New-York tribune., 1921-01-22

RK TRIB UNE, SAT-
as result of a question put to Colonel
Abadie by Chairman Walsh, which
Colonel Abadie at hrst declined to an
swer and yielded only after he had
oeen informed he would be in con-
in his refusal. When informed Of this
Colonel Abadie asked for recess of
nalf an hour for deliberation. He said
ne was not concerned with the penalty
ne might incur in refusing to answer
the question but with divulging certain
information. Finally he put the re-
sponslbility for answering the Ques-
tlon upon the committee and submitted
10 further examination.
The question, put by Chairman
walsh, was:
Did you have any conference with
anybody a.; sa after Admiral Benson came
Colonel Abadie replied that unon
telephone invitation from Admiral
benson he attended q conference at
me me Office of Robert A. Dean, counsel
a aGr re Shipping Board, where he met
the Bethlehem ShipbuiIdinr Cornors.
ton, and Perley Morse. Although he
mad expected Admiral Benson to at
tend, too, the witness said. the admiral
was not present and Mr.. Dean presid-
| ed.
Wanted to See Reports
Mr.. Dean told him, Colonel Abadie
said, that Mr.. Schwab wanted to look
over the preliminary reports on the au-
div OF the Bethlehem corporation made
ny the Morse concern and that the
conference was in reference to the men
q
Abadie said Mr.. Schwab and Mr.. Powell
examined the papers while he held them
in his hand. The conference lasted q
| ralf hour, the witness said, but was
not productive of any results and
brought about no change in the situa-
ton among the auditors, the Shipping
Board and the Bethlehem corporation.
AT that time, the witness testified in
reply to question by Representative
Connolly, Mr.. Schwab had already sew
cred his connection with the Emer-
goncy Fleet Corporation.
Mr.. Schwab, he said, pleaded that
he could not get fair audit from Per-
ley Morse & Co. and said he did not
believe they were engaged on the audit
for any other purpose except "sensa-
tionalism."
sentative Connolly. "he did not object
eyes, SIR replied Colonel Abadie.
"How long after this conference did
Mr.. Gillen notify you that your resig-
nation as controller would be accept
able 2" ASKED Representative Foster.
About fifteen days." was Colonel
Abadie's reply.
Gillen Corroborates Abadie
Mr.. Giuen, who followed Colonel
Ahadie on the stand, corroborated COL
onel Abadie in his testimony that the
Bethlehem Shipbuilding Corporation
sought to have the audit of the corpo-
ration's books by Perley Morse & Co.
stopped. He told of conversation be-
tween Paul D. Cravath and Chairman
Payne on the matter, in which Mr.. Cra-
vath used rather strong language" as
sailing Perley Morse & Co. as having
been suspended for unprofessionalism
BY the New York State Association of
Certified Accountants. Mr.. Gillen testi-
fed he heard Mr.. Cravath assail Perley
Morse & Co. as incompetent and not
disinterested.
THAT evening"" said Gillen, "Judge
Payne. told me he was very much dis
turbed. Later it appeared that Perley
Morse & Co: had been employed by the
as factor in Judge Payne's ordering
the reinstatement Of the contract with
Perley Morse & Co. for the audit of
the Bethlehem's books.
Representatives Of the Bethlehem
corporation came repeatedly and tried
to have US set aside the Perley Morse
audit. l advised Admiral Benson to
send letter to the corporation saying
that until they acceded to our wishes
and permitted the audit to go on they
would not get any more money from
M nth Lob
sending men down to Washington to
get an adjustment Of the matter"
Urged Some Concession
Then, Mr.. Gillen said, he arranged a
conference between Perley Morse and
"the Bethlehem crowd" which, he said,
"broke up in a row, the men on both
sides using strong language"
"They implied" said Mr.. Gillen, "that
there were crooks on both sides.
then put the Morse crowd in one room
and took the Bethlehem crowd into my
own Offices and told them that unless
they came to an adjustment Admiral
Benson would take over their plants.
said to them they must concede some-
thing to Perley Morse and that the
Shipping Board would stand by him.
on with the audit. They said this could
not be done and that Schwab was
afraid that the Morse men would 20
in there and ruin his record"
By that, Mr.. Gillen said, the Bethle-
hem representatives meant that the
Morse firm was interested in getting"
something on Mr.. Schwab. and that the
information they obtained would be
used in behalf of competitors of the
Bethlehem corporation.
A compromise was finally reached
in which Perley Morse 4 Co. were to
audit labor and material, and sep
arate set Of accountants were to audit
overhead.
Mr.. Gillen denied he had Framed"
Abadie and forced his resignation.