Norwich bulletin., 1921-01-25
SchWab S269,543
 Voucher Explained
Was For Expenditures Made by Him in Connection With Regular Business of the Bethlehem Company.

New York, Jan. 24-Eugene R. Grace, president of the Bethlehem Steei Corpor- ation, appeared tonight before the Walsh congressional committee inyesG yating the affairs of the United States shipping board, and corroborated the testimony Of Charles M. Schwab that no part Of the latter's personal expenses as an officer Of the emergency feet corporation had been charged to ship. construction
 Colonel E. Fl. Afadie, former control Ter general of the board, and Perley Morse, an accountant, previously had TO- tified the committee of the discovery of a voucher for $2s9,543, alleged to cover personal expenses of Mir. Schwab ddfirs October 1918, when he was director gem eral of the fleet corporation. An audit of the Bethlehem Slaphuilding Corpora tion's books, they added, disclosed that S100,0 of this amount nad been charged to ship construction. Mir. Morse explain ed, however, that when ne made his re- port concerning the voucher he cid Lot certify, and cannot now say whether this item was not eventually allocsied or changed.
 Mir. Grace explained that the payment of S269,5k3 had been made tp Mir. Schwab in accordance with the regular method pursued in reimoursinE MT. | Schwab for expenditures made by him and his office organization in connection with the company's business
 In distributing this item among the various departments of the business, | $100,0 of it was charged to the B>th- ! lehem Shipbuilding Corporation, which is 1 a Bethlehem subsidiary in charge Of ship ! building. It was not charged, !he Wit ness said, to the cost of ships as had been testified by Colonel Abadie.' Az a matter of fact, MT. Grace added, the | Bethlehem company never cl1inled this ! s1eO,0o0 as an item of cost against gov ] ernment ships, but charged that amount
 to profit and loss.
 Mir. Grace submitted photostat copies
 of various vouchers and other payers | purporting to show the history of
 transaction from beginning to end l Irving N. Kuiner, an accountant en
 ployed by Perley Morse Company, pre- ceded Mir. Grace on the stand. He wal identified as the man who discovered ant ! reported the voucher in question. Kul ner testified 1t was a Bethlehem Stee Corporation voucher drawn to c. M Schwab and that the word "Personal ] was not on that voucher. He explained fe did not trace the voucher and had n' knowledge of the final disposition of tn item He admitted that further soarci which was prevented by tho stopping o the audit, might have disclo>sd credit
  he (Kulner) had been informed by ai employe of the Bethlehem Corporation
 that the $10o. .000 had been disailoHfed. MT. Grace exhibited a photograph copy of the voucher in question, whlcl
 was made out against the 'Bethleher
 Steel Conspany and dated November 3I
 1918. He said it was in favor of c. N
 Schwab flor special expenses" Tn | voucher was paid by the steel company he added, and the record Of payment ar pears upon its books. He explained I
 was the Bethlehem corporation'~ Practc to distribute items of gene ' expcns
 among the various subsidiary -1.npanic' Therefore" he said, "in ordinar practice the portion of the payment question would be charged to the Beth
 lehem Shipbuilding Corporation. the sui
 sidiary operating the shipbuilding depar
 ment" Accordingly, the witness added. m
 Bethlehem Steel Company's journal entr voucher, a copy of which was exhtbite'
 was prepared, charging $10o.ooo of u
 expenditure of $269,543 against n 2 Bethlehem ShipbuIlding corporation |; !, it's share of this general expense.
 . Then the Bethlehem Shipbuilding Go 7 porat.on jorrnal entry voucher was pr
 pared showing the absorption of Il
 S100,o00 in It's general expense accoun , and the item was so entered on its book :. No part of that item. he asserted, "; 7 ever charged against ship construction. Not penny was charged to the ere
 1 gency fleet corporation" he said, "zI they were never asked by us to pay al z part of 1t"
 II MT. Grace was sti1l on the stand wh' i, the committee adjourned for the nigl II He will be recalled tomorrow.