New-York tribune., 1921-01-21
Abadie Dug Up
'BigScllwabBill,
Lost His Job
tcsaaaasd from a~s paas>

Shipping Board. and Charles N. Piez,
Also a former head of the board.
Testifying on the business relations
1etween the government and the Beth
chem Corporation, Colonel Abadie said
hat things had been done and allowed
because of Mr.. Schwab's connection
which would not be allowed otherwise,
and though / was satisfied Mr.. Schwab
snew personally nothing of them the
snfiuence OF Mr.. Schwab's dual position
ras prevalent just the same"
Colonel Abadie added:
Though at that time had never
net Mr.. Schwab, | was satisfied from
ny knowledge of his record that he
would be the first to condemn any in
Justice by his corporation toward the
government and would willingly and
gladly return any moneys improperly
said his corporation.
II did not learn until after my res
ignation that my resignation had been
forced by a frame-up engineered by
Martin j. Gilien. l was framed and
my resignation requested, not to pro-
tect but to thwart the interests of the
government.
@The audit was proceeding in an or
ierly manner in the main Office of the
Bethlehem Shipbuilding Corporation
until certain discoveries were made in
she main office of the Bethlehem plant"
Among these discoveries, the wit
ness said, was the aforementioned
s260,000 voucher
"Insidious. Propaganda" Began
"It was then" continued Colonel
!. Abadie, that insidious propaganda be-
gan reaching Judge Payne criticizing
the enormous expense of the audit and
the alleged wasting of the govern
ment's money. Personal calls by vari-
GUS members and attorneys represent
ing the Bethlehem Corporation, TO-
gether with the propaganda referred to-,
caused Judge Payne to write me on
February IT concerning the order.
"Judge Payne took the position that
had no authority from the board or
from him to employ Perley Morse &
Co. He stated that the order for the
audit had to be Cancelled and that if I
would not do it he would. He pro-
ceeded TO send telegram to Perley
Morse & Co. canceling the arrangement
If February 21, 1920 (the order for the
audit. In answer to this Perley Morse
& Co. telegraphed Judge Payne as fol-
lows and sent me a similar telegram,
dated February "a:
"'Replying to your telegram of Feb
suary q, most emphatically advise that
your own, you Immediately see Mr..
Morse before we comply with your d.
rections. Investigation to date shows
startling disclosures which you cannot
ifford to ignore. We have evidence
also that the desire for our discontinue
ance is inspired by Paul D. Cravath,
one of the attorneys for the Bethlehem
Shipbuilding Corporation. Wire or
telephone answer Immediately and Mr..
Morse will come to Washington
Opposed Audit With Own Men
In reply to that telegram. Colonel
Abadie testified, Judge Payne dictated
memorandum to him directing Colo
nel Abadie to take care Of the Bethle-
hem audit with his own staff.
Il protested against this" said Colo
mel Abadie. ~ maintained that we did
not have sufficient competent men to do
Il properly, and also that if we at
;empted it it would not have the value
Of an unbiased. and. .disiAterested
''Do you think that from your knowl-
edge of Judge Payne an anonymous let
ser or newspaper report referring to
The enormous expense of this audit
"VUiu hovC any ii1iiuS1tSO OiI Niiu III VI
iering the audit stopped?" asked
Chairman Walsh.
There followed long pause, during
which Colonel Abadie glanced at the
members Of the committee and at the
aewspapermen, and, hesitating for an
other second or two, said, with q
shadow OF smile:'
THAT is a very difficult question. !
would prefer to have it withdrawn"
Bribery Not Suspected
Chairman Walsh withdrew the ques-
ton after moments consideration,
out pressed the witness on the point Of
whether or not he thought Judge Payne
and the higher officials of the board
amenable to Influence or bribery"
Colonel Abadie replied he never had
such suspicious, but that he had no
doubt that certain shipbuilding cor
oosations were not beyond trying to
,rtng Influence" to bear upon Judge
gayne "and even money influence on
other subordinate officials to have an
audit stopped"
Colonel Abadie added, however, that
le knew Of no case where the Bethle-
sem Shipbuilding Corporation used
bribery 70 purchase the loyalty or serv-
iees OF any employees of the Shipping
Soa.d."