The New York herald., 1921-01-26

vania on Friday. accompanied by Mr..
Grace, president of the Bethlehem COM
pany. and Mr.. Moore. one OF their coun-
sci. Edwin Wildman. editor of The
Forum. whoh he had known for several
years approached him. At first. learn
ing that Mr.. Moore was their counsel.
he seemed reluctant TO speak, but Mr..
Schwab told him TO proceed. Mr.. Wild
man then said he had known Perley
Morse since boyhood, that he was am
honorable man and that he would not.
In Mr.. Wildman's opinion. willingly do
Mr., Schwab an injustice
II said to Mr. Wildman." continued
Mr.. Schyab. that if what he said of
Morse had heard me testify to. l thought
Mr.. Morse should be willing to make
correction. Later Mr.. Wildman called
me on the telephone from Mr.. Morse's
office. They wanted TO know IL l would
go there to meet Mr.. Morse. | said de-
cidedly not Then Mr. Wildman asked
il would meet Morse in the Republican
Club. l declined TO do that. Then Mr..
Morse himself came to the telephone and
1t was agreed between him and me that
he and Mr. Burgess should meet Mr..
Grace and myself In tho st. Regis Hotel.
There saw MIR. Morse, whom I had
on evidence concerning the voucher. l
told him that If the facts as l had tes-
tilted to them were true-and they
were--I thought he ought TO come out
in a statement and correct what he had
done. ! told him / was about at the end
Of a forty year business career and that
felt It ndescrfbably deeply in my
heart to be charged now with a matter
of this kind
At this point Mr.. Schwab's voice wa
vered. His fingers were working ner-
vously. Those seated close TO him saw
the fears well TO his eyes. In broken
tones he sought to proceed.
at wounded me deeply that such
thing should be said of me- he faltered.
and asked Mr.. Morse il he would cor
rect IT," Mr.. Schwab paused again.
Slowly, as though with great effort. he
added: He refused TO do so; he said
there we're explanations and reasons"
This was the end of the statement.
The steel nhagnate's chest was rising and
falling under his bowed head while he
pressed his handkerchief to his eyes. 1t
was stifen Mr.. Foster thanked the witness
for his war service and the applause fol-
lowed.
Guarded HIS Own Name.
At Tho beginning of his testimony Mr..
Sehwab had read into the record let
ter which showed how jealously he
guarded himself against any possible i'm
putation Of self-service. 1t was dated
April 80 1918. apd was addressed TO the
president and trustees OF the United
States Shipping Board Emergency Fleet
Corporation. The letter said:
DEAR SiRs-The United States Ship
ping Board Emergency Fleet Corpora
ton. Of which have been appointed Di-
rector-General has. or may in the future
have, contracts or other, business rela-
tions not only with the Bethlehem, Steel
Corporation. of which I am an officer,
director and stockholder. but also with
certain of its subsidiary companies in
which I am directly or indirectly In
terested.
''I am OF the opinion that 1t would be
inadvisable for me to participate as
such Director-Genera1 In the transac-
ton of any business between the Emer-
gency Fleet Corporation and any of the
said companies. with especial reference
to the making of contracts with or the
giving orders to such companies, and,
therefore. request that all business be-
tween the United States Shipping Board
Emergency Fleet Corporation and the
companies named below may be handled
entirely by such other officers or agents
of the Emergency Fleet Corporation as
YOU may designate"
Then followed the list OF the dozen or
more corporations which were con-
troled by or affiliated with the Bethle
hem Corporation.
Sought to Avoid Post.
Mr.. Schwab reiterated what he had
told last Friday. that he. had thought il
would be inadvisaple For him to accept
the post of Director-G General, but that
he had yielded finally AT the personal
solicitation of President Wilson.
Defining his policy when he took hold
of the ship construction programme, Mr..
Schwab said he concurred with Gen.
Goethals in the view that it was urgent
that anything should be built in the
way of q ship that could be built
quickly and that would help us to real
ize our goal. which was that we must
build vessels faster than Germany could
sink them That was the sole reason
for his sanctioning the construction of
wooden ships. a policy to which in less
urgent conditions he would have leen
opposed.
Secondly. I did not regard the para
mount shipbuilding problem at that
time" the witness went on. las one of
engineering. / regarded the essential
requisite for the producing of ships as
the enthusing of the working people OF
The United States. on whom actually the
results depended"
Replying to questions. Mr.. Schwab
said he had at no time had anything to do
with accounting methods. That. as well
as all matters pertaining TO contracts
and a thousand other affairs of admin
istrative detail. he left wholly to Mr.
Charles Piez, whom he found most