The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1924-02-26
Got $4,000
for Hating
Bankruptcy
Missourian Charges Former
Secretary for Using lnflu-
ence With Government
to Enrich Law Firm.
Announces Candidacy

ltotlatoi OdhiCo bsNtNp <f'iNA fA'S'''
opening his campaign for the demo
cratic presidential nomination
charged William Gibbs McAdoo, for
lmer secretary of the treasury and
an opponent for the nomination, ex
ipected to receive s1,O94.0 in '1ega
fees" from E. l.. Doheny, oil mag
nate; the Charles w. Morse interests
and motion picture concerns. although
he did not appear in a single law
suit"
Il am asking the endorsement OF
the democracy of Missouri and of the
nation for the presidential nomina-
tion," he said. "McAdoo publicly an
nounced that he did not intend TO
enter the list against any of the can
didates, but for reasons which are
50 atisfactory to himself, he has singled
me out as an exception to his gen.
eral rule. He comes into the state
OF Missouri and is receiving some
support.
Having been invited into the arena
come and give my reasons why the
attorney for Doheny should not re-
lceive the endorsement of the Missouri
democracy.
"Doheny came to Washington. He
was in search of influence and to OBJ
tain it was willing to expend large
sums of money. Although there were
tens Of thousan nds Of lawyers of dis
tinction and ability in the United
states, Doheny took into his employ
five cabinet or ex-cabinet officers.
"Doheny swore that he employed
McAdoo shortly after he left the cab
Iinet. which was on December 16, 1918
For his services at Washington.
lMeAdoo was paid 100000. He was
iremoved from that field of endeavor
when the democratic administration
was succeeded by the republican ad-
mlnistration. Such is Doheny's own
testimony. 1t remains uncontra
ldicted.
But Doheny was not the only man
who bought influence.
There was Morse. who secured
lawyers and paid them in commits
sions on coal contracts with foreign
governments.
Enters Morse Employ.
J Morse will be remembered as the
gentleman who wrecked a string OF
banks. lie got into the penitentiary
by fraudulent methods and he got
out by fraud.
After his release from prison
Morse proclaimed himself patriot
and organized concern to build
ships. For his transactions with the
government he was indicted. On
Morses trial McAdoo appeared and
testified for the defense. McAdoo S
lsworn testimony discloses that either
before or shortly after he resigned as
director general of the railroads, he
became a member of the firm of Nc
Adoo. Cotton & Franklin and he re.
sumed the practice OF the law June
l.. 1919.
about 90 days after McAdoo left
the government employ. he entered
the employment of Morse companies
1t should be noted that McAdoo's
partner, Cotton. had been the attorney
for the Emergency Fleet corporation
and therefore the shipping board.
shortly after entering Morse's EN-
pioyment, Mc.Adoo appeared before
the shipping board on behalf Of
Morse's company and read brief
prepared by lawyer named Gordon
He doesn't appear to have got very
far with that case.
Payment Is Secured.
"Thereupon. McAdoo undertook
processes with which he was more
familiar. He applied 10 John Bar
ton Payne. chairman OF The shipping
board. TO advance the Morse com
pany 100000. representing that Il
was necessary 10 have this money in
order to prevent a receivership for
the company.
! He evidently succeeded In con.
,incing Judge Payne that the pay
inent of this money was absolutely
necessary TO save Morse's company
from bankruptcy, for on September
4, 1919, Judge Payne wired: Have ar.
IT'S w HsAs 'N'I FANVi'Nb " WV
Virginia company
TIE money thus paid over was
government money. II was paid
over on the claim that II was neces
sary 10 prevent bankruptcy. Never
theless. McAdoo charged and receiv
ed for securing the 100000 TO pro
vent bankruptcy. a fee OF $4,000
THE Grotoh Iron works Is another
Morse company. II wns in the hand,
; OF a receiver. In. September. 1919
Tho same month iM~%-ioo had earned
the $4,000 fce | have Just ment ,oned
he took UP with the shipping boart
the question OF lifting the receiver
ship OF the Groton Iron works. A,
\ result contract was made between
the shipping board and the United
I States Transport company, IA Mors,
company FOR the purchase OF IN,
vessels constructed at the Grotor
Iron works under prior contract,
with the Emergency Fleet corpora
tion. For this service MelAdoo',
firm charged the Groton Iron work,
$50 900, II IL claimed, however, thai
this sum was not actually paid