Belington progressive. [volume] (Belington, W. Va.) 1912-1927, 1921-01-27
CHARGES FALSE,
/. SAYS SCHWAB
d
Denies He Drew $4,000 For
! Months Expenses.
AYERS HE PAID OWN WAY

Colonel Abadie's Statement Declared
"unquaIifiedly and MaIlciously
FaIse"-schwab Never Received a
Dollar.
New York. Charles M. Schwab
appeared before the Walsh con-
gressional committee and denied
testimony given by Colonel E. Fl. Aba
die, former comptroller of the United
States shipping board, to The effect Mr..
Schwab's personal expenses for Octo-
Der, 1918, amounting to $260,000 were
charged TO the shipping board.
Mr.. Schwab asserted the statements
were absolutely unqualiiedly and ma
liciously false" and he personally paid
all his own expenses during his term
Of office as director general of the
Emergency Fleet corporation.
Mr. Schwab said although he was
supposed to receive dollar a year
salary, he did not even collect that
For his travels from ship yard to ship
yard, while at the head of the Fleet
corporation, he asserted, he never re-
ceived any compensation and did not
: want any.
Mr. Schwab admitted such a vouch-
err as that charged by Colonel Abadie
may have been paid to him, but said
II was not for the purpose claimed by
Abadis, and no part of it was charged
to ship construction.
His acceptance of the position as
AZ ~ IA
the committee, was only at the urgent
request of the chairman of the board
and President Wilson.
In accepting the place, he added.
he insisted all matters connected with
his own shipbuilding companies be
handled by other members of the
board.
Colonel Abadie, who again took the
stand, said he regretted the necessity
for connecting Mr. Schwab with the
voucher. He hoped it was an error,
and Mr.. Schwab would be cleared.
Questioned further about the vouch-
err, Colonel Abadie reiterated previous
testimony the information concerning
1T had come to him from Mr.. Morse,
of Perley Morse & Co, accountants
employed TO audit shipping board
books. He said the charge was enter
ed as Overhead in the main office of
the Bethlehem company, and 100000
was charged to ship construction.
Tht witness admitted Mr. Morse had
told him how the other 100000 had
been spent but declined to repeat what
he had been told He said it concern
ed the Bethlehem corporation only. Mr..
Schwah. who was sitting nearby spoke
up and said:
you are at perfect liberty to give
that information il you desir,"
Colonel Abadie said 1t was eiven to
him confidentially and that he would
not repeat it,
Mr. Schwab was called before the
committee at his own request.
The chairman asked Mr.. Schwab to
appear next Tuesday TO testify con
corning matters relating to the ship
ping board 1t was made clear ne was
~Tot being called in relation to the
voucher.
Mr. Schwab said ne would be will
ing to appear at any time
Eugene G. Grace, president of the
bethlehem Steel corporation, issued a
statement emphatically denying any
improper payments had been made to
his company while Mr. Schwab was
director general of the Emergency Fleet
corporation
Reference seems to have been made
by Colonel Abadie,' ne said, ito
voucher for 100000, of which $780,
600 is alleged to have been charged
arbitrarily TO ship construction The
matter was fully Investigated by the
auditors of the shipping board. who
found that no part If this item had
been charged against the cost of United
ktatee shipping board ships"