Regarding Morita's teacher. I'm going to guess something here. Yoshiro Kitaro is an odd-sounding name. I think in the transmission of the history from the Japanese to not-very-fluent non-Japanese something got garbled. Given that the art was developed in Hokkaido, I'm going to bet that the instructor was, in fact, Yoshida Kotaro.
Here's a site with some history
One of my students trained in that system. His information corresponds to that website that Ellis listed. The person who brought this "system" to the US had a Shodan.