Evening star., 1923-05-08
MORSE CO. BOOKS
FIGURE IN TRIAL
Jury Led Through Maze of
Figures to Determine Worth
of Plant.

Tho trial OF Charles w. Morse, his
three sons and four others, before
Justice Stafford and q jury in Crini-
nal Divison today resembled a
school Of aocountancy. The Jurors
| were led through the mazes of fig
| ures, liquid assets, non-liquid assets,
appreciation and depreciation, to de-
termins assets and liabilities OF the
Morse wooden ship plant at Noank,
Conn. William A Gillespie, an ac-
oountant Of Baltimore, Md. was on
the witness stand and had in front
of him several volumes from which
ures,
New Books Installed.
Mr.. Gillespie said his firm installed
December 81, 1916, and that total
assets, based on values given his ac-
countants, were 391s.053. This In
cluded an appraisal Of the real estate
at 100000.
Under cross examination by Attor-
new Nash Rockwood for the defense
Mr. Gillespie conceded that his val
uation OF the real estate was In error:
He also declared he had not included
In liquid assets the value OF the
wooden hulls under construction. Ine
error admitted by the witness IN
volved the sum of $112,0000.
In answer to an inquiry by Attor-
ney Fowler for Mr.. Campbell. one Of
the defendants, the witness said mas
system Of bookkeeping had been in
ence from anybody. Mr.. Fowler. first
asked IL Campbell had directed the
witness to establish an honest sys-
TEN, and on objection from counsei
for the government the word hon
est" was omitted.
Witness Repudfates Appraisal.
George Brown, a builder of New
York city, called for the government,
repudiated an appraisal OF the real
estate Of the Groton plant contained
in a written document bearing his
signature. H never saw the hrst two
pages OF the document, the witness
asserted.
Mr.. Brown said he had been re-
uuested by Mr.. NJ. Z. Gilbert then
president Of the Groton Company to
appraise the buildings. shipways. and
docks and had signed sheet carry,
his appraisal as "just a friendly
AFFAIR." and declared he had no idea
the document was to be used in
financing The first sheet set forth
that the =, aPpraisMs p Morse was 1ae The witness
asserted 1t was not at Morses re-
quest but on the request Of Mr..
Gilbert.
The real estate on the first sheet
of this appraisal is valued at S3o0,o0O
and the witness Gillespie had stated
that II was on the basis of the ap-
praisal In this document that ne had
entered the real estate on the COM
panys books.
Yesterday afternoon judge and
shipbuilder testified for the govern
ment in an effort to establish the true
value of the Morse wooden shipyard
at Noank, Conn. The government
charges that the value of this plant
was misrepresented at the time the
company obtained from the fleet cor
poration a contract for twelve WooQ-
en- hulls early in the war.
Judge Te.tines.
Arthur F. Anderson, judge of the
probate court at Noank, who held all
of the stock of the yard for the heirs
of Robert Palmer and his son, tes-
titled that the stock was SOLD to the
Morse interests in 1916 for sS5,oo0
cash. the purchasers In ADDITION as
suming a mortgage for $4,000.
w. A. Fraser of Noank, who was
superintendent of the plant for four
plant was the largest and best equip
ped wooden shipbuilding yard in the
United States in 1916, and that two
years before he had appraised 1t at
s150,000. BY court order in 1919 he
and others again made an appraisal
at s196.316. On cross examination he
said the last appraisal was after
| shipbuilding had slumped and the
plant was idle.