Evening Star Newspaper, June 22, 1923, Page 18

18 CHARGES $400,000 UNACCOUNTED FOR|, Zwice fes Value, Testimony Regarding Money Transaction in. Which the Morses Figured. Failure of the United States Trans- port Co., & Morse corporation, to ac- count to the shipping board for $400,- 000 of the receipts of the company while operating boats as agent of the government, was testified to to- day before Justice Stafford and & jury in Criminal Division 1 at the wrial of Charles W. Morse, his three sons and four other charged with conspiracy to defraud the United States and the fleet corporation. This alleged deficit referred only to the »ton boats, it was stated. Similar Shortage Charged. The government charges that & similar shortage., the amount of which was not stated, occurred in re- lation to the Virginia-built boats. which the Morses also operated for the shipping board. M. T Fielding, &n expert account- .nt, presented a statement for the hooks of the company, prepared by ent” showed gross 928 and actual op- a 3 s $721,933. This left & balance of $406,994 which, it is <aid. the company did not account for to the fleet corporation. Former Bookkeeper’s Statement. A. F. Norris, a former bookkeeper of the United States Transport Com- pany, testifying for the government, deciared that the Morses, after taking the ageney to run the boats for ) e fleet corporation, certified xpzrme shipping board as legitimate o] - S Expenses $370,976, of which $99,970 )¢ debts contracted prior to the agreement and while the running the vessels un- 1se agreement in which d. The witness also said . White, one of the defend- had told him not to permit the ) be taken by agents of the gov- i an audit! Later the books were subpoenaed, he stated. “hares Assigned to Brokers. Georze S, Foster & Co., curb bro- kers of New York, received at least 100000 chares of the $3.000.000 worth which were given by direction of urics W. Morse for aid in keeping Groton and Virginia companies t of bankruptey court. This idence was given by J. Russell Meany, former counsel for the United States Steamship Company, a Morse rn. Meany sald he had not feard the name of George W. Loft mentioned in the transaction. A for- mer witness had declared the books showed ue of stock was to Loft and others. Mr. Meany could not re- call to whom the other 200,000 shares went. Denied Access to Books. Henvy E. Wilkens. a fleet corpora- auditor, testifled that he was de- right to examine the Vir- but was permitted to see accounts. He explained Morses claimed the Virginia ks related to the boats of which aimed ownership under the irchasing contract of September 25, 1918, THE WEATHER District of Columbia and Maryland. fair tonight and tomorrow; no change in temperature; gentle’ northeast winds . fair tonight and tomor- row; no change in temperature: gen- tie variable winds Record for Twenty-four Hours. Thermometer——Four p.m., 95; 8 pm., 8; 12 midnight, > n. 90 Barometer—Four p.m., 2! 20.94; 12 midnight, 29.98 am., 30.05; noon, 30.0 Highest tempe ure, 98, occurred p.m sterday iture, 75, occurred at 5 a.m. today -mperature same date last year— Highest, 83; lowest, 65 Condition of the W wperature and_condition of the | 8 a.m.: Great Falls—Tem- 32; condition, clear. Tide Tables. (Furnished by United States coast and geodetic survey.) Today—ow Ltide, 8:3% am. and 8:57 p.m.; high tide, 1:33 a.m. and 2:11 p.m ymorrow—Low tide, 9:42 . and 56 p.m.: high tide, 2 and 3:14 pm The Sun and Moon. \day-—Sun rose 4:42 a.m.; sun sets ow—Sun rises 4:42 am.; sun pom. Moon rises 1:05 pan.: sets 12:28 a.m. Automobile lamps to be lighted one-half hour after sunset Weather in Various Cities. t: Temperature. oo oF 5 BE 5= Btateor Ftations. Weather. ovoegupangat —e e ATilene, Tex. 2088 Clear Albany '.....80.12 Atlanta 030,02 92 dy Atlantic City 30.00 s lear Baltimore 04 U Clear Rirmingham. 30.02 94 0 Cloudy Rismarck Clear, Hoston .. 210 Cloudy Ruffalo UL Clear Oharleston.. . 3 2 88 Clear Chicago ... Clear Cincinnati. Cly Cleveland &8 Clear Denver ..... 20.62 K2 3 I Ptcloudy z ear ivansas Clty. Tax Augeles lle 3 briea New York... Okin, City. Pt.cloudy Cloudy Pt.cloudy Spokane | WASH FOREIGN. (8 am., Greenwlch time, today.) ‘Temperature, Weather. ... 00 Part cloudy Part cloudy Part cloudy Part clo Cloudy Oloudy san Juan, . "}n; Mavana, Cubs.. L 78 Cloudy Colon, C Raining GEN.WOOD’S RUBBER PLAN OPPOSED IN PHILIPPINES Ry the Associated Press. MANILA, June 21.—President Que- zon cf the Philippine senate, speak- ing today at Cagayan, Sulu, depart- ment of Mindanao, opposed the ex- ploitation of the rubber industry in the Philippines. £ “Governor General Wood.” he said, “has recommended to the leg! the approval of a law granting large leases on lands for the exploitation of rubber. But we do not care for the recommendations of the governor neral if they are in national con- ict. We maintain that great areas of land should not be granted either to foreigners or Filipinos, because the public lands were created by God, not to profit, to hold, but to provide everybody a share. “Our polloy in this regard is to preserve our national resourcespggor “posterity.” ;| Ainance companies that supply the Cost of French Navy More Than By the Associated Press. PARIS, June 22.—Fran nds annually 1,200,000,000 francs to maintain a fleet the value of which does not reach 500,000,000 francs, says Senator Lemery in Le Matin. The senator arrives at these fig- ures by calculations showing that the entire fleet is worth 926,000, 000 francs, of which $25,000,000 francs are in obsolete battleships and 225,000,000 francs in various vessels ~without fighting value, leaving 865,000,000 francs as the valuation of light ships and sub- marines. The total appropriations for the navy for the most part are spent on arsenals which are build- ing nothing, says the writer. D.C. BANKERS TOLD OF FINANGE BODIES Harry V. Haynes One of Those Speaking at Hot Sorings, Va., Sessions. Special Dispatch to The Star. HOT SPRINGS, Va. June 22.—The second business session of the cur- rent convention of the District of Co- lumbia Bankers' Association was held | here this morning with Harry V. Haynes, next president of the body, | pesiding. Following the invocation the speechmaking began. Frank P. Bennett, jr, editor of the Uinted States Investor, lauded worthy finance companies of the country, | but delivered a scathing denuncia- tion of those whose primary object lis a stock jobbing scheme, at the same time providing a handy tool for [the man who manufactures and sells doubtful stocks and bonds to the public. It it were possible to accumulate | reliable figures, the speaker voiced | the belief that one could prove by | sheer statistics that the oil well and | the prospective mine have been less| | trequentiy the nucleus of stock job- | bing schemes in recent years than | new finance companies. | In discussing the two main varle- | ties of finance companies, namely, the buying from manufacturers and merchants of their open book ac- counts, and. secondly, the cashing of | sales for manufacturers that have been made on the partial payment plan, Mr. Bennett warned that the promoter has lured more victims to { finuncial grief by his wonderful sto- | ries of the profits from trade financing than by any other reference | to finance company activity. Like- wise, he held the second variety was also contrary to public welfare, as| it defeats the spirit of thrift, inas- | much as it makes the purchase of | I needless articles altogether too easy | { for families of too modest means to| lown these things. | No Banking Jealousy. Entering further into the discus- sion of this second variety of finance company business, Mr. Bennett ex- pressed the bellef that it can be handled better by finance companies | than by banks, and that banks need entertain no jealous feeling toward | campenies that do this business. | This work, he declared, is for the | specialist. ] Passing to the merits of flnance | {companies, Mr. Bennett called atten- ! tion to the commerdable rescue work they performed in the busimess con- icern that is under-capitalized; to the liquid assets which permit the modest, | established concerns and the am- bitious young business man to meet { emergencies—emergencies which are | |fatal to 90 per cent of the business | mortalities which befall those who | start in business on their own ac- count. When properly administered, finance ’xompnnies perform a real service, Mr. I'ennett emphasized in closing his remarks. Pointing out that the twenty-five- year-old automobile business has out- stripped the hundred-year-old rail- road industry, Oscar Coolican, presi- dent of the Packard Washington company, who followed Mr. Bennett, urged more co-operation between the banking profession and the automo- | bile industry. Attitude Toward Autos. | | The attitude of the bankers to- | ward the automobile industry has | changed in the past year or two, de- | clared Mr. Coolican, and they now not only admit its amazing growth, but also that it is sound and fundamental. “The automobile has becoms essen- tial only because it serves” said Mr. Coolican, “It is helping the children of the crowded cities to have homes out in the suburb me just as essential to the economic life of the nation. Imegine what would happen if the automoblle industry stopped ibuying its billion dollars’ worth of fron and steel, aluminum, copper and other metals, leather, lumber, paint and all the other raw materials.” - I""The courage and economic common- sense of the automobile industry was a very important factor in our gen- eral business recovery last year. The automobile industry was back to nor- mal {n March, 1922, while general busi- ness did not reach this point until nine months later. Considering all the problems it has had to face, the automobile industry may well be {proud of its stabllity, restraint and H forethought."” i Money Not Diverted. | The money being spent on automo- biles is not being diverted from the so-called necessities of life or from savings, declared Mr. Coolican, citing the bankers' own statistics. Retail business Increased while the auto- mobile industry was supplying the biggest demand in its history. And according to Caldwell Hardy, chair- an of ‘the fifth reserve district “ s in_evidence since Algo_the census and state registration figures show that those states in which the highest per- ople own their own the states which have per capita ownership of Mr Coolican pointed out the great opportunities for the banker in the aatomobile and its application. He disoussed the co-ordination of rail- roads with motor trucks and of the street rallways with busses. He pointed out how the banker can co- orerlu with the financing corpora- tions which are making it possible to sell automobiles on the install- ment plan. Mr. Coolican drew to the attention of the convention _the bl menace of the so-called roblem to the automotive industry. o also {llustrated the ad tunity for education and travel which the automobile affords to the family of the man of moderate means. The golf tournament for the W. B. oup will be run off this after- GIVEN NEW COMMAND. Gen. Neville to Head Department of Pacific. . Maj. Gen. W. C. Neville, U. 8. M. C,, at marine headquarters in this oity, has been detailed to the command of the marine department of the Pacifio, with station at San Francisco. He will relisve Maj. Gen. George Barnett, former commandant of the corps, who is booked for retirement in a few months. Brig. Gen. Logan | Feland will succeed to the duties re- linq\ulhed/ by Gen. Neville. 22, 1923, EVENING STAR, WASHINGTON, Sakz & THE D. C, FRIDAY, JUNE Pennsylvania "Avenue Gabardines and Tropical Worsteds $l9 Worth up to $35 After all is said and done, Gabardines and Tropical Worsteds are the only rivals for dressy comfort. You'll feel that you are well dressed in either; yet in both you’ll be perfectly cool. f Both are susceptible of proper tailoring to give and sustain shapeliness. They are Two-piece Suits—Coat and Trousers— except that some of the Gabardines have vests. Hot as it is—and attractive as these Suits are at such a price—there’ll be a scramble for them to- morrow. Seventh | _ bt Street |-\l & 40c sizes.... Special Reductions Saks Wool Suits Taken from our regular stock— and placed on special sale. Pencil Stripes, Tweeds, Cassimeres and Worsteds. Young Men’s—Conservative— Sports and Double-breasted models. Suits up to $35 $24.75 Suits up to $45 Repeating the Sale of Phillips-Cuff White Shirts —the Shirt that is made with the Soft Cuffs—of same material as the famous Van Heusen collar. Shirts that retail regularly up to $5 195 It's a great privilege that we can offer these Shirts at such a price—not odds and ends—but a full range of sizes and in the Phillips variety. Philvale Shirts—Regularly $3.00 White Phillips Cuff Shirts, of fine quality oxford Philrock Shirts—Regularly $3.50 White Phillips Cuff Shirts, of fine corded madras Phildell Shirts—Regularly $3.50 White Phillips Cuff Shirts, of handkerchief cloth Philpark Shirts—Regularly $5.00 Of fine quality white woven madras with raised self stripes Straw Hats that are worth up to double the special price 1 ; 6 5 Tomorrow—again—those wonderful Mohair Suits w..mfl»fimw-wwu- (Coats and Pants) English, American We are contin- - Plai Gr-‘lnd.Bh:kT::d$ 5 m‘h\fl&mhtuhfinflnmhtyof v e Bl I:!.7 vim- On the Economy Floor (Fourth Floor) and shapes and sizes. ing can make them—of sight- Improved -foot Sennits, F Novel! models, and permanent Braids. hm‘"‘u’l‘.m ts, Fancy and Novelty [ eageliness. Sises 35 to 4. Another day of Many Attractions in the Boys’ Shop Every item listed here is a double attraction —quality and price. " $15 and $16.50 Kool Kloth Suits $9.75 They are skeleton lined; some with silk-fin- ished seams, and with the Right Posture athletic features. Sizes 7 to 18 years. ’ Palm Mercerized Popli d Boy:s“i ‘Ben:h, ;w:fiahnnn 55.00 Boys’ Wash Novelties $1.95 Middys, Balkans and Button-on Suits; in Brown, Tan, Navy, Gray and White. Sizes 21, to 10 years. Boys’ Flapper Suits—Button-on style; sizes $1 69 * 2V, to 10 years; strongly made and full cut.. o Boys’ Wash Pants—Khaki, and plain and striped Gray Crash; sizes 8 to 16 years. sl ,69 SPECIAL . Boys’ Flapper and Straight-knee Pants; Linen, Linen Crash and White Duck. Sizes 4 $1 a5 to 10 years. SPECIAL..................... Union Suits Cross - bar Nainsook; Sport Blouses In light fancy patterns; sport models; sizes 8 to comfortable fitting model. 16 years. PE T - el 59c¢ Junior High Palm Beach Suits —Long Pants— $1075