Evening star., 1923-07-11
MORSE TROUBLES
BLAMED UPON U. S.
McAdoo's Partner Declares
Failure to Make Progress
Payments Real Cause.

Thurlow NJ. Gordon. law partner of
William G. McAdoo since the latter re-
signed from the Wilson cabinet, testified
today at the trial of Charles w. Morse.
his three sons and four others charged
with conspiracy to defraud the United
States and the Shipping Board. before
Justice Stafford and jury in Criminal
Division l. Mr.. Gordon said the Vir-
ginia Shipbuilding Company was In
carry out it's contract with the govern
ment because of it's inability to secure
: from the Shipping Board progress pay
ments due under the contracts.
Mr.. Gordon had acted for Ave years
as special assistant to the Attorney
General of the United States, The wit
ness stated he made a thorough exam
ination of the Virginia plant at the re-
quest of Mr. McAdoo and found the conf
pany was in serious legal and financial
difficulties. His firm took over the Vir-
ginia company's legal affairs after
Mr.. Gibboney Of New York had de-
termined to retire from the position
of cousel for the company.
We went into this proposition"
declared the witness. with view
of presenting to the Shipping Board
tracts which the Virginia company
had to progress payments" The
total of these payments at that time,
the witness stated, as about $1,000
600. and he declared that it was
simply impossible for the Morses to
put UP s20,000,900 in ships and yards
without receiving any progress pay
ments from the Shipping Board
jected to this last statement of the
witness.
The witness said his firm had ad-
y,ised5, the Shipping Board ard vt, Of the
company and of the impossibility of
completing the ships without prog.
ress payments. The Withholding or
the payments would lead to a receiv-
erShip, the witness warned the Snip
ping Board officials. Conferences men
toned by the lawyer resulted In the
securing of an advance or $l00.U0u
from the feet corporation in addi-
tion to small cash payments TO some
OF the creditors of the company.
Attorney Wilton ]. Lambert for
the defense, conducted the examina-
rion of the witness.
Much Tells of Check.
Rupert NJ. Much, the first of the
Morse defendants. took the witness
stand late yesterday afternoon. Much
said he is thirty-nine years old and
comes from a family Of sh1pbulfders
His father had been twenty years
shipbuilder and his grandfather was
Rear Admiral George W. Much
L. S. "
Much testified that with the check
for $4,000 which the government
had offered in evidence he had pur-
chased securities in which were in
cluded S250.0G0. st. Paul Steamship
Company: $4,000, Hudson Navigating
Company; 100000, c. w. Morse and
Company notes: notes OF 100000 of
r. Harrison higgins, and $4,000 in
bonds of the Missouri Metals Com
pany. The witness said on these
securities there was realized about
ST75 900, all of which he stated went
to meet the expenses of the Virginia
Shipbuilding Corporation.
Much said that the 100000 worth
of securities from the s2,000,00o OF
bonds which the government showed
he had receipted for was used to sup
port the credit of the company and
was given to Gardner l.. Boothe, as
trustee for the creditors. and none
went to any of the defendants. The
witness discussed the housing situa-
tion at Alexandria and declared that
when the Morses sought to relieve 1t
by calling the ship e. w. Morse to
their aid. the Shipping Board immedi-
ately commandered the vessel and
kept it at the Brooklyn navy yard
for housing purposes.