The Washington herald., 1921-01-26
Magnate Breaks Down as
He Defends Record With
Shipping Board.
DENIES RECEIVING
PENNY FOR SERVICE
Representative Says Ma
tiOn Owes Him Debt
Of Gratitude.

NEW YORK, Jan. 25.-After
breaking into tears. Charles NJ.
Schwab, head Of the Bethlehem steel
Corporation and general manager Of
the Emergency Fleet Corporation
during the war. had TO be excused
from the witness stand before the
Walsh committee on Shipping Board
operation in the Hotel Pennsylvaniz
this afternoon.
Mr Schwab had previously denied
that he ever received any govern
ment remuneration for his services
had given his views on the United
States Shipping Board and the Mer-
chant Marine, and II was not until
he was questioned by Representa-
tive Israel Foster. OF Ohio. relativn
TO his conference last Friday after
noon with Perley Morse. auditor Of
the Bethlehem books. that his emo
tiOn became visible
Mr.. Schwab. in reply TO a question.
said he finally had agreed TO meet
Morse at a hotel after he had been
approached by a man who sought to
arrange a meeting between him and
Mr.. Morse. He said he had refused
to 60 TO Morse's oficc or 10 meet
him at a club.
Breaks Down.
There ] told Morse the facts aS
stated them on the witness stand
were true" said Mr.. SChwab. This
matter coming at the rounding out
Of forty years OF business career
asked Mr.. Morse 70 correct it and
I told him / hoped he would correct
it,"
At this point his voice broke and
he asked TO be excused.
Wallace +. Dowuey, president OF
the Wallace F Downey ShipbuildiuE
Corporation Of Staten Island. walk
ed across to M. Schwab as he rose
from the witness chair. and grasp
ing both Of his hands, shook them
fervently. He mUttered some in
audible words Of comfort 70 the
weeping man and then. when Mr..
SChwab had gone M. Downey him
self took the stand.
When he first took the stand Mr..
Sbw8b said:
~ have nothing further than this
to say. I was confident when 1
appeared before you on Friday. and
am equally confident now. that not
one penny directly ur fdlr .rrg. was
ever received from the -uvcrmrnt
for my services"
Nj Schwsb trId the committee
that h. had anticipated difiruIties
when he was called TO TAX, CHARGE
Of the EmerceErl Fleet Corporation
durinE the Wal lIr quoted from q
letter h." wrote on April 80. 1918. TO
the President and IN the trustees ~
the Emergency Fleet Corporation.
in which he said
Letter TO HSon.
The United states Snfpprn-
Board. the Emgr-,7-y Fleet Cor
pOral3oH, OF which have been ap-
pointed direct .r -cnara1. have. or
may, i'm tho r-turr have contracts
or other busluCs- rnIarous. mot only
with the Fcthlsham steel Corpora
uon. Of which 0 am an oflrer. di-
rector and stoCkhoIder. but also
with certain Of its subsidiary ou1-
panies in which ! am directly or
indirectly interested.
Il am of the opinion that IL would
/ he inadvisable Fur IN. 10 participate
as such director -eneraI in the
. q. 3'SH'' '.'N WI any business between
/ Oh" Emcr-cucy Fleet Corpora ton
/ and any Of said companies. with cs-
PoCial reference TO tho making ~
4 contracts with or tho giving or or
/ d"rs 10 such compa nies. aud ,rr-n-
/ fore request that all business br-
tW eon tho United States Srfpp.nE
/ Board Emergency Fleet Corporation
and the companies NAMED below
may be handled entirely BY such
other officers or agents n tho
EmerConCy Fleet Corporation as
/ YOU may designate"