Evening star., 1923-05-01
EXAMINE GOETHALS.
i. !, IN MORSE TRIAL.
First Manager of Fleet Cor
poration Testifies in Ship
builders Case.

Maj. Gen. George w. .Goethals, first
manager of the Fleet Corporation,
was cross examined at great length
today by Attorney Nash lockwood. of
counsel for Charles W. Morse. his
three sons and four others, on trial
before Justice Stafford and a Jury in,
Criminal Division l. The general
said he knew Morse by reputation and
that he was regarded as builder Of
good ships. He could not recall the
names Of vessels which Morse had
built. Investigation was made by
gents of the Shipping Board, both as
to the financial standing and material
ani!Ity OF the companies seeking con-
tracts TO build ships for the govern
ment. Morse's plant at Noank, Conn.,.
was one OF The few concerns building
wooden vessels when the govern
ment embarked on its wooden ship
program, the witness stated.
Gen. Goethals said that nothing
came to his attention while he was
manager of the Shipping Board which
would indicate that the first con-
tract awarded to the Morse interests
TO build twelve ships at 100000 each
was not being properly carried out.
The defense had indicated yester-
day. that to accommodate Gen. Goe-
thals, who is under contract in New
York. it might take his deposition
for use later in the trial should the
but Attorney wilton j. Lambert an
nounced today that the plan would
not be carried out. The lawyer feared
the court might hold that the defense
clude the making of a motion for
An instructed verdict should the gov
ernment not prove its case.
Gen. Goethals will have to be re-
called if the defense wants his testi-
mony, it was stated.
Justice Stafford informed Attorney
Lambert that he should submit his
motion attacking the array OF the
grand jury which had returned the
indictment, with such authorities as
he considered to support the proposi-
tion. The court would then decide.
he stated whether it was necessary
TO hear oral argument. Mr.. Lambert
claims that one of the grand jurors
other was an alien, not having taken
out naturalization papers
During the examination OF Mai.
Cen. Goethals yesterday, who directed
the organization Of and was the first
general manager of the Emergency
Fleet Corporation. it was brought out
that the first offer Of the Morse con-
Germs to build wooden hulls for the
government was on cost plus basis
and that this offer was rejected. a
contract for twelve such hulls on q
lump sum basis later was awarded
TO the Groton Iron Works at $780, 600
for each.
Gen. Goethals identified and the
government offered in evidence a let
ter from Eads Johnson, the fleet COR
poration agent in New York, address,
ed to the general. in which it was
stated that it was difficult to get in
formation as to the financial rating
of the Groton Iron Works. The let
ter said the United States Steamship
Company was given as a reference,
out that the writer thought this was
the same crowd" Other documen-
tary evidence offered by the govern
nent showed, however. that before
this Morse had written Gen. Goetkals
that the United States Steamship
Company was the sole owner" of the
GrOton concern.
Had One Conference.
Gen. Goethals testified that he had
one conference with Morse as to
building ships. but that he did not
solicit that He added. however, that
Morse might have been solicited by
representatives of the Fleet Corpora.
tion who were making a survey early
in 1917 of the possibilities of ship
construction on both Atlantic and Pa
Cific coasts.
Besides the wooden hulls. Morse, il
was shown by the evidence, sought
contracts for steel craft as we'll Cen
Goethals said he was interested in
getting steel vessels. but that con-
tract for such ships could not be let
until an additional appropriation of
s200,000.000 could be obtained from
Congress This was early in May, 1917,
and on May Morse wrote the gem
eral suggesting that he see the chair
man of the House and Senate ap-
preparations committees in an effort
to expedite passage of the appropria-
ton.