The ship was laid down under Maritime Commission Contract 3 June 1940 by the Federal Shipbuilding and Drydock Company of Kearny, New Jersey, MC hull 70, yard hull 175, and launched as Fred Morris on 2 November 1940, sponsored by Mrs. Fred Allain Morris. Fred Morris, official number 240200, was the fourth in a series of five identical ships built for Lykes Brothers Steamship Company of New Orleans and delivered to the company on 27 December 1940 after successful trials for the MC and Lykes. The ship was intended for service between the U.S. Gulf ports and ports in United Kingdom and Mediterranean. To meet requirements for river and canal navigation modifications were made for visibility on the bridge and masts were telescopic to meet Manchester ship canal height requirements. The ship was designed to accommodate a crew of eighteen deck department, sixteen engine department and nine in the steward's department for a total of forty-three crew with two owner's staterooms approximating liner cabins suitable for passengers. Characteristics as built were length overall, length between perpendiculars, beam, loaded draft,,, with a displacement of 12,875 tons. Propulsion was a De Laval steam turbine driving a bronze, variable-pitch, three-bladed propeller in diameter. Two 250 kW De Laval steam turbine generators provided electrical power. The launch can be seen in stock footage used in the opening scenes of the 1964 film The Incredible Mr. Limpet.
Navy acquisition
The Fred Morris was acquired by the Navy on 1 March 1941 and commissioned as USS Otus on 19 March 1941 with Commander Joel Newsom in command. The lone ship in her class, she was named for Otus, a mythological son of Iphimedia and Poseidon.
Submarine tender (1941-1945)
Assigned to the Asiatic Fleet as a submarine tender, she was anchored in Mariveles Bay, Philippine Islands, on 7 December 1941. On 10 December 1941 she was slightly damaged during the Japanese air raid on the Cavite Navy Yard, when several bombs landed near her starboard side. Not wanting to risk one of the few tenders in his command, Admiral Hart, Commander Asiatic Fleet ordered Otus to leave the Philippines. Departing 10 December she arrived at Port Darwin, Australia on 28 December. Remaining at Port Darwin through January 1942Otus steamed to Java and Trincomalee, Ceylon, during February and the first part of March. She returned to Australia on 10 March, where she tended submarines at Fremantle until departing for the United States on 25 July. Arriving Mare Island Naval Shipyard 24 August, Otus underwent an extensive overhaul until 23 January 1943. After a brief stop at Pearl Harbor she returned to Australia 22 February where she remained, steaming from port to port as the demand for her services dictated, until 1 September. From September 1943 until December 1944 Otus served at four different sites in New Guinea furnishing tender services for escort vessels, minecraft, and amphibious craft as well as submarines. Departing Hollandia Bay 25 December, Otus arrived at San Pedro Bay, Leyte Gulf, Philippines on 6 January 1945 and commenced providing routine upkeep and emergency repairs to the ships of the Southwest Pacific Area.
Repair ship (1945-1946)
On 25 June 1945 her classification was changed to ARG–20. On 1 December 1945Otus left San Pedro Bay en route to Portland, Oregon. Arriving 2 January 1946, she was assigned the duty of deactivating vessels. She carried out this work at both Portland and Astoria until 29 June 1946, when she steamed to Seattle to commence inactivation overhaul.