Criminal Action

In 1904, 1,021 men, women & children perished when the General Slocum burned and sank in New York's East River. For that excursion tragedy. William H. Van Shaick, the Slocum's captain, was sentenced to ten years' imprisonment. Not until last week did the U. S. Government again take criminal action in the New York district against a marine officer following a marine disaster. Then a Federal Grand Jury in Manhattan completed three months of investigation by voting seven indictments in connection with the Morro Castle fire.

Charged with "wilful negligence" were the vessel's Acting Captain William F. Warms and Chief Engineer Eben Starr Abbott. Charged with "fraud, neglect and connivance in violation of law" was Executive Vice President Henry E. Cabaud of New York & Cuba Mail Steamship Co.. which chartered the Morro Castle from its parent company, Atlantic. Gulf & West Indies Steamship Lines (Agwi). Likewise indicted was the company itself, known to the trade as the Ward Line. Released on $2,500 bail each, the individual defendants face a maximum penalty of 10 years' imprisonment, $10,000 fine.

His indictment was not the only source of worry last week for tall, grey Henry Cabaud. In Washington the Post Office Department's investigation of ocean mail contracts was pointing a long inquisitorial finger at the subsidy which enabled the Ward Line to build the Morro Castle and her sister ship Oriente at a $10,000,000 cost. Because the company was alleged to have received from the Government to date $6,000,000 more under the contract system than it would have received under the proposed poundage rate. Postmaster General Farley seemed certain to recommend cancellation of contracts. Such action would save the Government $4,258,704 between now and 1938, when the contracts terminate, according to the Post Office Department.

More embarrassing than the mail contract investigation was the revelation that the Ward Line had made a profit of more than a quarter of a million dollars out of the Morro Castle burning. This it was enabled to do by collecting $4,186,000 insurance for the vessel against a book value of only $3,923,000. The company pointed out that it had paid $2,737,745 of the insurance money to the U. S. Shipping Board against notes outstanding, that it was customary to carry high insurance on vessels to cover losses.

Meanwhile Death still dogged the Morro Castle's wake. In Shrewsbury, Mass. last week died Ethel I. Knight Celatka, 21, of a weakened heart supposedly caused by 14 hours' exposure in the water after she and her sister jumped from the burning Ward liner last September and swam ashore each with a child in tow. (Total deaths: 128.) Off Asbury Park last week, wreckers salvaging the vessel reported that the charred hulk was "wrinkling," the whole ship was cracking up.

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