The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1921-01-21
PAID ALL Of HIS
OWN XPENSES,
SCHWAB DECLARES
Says Abadie's Statement Is Alb
solutely False
NOT CHARGED TO BOARD
Steel Manufacturer Appeared before
Walsh Committee In New York
This Morning,

New York, Jan. 2i.-Charles NJ.
Schwab appeared before the Walsh
Congressional Committee this morning
and denied the testimony given yes.
terday by Colonel Abadie, former com
ptroller OF the United States Shipping
Board, to the effect that Sch wab's per
soral expenses in October, 1918,
amounted 10 $1,000 had been charg.
ed to the shipping board
The steel manufacturer declared
that the statement was absolute Y,
unqualifiedly and maliciously false ,
and that he personally paid all of his
own expenses during his term OF Of
flee as director general of the emergen-
cy fleet corporation.
New York. Jan 20.--A voucher for
$4,000 ''for personal expenses of an
officer of the Bethlehem Shipbuilding
Corporation" was found in an audit
of the main office of that company,
Col. f. H. Abadie today informed the
Walsh Congressional committee in.
vest eating the shipping board. He
identified this officer" as Charles NJ.
ySchwab, who was then director gen.
eral Of the emergency feet corpora
1 ton. The voucher was made for the
month Of Octiber, 1918. "One hundred
, thousand dollars of this amount" he
testified, was arbitrarily charged to
ship construction"
1t was learned pr.or to adjournment
today that Mr. Schwab had been
asked to appear before the committee
to testify.
Inc voucher in question, Colonel
Abadie added, was not seen by him
nor was its alleged amount or purport
verified. He said 1t was reported to
him by Mr.. Morse of the firm OF Per.
hey, Morse & Co., expert accountants,
emple yed by HIM as general comptroI-
. ler of the shipping board to make an
independent audit OF shlpbuilding
Ieompanles. He also testified that from
what he knew of Mr.. Sehwab, he
would be the first man to condemn
any Injustice by his corporation to.
ward the government. He added that
while the voucher in question was not
accompanied by supporting papers, he
thought 1t could be explained. Asked
if II m ght not represent Mt.
Schwab's expenses for that month as
an officer OF the Emergency Fleet Cor
poration, the witness replied that had
II been so, the amount should have
been covered by a fleet corpc ration
voucher.
The subject was brought up by Col
n,al AhnHfn Ia, oxplairt,,u Narta " fnnt
ters connected with his resignation
from the board, involved in which
was a spute with Chairman Payne
In the employing OF the auditing firm
to make an audit of American ship
yards.
He charged that Martin ]. Gilien,
then special assistant to John Barton
Payne, chairman Of the board, had
conniyed TO get him removed
The auditing brought on dispute
with Colonel Payne as to his, Aba
dies. authority to order it.
Colonel Abadie, sa d he filed his
resignation and it was accepted. and
he was given a month on detached
duty. He afterwards ascertained that
he was framed" and he asserted
that Mr.. Gillen used similar tactics
to get rid of ether employees n execu
tive positions
The audit of the Bethlehem Ship
building plant instituted by him was
ordered stopped by Cha rman Payne,
whom. the witness said claimed he
had not authorized the employment of
the firm selected by the " tness to do
the work The contract with the au
ditmg firm was afterward reinstated
by Chairman Payne, but later on mod
ihed SC that the aud ting firm handled
the material and labor accounts, and
auditors from the shipping board, the
overhead of the firm. This method,
Colonel Abadle said, would not pro
duce the results he originally antic'
pated, rs two sets of auditors could
not work to the same end He admit
ted, however, that the shipping
boards auditors would naturally be
inclined to protect the board.