The New York herald., 1921-01-26

able lieutenant. Mr. Schwab devoted
himself largely TO supervising construc-
tion. visiting the yards and stimulating
| the worl5mcn.
Chairman Walsh asked an expression
OF Mr. schwab's judgment concerning
what should be done with the large
number of uncompleted wooden hulls
which the Fleet Corporation has on
hand. In reply Mr.. Schwab said:
should Sell ships.
Let me first impress it upon you
strongly that this whole shipbuilding
programme was an emergency pro-
gramme l have always been of the
opinion that this emergency fleet ought
to be so regarded, and that this cost of
two and a half billion dollars, or what
ever the figures show ought to be
charged of as war cost, because that
is what il originally was. We are maxi
ing great mistake in supposing that
those three billions spent in ships are
going to constitute merchant marine.
because they are not the types of ships
with which to do it.
81 think these ships should be real
lied upon at any price we can get with
IN reason-should be sold TO private
marine, private enterprise must be stin-
ulated toward the building of ships.
There must be investment OF private
capital in ships that will be profitable
IL we are to have real American mer-
chant marine. which / do not think we
have now nor can we ever make one
unoss we will do that
Regarding these wooden ships. I see
no value in them except for service as
barges or from coast to coast ports or
short trips. They played their part in the
building of an emergency war fleet, but
] would scrap them Or sell them for what
they would bring and charge OF their
entire cost to the war.
81 want to say again with all the en-
phasis / command that the fundamental
idea in our minds was to get ships. We
did not delay operAt TONS in any yard in
the hope that later we might build more
cheapiy We let nothing stand I'm the
way of getting ships quickly. And |
can assure you gentleman. that IL you
had heard the reports from Gen. Persh-
ing and others abroad that l heard every
day you would Eave realized strongly the
necessity for such action. This country
and Congress and all of you ought to
realize that this was the greatest war
emergency that confronted us-the me-
cessity to transport troops and supplies.
1t was Of such fundamental Importance
that IL overshadowed every other con-
sideration of cost or anything else"
Repeats voucher Denial.
When asked If he had anything to add
concerning the S269.000 voucher to what
he had said on Friday. Mr.. Sehwab re-
Piled: Nothing further than TO reiterate
that not one penny, directly or indirectly,
ever was received by me from the United
States Government for my services or cf-
forts"
REPRESENTATIVE Steele by questioning
brought out the fact that when Mr..
schwab became Director General enemy
submarines were actually sinking ships
more speedily than they were being pro-
duced while before Mr.. Schwab's retire
nient point had been reached where
ships were teing built faster than they
were being destroyed.
With reference to the sale Of Govern
ment owned steel ships to private opera
tors the witness said ~ think the most
liberal reduction ought to be made to
purchasers. because. if necessary, the
Government could we'll afford TO charge
off the whole cost of those ships as a
war expense and leave the United states
ahead in the operation
Mr. Schwab said that in view of all
the conditions. 1t was pleasant sur
prise to him to learn that the ultimate
cost of the entire emergency fleet OF
II, ,oO0. 900 ions. when completed, will be
about $3.50 a deadweight ton. He had
thought 1t would be more.
Mr.. Schwab, under Interrogation By
the chairman. testified that he had never
Instituted any steps looking toward stop
ming the audit of the Bethlehem cor
-poration's books He said he never even
knew of ii.
In the morning the testimony given
Monday evening by Mr.. Grace concern
ing the $26O,000 voucher was corrobo-
rated by T.. A. Schick. the Bethlehem
company's general auditor and w. A.
Hauck his assistant. Their detailed
testimony about the bookkeeping fea-
lures OF the transaction. together with
the photostatc exhibits. appeared con-
elusive enough to close the incident.
Wallace Downey. the last witness OF
the day. head Of the Downey Shipbuild-
ing Corporation whose name was mem
toned by Tucker X. Sands in connection
with the alleged $4,000. payment for
ship contract denied absolutely and
positively" all allegations of Sands to
this effect.