Norwich bulletin., 1921-12-08
MILLIONS IN sHIPYARD
OPERATIONS BY MORSE

in the last few years. including the Gro
ton Iron works. with yards at Groton and
. Noank. have brought attention again to
the man W was released from the At
lanta fede prison on the plea that he
was so i'll * had not long TO live, having
been sentenced there for violation OF the
banking laws in the formation of a great
financial trust company.
When the world war brought shipping
into Prominence, Morse organized the
United States Steamship Co, under the
laws Of the state Of Maine, with a CAPT
tai Of s25.0oo-O00, putting into it II COM
panies each operating one ship.
When the United States entered the |
war Morse announced his readiness TO
| build ships. and was given contracts by |
1 the government to build Sc vessels-24 OF |
| them steel and 10 wood
| The contracts were what were known /
| as the lump sum variety, End the stee.
vessels were recorded to cost sk3.4ss. AZ. |
! or an average OF s1SI2350 each In q |
prospectus Of the United States Steam
ship Co. (the Morse concern, issued in
| 1919. however. the steel ships we're given
a cost Of S4S000,O00, or $1,000. GOO each
All were cargo vessels. the largest being
s.4oO tons.
Sought Government Orders.
To acquire the government orders.
Morse organized the Groton Iron works
at Groton, which took over the yard at
NoarlI and the Virginia Shipbuilding
corporation at Alexandria. Va
The first contract he got was made
Aug. II, 1917. II called for the con-
struct3on Of six steel ships Of $500 dead
weight tons each. at Groton 1t was
known in the shipping boards construc-
. ton arm. the Emergency Fleet corpora
ton. as Contract No. 81. Il called fo-
an expenditure II SS,1S4,OO0. and later
S.74S.20S' was added, making total OF
: 9932.2OS
April 20. 1918, although eight months
g had elapsed and not one of the Sims on
the first contract had been delivered,
!, Morse obtained a second contract for
. Groton. 1t was Contract No 225 and
called for the construction of six ships
Of s.400 tons each. 10 cost SO 1854. SOC. 10
which S1-S67,4O4 was added. making the
e total cost of S12132. 2O4. Morse had six
j. | shipways at Groton and contracts to rush
z out Il ships there
In the meantime Morse had built four
d ways a. Alexandria, Va, and Dec. Z.
d 1917, had got Contract No. I45. calling
e for the construction of u ships + 9.4OO
t tons each there. The amount IF that
Y contract was SIS OsS. O0N and s33S4OO0
2 was added. making total o S2i,432. GOO.
n lie also had contracted to build 4 wood
e ships at Noank.
? Morse's Figures of Value.
= In the Morse prospectus of his United
!. States Steamship Co. thc Soank plant
n was valued at S2.50O.0 600, though 1t was
said TO have cost only 100000 The
;, Groton Iron works was valued at slO-
ia 100000. and it was stated in the pros
~ pectds that Morse I'D made a cash ex-
II pend:ture Of $500, 900 on it. The follow
- ing year, 1920, this plant was listed as
| rT-r- ,y.T-- ( IT.
n building corporation was appraised Al
Il 100000 in 1918 but a financial state.
= ment issued by the steamship company il
- 1920 valued it at $500. dOL
- The Groton Iron works housing project
- was lisetd by the shipping board at a.
ie estimated cost of S966,5S4, with S4s.52l
\ required to complete. \ stated mortgag,
II received amounted TO only S1250,100. 1
~ called for 90 dwelling houses They wer.
completed April Is. 1919, five months af
ter the armistice was signed. OF them
- ~ were constructed by the Fleet corpora
y ton.
~ In the % houses only 1S4 men wer
accommodated. Dormltories and board
=. ing houses were built.
- Charles Piez, the director general q
ts the Fleet corporation, having -succeede
~ Charles NJ Schwab. made a report TO m
80 trustees of the shipping board April a
1919, in which the cost of the ships q
Groton and Alexandria were recikoned z
20 S3t,267,S55- One of those at Groton Ia
- Just been delivered The Gfoton cost wa
as Sg'sS2'2oS for the first six ships an
~ SL5S2.627 for the following six tn
ed Alexandria cost was sIS,75S.oOO.
lis Cancelled Contracts
ut Mr.. Piez's figures on the est Of III
1t steel ships took into account the canoe
e lations on me contracts which were put
ny effect all over the country with Germany
no capitulation. The entire second contra
Ut at Groton was cancelled at a cost Ct 81
he 5l6.525 for an estimated saving Of 81
Of 549,5II. Two ships at Alexandria wei
all cancelled at a cost Of SS93,OO for ? n
or corded saving Of S2.67s,000
He March 81, none Of the ships under Ii
CT first Groton contract had been de,:vere
h One had been launched and was in II
xi- wet basin and five were On the way
Work on the second lot Of vessels {
ou Groton had not been started. No shiT
es. had been delivered at Alexandria eithe
or One vessel was in the wet basin cher
see four were on the ways. and the work
ty. seven had not been started.
1t One wood ship had been delivered ;
I've Noank Aug. 81, 1918, and another &c
we % Of that year. They constitute Il
ng Nl-rse delivery 10 the government befoi
ak the armistice. A. third and last wood sh
or Eyered in June. 1913.
The
-on 30 Months to Build Ship
It took 90 months for one of the Nor
,go firms to turn out his first steel shi
nd whereas other firms were building shiI
7as in a month and less
gh In the Piez report the Noa-1 manag
IN ment was rated as poor performance
in contracts as fair" financial condition
the company poor" workmanship fair" al
.en freed-m from controversy poor" The
m was not one good" mark recorded.
"a, Groton management Poor
the For Graton the management was cias
err ed poor" the finances weak" wor
ian manship fair and relations 't5-or." T
IN Virginia company came in for manas
nee ment fair ffnarces weak" workma
ing ship good" and relations poor"
of Under the heading of investments
tn advance of 100000 to the Virgin
GU company was reported and total of S
Who 100000 to the Groton c-mpany for e
ner penditures. Then, under a table Of tot
to complete" was S2.1O0.OOO to the CIR,
lth on Iron Works and Sl,000,0O0 10 the VI
cen ginia Ship5uilding corporation.
the After the war was over Morse orga
md lied the United States Transport Corpcr
ne | ton and asked that the ships built by h
has for the government be assigned to n
in company 10 operate pending sale. La
the he organized the United States 81
,icb | Corporation to absorb the United Stat
the Transp- 1T CORPORATION.