Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-07-17
M'ADO0 EXPLAINS
WORK WITH MORSE
Tells of His Connection as
Counsel at Trial of Con.
spiracy Charge.

William G. McAdoo, former Secre-
tary of the Treasury and prominently
mentioned for the next democratic
presidential nomination, testified today
as a witness for the defense at the
Stafford and jury in Criminal
division L. Mr.. McAdoo had under
taken the task of looking after the
legal business of the Virginia Ship
building Corporation after his retire
ment from the Wilson cabinet. He
stated that he left the inquiry into
the condition OF the corporation to his
partner, Thurlow NJ. Gordon, and acted
on the latter's report when accepting
the position of counsel for the com
pany; Mr.: Gordon testified last week
News of the intention ito place the
former cabinet official on the witness
stand served to attract a large crowd
to the trial and to bring a battery of
photographers. Mr.. McAdoo, with At
torney Wilton J. Lambert, Leslie c.
Garnett, former assistant to Attorney
General Palmer. and Oscar E. Price,
close friend OF McAdoo, arrived at the
courthouse about 10 80 o'clock and to
building of the Court of Appeals. ad
jacent to the courthouse. When Mr.
McAdoo's name was announced as the
next witness there was a delay of Ave
minutes in the progress of the trial.
Court officials scurried in every di-
rection to locate the witness.
Avoids Cameramen.
Mr.. McAdoo in the interval was
trying to avoid the cameramen and
entering the building through the
north basement door was lifted to
the clerks office on a small elevator
and thence hurried through the cor
ridor to the courtroom. Garnett and
M I'D HI ;,,tn
took seats in the section reserved for
mem bers of the bar.
Attorney Lambert began eXamina-
ton at once. Beginning with his re-
tirement from the Treasury, Mr.. Nc
Adoo said he caused an inquiry into
the merits OF the controversy between
the Morse corporation and the Ship
ping Board and into the personnel OF
the board of directors OF the company
He had no interest in the Virginia
company except as counsel, the wit
ness declared.
MIR. McAdoo then told Of his efforts
t6 adjust the difficulties between the
Virginia company and the fleet cor
poration. He first applied to Edwin
y. Hurley, head of the corporation,
and when he had stressed the finan-
cial difficulties obtained promise to
advance the company 100000.
This advance was blocked, he stated
by the Fleet Corporations counsel, in
+ ITdn-On the
claim that the Shipping Board did not
owe the Virginia company $1,4O0,000.
Il was told" said the witness, "if
i would come before the Fleet Cor
poration with my hands held up. ex-
claiming 'kamerad.' he would make
ly rejected the suggestion, saying we
wanted no favors, only the legal
rights of our clients"
On the same day, Mr.. McAdoo said,
he wrote to Chairman Hurley of the
Fleet Corporation telling of what he
considered the offensive and sur
prising suggestion" from Mr.. Hyman.
Received $4,000.
Mr.. McAdoo admitted that his firm
received from the Virginia company
compensation of $4,000 fer legal
services. The money went through the
office of McAdoo, Cotton & Franklin,
and the witness was not familiar with
the details, although he expressed the
view that the money was in two pay
ments. The firm also received from
the United States Transport Company
In connection with the shipping OF
coal to France and Italy, about $685.
600 in cash.
Asked by Attorney Lambert to state
what was the position of the govern
ment at the conference with reference
to progress payments in August, 1919,
the witness said: II never got clearly
what position they took. 1t Is now
four years ago, and my recollection is
that the meeting resolved itself into
a suggestion that another basis Of
settlement be sought"
Tells of Contracts.
The witness then went into detail
as to the coal-carrying contracts. He
explained that he was first ap-
preached by John A. Donald, a men,
Der of the fleet corporation, now de-
ceased, who suggested that. as the
government had a mortgage on the
Morse boats, 1t would be financially
advantageous both to the fleet cor
poration and the Morses If contracts
could be secured at the high prevail
ing freight rates. Mr.. McAdoo said
he replied that he would aid in any
way that he could. Later Charles
w. Morse told of the efforts to get
the Italian contract and proposed a
commission for the lawyers of 81 per
ton on all the coal to be carried un-
der the contract. The contract was
effected and later q similar agree
ment was made with a group of
CONTINUED on Page 2. Column 81