loan of $40, which was granted me.
I returned this loan to Mr.. Wallace.
He refused to take it at first and told
me to keep it, as he thought that we
government employees ought to be
favored, as the other inspector got
his. From this time on l have re-
ceived from the Virginia company a
brief case, valued at about $40. just
for the asking, took trip to Canada
at the expense of the Virginia com
pany. costing them about $3.50. also
some fire wood and electrical goods
valued, in all, about SIS.
IN addition to all above stated ]
have received at different times
money, aggregating to the amount
approximately $3.50. knowing at the
cept money from them, and con-
-tinuing to do SO after knowing it to
be wrong, l just naturally played
right into the hands of the Virginia
ulS uulleS were TO duult
and approve vouchers for payment to
be made by the government to the
Virginia company for the construc-
tion of ships. l did pass vouchers as
being approved by me without giving
them a careful audit and check be-
fore sending to the home office for
payment.
Recalls Signing Vouchers.
II can recall quite a few cases Of R
M. Much bringing to me vouchers to
approve, and asking me to sign them
as he had some one ready to take
them over to Baltimore, so that the
Virginia company could get the money
right away. 1 even went as far as to
sign vouchers at my home without
having supporting papers attached to
the vouchers. 1 knew that this was
wrong, but as I was accepting money
from the Virginia company was
afraid not to sign them, as 1 was in
their power. AS I passed quite a few
vouchers in this way, I feel that I
have passed vouchers for payment
that should never have been.
Il was called into B. W. Morse's
office one morning, and he presented
me with a check for $3.50, and asked
me to indorse and give it back to him,
which I did; he in turn gave me in
cash approximately 5000 or $3.50: also
had me to sign demand note for