New-York tribune., 1921-01-25
Hethlehem Head APP
proved 100000 Ex-
penses; Denies Govern
ment Paid Any Part of 1t
$4,000 Voucher
Drawn for Cravath
Accountants Testify to
discovering Records;
Morse Says Schwab and
He Checked Up onData

Conflicting testimony concerning the
much discussed $269,0oO voucher for
,ersonal expenses Of Charles M.
Schwsb, said to have been discovered
by accountants on the books Of the
bethlehem Shipbuilding Corporation,
xith charge against the government
for 100000 overhead" attached, occu-
o;ed the entire session Of the Walsh
Congressional committee at the Hotel
Pennsylvania yesterday.
Mr. Schwab already has denied the
uistsnce of such a voucher in his name
bearing such a charge against the gov
.rnment. Colonel E. H. Abadie has in
listed to the committee that it did
s1ist.
Yesterday Perley Morse, OF the
xeounting firm Of Perley Morse 4
Co, 12o Broadway, confirmed Mr.
Abadis's testimony and contradicted
III. Schwab's. He insisted that his
accountants had seen and handled the
voucker.
Two accountants from his oface also
ave similar testimony.
Last night, however, Eugene G..
Grace, president Of the Bethlehem
Steel Company, upheld Mr.. Schwab.
ae said that he had approved the
vsueher personally. His denial that
any Of the amount on the face Of the
r oh
he government was emphatic. Photo
satic copies of various papers, pur-
porting to trace the history Of the
snnsaction from beginning to end,
vere produced to support Mr.. Grace's
attention.
MOT penny was charged to the
sEergency Fleet Corporation, and they
Fsre never asked by us to pay any part
ot IT." Mr.. Grace testi4ad
Mr Grace explained chat the pay
ment Of the $4,000 had been made
70 Nj Schwab in accordance with the
fes1lsr method pursued in reimburs-
iug Mr. Schwab for expenditures made
BY him and his Office organization in
connection with the company's busi-
asss. Of this amount, ne said, 500, 600
sss charged to the Bethlehem Ship
building Corporation, the subsidiary
II the Bethlehem Steel Corporation,
and not to the cost of constructing
Ships for the government. AS q, mat
Ter Of fact. he said. the Bethlehem
ysver claimed this 100000 as an item
ot COST against the government ships.
The amount, he said. was charged to
pfcat and loss
Mi. Grace submitted phostat copies
q various vouchers and other papers
Nov nI~ ~ t.
.rsnssction from beginning to end.
y exrlaining the efforts Of the
Bsshlehem Shipbuilding Corporation to
aorss q Co. OF the corporatior's books
stopped Mr.. Grace said that this was
dsas on objection Of F. A. Shaik, gen
tfa comptroller of the corporation, to
the methods pursued by Pexley Morse
{ Co. Mr.. Grace said he consulted
ssul D. Cravath as to the proper
:ourse to be followed. Mr.. Cravath.
e said. told him the Bethlehem was
!Iat tn having the audit stopped, say
rs that he had trouble witt, Perley
Aorse 4 Co. in matters affecting an
ssAer company and advised that they
y secluded.
~ Morse told the committee that
VePnei Abadle's version Of the story
ns substantially correct. The witness
~ that he told the voucher story to
vescaei Abadie substantially as it was
Ngeascd on the stand by Colonel Abadie
sna that. In addition. he had told the
wlonef Of the discovery Of another
,eaener for $4,000 drawn for Paul D.
usvafh, counsel for the Bethlehem.
@tporsticn. which was elso charged up
q overhead"
Crayath May Be Called
A. C1avath was in the hearing room
sceHtinued % page tAsss,