The Washington times., 1923-03-11
INDICTMENTS STAND
In OLD HICKORY CASE
Court Rules Justice Depart
TIlent Stenographer Had
Hight ii Jury Room.
BROAD POWERS DEFINED
Death Abates Charge Against
Phillips Morse and Davis
70 Stand Trial.
lBRoAD POWERS DEFINED

Broad powers In grand Jury I'M
designations vested III. and exercised
BY the Attorney General Of the
United states were sanctioned and
defined BY Justice Wendell r. stat
ford Iii Criminal Court No. 1 yes
terday IN i decision upholding the
validity Of indictments which re-
suited from special investigati
BY b special war frauds Grand
Jury into the sale Uf the Old Hic1.
Dry power plant ct jacksonville.
Tenn.
ABATEMENT PLEA DENIED.
The defendants III this case are
Ernest G. Morse, former director
Of sales for the War Departments
surplus war materials and proper
ties, Alexander w. Phillips, now de-
ceased, ana Evefly M. Davis, presi-
dent of the b. M. Davis Chemical
Company, Of New York City.
The defendants, through At
torney Frank >. Hogan. filed e
plea In abateSnent and a motion
to uuaah on the ground that John
"a. Winston, q Department Of
Justice lawyer and gtenographe
had no legal right IN the Grand
jury room to take stenOgrapnic
notes while the investigation into
their activities was going on.
The motion and plea were OPP
posed BY George r. Hoover, special
Assistant to the Attorney. General.
specially designated to present the
case To the grand jury and District
Attorney PeytOn Gordon.
FINDINGS or Law.
4 The motion and plea were both
lOverTuled In an exhaustive verbal
opinion from the bench. Justice
Stafford noted that he was passing
upon an act OF the Attorney-GeI
era1. the highest court officer In
1.-THE land, and that the court must
naturally assume that the Attorney
General had acted IN good faith IN
assigning Winston to the case, not
! to conduct the investigation, but
I. to assist and use whatever talent
for assistance he possessed and
could lawfully use under the cir
The court pointed out to counsel
for the defendants that their rights
were III no way violated by Winston
being III the room with the grand
Jury because he was bound BY two
oaths, one as b member OF the bar
and the other as 4 special assistant
| to the Attorney General, duly ap-
pointed and assigned to that par
ticular case. Further. 50 the court
stated. Winston was 0athbcund 70
secrecy in the same manner ~ was
1.-THE District Attorney, whose pres
ence in the grand jury room no one
V Y,,stiee Stafford declared there
lwas no law preventing the appear
ance of 3 stenoSrapher before the
grand Jury. But, the court stated,
the stenoerapher must be q lawyer
| and be regularly assigned to the
case on which he is TO take notes
and be under the regular oath CT
secrecy, al is the District Attorney
who is to be assisted.
RIGHT rs EXTENSIVE.
There il no end to the illustra.
tiona. the court stated, that might
| be used to point out the practical
bility Of q stenographer being IN
the grand jury room under proper
conditions. AS an assistant to the
Government attorney who is In
charge OF the presentation Of a
case, the court held, person may
render any Of the kinds OF assist
ance already named in order to
make up for q lack Of knowledge
on this or that subject on the part
OF the Government attorney in
charge.
Morse, as director Of sales, is
alleged to have conspired with
Phillips to sell the Old Hickory
Powder Plant, which cost the Gov.
| eminent nearly $50, 000, 900 to build
during the war, to the Nashville
Industrial Corporation, the majority
stock of which was owned. or al
legged to be owned by Davis and
Phillips, for $500, 900, or it was
| alleged $1,000, 900 less than the Gov.
eminent should have received.
Justice Stafford was informed of
Phillips death in New York about
a month ago, and naturally the
charge against him becomes abated,
The other defendants will now be
required to plead to the indictment.