The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-04-25
GALE D BY
DEF NSE
IN FRAUD
CASE
Prosecutor Outlines to Jury
Charges Government Win
Try to Establish.

4 5
Justice Stafford, presiding at
the Morse conspiracy trial, this
morning directed that subpoena
be issued for the appearance at
the trial, of John Barton Payne,
recently appointed one OF the
Mexican commissioners by Presi-
dent Harding.
On List Of Witnesses.
Judge Payne,s name appears on
the list of witnesses for the Govern
ment as well as for the defense,
and the matter as to his being called
to. testify was brought about by
Judge Nash lockwood, of counsel
for the defense inquiring Of Dis
trict Attorney Gordon whether he
intended to have all the witnesses
named on the list which was read
to the jury by Assistant District At
t0rney O'Leary to appear at the
trial.
District Attorne Gordon did not
commit himself, whereupon he was
asked by Attorney lockwood
whether he intended to have Judge
Payne present. Not giving q definite
reply, Judge lockwood asked the
court to issue q subpoena which
was ordered.
Departure Not Settled.
1t was said at the State Depart
ment that Secretary Hughes had
might be detained in this country
by the Morse trial. Officials said
that no time had been set for the
departure of Payne and Charles B.
Warren, the other American com
missioner to Mexico City, though it
is expected they win leave within
ten days. Warren called upon Presi-
dent Harding at the White House
today.
In outlining the case to the jury
District Attorney Gordon told wnaI
the Government would endeavor to
prove. Wilton J. Lambert of
counsel for the defendants. OBJ
ected to the phraseology used by
tho prosecutor. The District At
torney replied that he meant to in.
troduce facts proving the contelf-
ton of the Government.
Reviews Various Concerns.
He traced the origin OF the Morse
organization and said that in 1913
Charles w. Morse organized, under
the laws of Maine, the North Ameri-
can Boat Company, changing its
name from time to time until 1915,
when it became the United States
Steamship Company, by which
name it was known ever since.
During the period with which we
are concerned here" said the prose
cutor, "Mr. Morse was president of
the concern. This company was the
parent of the GFoton Iron Works,
of the Virginia Shipbuilding Com
pany, of the United States Transport
Company, and others, the defendant
holding all the stock in them. He
also owned and controlled the stock
of four little companies, the New
Hampton Steamship Company, the
Minneapolis Steamship Company,
the st. Paul Steamship Company,
and the Huron Steamship Com
pany."
Prior to February 1916, according
to the district attorney there had
been a shipbuilding plant known
as the Robert Palmer & Sons Ship
building Railway and Marine COM
pany, small concern all the stock
of which was owned by a Noank.
Conn.,, company. Morse, District
Attorney Gordon claimed, endeav-
ored to get possession of this
plant and employed the services of
Judge Avery to negotiate for the
purchase of the stock. There was
a mortgage of $4,000 on the plant
AS a result, Morse purchased the
stock in April 10. 1916, for $500
and assumed the trust on the
plant. The purchase included
everything machinery, tools, stock
and all. The plant was Aoperated
until later by the United States
Steamship Company and the plant
was paid for by moneys belonging
of the latter company.
Organized Iron Works.
In February, 1917, the Groton
Iron Works was organized by
81 900 900. but. according to the dis
trict attorney, mo real money was
put into the plant These works
were incorporated in February,
1917, with a capital stock of
81, 900 900.
April Is, 1917, directors were
elected with Erwin Morse as presi
dent, and the next day, April II.
officers were elected with Erwin A.
Morse as president: Benjamin w.
Morse, secretary, and Dexter ROoth,
assistant secretary and treasurer.
The same day a resolution was
authorized that the president Of
this organization place the ship
building plant at the disposition of
the Government Six days after
this the entire stock of the Robert
Palmer Company was exchanged
with the Grc.on Iron Works, can
Gcontiruod on Page 23.l