Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-14
BUYS 4 BIG SHIPS
WITH $40 IN BANK
$50 -a-Week Clerk Tells of Deal
He Put Through With Charles
w. Morse
GOVERNMENT BLOCKED SALE
BY the Associated Press

New York. May 14.--With a bank
s.count of $40 and unlimited confidence
n His ability TO get hundreds of thou
sonds more, Il. A. Moultan. of New
Pochelle, n $50 week employe OF a
steamship firm, last night startled the
Congressional committee investigating
tbe relations of the Morse interests
with the United Stntes shipping board
with a recital Of how he negotiated
with Charles w. Morse in an attempted
purchase Of four steamships valued at
$3.50, 900 each.
Monltan said he intended to purchase
tbe Huron. st. Paul, Binghamton and
Minneapolis from the United States
Steamship Co. and that he gave Charles
W. Morse. head Of this company, per-
sonal checks for S340,00O toward the
purchase. The checks were dated in
advance.
Reminded by Representative Tom
Connally, Of Texas. that he had pre-
viously admitted having only $40 in
New Rochelle bank, Moultan said
he intended to put the money up to
cover the checks.
'"This was all moonshine PROPOSE =
tion." Connally said.
"No, I could have got the money"
Moultan replied.
Moulton said the deal collapsed when
the United States Government refused
10 transfer the ships to Canadian reg
istry, and that Mr.. Morse released him
from his obligation and he in turn
fave Mr.. Morse a release.
"Swapped releases" Representative
Connally suggested.
Says Morse Saved Himself
"Oh, no." Moultan replied. "Mors,
saved himself from a million dollar suit
I could have sued him for not getting
the Ships
Moultan admitted he had ATTENDED
conferences in Washington with Emer.
sency Fleet Corporation officials II
company with other men. He is said t
be q son of an official in the Canadian
Marine and Fishery Department.
Moultan's testimony followed that o
Ira Campbell, counsel for the Emer
rency Fleet Corporation. Mr.. Campbell
told the committee that the Virgins
.Shipbuilding Corporation, one of tn,
Morse interests, in an attempt to hav,
$3.50, 900 advanced to the plant for worl
on ships, informed Emergency Flee
officials that they would put UP a.
collateral for security on the loan, mort
cages assigned to them by the United
States Steamship Company, the paren
Morse concern.
These mortgages, according to Camp
bell, were to be held against the fou,
ships named later by, Moultan in hi
testimony, which were to be sold t,
two Canadian companies on an initia
payment of $40 900 with the mortgage
securing the balance of the equity Of th
United States Steamship Company
their owners.
Hurley Refused Advance
Mr.. Campbell further testified thu
on his advice Edward N. Hurley, thel
chairman of the Emergency Fleet Cor
poration, refused to advance the $3.50,
900. The corporation already had nd
yanced the Virginia yard $3.50 900 on ,
mortgage on the plant. He advised re
lection. he said, on the ground that tn,
ships we're being transferred to foreign
registry.
Moultan was warned by Chairman
Walsh that anything he said might b.
used against him. but he waived i'm
munity. The chairman asked hin
whether he was implicated in the load
Ing Of prepaid freight on two of the fou
ships in question for overseas dcstina
tion. over which the shippers hav
started lawsuits. He said that indi