The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1921-01-27
ASSERTS SCHWAB
VOUCHER ISSUED
Story of Big Expense Bill Is 0.
KID by Auditor.
SAYS S26O,O00 FOR MAGNATE
Corroborates Testimony of Former
General Comptroller Abadie, but
Says Part of Bill Was Disal.
lowed by the Board.

lowed by the Board
New York, Jan, 25.--Perley Morse,
whose accounting firm audited the
books of the Bethlehem Shipbuildng
company, appeared before the Walsh
committee investigating affairs of the
United States shipping board, and
corroborated testimony of Col. +. IL.
Abadle, former general comptroller,
concerning discovery OF a voucher for
100000 alleged to cover personal eX,
pcnses of Charles NJ. Schwab for Octo-
bcr 1918.
Total misplaced charges found on
the books Of The Bethlehem Shipbuild-
ing company amounted to $339,23O,
Mr.. Morse declared.
Mr.. Morse said he told Colonel Aba
die. under whose direction the audit
was carried out, of the discovery OF
the voucher by one of his accountants
and of the existence of other youch-
erS. one of these was for $4,000,
paid to Paul u. Crayath, attorney for
the Bethlehem company, and was
charged to overhead, he said.
Voucher in company's Office.
While Morse said he had not seen
the voucher, it was reported to him
by one of his men, and he mentioned
it to Colonel Abadie after the audit
had been called off by Chairman
Payne. The information given by his
accountant, he declared, was that the
voucher was in the office of the Beth
lchem corporation and on their books
on February Is, 1918.
The voucher, he told the committee,
was entered in the trial balance which
auditors made, under the headings of
administration and expense ia gen
cral." Mention of the voucher was
made to Colonel Abadie, Mr. Morse eN-
planned, i'm connection with other
things which included the voucher Of
$4,000 to Mr. Crayath. This charge
he said, was for attorneys fees.
Questioned concerning the 100000
voucher he said the number of it was
900 4 memorandum was attached to
the voucher showing that 100000 was
TO he charged to ship construction, he
said.
Said Voucher Was Dsallowed.
The matter was called to the attcn-
ton of one of the Bethlehem en-
ploycrs by one Of his accountants and
the shipbuilding employee. he said,
told his auditor that the item already
had been diSalIOwed.
Mr.. Morse explained that when the
audit was resumed his firm had the
auditing Of only the material and la
Dor accounts, and the field work for
the overhead was to have been
handled by the auditors of the Elmer
gency Fleet corporation His firm,
however, was to have general direc-
ton of the work, but this PLAN he
said. was not carried out
The statement of Martin j. Gillcn,
former assistant To the chairman Of
the board, i'm his testimony before the
committee, 10 the effect that Mr. Morse
had agreed that the item was not
charged to ship construction, was de.
MED by the witness.
Mr., Morse declared he had no
knowledge of how the item was
handled on the hooks Of the corpora
ton after his work was interrupted.
The contract for the audit, he said,
was made with Colonel Abadie on
January 10, 1920
Gives Detailed Description.
MIR Morse then reHd the following
from a memorandum concerning the
S2G0OOO voucher:
This voucher was No Cab gen
eral, the designation referring to the
shipbuilding account number The
voucher was NO 600; the only descrlp-
tion that il contained was Proportion
of B-i4 expense B-H is the Bcthc-
hem steel administration ana general
expense accounD amount 100000
"Om accountant looked ut B-44 gen.
eral expense account for am cNpluna-
tlon of the charge ANA found entered
there ON voucher No. l1I9SO c. NJ. S.
S2G9.5l353.'
"Ilc then asked AN assistant IN the
Office Of Mr. lIauch for this voucher
aud # was produced from the files.
and read. Expenses of G. NJ Srhvah
during October 1913. $2G9,Jl353 a
memorandum was attached to the
voucher stating HAT 100000 was ia
bc charged 10 ship constructions Mr.
Transciu who produced the voucher
for our accountant stated immediate.
ly that the sum of 100000 had al
ready been dt~allowed.
"Nwcuhclcs- 10 was noted by oar
accountant that +, was Included In thc
total Of account GA, posted TO dis
trlbution of general expenses, Book C.
N.y.t,Iar 1D1N