Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1921-01-28
slOO,OOD,O0O SHIP
. CRAFT IS CHARGED
Late Shipping Board Comptroller
BIames C. M. SChWab.
DUAL POSITION WAS CAUSE
Witness Holds Steel Magnate Innocent
of Intentional Wrongdoing--De-
cIares Many Firms Besides
Bethlehem Are Involved.

New York, Jan. 21.-At least $780,
100000 improperly paid shipbuilders
by the United States shipping board
will be disclosed through an audit
of accounts now in progress, Col. t..
Ell. Abadie, former comptroller general
of the board, declared here before the
Walsh congressional committee.
Charles M. Schwab was subpoenaed
to appear before the congressional
committee on United States shipping
board operations early next week. The
decision to call Mr.. Schwab followed
the testimony Of Col. Eugene ID.
Abadie.
Colonel Abadie charged that there
were "a great many serious IRREGULAR
ties" in the dealings between the
Bethlehem Shipbuilding corporation
and the government as a result OF
the connection of Charles M. Schwab
with both the board and the corpora
tion
Schwab's Dual Position Felt.
Things had been done and al
lowed" he testified. because of Mr..
Schwab's connection, which probably
would not be allowed otherwise. and,
though / was satisfied Mr.. Schwab
knew personally nothing of them, the
influence from Mr.. Schwabs dual po-
sition was prevalent just the same.
Though at that time / had never
met Mr.. Schwab, / was satisfied from
my knowledge of his record that he
would be the first to condemn any in
justice by his corporation toward the
government and would willingly end
gladly return any moneys improper
~ paid his corporation"
Says Audit Will Cost 100000.
Colonel Abadie said that the ac-
counts of the Bethlehem corporation
were ordered audited first because of
reports made by the plant protection
section of the board charging irregu-
larities The audit, which will include
all shipbuilding companies which had
contracts with the government, will
cost S1.000000, he testified.
The witness said he never talked
to Mr.. Schwab about the alleged ir-
Irregularities, but believed Mr.. Schwab
would have welcomed an audit OF the
Bethlehem corporation.
Colonel Abadie explained that his
charges did not include the Bethlehem
corporation alone, but various ship
yards throughout the country.
Accuses Payne's Secretary.
In connection with the working of
the influence exerted by the Beth
lehem interests, Colonel Abadie ac-
cused Martin J. Gillen, special execu-
tive secretary to Judge Payne at that
time, of obtaining favors for certain
.otter shipbuilding interests.
Colonel Abadie testified that when
the armistice came the shipping board
took over five uncompleted hul!s it
lad contracted for with the G. M.
Standifier Construction company, that
these huils then were disposed CT TO
the Green Star line, which there
upon contracted for the completion
with the Standifier company, but de-
faulted in payments amounting to over
$2.0O0000
Thereupon, Abadie testified, Gil'en
interceded with the shipping board,
which paid the default and had the
ships completed. later alloting them
to the Green Star line for operation.
Abadie said the government really
had no use for these ships. He said
Gillen now is advisor to the Green
Star line president.