The Washington times., 1923-08-04
INORSES FOUND.
NOT GUILTY
BY JURY
Verdict Comes After Twelve
Consider Evidence All Night.
Defendants in Tears.
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prosecuting forces which had been
at work assembling data to be
used in the case for two years.
It has cost the government at
least $1,000,000 and the trial has
consumed fifteen weeks.
Two indictments were returned
in February, 1928, charging the
Morses and their associates with
conspiracy to defraud the United
States and the Fleet Corporation
by misuse Of funds Of them for
the construction of vessels at three
plants, misrepresentation as to their
financial ability to carry out con-
tracts, and delay in ship produc-
ton. -.
Noted Lawyers Engaged.
Besides United States Attorney
Gordon, the government summoned
to its table such widely known pros
ecutors as Assistant Attorney Gen.
erals Allison and Turner.
The defense spared nothing in
expense by bringing to its side such
masters of oratory as Wilton ].
Lambert, chief counsel; Nash Rock
wood, w. B. Thomas, William Leahy
and Stanley Fowler. In charging
the jury yesterday, Judge Stafford
declared in al his judicial expert
ence he had never seen a case 80
well presented.
May Appeal to Congress.
It is intimated that the Morses in
retaliation may move for a Con-
gressional investigation of the OPP
erations Of the Shipping Board and
the Emergency Fleet Corporation
during the war. These govern.
mental agencies, the defense counsel
repeatedly declared, should have
been indicted in the court of pub
lie opinion for lax methods and con-
fusion in procedure.
The prosecution sought to prove
that the Morses had done business
on a "shoe string" in operating
the Groton mine works at New
London, Conn, plant at Noank,
Conn, and the Virginia Shipbuild-
ing Corporation, at Alexandria, Va;
that they had applied so-called
progress payments to enlargement
of the Alexandria plant instead of
to further work on ships in the
stocks; that they had diverted to
their own uses revenues derived
from operation OF ships which they
should have held in trust for the
Government, and that they had un-
considerably DELAYED the construc.
ton Of steel and wooden hulls.
$4,000. 900 Involved.
Operations of the Morses were
! extremely expensive. the contracts
let to them tota1ing more than
$40,00O,O00. Their prosecution was
in some sense a test of the ability
of the Government to search out
alleged wartime frauds and punish
their perpetrators.
AS great as the alleged machina-
tions of the Morses was the matter
submitted in this trial itself. The
result of the proceedings stands
as 10000 pages of typewriter tes-
timony, 10000 exhibits and 125
witnesses on the stand.
From day to day, the tide OF
favor ebbed and flowed from prose
cution to defense, especially to-
ward the last. when this swing was
noticeable. The summings-up of
both sides were mastery. The
charge of Judge Stafford extended
over more than four hours. At
one time. the defense deliberated
the advisability of resting its case
AldhlIlS any ONS
this was abandoned and the course
they took was fully vindicated.
Result Of Long BaDOting.
The jury went out at 8 o'clock
yesterday afternoon and took bal
lot after ballot. While the defend
ants walked anxiously about the
corridors of the court house. dur
ing the evening, no word came
from the room where the jurymen
were locked. Refreshed from their
slumber, under the none-too-cool
caves Of the court house. the tales
men quickly reached a verdict this
morning, so informing Judge Stat
ford at 1920 a. m. They filed in
at lilo o'clock, and the proceed
ings were over ten minutes later.
Counsel for the defense wore
wide grins while the prosecutors
sat with rather blank expressions.
Judge Turner, asked for a state
ment, replied:
You heard them plead not
guilty, didn't your"
Attorney lockwood issued a long
statement, dealing with alleged
reasons actuating the prosecution,
which he termed persecution.