New-York tribune., 1921-01-22
Schwab Denies
Accusation He
Got $260,O0O
Continued from page sne)

| Continued from page sne)
for such expense, was reimbursed to me
by the Bethlehem Steel Company; nc
part of 1t in any manner, shape O,
form was charged against the ships Of
the ship department for which the gov.
ernment paid the bill. Now, am 1 clea,
and explicit about that ?"
Chairman Walsh-Do you mean te
say that in your capacity as president
or as chairman or as an officer of the
bethlehem Corporation that none OF
your personal expenses we're charged
against ship construction for sh;ns
S.. wnich were being built for the United
Mr.. M Schwab-Absolutely and unouali-
~ Chairman walsh-And if vouchers tc
out your knowledge? "-S''
Mr.. Schwab-I think 40. Mr. croco
VINO Is the active president and mar
ager OF the Bethlehem Corporation. will
nave al the data that may be necessa ~,
70 make that perfectly clear. but of IN .
statement you may be sure that noth'
ing connected with my personal ex-
pehses IN any manner, shane or form
sh;s Tas charged against the ships or the
Smlpping mapt Tor the United States govern
Careful of Relations
y, chairman Walsh-Do / understand
MR.. Schwab, that if the certified nmhl;c
accountant, who is making the and;t
actually hnds voucher reading: "Per,
sonar Expenses of Yourself" and actn-
t;a aiay mas 1T charged to ship construc-
hoar, b.ol, AZ sucn case would that have
MI Mr eone with your knowledge?
ever my personal relations wth 49,
bethlehem Steel Corporation NAV bsue ave-
uSeen; l personally could not tell Won
sne oetalls, personally do not remem-
yer, put you may be sure Of the fac+
snas the one thing. above evervthinr
eise, Snat | was particularly careful
ABOUT was that insinuation should never
De made honestly and truthfullv, nor
any money was ever reimbursed to ma
oy tne United States government for
any services l rendered them during
my connection with them,
CHAIRMAN Walsh-You will be asked
20 appear before the committee Tues.
day, or Wednesday of next weak ues-
Mr.. Schwab-Any time Won desire
Chairman Walsh-And YOUR anneor-
ance mere this morning is at your own
request, and possibly at your own
pretty strenuous insistence.
Mr. Schwab-My demand, absolutely.
Abadie Recalled to Stand
Colonel Abadie was then recol,.d -
the stand. '' ~
-, Colonel Abadie," asked Chairman
Walsh, "do you wish to make a state. tsl
ment with reference to the matter
ingw was 'eS''iy-
Colonel Abadie's reply was:
les. have just heard Mr.. Schwab's'
testimony, and if all he has said is true
L, owe him the deepest of apologies.
mere is nothing that l can say that
wHi m my opinion make proper cor
rection OF statement made to me by
men VINO were employed with the full
understanding of the danger of their
Positlon IN giving out incorrect infor-
matlom or conveying matters to me as
the official head of the accounting de-
partment of the Fleet Corporation and
the Shipping Board that was incorrect
or That might not SAVIOR of the proper
information to be conveyed to me.
Il think made it very clear in nv
statement of yesterday that 1 wanted
to depart and keep away from anv SEN
satlonalism. l twisted the reading of
the voucher to the extent that in nv
statement l eliminated, purposely, the
name of Mr.. Schwab; but for fear that
IL. might come out l went at length
in that testimony and commented to
the effect that l did not believe that
Mr.. Schwab had any knowledge whatso-
ever of how any vouchers FOR money
that might have been paid to him by his
various corporations were distributed
on the books of those corporations. and
tnat 1t any such sums did get in to
snip costs and through that means as
overhead be paid ultimately by the
United States government, he had not
the slightest knowledge that that was
done. l think you will find that my
statement is very clear on that score"
Reiterates His Testimony
Asked further concerning the voucher,
Colonel Abadie reiterated his previous
testimony that information concerning
it had been given him by Mr.. Morse.
He said that charge was entered as
"overhead" in the main Office of the
Bethlehem company and 100000 was
charged to ship construction.
In reply to a question the witness
admitted that Mr.. Morse had told him
the other 100000 had been sent, but
declined to repeat what he had been
told, and said it concerned the Beth
lehem corporation only. Mr.. Schwab,
who was sitting near by, spoke up and
said:
"You are at perfect liberty to give
that information if ya desire"
Colonel Abadie, howe 7cr, said it was
given to him confidentially and that he
would not repeat it.
Paul D. Cravath. counsel for the
Bethlehem Shipbuiiding Corporation,
was seated near MIR. Schwab during
this exchange of remarks.
A dramatic half hour was furnished