Evening star., 1952-03-08
Morris Is Promised
Fair but Detailed Quiz
|0n Surplus Ship Link
BY Robert K. Walsh

Senator's investigating surplus
ship deals linked with oil ship
ments to Communist China indi-
Gated today that Newbold Morris
will undergo an unusually wide
range Of questioning when he
testifies Tuesday.
MIR. Morris, who is conducting
a cleanup Of corruption in Gov
ernment. will have q "fair hearing
and full opportunity to tell his
side Of the story" when examined
by the Senate Investigations Sub
committee. they announced.
But Subcommittee Chairman
Hoey. Democrat. Of North Caro-
lima. and other members, said
that recent testimony concerning
an organization Mr.. Morris head
ed and the part his law firm took
in tanker transactions will require
much more detailed questioning of
him than had been originally
thought necessary.
Controlled Tankers.
Before starting a week end re-
cess yesterday the subcommittee
heard Houston H. Wasson, New
York law partner Of Mr.. Morris,
admit that the China Interna-
tional Foundation, Inc, could
have stopped q subsidiary COM
pany from hauling oil to Red
China.
Mr.. Morris headed the founda-
ton, a philanthropic organization.
It had a controlling interest in
two tankers which carried oil to
Red China under contract with
Soviet Russia until a few months
before the Korean lighting
started.
The subcommittee also heard
David B. Jarvis. New York ship
ping agent. tell how he helped
obtain Russian charters for the
two tankers owned by the United
Tanker Corp, an American sub
sidiary OF the China International
Foundation. Mr.. Jarvis testified
that Central Intelligence Agency
and Naval Intelligence officials
later talked with crew members
OF the tankers and got informa-
ton about ports visited by the
tankers.
Johnson Protest Recalled
Senator Mundt. Republican, of
North Dakota recalled that the
then Secretary of Defense, Louis
johnson, had protested in Octo-
ber. l949. against charterinp
American-fiag tankers to the So
viets for China trade.
This is a shocking breakdown
OF unification." Senator Munct ex-
claimed. TITS Pearl Harbor all
over again. Naval intelligence
said go ahead and at the same
time Louis johnson was saying it
was terrible"
Mr.. Jarvis added that he had
checked with the State Depart
ment in connection with the
Ichartering of the American-fiae
tankers to Soviet agencies. He
said he was told there was no
policy objection at that time.
When the hearings are resumed
Monday the subcommittee will
have Col. Arthur @. Syran, former
Economic Cooperation Admins
tration official, as a witness. In
veStigators said he was the of1icial
whose protests finally halted the
oil trade to Red China.
Senator Nixon. Republican. of
California and Senator Mundt
have been the severest critics of
MIR. Morris at the hearings thus
far. Mr.. Morris is Republican.
Senator Nixon told Mr.. Wasson
yesterday that "the morality con-
Icerned Gin the oil trade) is about
equal to that Of international
lpirateS."
Testimony Branches Out.
The hearings opened last month
in connection with big profits
made by a group led by former
Representative Joseph e. Casey,
now q Washington lawyer, in dis
posing Of surplus tankers bought
from the old Maritime Commis-
sion. Within the past few days
testimony branched out into wider
fields.
Robert w. Dudley, another
Washington attorney who figured
in some Of the profitable ship
deals. was linked yesterday to an
unsuccessful attempt to buy 20
additional ships from the Gov
|ernment in 1948. The Maritime
Administration reported that its
files show Dudley was secretary
treasurer Of the Hoosier-Maumee
Shipping Co. which applied for
the 20 ships. The application was
turned down because the company
wanted to operate the ships un-
/