Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-04-26
Assert Will Prove ViO-
lation Of Contract
and Misapplication
of Bond Issue-Sub-
poena for John Bar
ton Payne, u. S.
Com m i S ion n
TO Mexico Wanted
by Both Sides

Washington. April 2o.-EVentS to-
day in the Morse trial in the Dis
trict of Columbia Supreme Court in
Guided the issuing of a second sub
poena for John Barton Payne, newly
appointed American Commissioner
TO Mexico, and former chairman of
the Shipping Board, the conclusion
of the opening statement of the gov
ernment's case and the beginning of
a reply BY the Defense
Whether service of the subpoena
for Mr.. Payne to appear as 4 wit
ness will delay his departure for
Mexico City to confer with Mexican
commissioners relative to American
recognition of the Oregon govern
ment does not now appear. The
summons was issued at the request
of counsel for the defense, who called
attention that Mr.. Payne was about
10 leave the jurisdiction of the court.
The departure of Mr.. Payne for
Mexico City would in any event
await the fixing of a date for the
beginning of the joint sessions of the
United States and Mexican commits
sions At the State Department it
was suggested that if his appearance
in court some time hence would in
terfere with the carrying out of the
mission entrusted to him by Presi-
dent Harding the court might eX-
pedate his examination.
Mr.. Payne is listed as witness for
both the government and the defense.
Just before his departure from Wash
ington on last March 5, as guest
in Florida of President Harding q
subpoena was issued for him by dir
ection of Justice Stafford. but be-
fore service was had an agreement
was made not to insist on his ap-
pearance at that time.
Concluding his opening statement
to the jury, District Attorney Cor
don said evidence would be offered
tending to show that $1,035,000 adj
'vanced by the government to the
Virginia Shipbuilding Company.
Morse concern. on account of ship
construction. had been voted to plant
and housing construction in viola
tons of the contract. He asserted
further that the government would
undertake to show, that S1,500,000 OF
a 100000 bond issue which the
Emergency Fleet Corporation per-
mtted the Virginia concern to issue
on it's plants had been ''misapplied."
The District Attorney stated also
that evidence would be offered in an
effort to prove that in the operation
by Morse concerns of the government
ships built at the Morse plants at
Alexandria. Va. and Groton. Conn,
upwards of Sl.300.000 of government
funds had been diverted" in viola
ton of trusts entered into by those
companies.
Mr.. Gordon said the government
also would endeavOr to establish by
evidence, that contracts for ship con-
siruction were obtained from the
fleet corporation by the Groton Iron
Works, Morse concern, on the basis
OF false statements as to the finan-
clal condition of that company and
that Charles w. Morse and his sons.
Erwin A. and Benjamin w. Morse.
officers of the Groton company, knew
Them to be false at the time.
The government would seek to
show. Mr.. Gordon continued. that
Charles W. Morse had engaged in
check kiting" in an effort to get
snip contracts by showing a better
financial standing of the Virginia
Shlpbulding Corporation than act
ually existed. The district attorney
also told the jury that it was the
purpose to prove that Mr.. Morse's
sons had embarked upon similar
methods in efforts to hasten pay
Ments by the government on account
" progress on ships building at the
Groton plant.
opening the statement for the de-
iNehse. Attorney Nash lockwood of
MeS York. asserted that not a single
Scl Set out in the indictments had
neeh consummatcd and that the case
Borrowed itself down to the PROPOSE
t ,ion or whether the eight defendants
naa conspired together at a time of
.sreat national stress" to defraud
t ne government and to delay and
Under its program of ship construc-
t tiN: He declared all of the de-
.ehaants were men Of high general
su1d'acter and standing and that
Nurse taotse and his three sons were prac-
".a al, shipbuildcrs and shipping men.
e,. Inc Shipping Board and the EN-
;hsehcy Fleet Corporation have
p psCwn down the gauntlet" said Mr..
d"usckwood, and it is accepted by the
70 ne AIDED that the defense proposed
", w snow where the inefficiencv in war