The Washington times., 1920-05-16
MORSE CASE HAS
BEEN ABANDONED
Shipping Board viii Not Prose-
cute flnancier for Fear Of
w. Losing Money.
from First P.se1

ACN'NsFNNf ffNf'' ahNff
10 violate or oVade the United ststes
statutes on the contrary. tho fol-
lowing h contained In the original
contract looking TO the sale OF the
ship, 10 witi
"sop payment OF Tho whole of the
agreed purchase money, the vendors
will. on instructions from the pur-
chssers. either make application TO
the United states Government. with
view OF obtaining the transfer of
American into French flag, all ex-
penses being for purchasers account,
no guarantee being. however, given
by tho vendors as regards the obtain
ing OF that transfer or continue run
ming the steamer under their own
name. according TO instructions will
In no case be in opposition to the laws
and regulations in force in the Uni
ted states. or transfer the property
of the steamer TO any American sub
Ject or company duly authorized"
CsII of Pres~cution.
"It further appears that on March
%. 1918, tho subject matter OF the
sale OF the steamship Mccullough,
and whether the Department OF Jus
tice should be asked to prosecute. was
considered by the Shipping Board and
the following record was made:
ere transfer of the s. S. McCul-
lougb by c. w. Morse, in violation OF
section o OF the shipping act. Com
missioner 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 matter
with the Department OF Justice and
intimate To them that unless they feel
very strongly that prosecution
should proceed, that no action be
taken until the board SO requests
THE minutes do not show any re-
quest was made thereafter by the
Shipping Board that a prosecution be
instituted.
"It further appears that the title
to the Mccullough did not pass: that
there was no transfer OF the nag;
that some time after the date of the
contract aforesaid (which was
August -, 1910 the ship was reauisi-
toned by General Pershing. on Octo-
Der 10. acting Under authority of the
executive order OF the President, and
while in the service OF the United
States was sunk
a. Awarded S4OO.00o.
at further appears that the United
states Steamship Company. as owner.
presented to the Shipping Board a
claim for the loss OF the ship. which
was investigated and reviewed before
the ocean advisory committee on just
compensation, at which time wit
nesses were called and evidence sub
mitted, and the United States Steam
ship Company. as owner. was awarded
the sum of $500 900, the resolution of
the United States Shipping Board
adopted June 26. 1918. being as fol-
lows:
"'Re esolved, That the recommended
tions OF the United states Shipping
Board ocean advisory committee on
just compensation. dated May 23. June
~ and June II. 1918. be and the same
are hereby approved and adopted as
contained in the said reports and re-
ferred TO in the statement trans.
| mitted by the chairman OF the said
committee, dated June 25. 1918;
| "'Resolyed further, That the letter
| OF June 25 from the chairman of the
aforementioned committee and the
the recommendations OF May %. June
l.. and June Il, 1915. respectively. be
incorporated in the proceedings OF this
/ date
| 1T further appears that when the
$4,000 was paid to the United States
steamship Company the board re-
quired that said company refund
S500,O0o through Brown Bros. & Co.
| on account of said conditional sale.
"Mr. Payne moved that, in view OF
the foregoing facts, il would seem
plain that a criminal prosecution is
not justied; that the indictment was
| improvidently secured that Commits
| sioner stevens and Mr.. Gillen be au-
| thorized to present these facts to the
| Attorney General, with request that
! the indictment be withdrawn. and
| recommended that the Shipping Board
| take concurrent action.
| "(Foregoing motion seconded by Mr.
| stevens and csrried.)"