New-York tribune., 1921-01-26

and the fundamental idea was to ge
ships. He begged the committee tt
keep in mind that all Shortcomings
and apparent factors subject to criti
cism in the work Of the Shipping Boarc
and the Emergency Fleet Corporation
view.
He said that he felt that tho ulti.
mate construction Of 100000 tons
Of shipping at the cost Of s215 ton
should be regarded as an extremely
satisfactory accomplishment.
MIR. Schwab expressed particular sat.
tsfaction with the cost. and said it
could not have been expected to have
been lower under war conditions.
He urged the sale Of the govern
ment's present feet Of ships to private
individuals at as low price as posi-
BILE, "if we are to have a real American
merchant marine"
The principal effort made yesterday
to clear Mr.. Schwab of the implication
in connection with the $269,OOO voucher
was made on the stand by F. A. Shick,
general auditor of the Bethlehem Steel
Corporation. He denied positively that
any part of the S269,000 voucher made
out for expenses of Mr.. Schwab for the
month Of October, 1918, was ever
charged to ship construction. The
voucher, the witness maintained, was
charged to profit and loss" and was
never picked up by the Emergency
Fleet Corporation as a proper charge,
because it had no supporting details.
Mr.. Shick said that he had fears of
the Perley Morse auditors making i'm
proper use of the information they
found in the Bethlehem books. On this
he drew from Representative Connolly
the question as to what items in the
books prompted such fear.
"T'his item Of $269,000 which was
charged against special or expense Of
Mr.. Schwab was one," replied the wit
ness.
Feared Item in Question
"Your apprehensions," interjected
P'erley Morse people might treat such
items are borne out by the way they
treated this item, are they not %
yes, sir" replied Mr.. Shick.
He insisted that the Bethle
hem corporation never tried to conceal
anything in its books and repeatedly
invited an audit.
After Mr.. Shick had testified that
as a. comptroller and auditor Of the
among it's subsidiaries, he vas
asked about the allegations by Edgar
Luckcnbach before the Walsh com
mittee that items for meals and cigars
had been found among ship charges.
Il don't recall any such item" he
declared.
Mr.: Shick told the committee that he
called the attention Of Mr.. Grace to
his belief that the auditors of Perley
Morse & Co. were making inquiries at
the Bethlehem plant soon after the
commencement of the audit about
matters which did not concern them.
He became suspicious, he said, and his
suspicious were strengthened by an
article, which, he said, Mr.. Morse had
written for a magazine on the cost
plus system. Mr.. Shick said he had
no objection to the audit IF The Bethle-
hem's books, but did object to Perley
Morse & Co. as auditors.
Testlfylng concerning the S269,o00
voucher MIR. Shick said that such
charges of special expense were en-
to1ed in the general expense ledger.
schwab Never Got Salary
"Do you know that Mr.. Schwab never
received any money from the United
States Shipping Board, the Fleet Cor
ment as salary?" asked Chairman
Walsh.
II do" replied Mr.. Shick.
"For the purpose of the record"
asked Chairman Walsh, II desire to
ask you this question; Although there
may be vouchers in the files of the
Bethlehem company and there may be
entries on the books showing expenses
Of Mr.. Schwab at various times and
for various amounts, you state here
definitely and positively that mono Of
those vouchers and none of those en-
tries on the books for those particular
items were at that time or any time
subsequently ever allocated or charged
to ship construction costs 2"
~ do" replied Mr.. Shick.
Before the testimony of Mr.. Shick