The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-01-26
SCHWAB BREAKS DOWN ON STAND
BEFORE WALSH ship COMMITTEE
Denies Any Part of $269,O0O
Voucher Was Charged to
Construction.
IMPRESSES COMMITTEE
Representative Foster Says He
Believes Mr. Schwab's
Statements.

Wy TTCSoJ
NEW YORK Jan. 25.--overcome
by his emotions. Charles M. Schwab
temporarily broke down on the wit
ness stand during his testimony here
today before the Walsh congressional
committee, which Is investigating af-
fairs OF the United States shipping
board. With tear-illed eyes he de-
MED charges of previous witnesses
that 500, 900 of a $3.50, 900 voucher
charged to his account in the home
office OF the Bethlehem Shipbuilding
corporation had been allocated to ex-
penses OF construction OF government
ahips
Mr. Schwab had been recalled to
give testimony regarding ship con-
struction matters during his term as
director general of the emergency.
fleet corporation. At the conclusion
OF this testimony. his attention was
called by Representative Israel NJ.
Foster to testimony that since max
ing his denial last Friday OF the
charges, he had conferred with Perley
Morse OF Perley Morse and company,
the auditors who found the alleged
voucher
Sehwab Talked with Morse.
MIR. Schwab admitted he had talked
with Mr.. Morse. stating. that a Mr..
Wildman, whom he had known for
several years, came to him with the
Abatement that Mr.. Morse was man
II the highest repute.
II listened" Mr.. Schwab added. "and
said that IL what you say is true, and
what assure you | can prove Is true.
that / received none of this money,
should not Mr.. Morse be willing TO
make a statement that he has made
"a mistaken
As a result OF this conference, a
meeting between Mr.. Schwab and Mr..
Morse was arranged later at the Ho-
tel st. Regis and the witness said he
repeated 10 Morse what he had said
10 Wildman-that "the facts had re-
lated were true and that / was now
at the end of long 40 years career
and that II was a matter so inde-
scribably deep I'm my heart 10 be
charged with something OF that kind,
that | hoped he would correct it,"
Morse Would Not Change.
continued. "He said there were eX-
plantations and reasons"
Here the steel mans voice became
husky and his frame shook with sup
pressed sobs.
II hope you will excuse me, Mr..
Chairman and gentlemen of the COM
mittee," he stated, "but-"-and here
his voice broke again.
For a moment he endeavored 10
control himself but without success.
lie gave up the attempt and from his
eyes great tears rolled which he wiped
shway with his handkerchief. The COM
mittee room was filled with witnesses
and Spectators and IL was evident
that he had the sympathy OF all by
the silence that prevailed silence
broken by Representative Foster. who
said:
Wins COMMITTEES.
81 cannot help making this reflec-
tlon Just at this time AS a member
OF this committee. | want to express
on the record my appreciation OF the
manner. Mr. Schwab. in which you
have introduced evidence concerning
this voucher. Aside from my mem
bership on this committee, 1 want to
express my appreciation as an Amer
Atttl ClNAAen ApT the SeENlCeS YOU ndNe
rendered our country in the recent
war.
There Is no jury" Mr.. Foster con-
tinued, ito be affected, or court to be
influenced but I say that out of an
appreciation OF the situation, I feel
that I am compelled to give express
sion TO H."
This statement was greeted by ap-
plause from those In the room.
II thank you very much" Mr..
Schwab replied. "That was the sub
stance OF my conversations with Mr.
Morse"
He had now regained control OF
himself and In answer to the chair
mans question. said he had never in
stituted any steps to have any audit
stopped at his ship yard or offices,
lie said matters of this kind were
never brought 20 his attention.
tie again thanked the committee and
asked them 10 excuse him for his dis
play or emotion and arising, walked
from tho room. passing close to where
Mr.. Morse sat among the spectators.