The Washington times., 1920-05-09
MORSE PROBE
LONG GDELAYED.
Shipping Board Suggested His
Prosecution Be Suspended
March IL, 1918.

Reason for the long delay In the
prosecution OF Charles W. Morse In
Connection with the deal for the sale
ana transfer TO a foreign flag OF the
American steamer John @. McCuI-
Tough was revealed yesterday by a
iurther examination OF the docu-
mentary evidence submitted 10 the
House committee invetigsting the
Shiping Board. The transaction took
place In 1917, and the Indictment was
returned within the past two weeks.
The minutes OF the Shipping Board
as placed In the record OF the inYesti-
sation by j. II. James, acting secre-
tary OF the board. show that on March
~ 1918, the board Suggested" TO the
department OF Justice that prosecu-
tlon OF Morse be suspended pending
turther investigation by Che board.
On March 20. 1918, the minutes
snow the board directed its general
counsel TO intimate to the Depart
ment OF Justice that no action should
oe taken until the board SO requested.
board Rever.es Decision.
This action on the part of the Ship
ping Board amounted to a reversal
OF It's original decision in the case.
Which was that the evidence be laid
before the Department OF Justice, with
a recommendation that prosecution
be started. Department of Justice au.
thorities stated when the prosecution
recently was put under way that the
evidence on which the charge is based
was furnished by the Shipping Board.
The House Committee. which will re-
open i'm New York tomorrow, e1-
poets TO go further into this phase Of
Morse's relations with the Shipping
Board.
Awarded Double Dsaaxes-
Another interesting disclosure in
the minutes OF the board is that, al
though Morse paid only $4,000 for
the Mccullough, and he had under
taken to transfer the vessel to q for
eign nag. the Shipping Board awarded
him 100000 when she was sunk.
The Shipping Board granted q re-
quest of Morse to sell the steamer
William Castle Rhodes to a French
firm and transfer her to the French
flag. This occurred on June 81, 1917,
the boards minutes show.
Here are the minutes showing the
Shipping Boards intervention to stay
prosecution of Morse:
March IL, 1918: Comm. Page in
quired as to what decision had been
reached with reference to the prose-
cution of c. w. Morse for the transfer
of the steamer Mccullough in viola
tion of section o. of the shipping act.
Comm. Colby suggested that the De-
partment of Justice be requested 10
suspend activities in this case pend
ing further investigation by the
board. 1t was decided to follow tn"
suggestion of Comm. Colby. and tba
Mr.. Morse be sent for in order that
this matter might be taken up with
him personally"
Board Recensfders.
March 26, 1918: IRE transfer Of the
s. s. Mccullough by c. w. Morse, in
violation of section Q, Of the shipping1
act, Comm. Colby requested that the
board reconsider it's decision to ask
the Department OF Justice to prose
cute. After discussion, the chief coun-
sci was directed to take up the matte
with the Department of Justice ami
to intimate to them that unless they
felt very strongly that a prosecution
should proceed that no action be taken
until the board so requests"
This is the record showing tn"
award of 500, 900 to Morse for the los
of the Mccullough:
June &c. 1918: John G.. McCu'-
lough.--Built 1890: lake boat; rebuilt
at New York in February, 1916; dead
weight. 200 tons: purchased Janu-
airy. 1916. for S175,0OO; claimants
value. s150.OO0: owners have contract
to sell vessel to French government
for $500 900; valued at $3.50 per dead
weight ton. Allowed 100000"