The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-01-22

department or the Shipping Board mat
tcrs that We're incorrectly stated.
I'm my original statement l twisted
the reading of the voucher. eliminating
purposely the name of Mr. Schwab. IL
was only at the instance of the chair
man and on his insistance that after
ward mentioned the name. But i also
have gone on record as stating that l
did not believe Mr.. Schwab had any
knowledge whatever how many vouch-
ers for money that might have been
paid to him by his various corporations
were distributed upon their books
Col. Abadie said he never actually had
seen the voucher, but had been told OF
IL by both Perley Morse and Mr.. Morse's
associate. Mr. Burgess. They also had
informed him that Endorsed upon the
voucher was the statement that SlCO,OOO
of the S260, 900 had been charged to ship
construction They had added that on
the Bethlehem books they had found
the same item charged against the
Emergency Fleet Corporation
You have no personal bias or feel
ing against MIR. Schwab, have you!
asked the chairman.
None whatever; l had never met Mr..
Schwab at the time l caused this audit
TO be made
Abadie Hides Some Names.
Col. Abadie showed his aversion to
any further controversy with MI.
Schwab when the chairman asked him;
Did YOU have any conference concern
ing the Bethlehem audit with any OF
the board officials in Washington after
Admiral Benson became chairman
The witness admitted there had been
such q conference, but when the chalr-
man inquired who was present COL
Abadle hesitated and begged to be e&-
cused from answering the question.
II should rather tell you privately OF
i'm executive session." he said. Il rear
a wrong impression might be conveyed
to the public The newspapers aifeauy
have made much scnsationallsm OF
what I have said. AS this whole situ-
alton affects persons who are deservediy
prominent ! do not wish to be cohsid-
cred a publicity hunter"
The committee took a nVe minute re-
cess. When it reconvened Mr.. Walsh
ruled that the witness woulu nave "
answer the question. :.
IF | may make one more inquiry,
said Col. Abadie. what is the penalty
| incur if | refuse to answer
Mr.. Walsh stated that as the com.
mittee was a creation of the House OF
Representa- ves such refusal would con-
stitute contempt not alone OF the conf
mittee but OF the House itself.
The witness requested a half hour re-
cess that he might reflect upon his full
responsibility and duty In the matter
and might take advice.
The recess was granted. Col. Aoadle
went out and advised with some person
unknown. When the session was re-
surned and the question was reread tae
witness prefaced his story with the as
sortion:
"I am going to tell the facts. | am
not influenced by any consideration OF
n possible peualty-jail or anythning Oh
that sort--as a consequence OF my atti
tude. but wish 1t distinctly unoerstooo
that throw upon this committee the
burden Of any harm that may come
through forcing this incident into pub
licity and the press perhaps, not giving
rornpletelv accurate report of ii.
"This committee assumes full respon-
sibility for all questions it asks SAID
Mr. Walsh.
Tells OF Conference at Last.
Col. Abadie then told the story of the
conference in the office OF Robert "A.
Dean. general counsel to the Shipping
Board. at which were present Charles IA.
scLwab, Mr. Dean. Mr. Powell, vice.
president of the Bethlehem concern, ana
himself Admiral Benson was not pres
emit. though the witness had expected
him TO he when Col. Abadic had been
summoned During the conference,
" hich lasted about half an hour Mr..
schwab was permitted to inspect the
"a ntract executed by Col. Abadie au-
tsorizing the Perley Morse firm to be-
rim an audit OF the Bethlehem's accounts
IN dalso the instructions concerning the
audit,
Mr.. Srhwab. who was not at that time
connected with The Emergency Fleet
Corporation. protested against the cn-
ployment OF a firm of accountants which
to him were personally and profession
ally objectionable Col. Abadie refused
to WELD an inch. lie argued that the
old charge involving suspension OF the
auditing firm by the state Association
had been reviewed fully by the Shipping
Board before the auditing contract had
been executed and Periey Morse had
been exonerated.
Admiral Benson, upon whom Col. Aba
die called IN the Ad;nirars apartments
in tho wyoming that same evening, APP
proved the stand taken by the Colonel
tho latter testified. ard said he saw no
reason why the audit should be trans
fe-rod or turned over to another ae-
corntant no change was made.
II was about fifteen days later that
Col. Abadic's resignation was requested
by the board. and II was Mr.. Gillen who
was delegated to convey to him the re-
suit of the action taken in secret session
TO that effect.
Mr.. Gillen In his testimony told of his
efforts to bring to terms the Bethlehem
% ople and the perley Morse firm. lie
summoned them both In conference, but
the meeting broke up In row.