Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-02-28
REED SCORES M'ADOO LEGAL
CONNECTIONS WITH DOE1ENY,
MORSE AND FILM INTERESTS

before the shipping board on behalf
of Morse's company and read brief
prepared by a lawyer named Cor
don. He does rot appear to have
got very far with that case, the
fact being that the Emergency Fleet
corporation contended that McAdoo
did not know the facts Of the con-
troVersy he was talking about.
FiOated Loan for Morse
"Thereupon McAdoo undertook
processes with which he was more
familiar. He applied to John Bar
ton Payne, chairman of the shipping
board, to advance to the Morse COM
pany 100000, representing that it
was necessary to have this money
in order to prevent a receivership
for the company. He evidently sue
ceeded in convincing Judge Payne
that the payment of this money was
absolutely necessary to save Morse's
company from bankruptcy. For on
September 4, 1919, Judge Payne
wired:
"'Have arranged to pay over $780,.
900 to the Virginia company
1.-THE money thus paid over was
government money. 1t was paid
over on the claim that it was neces,
sary to prevent bankruptcy. New
ertheless, McAdoo charged and re-
ceived for securing the 100000 to
prevent bankruptcy a fee Of $780, 900.
ST pause to inquire was he then
engaged in ordinary legal service or
in Wheedling money out of the gov
eminent he had just served.
"The Groton Iron Works is an.
other Morse company. 1t was in
the hands of a receiver. In Septem-
Der, 1919, the same month Mr.. Nc
Adoo had earned the $4,000 fee
have just mentioned, he took up
| with the shipping board the ques-
ton of lifting the receivership OF
| the Groton Iron Works. AS a re-
suit a contract was made between
! the shipping board and the United
| States Transport company IA Morse
| company for the purchase or vessels
constructed at the Groton Iron
Works, under prior contracts with
the Emergency Fleet corporation.
For this service, McAdoo's firm
charged the Groton Iron Works $780,
000 1t was claimed, however, that
Again we observe that the work
done is not what is ordinarily called
legal work. 1t consisted in secur-
ing action by the government favor
able to the Morse company.
Coal Payments Promised
ION December 80, 1919, Morse, his
sons and William Guggenheim, con
stituting the board of directors OF
the United States Transport com
pany, approved contract to pay Nc
Adoo's law firm 81 a ton on 444,00O
tons of coal contracted to be ship
ped to France, Morse stating the
fee was in connection with negotia-
lions of the French coal contracts
con December 81, 1919, the trans
port company made a. contract to
pay McAdoo's firm Is cents a ton
on approximately 1000 tons of
coal to be shipped to the italian gov
eminent.
"The aggregate total expected to
be shipped was $4,000 tons.
'"The amount expected to be col
lected by McAdoo was $744,000.
LAS a matter Of fact the coal ac-
tually shipped realized an indebted
ness to the McAdoo firm Of $780,
1884.
But, the Morse firm, OF course,
was crooked and the lawyers only
got $33, 304. As in cash and some bad
notes for the balance.
Going along with these lucrative
engagements was the employment
by the moving picture people at an
annual fee Of $500. 000."