Evening star., 1952-03-06
'BIood-5oaked Profit
Denounced by Mundt
AT Ship Deal Hearing
Agrees New York Firms
Coreoes for Red Chino
Violated No Low
BY the Associated Press

Testimony that vessels of a New
York shipping firm hauled cargoes
to Red China, after the start OF
the Korean war brought from
Senator Mundt. Republican, OF
South Dakota today sharp
idenunciation of such blood
soaked profits.
In stinging language. Senator
Mundt told Houston H. Wasson,
New York attorney. that you
violated no law" but that he
questioned the faint hearted
ethics" underlying the shipping
firms actions.
Mr.. Wasson, law partner of
Newbold Morris. Government cor
|ruption investigator, was back for
the second day before the Senate
investigations subcommittee which
is digging into profitable deals
in war surplus United States
ships.
Mr.. Wasson testified yesterday
that he and Mr.. Morris were
lawyers, but not chief counsel
for the China Trading and Indus
trial Development Corp.
He identified this as a Chinese
Nationalist firm. but said it de-
livered oil to Red China almost up
to the start of the Korean fight
ing. and other goods until the
war was six months old.
Checked State Department.
Also involved in the story were
two other corporations. One is the
China international Foundation,
Inc, which Mr.. Morris heads. This
is organized as a non-profit char
liable corporation.
Mr.. WaSSon conceded that two
tankerS owned by the foundation
and operated by United Tanker
Corp. carried oil to the Chinese
Communists under contracts nego-
tiated with Soviet Russian groups
just before the start of the Korean
war. United Tanker was described
as sort of a subordinate sister to
China Trading.
Mr. Wasson acknowledged also
that China Trading, through the
New York shipping agents, Sieling
q Jarvis. also operated dry cargo
vessels to haul goods to and from
Communist China ports during
the first six months of the Korean
war.
Mr.. Wasson testified that on
his advice United Tanker checked
the State Department in 1949 be-
fore accepting the oil charters
He said 1t was told in telephone
talk with an official, not identi-
fed in the Senate hearing, that
the charter was not contrary" tc
United States foreign policy al
that time.
Not Confirmed in Writing.
He said the firm sent lette,
to the State Department con-
f1rming the telephone advice, but
that the department did not put
in writing" that it had no objec-
tionS.
Mr.. Wasson urged the com.
mittee to "get away from an at.
moSphere where the uueStionins
lis conducted because this investi.
cation is in 1852 instead of l949.
i Senator Mundt f1ared that h,
served on a House Foreign AT,
faires subcommittee in 1947 ant
l948 which, he said, protested
against "the crimson greed" O,
interests seeking profits from
trade with the Communists.
! Senator Mundt called the tele-
Iphonic check with the State De.
|partment 'pint-sized evidence" te
Justify the trade with, the Reds
HE noted that former Secretary oi
Defense Louis johnson COM
lplained in a letter. TO the Maritime
Commission in 1949 that use of thf
1.-TWO tankers to haul oil for tht
Reds was "a definite threat to ma.
ltional security
| MFR. Wasson replied that he die
mot know Mr.. johnson wrote tht
letter. and that the Maritims
Commission did not clamp dowr
until more than q year later: