New Britain herald., 1923-07-17
Tells of Trying to Get Payments From Ship ping Board in Behalf of Virginia Shipbuilding
 Corporation &
Also Describes What He Termed Was Offensive Suggestion Made to Him by Official of Emergency Fleet Corp.

. Washington. July 11.--William G McAdoo, secretary of the treasury ir the cabinet of President Wilson, took the witness stand today In the trial of Charles w. Morse and his asso- ciates charged with defrauding the government in their wartime ship building contracts. .-. ..-
 MT. McAdoo. called by the defense, was accompanied by Oscar Price, a treasury official under the Wilson ad- ministration. and L. C. Garnett a spe- cial assistant attorney general when A. Mitchell Palmer was head of the department of justice.
 Mir. McAdoo was called to testify regarding his relations with the Morse shipbuilding firm in 1919, when the law firm C. McAdoo, Franklin and Cotton of New York was counsel for the Virginia Shipbuilding corp. a Morse subsidiary, building ships for the emergency fleet corp. at Alexan- dris, Va.
 Wilton J. Lambert, associate coun- sel for the defense, conducted the di- rect examination of MT. McAdoo.
 Entered Case in 1919
 
 ury testified that be was called into the Morse case in 1919 after he had formed his New York law partnership. Stuart c. Gibboney, counsel for the Virginia shipbuilding corp. at that time, he said. requested him to look into q controversy between the com pany and the emergency fleet corp.
 Before accepting the case, Mr. Mc- Adoo said. he caused an investigation to be made into the merits of the controversy and into the personnel of the board of directors of the com pany.
 q never was interested in the Vir- ginia Shipbuilding corp. other than as their counsel" he said.
 The witness was allowed to state that after conference with his part ners. the firm became counsel for the Virginia Co.
 Directs S1OO,O0O Payment.
 We then proceeded to get the case before the shipping board at Wash ington," said Mir McAdoo. T pre- sented it first to Edward N. Hurley, former shipping board chairman, by telephone. MT. Hurley said he would be very glad to give a hearing at an early date. I told him that we were advised that the corporation was in very serious financial distress because of delay in presenting payments. When stated the financial exigencies of the company, Mir Hurley said he was willing to make a small payment on account and that he would direct payment of $1oo,ooo of these claims"
 General Counsel Hyman of the emergency Fleet Corp. at Philadel- | phia, blocked the partial payment Of s1oo,ooo, MT McAdoo said. on the ground that the Virginia company's claim for s1.4oo,ooo was inaccurate. i MT. Hyman said" the witness added, that if I would come before | the fleet corporation with my hands held up eXclaiming 'kamerad' he would make the payment as favor.
 T indignantly rejected the pro- posal"
 On the same day, Mir McAdoo said, he wrote letter to Chairman Hurley reporting the incident. His letter. he declared, characterized the offer as a flavor" as an offensive and surpris- mitted part of the letter containing this reference, but excluded other portions.
 Got S50.000
 Mir. McAdoo testified that his firm took the Virginia company's case for a fee of s50,0oo,
 Counsel went into, other business re- Ia lions of the McAdoo firm with the Morse interests relating to fees on tonnage secured for the United States Transport Co.