The Washington times., 1921-01-22
P|Ez zDEFENDS
SHIP POLICIES
Former Head of Board DepIores
Criticism While Admitting
Some Faults.


efficiency and graft on a wide seal
existed in the United States Ship
ping Boards war work was mad
here today by Charles Piez, formel
director general of the Shippinl
Board and the Emergency Fleet Cor
poration.. when he appeared befor'
the Walsh investigating committee
DISCUSSES CHARGES.
Piex took up in detail the charges
made by Martin Gillen. a former en-
ploye of the board. that the boart
had no methods of accounting for th'
huge sums entrusted to 1t. and as :
consequence graft and inefriciencl
prevailed in Americas shipbuilding eff
forts.
Vigorous denial that Charles N
Schwab had ever presented am
voucher for personal expenses while
connected with the Emergency Flee
Corporation, was made today b.
Charles Piez, former director Of the
Emergency Fleet Corporation, testi
flying before the Walsh committee in
vestigating the Shipping Board.
Testimony presented In New Yorh
that q voucher OF $260,000 fol
Schwab's personal expenses was de-
MED in toto by Piez.
"Mr. Schwab never received a cen,
from the Government in salary or In
personal expenses, and he never pre-
sented q voucher for any personal ex-
penses," -Piez declared. "It 10 unfor.
tunate that any charges of improper
action by Ms,NScfrwab should be made
before this committed.
'sMr. Schwab came into the Govern
ment service after the most earnest
conferences with Mr.. Hurley and my
self and at the solicitation Of Presi-
dent Wilson. He came in at time
when the Germans were threatening
the Channel ports and when the repu-
tation of the shipping Board was AT
a low ebb. BY his vigorous manage
ment and clear headed direction he
gave the board an impetus which was
material in its success"
SERVICES INVALUABLE.
During his service with the Govern
ment Schwab's companies had con
tracts aggregating $500. 100000 with
the Government, Piez said. "He in
sisted that the direction of these con-
tracts he handled by Mr.. Hurley, and
from the time he came until the tim<
he left he never had any knowledge
Of any of these contracts"
Chairman Walsh asked Piez wheth'
er Schwab had ever presented any
voucher for personal expenses or con.
tract expenses.
HE never did" replied Piez.
THE effect Of testimony thus faI
presented to your committee" said
Piez, has been to seriously impair
public interest in the establishment
of an American merchant marine, tc
practically destroy the market fol
shipping securities and to make the
already difficult task OF the United
tates Shipping Board still more diff
ficult.
SUBMITS EVIDENCE.
This effect has been produced In
part by sensational headlines, III par
by lack of appreciation of the con
ditions attending the construction oi
ships. but more by the general con
demnation of methods on the part oi
some important witnesses who in
dulged in sweeping criticisms without
ascertainment Of facts"
Piez submitted to the Investigator:
mass of data bearing on finance.
and construction, which he believe
would absolutely refute the false and
your principal witnesses"
The building of American ship
ping, Piez said, was "a war assign
ment, not a peace undertaking. We
had to build ships faster than sub
marines could sink them. That was
our job, a job performed against
heavy odds, under intense pressure
''The submarine sinkings were
matched each month against the out
put of English and American yards
and public impatience grew to fever
heat at the appalling difference. Two
successive Administrations in con-
struction succumbed to public clamor
before the end OF 1917.
"The war was costing us thousands
OF precious lives and $50, 0,000, 900 q
day. 1t was time when ship output
alone counted, and when the refine
ments of accounting details and rec.
ord keeping had to be subordinated to
the main purpose.
There was some payroll padding
some petty dishonesty, but not more
than there would be In yards under
private management. The Depart
ment Of Justice had. large force OF
investi gators at Hog Island for sever
months and not single criminal
charge resulted. Yet the general
existence of graft at Hog Island 1.
accepted by many people as ar
ascertained and acknowledged fact