The New York herald., 1921-03-03

the Emergency fleet Corporation had
ever been reimbursed by the United
States Government.
There was no testimony TO support
the charge OF Col. Abadic against Mr.
Schwab. but IL was contradicted by the
Testimony OF Mr.. Schwab himself Mr.
Grace. Mr.. Shick. Mr.. Hauck. the rec
ords or the Bethlehem Steel Company
and the independent audit of this par
ticular transaction made by Shipping
Board auditors under the direction OF
the comptroller OF the Shipping Board.
Audit Caves Final Proof.
Further corroboration OF Mr..
Schwab's testimony later was received
In the testimony OF Alonzo Tweedale,
present comptroller OF the Shipping
Board and Emergency Fleet Corporation.
TO the effect that ne had caused an IN
dependent audit Of this voucher and the
book entries 70 be made by Government
auditors. who had made written report
that no part OF this voucher had entered
into the cost OF ship construction 10 the
Government
Photographic copies OF the original
voucher, subsequent book entries and
monthly d.saliowance sheets OF the Gov
ernment inspectors were submitted to the
committee. which corroborated the re-
port OF the Shipping Board auditors.
No voucher or book entry was pro-
duced or proved OF Mr.. Schwab for per-
sonal expenses for 100000 There
was Bethlehem Steel Company
voucher FOR s26s.543.53. drawn in favor
OF c. NJ Schwab for special expenses.
The original voucher was paid by the
Bethlehem Steel Company ana the pay
ment appears upon It's books No part
OF this voucher was paid by the Ship
ping Board or Emergency Fleet Corpora
tion, or charged 10 ship construction. It
is the practice OF the Bethlehem Steel
Company 10 distribute items OF general
expense among its subsidiary companies
that operate the various departments Of
that enterprise. and 100000 or this
item was allocated TO the bethlehem
Sh!pbuilding Company, as its proportion
OF expenses. and charged 10 profit end
loss.
There is nothing TO indicate that this
procedure on the part OF the Bethlehem
Steel Company was irregular or un-
usual.
Your committee is. therefore. OF the
opinion, based upon the testimony. that
the charge made by Col. Ahadie in his
testimony has not been proved and is
not true
Clean Bill for Boiling.
| The committees conclusion as to the
charges against Mr. Boiling said:
THE committee. after taking all the
available testimony upon the subject,
is of the opinion. first. that Mr. r. w.
Boiling did not solicit, accept or receive
any gift. bribe or gratu.ty for the pro-
cureTnent Of a contract with the Downey
shipbuilding Corporation or for any
other purpose second. that the Downey
Shipbuilding Corporation did not pay
the sum Of $4,000, or any sum, TO be
used for the purpose OF procuring con-
tract through payments to Mr.. r. W.
Boiling or other officials OF the Shipping
Board"
Regarding the sale OF surplus ma
terial and wooden ships the committee
said:
There Is a large quantity Of surplus
material still in the hands OF the Erner-
gency Fleet Corporation Most of this
property has been gradually deteriorat-
ing since II was purchased. This ma
terial, it would seem. must be disposed
OF at tho best prices obtainable and the
loss charged off rs part OF the war cost.
"A large number OF wooden ships on
hand, IL seems to be the consensus OF
opinion Of those who have testified be-
fore the committee, should be disposed
of at the hest obtainahle prices and
without delay. Few IL any, are suit
able or needed for the requirements OF
the United States merchant marine. be-
cause they cannot be successfully oper-
ated in competition with steel ships"