Norwich bulletin., 1921-01-26
Mr. Sc|lWab in Tears
 ' AsHo Makes Denial


 Steel Magnate Overcome by 1
 Emotions as He Refuted Aspersion Cast Upon His
 Integrity.
 New York, Jan. 25.-Overcome by his emotions, Charles M Schwab, telnporar- fly broke down on the witness stand dur ing his testimony here today before the Walsh congressional committee whicl, is investigating affairs of the United States shipping board. With tear-fiiled eyes. he deni.Nt eharges of previous wit nesses that $100,000 of $260,000 voucher chargeds to his account in the home office of the Bethlehem Shipbulding Corporation, had been aliocated to ex- pense of constructor of government ships. MT. Schwab had been recalled to give testimony regarding ship construction matter during his term as director gen. i eral of the emergency fleet corporation. At the conclusion of this testimony. his attention was called by Representative Israel M. Foster to testimony that since i making his denial last Friday of the charges, he had conferred with Perley Morse, of Per.ey Morse and. Company, the auditors who found the alleged voucher,
 Mir Sehwab admitted he had talked with Mir. Morse, stating that a Mir. Wild- man, whom he had known for several years came to him with the statement that Mir. Morse was man of the high est repute.
 ! Ua said that if what you say is true, and what I assure you I can prove IS true. that I received none of this money, should not MT. Morse be willing to make a statement that he has made mistake MT. Wildman said thought he would do so. ..
 As a result of this conference, meet ing between Mir. Schwab and Mr.. Morse
 was arranged later at he Hotel St
 Regis, and the witness said he repeated
 to Morse what he had said to WildT an
 'that the facts had related were true
 and that I was now, at tie enj of a Hong 40 years business career, and that
 it was matter so indescribabiy deep in
 my hear to be charged with something of that kind, that hoped he would cor rect it.
 He would not do it, MR Schwab con- tinued He said there were exp!ana. l tions and reasons-
 1, Here, the steel mans voic, became
 husky and his frame shook with sup pressed sobs.
 q hope you will excuse me, MT. chair man and gentlemen of the commit tee. l he started to But" and herr , his voice broke again.. s For moment he endeavored to con trol himself but without success. H.
 gave up the attempt and from his eyts great tears rolled. which he wiped ava! with his handkerchief.
 The committee room was filled .wttl . witnesses and spectators. and 1t was ev iderrts that he had the sympathy of all b! l the silence that preyaied-a silence brplzen by Representative Poser, wht said: N iz"I cannot help making this reflection just at this time As "a member of tlli committee, I rsant to express on. the re ;cord my Appreciation of the manner, MI
 Schwab. in which you have introduces
 evidence concerning this voucher, asid 2 ! from my membership on this committet I want to express my appreciation as al 1 American citizen, for the services Fo = have rendered our country in the recen = war. ->. : There is no jury MT. Foster con - tinued, "to be affected, or cou to be in e fiuenced, but I say that out of an ar t preciation of the situation, I feel that f am compelled to give expression to it.' e This statement was. greeted by ar e plause from those in he room. e "I thank you very much" MT. Schwa
 replied That was the substance of m h conversation with Mir Morse.
 e He. had now regainec control of hin t self and in answer to the chairman l. question, said he had never institute j. any steps to have any audit stopped e his ship yard or offices. He said ma Ie ters Of this kind were never brought :o yhis attention. '-~.. -e He again thanked the committee, ar le asked them to excuse him for his di le play of emotion, and arising wake le from the room, passing close to whe in MT. Morse sat anlcng the spectators. of Previously MT. Schwab took up inc D. dents re.ating to his becoming, head Id the fleet corporation, stating that he d
 voted a considerable portion Of his tir 1e to visiting the various shipyards to 1 e. spire the men to greater efforts. IL He asserted the entire shipbuildE 7n program was en emergency one, tn OK General Persflilg was urging "shi2s a, re more ships" and that nothing was Tt lowed to stand in the way of constru
 tion. He declared at least two billion
 the three billioil dollar cost ought to
 charged OK as war cost.
 sS 'The ships should be realized on,"
 added, lat any price within reason lis pTivate operators, % asserting that priys he operation should be stimulated. T lis wooden ships, MT. Schwab added. shot en be scrapped.
 co Wallace Downey, head of the Down H. Shipbuilding Corporation, whose nal m was mentioned by Tucker K Sands 's- connection with the alleged $25, ,eoo pa
 ment for a ship contract, denied ."abl Ies luteIy and positively" all allegations on Sands to those effect.
 ne He said he had paid Sands in 1 'ss form of four notes the sum of 5000
 a fee to his bank to underwrite ere n sn for a subsidiary. organiza tion, { he Providence Engineering Corporati en The credit wis arranged to the sat
 faction of the shipping board, and ] ,er Downey paid two of the notes when ti !" came due, then discovered that. the ba ; had no knowledge of the transacti He secured from Sands the return of ( note and $5.Ooo pay ment on the thi AL Downey said the shipping board ov
 his committee approximately. $5,000,0 ear The Walsh committee adjourned tod ol- to meet again in Washington at the c list of the chairman. It Is understood u lay Alenzo Tweedale, former treasurer 3