Evening star., 1924-05-07
ARMY LUMBER SALE
EXPLAINED BY HARE
Former War Department Director
First Witness at Trial of
Phillips and Others.

Maj. Charles W. Hare. former di-
rector of sales or the War Depart
ment and now vice president of a
corporation in Philadelphia, was the
first witness for the prosecution to-
day It the trial of John l. Phillips,
Republican state committeeman from
Georgia, and five others charged with
a conspiracy to defraud the United
States through the sale OF surplus
lumber from Army cantonments- The
trial is in Criminal Division !, before
Justice Bailey and 4 jury.
Mai Hare identified the contract
made with the government by Phil
lips & Stephens to market the lum be r
and told Of the circumstances sur
rounding the signing of the paper.
He also declared his Interpretation of
the contract. The lumbermen, he
stated. wanted a commission of p
per cent to handle the surplus lum-
ber, but he stood out for 10 per
cent, declaring that as the contract
was for about $4,000 600 worth of
lumber commission of 100000
ought TO be enough to establish
selling force and to carry the over
head and other expenses of market
ing the lumber.
The commission of 12 per cent
written in the contract, the witness
said, was the result of a compromise.
yolIey of Objections.
The testimony of the witness drew
for the defendants and precipitated
a number OF legla arguments, so htat
but little headway was made today in
the presentation of the government 5
case
Denies Any Profits.
Frank J. Hogan, who, with Attor-
ney William +. Leahy, appears for
Ernest c Morse. War Department di-
rector of sales during 1919 and 1920,
told the jury that his client was not
only guiltless of any wrongdoing, but
had rendered a great service to the
government Mr. Hogan pointed out
that there was no charge whatever
that Morse had profited out of the
lumber contract or that he had re-
ceived, directly or indirectly. one cent
of the money which the prosecution
charges was wron Efully made by
Philips & Stephens, lumber contractors.
Hogan characterized as absurd the
charge that Morse was in con-
spiracy when there was no motive
whatever for his conSpiring- He
stated that the lumber contract was
tracts made during 1880 by the
various bureaus of the War Depart
ment under Norse's supervision; that
in those two years there were $4,000
sales, in which there were disposed of
war supplies which had cost more
than a billion and q half dollars.
Under MorSe'S direction about 4 bill
lion one hundred million dollars had
been obtained for these surplus war
supplies, showing q recovery for the
Of Of
time cost, and, he said, no one had
ever charged, and no one can truth
fully charge. that Morse ever re-
Ceived a@ dollar or even cigar from
any one of the thousands of contrac-
tors The lawyer declared there had
been no justification for Morse's in
dictment and that this case would re-
suit in his complete vindication.
Duties of Shipping Clerk.
Attorney Thomas C. Bradley, rep
resenting Charles S. Shotwell, former
War Department official, told the
jury that Shotwelrs duties were never
more than those of a shipping clerk
with respect to the carrying out by
the government of its contract with
Philips & Stephens. He never met
Philips until five months after the
signing of the contract between
Philips & Stephens and the United
States.
The Cadillac automobile which the
alleges was given to
Shotwell by the defendant, Sullivan,
said Attorney Bradley. was purchased
by him and the price paid was
greater than the value of the said
car as stated by the government in
its opening statement to the jury If
the governments case is no stronger
against the other defendants than it
is against Shotwell and if the failure
of proof on the matters alleged in the
Indictment and in the opening state
ment is as complete against them as
il is against Shotwell. there can be
no doubt of an acquittal for all, the
lawyer declared