The New York herald., 1921-02-02
AUDIT OF SHIP BOARD
BY MORSE ATTACKED
Tweedale Says S457,271 Has
Been Paid Without Start
ling Revelations

! WASHINGTON, Feb 1.-Emphatic as
be able to account for every cent spent
for the construction of vessels was given
to-day to the House committee which is
conducting an inquiry into the boards
operations by Alonzo Tweedale, general
comptroller of the board. Searching
audits of accounts. he declared, had re-
vealed no evidence of fraud or misap
preparation of funds.
During his testimony Mr.. Tweedale
also contradicted the assertion, made
before the committee by Col e. Ii.
Abadie, his predecessor as general comp
troller. that he (Abadie) had been rail
roaded" out of his job by Martin J. Gill
len, former executive assistant to the
chairman of the Shipping Board. Mr..
Gillen repeatedly defended Col Abadie
methods, which did not meet with the
approval OF some members Of the board.
according TO Mr.. Tweedale who denled
also that he had made any attempt to
| dislodge Col. Abadie in order to get his
job.
Declaring that when he was elevated
! from treasurer of the Shipping Board
complete freedom to recommend his sue
/ cessor as treasurer, the witness asserted
he had selected r. w. Boiling brother
n-law of President Wilson, who had
been serving as assistant treasurer.
No influence whatever was brought TO
bear on him TO make such choice, Mr.
Tweedale declared. Questioned by COM
mittee members, he said that 10 ms
knowledge Mr.. Boiling had never used
III ;,,g officially ~ unnf1Cla llN. in
behalf of contractors building ships Tor
the board.
Discussing the audit made by Perley
Morse & Co, New York, of the accounts
Of the Bethlehem Shipbuilding Corpora
tion, which it was charged at a previous
hearing, had brought to light S260,O0O
voucher for the personal expenses or
Charles NJ. Schwab while in charge OF
the Emergency Fleet Corporations con-
structon programme, Mr.. Tweedale de-
clared the audit had been called off be-
cause it was expected to cost at least
$3.50, 900, perhaps $1,000,00O.
Although the Perley-Morse auditors
later were authorized to resume their
examination of the Bethlehem accounts,
Mr.. Tweedale said, they have failed to
make good their promise to make star
tling disclosures" The board, until jan
uary ! last, paid Perley, Morse & Co.
S457,271 for it's audit, according 10 the
General Comptroller. who declared it
could have been done by the boards
own force Of auditors as efficiently at
less than one-third that expense.
Mr.. Tweedale estimate it would take
the Persey-Morse auditors eight or nine
months to complete their work, and that
the total cost Of their audit probably
would reach S1.0O0,000. \ thorough eX
animation of the Bethlehems accounts
by tho Shipping Boards auditors. Mr..
Tweedale said, had revealed no glaring
irregularities.
Representative Steel, Republican, Of
Pennsylvania, a member of the commit
tee, asked Mr.. Tweedale whether he did
not think that fraud had been perpe-
trated Oh the Government by Perley
Morse & Co. in that It had promised
to make startling disclosures but that
"after an expenditure OF nearly a half
million dollalrs nothing of practical
value had been disclosed" Mr.. Steele
wanted 10 know IL the General Comptrol |
Ter thought there was basis for court
action by the Government on this ground.
"I should think there would be basis
for such action replied Mr.. Tweedale.