The daily banner. (Cambridge, Md.) 1897-2008, 1921-01-26
SCHNAbI IN TEARS
GIVES EVIDENCE
kgaIn Denies Receiving Any
Money From Government.
TELLS OF MEETING MORSE
Says He Asked Auditor 10 Correct
Statement Regarding the $3.50 600
poucher--Abad:e is Contracted.

SOuCnGFe-AOdCsS -
New York, Jan. 2G.-rt'ars came To
the eyes of Charles II. Schwab, steel
mngnate, when he "eappeared before
the Walsh committee investigating
j shipping board affairs to give further
testimony regarding his $500 700 eX-
| ppnse voucher which, ii mas been al
! legged, was charged 10 the government.
in 4 choking voice, he 'Old the com
mittee OF meeting ne had mad with
perley Morse, head of The auditing
! firm claiming 10 have found the vouch-
er, after MIR. Morse had testified re-
aarding the discovery, and Mr.. SchWab
had denied receiving anything from
| the government.
Mr.. Syhwub in reply 10 q question,
said he finally had agreed 20 meet
! Morse ar hotel, after he had been
approached by man VINO sought TO
srrtn@e meeting between him and
Mr.. Morse. He said he mad, refused to
10 Morse's office Or to meet him at
club.
There told Morse the facts as l
stated them on the witness stand were
true" said MIR. Schwab. This mat
ter, coming at the rounding out OF
FORTY years of Il business career was
so deep in MY heart hat / asked Mr..
Morse to correct 1t, and L told MN L
hoped he would correct it."
II this point his voice broke and he
asked the chairman to excuse me"
MI. Schwab testified concerning mat
tiers that came directly under his at
tentiOn while director general OF the
Emel gency Fleet corporation. He de-
clared 1t was with reluctance and with
the understanding that all matters hav
ing to do with contracts between the
Fleet corporation and mis- companies
be banded by other men, that he took
the office antt-only at the ersonal soil
citation Of President Wilson, and the
chairman Of the board.
Questioned as to his views concern
Ing the shipping situation, he said the
whole program Of ship construction AT
the time was one of war emergency
and the Fundamental idea was TO get
sh!ps. The program included the
building Of wooden ships and Hfr.
Schwab said that, while OF first he did
not favor the wooden vessels, he was
convinced that 1t was wise to build
ANYTHING that could be used for trans
portation during the emergency
He pointed out that the wooden
ships were of no particular use at
present except for barges and for short
trims, He also expressed the opinion
that the wartime emergency cost OF
the ships should be charged on as
war cost.
Positive denial that any part OF the
s2GOOUO voucher made out for expenses
of Schwab for the month of October
1918. was ever charged to ship con-
strrction was made before The COM
mittee by P. A. Shick, general auditor
Of the Bethlehem Steel corporation.
Mr.. Shick said he mad personal
knowledge that the voucher was charg-
ed to profit and loss" Of the Bethle-
hem CORPORATION and that 1t was never
picked up by the Emergency Fleet cor
poration as a proper charge, because
1t carried no supporting details.
His testimony contradicted that CIV
en- last week by Colonel Z. H. Abadie,
former comptroller general Of the ship.
ming board, to the effect hat the item
was submitted as Mr.. Schwab'S person.
al expenses.
Mr., Shick said II wds the general
understanding between the auditors of
the Bethlehem Steel corporation and
thos, Of the Emergency Fleet corpor.
ctfcn that no item would he allowed
nv the latter details.
Before Mr.. Shick 'estiied, Eugene
G. Grace. president of the Bethlehem
Steel corporation, was called to the
stand. He reiterated nis testimony
that the item in question was allowed
by his c, H:pany as Mr.. Schwah's "spe-
ciaf exucnscs" and not as personal
excuses"
Mr. Grace testified that even had
sucl an item gon" through and been
pass cd us PROPER by the shipping board
It -v"urd have been caught up by the
bethlehem CORPORATION nd disailowed