Evening star., 1923-07-30
ASKS CONVICTION
IN TRIAL OF MORSE
U. S. Attorney, in Closing Ar.
gument, Says Fraud Is
Clearly Proven.

day opened the argument for the
prosecution in the Morse conspiracy
case. He asserted the government
had proved each of the thirty overt
acts alleged in the indictments, which
charge a conspiracy to defraud the
United States and the Fleet Corpor-
wartime contracts. He asked a con-
viction against all the eight defend
ants-Charles w. Morse. New York
shipbuilder, his three sons, Ben
jamin w. Morse, Erwin A Morse and
Harry F. Morse: Rupert NJ Much.
Richard o. White, Nehemiah H.
Campbell and Philip Reinhardt.
Maj. Gordon began his address to
the jury shortly after the converting
of court at 10 o'clock. He spoke
throughout the morning session and
resumed after the recess. He will
be followed by Attorney Wilton J..
Lambert for the defense
Outlines L. s. Charses.
The prosecutor outlined briefly to
the jurors the nature of the cbaree
against the defendants and touched
on the law governing the case. He
then took up the evidence In detail
and made complete presentation Of
the governments case and pointed
out where it rests it's reliance for
conviction Of each of the defend
ants. He declared that all the con-
tracts were obtained by the Morses
by fraud and Misrepresentation as TO
their financial ability through the
creation of false appearance Of
wealth.
He pointed out what he called "ar-
tificial bank balances" as shown bv
the evidence and stressed the claim
that the capital stock of the Virginia
Ship Building Company had been rep
resented as S1,o00,000 in cash when
the defendant Much had admitted
tiles which Rad been sold at loss.
Declares Money Misused.
Maj. Gordon claimed that none of
the boats contracted for had been
completed on time. even allowing for
changes in plans. He asserted the
evidence had sustained the claim of
the government that the defendants
had converted to their own uses
moneys received in some instances
and in others had diverted the money
from the use to which 1t should have
been applied.
Under the first contract, he said.
the Fleet Corporation had paid $751; :
0OO OF which he claimed the Morses
converted more than 100000 to their
own use instead of to the building
Of the ships. On the second contract,
he claimed, by what he called false
vouchers the Fleet Corporation was in-
duced to pay more than 100000 to
the defendants or to corporations
in which they were interested
In the matter of the Virginia con-
tracts Maj. Gordon declared the evi-
dence showed that the defendants
had diverted all the progress pay
ments received from the Fleet Cor
poration for ship construction to the
building of the plant. This was
brought about largely. he asserted.
through false vouchers signed by
Reinhardt. who was in the employ
of the Fleet Corporation as auditor at
the Alexandria plant. He discussed
the so-called confession Of Reinhardt,
which had been received In evidence.
! Referring to the contentious set
forth In the brief submitted by former
Secretary of the Treasury McAdoo
! ernment was indebted to the Virginia
company to the extent of s1.400. 900,
Maj. Gordon said the evidence sub
| mitted in the case showed that at
that very time the Fleet Corporation
had overpaid the Virginia company
nearly $1,00O,o0O. He admitted that
the armistice had something to do
with the canceling of contracts re-
! lating TO some Of the vessels. to be
built at the Virginia yard. but as
serted this action was taken by the
fleet corporation primarily because of
| delay in completing the other vessels.
When the Virginia corporation In Sep
tembfr 1919, signed an agreement to
buy the boats built at that yard. the
menf Gnenad to ehst q i w Mers ssesse aSS1EH hfgs
transferred its rights to the United
, States Transport Company This last
named corporation. he asserted, con-
verted the revenues from the opera
tion Of these boats. Later, he added.
contract was made to buy the boats
built at Groton, but no payment was
! made and the sale was forfeited and
another agreement made by which the
Morse corporation undertook to run the
boats as agent of the Fleet Corporation
| OF all the revenues under this agree
ment. he pointed out, the government
! received only 1883.
|