Evening star., 1951-04-02
Senators Push Study
.0f Surplus Ship Sales.
Morris Faces Quiz

Senators today tried to trace a
pattern of unusual tax benefits
and possible political influence in
surplus ship sales that have drawn
the attention of four congressional
committees.
The Senate Commerce Commit
tee is moving fast and may hold
preliminary sessions late this
week, Chairman Edwin c. John
son reported. 1t is mainly con-
cerned with some aspects and Off
Shoots of a transaction that
involved the old Maritime Com
mission and company headed by
former Representative Joseph E.
Casey. Democrat. of Massachu-
sets.
Mr.. Casey, who last Wednesday
refused to give details of that
transaction to the Senate Banking
Subcommittee Investigating the
Reconstruction Finance Corp,
may be called again before that
subcommittee as well as the Com
Imerce Committee.
Vice Admiral E. L. Cochrane
Maritime Administrator in the
Commerce Department today Of
lfered his complete cooperation to
Senator Johnson's committee in
whatever inquiry it decides to
make, committee officials said.
The committee will meet
Wednesday on other matters but
probably will map plans at that
time for the scope of it's investi-
cation. Senator johnson said he
meanwhile would confer with
other committee chairmen to
avoid committee conflicts.
Morris May Be Questioned.
Senator johnson said his COM
mittee also probably will ques-
ton Newbold Morris, unsuccess-
full Republican candidate for
Mayor of New York in 1949. Some
of the eight tankers Mr.. Casey's
company, the American Overseas
Tanker. bought from the Mari
time Commission in 1947 and
sold at profits totaling $2.s mil
lion last year. now are owned by
ia tax-free charitable organiza-
ton headed by Mr.. Morris, COM
mittee investigators disclosed.
The Senate Finance Commit
tee. of which Senator George,
Democrat. of Georgia, is chair
man, indicated it will want to
determine how the ship deal pro-
|cedure apparently enabled Mr.
Casey's company and others had
to pay comparatively small taxes
Senator johnson explained that
the investigation can save time
and avoid committee jurisdictional
problems because three of the
Commerce Committee members
also serve on the Finance Com
Imittee. He and Senators Brewster
Republican, of Maine. and Will
Iliams, Republican, of Delaware
might especially explore the uues-
ton of tax avoidance" or loop
holes in the course of Commerce
Committee hearings. They tnen
could present their findings to the
Finance Committee as O sort OF
subcommittee, he said.
Other Committees Interested.
The Senate Expenditures Com
mittee. headed by Senator Nc
Clellan, Democrat. Of Arkansas,
and its investigating subconmit-
tee, headed by Senator Hoey,
Democrat, of North Carolina. have
shown interest in taking part in
the broad investigation.
The Banking subcommittee. OF
which Senator Fulbright, Demo-
|crat, of Arkansas, is chairman
expects to turn over to Senator
Hoey's subcommittee some part OF
the material it developed in ques-
tioning Mr.. Casey last month.
The Fulbright group, however,
sees possible links between the ship
deal and its own probe of "influ-
ence and favoritism" in RFC. Mr.
Casey and Joseph H. Rosenbaufn
Washington attorney. were active
in representing RFC loan appli.
cantS.
Mr.. Rosenbaum's law firm, &C.
cording to Commerce Department
records made public by Senator
Johnston last Saturday. helped SCI
up the complex ship buying anc
selling transaction involving thu
American Overseas Tanker Corp
and foreign subsidiaries.