Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-06-13
SAY MORSE FAILED
IN PROMISES TO GOVT.
ON SHIP MORTGAGES

Washington, June 12.-What attor-
neys for the government regarded as
some of the most important evidence
lin their case was placed today before
the jury in the Morse trial at sessions
which were enlivened by frequent and
sharp clashes between Charles Pie1,
former vice president and general man.
ager Of the Emergency Fleet Corpora
tion. and Attorney lockwood Of de.
tense counsel. The high spots" Of the
days testimony were:
That r. NJ. Much. assistant treasur-
er of the Virginia Shipbuilding Corpor-
alton. and one of the defendants.
sought to have James z. Cannon, au-
ditor Of that corporation, certify to a
statement Of expenditures at Alexan-
dria, Va, which Cannon said was in ex.
cess of the actual amount spent.
That Charles w. Morse and one Of
his sons promised to give the govern
ment mortgages on three steamers as
part security for a loan Of $4,000 to
the Virginia Shipbuilding Corporation
and later denied, that such a promise
had been made.
That Charles W. Morse obtained
from Stuart G. Gibboney, a New York
lawyer a receipted bill for S7764 for
legal services to the Virginia Ship
building Corporation so that the bill
might be put througha" as part Of
the expenditures of the Virginia COM
pany although the amount Of the bill
had not then been paid by the Virginia
company.
Cannon said that Much in present.
ing him the statement Of expenditures
explained that it was to support a
statement made to the Emergency
Fleet Corporation.
Il told Mr.. Much and B. w. Morse
that the total $644,0O0 was wrong
said the witness; that they had not
spent that much money. I refused to
sign it and told them 1 would prepare
statement that was correct. Mr..
Much did not object"
Cannon said he and a bookkeeper
worked until 2 o'clock the next morn
ing preparing statement: that he pre-
sented it to Much and that the same
day he was discharged.
Before obtaining employment with
the Virginia company, Cannon said he
was government auditor at the Morse
shipyards at Noank and Groton, Conn.,.
and that he had frequent controversies
with officials of the plants about
vouchers presented them as a basis for
government payment to the yards.
Testimony as to the loan by the gov
eminent to the Virginia corporation
was given by Mr.. Piez, who asserted
that the failure Of the Morses to give
mortgages on three steamers owned by
the United States Steamship Co. as
they had promised in the negotiations
for the loan showed their unrelia-
bility."
Mr.. Piez said he had no feeling
against Charles w. Morse. Mr.. Rock
wood then read from Mr.. Piez's testi-
mony before the House Shipping
Board investigating committee in
which Mr.. Piez stated that after this
she held Morse to short rations." -
The witness explained that short
rations'' was merely q figure. Of
Speech" that what he did was to keep
Morse to the letter of his contracts.
Didn't Charles NJ. Schwab tell you
at Alexandria when he went there with
you in April. 1918. at the time the loan
was discussed, that he would give 81
100000 for the Alexandria plant?"
asked Mr.. lockwood.
He did not" was the reply. The
witness added that he had told Mr..
Schwab that only s250.O00 had been
put into the Alexandria yard at that
time.