The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-01-22
Rushes to Walsh Commit
tee to DenOunce 'Unmiti-
gated and Malicious
Statements.
NEVER GOT ANY US. PAY
Colonel Blames Auditors
for MisinfOrmatiOn Lead
ing to Charges in Ship
Board Account.
SCHWAB LOOKED FOR IT
Begged Wilson to Relieve Him
From Fleet Corporation
Position Because of Beth
lehem Job.

Charles NJ Schwab. chairman of the
board of the Bethlehem Steel Cor
poration and formerly Director-Gen-
eral of the Emergency Fleet Corpora
tion, branded yesterday as ''unmiti-
gatedly and maliciously false" the
story OF the s260,00O expense voucher
for personal expenses TO which cur
rency had been given through the
testimony of Col. Eugene II. Abadie,
formerly general comptroller of the
Shipping Board.
Mr.. Schwab. accompanied by Eugene
G.. Grace, president of the Bethlehem
Steel Corporation. and Paul d. Cra-
vath, his counsel. was early in his ar
rival In the Pennsylvania Hotel. where
the Walsh Congressional investigating
committee is sitting. The chairman
himself had not yet arrived for the
opening OF the o'clock session.
Mr. Schwab lost no time in demand
ter of the voucher Representative
Walsh, though the committee never
heretofore had thus interrupted the
current of a witness evidence TO ac-
commodate another. deemed the re-
quest worthy enough 10 warrant the
creating Of a precedent. He suspended
Col. Abadie's evidence and swore Mr.
Schwab. who then entered his protest
/ in the record.
After Mr. Schwab had left the room
/ there were two other instances in which
his name was again brought into the
proceedings. Martin ]. Gillen. formerly
special assistant to the chairman OF the
Shipping Board during the time that
post was filled by John Barton Payne
and afterward by Rear Admiral William
s. Benson. took the witness stand late
in the afternoon.
GiIIen Backs schwab.
He testified that there was nothing
in the report which Col. Abadie had re-
peated on the authority of Perley Morse.
head of a firm of certified public ac-
countants. 10 the effect that the voucher
| for $2s0.0o0 purporting to be for Mr..
Schwab's personal expenses for the
month OF October. 1918, had been
charged in part to the Governments ship
construction account Mr.. Gillen as
serted that the voucher in question had
been charged ito the profit and loss ac-
count of the Bethlehem Shipbuilding
Corporation" and that an employee OF
the Perley Morse concern who had as
sisted in making the earlier Standard
Oil Company and the Luckenbach aud.ts
Of the Bethlehem books, in which this
voucher was said TO have been turned
up. had stated In the witness presence
that there was nothing wrong" with the
item.
Before Col. Abadio was excused sth
in the day the committee forced han ~
tell. very reluctantly. of conferred . b
which he ana other Shipping Board 4Ik
cials had met AIr. schwab and ~
Bethlehem steel representatives. "a.
Abadie at the direction of Adftlrri
Benson, there permitted Mr.. Schwa3 x.
inspect tho contract between the So
ping Board and the Perley Morse h
Germ. under which Perley Morse & Cd.
were TO examine and audit the Woke
and accounts OF the various shipbu!1lne
plants of the Bethlehem Corporatio1
That contract had been executed BY ~rA
Abadle.
Mr.. Schwab and his associates protI (,
ed against Il. They objected to Psrify
Morse & Co. on the ground that tley
were "sensationalists' and because -
an outgrowth OF a previous case that
firm had been placed under suspenrion
by the State Association Of Certified
Public Accountants. Mr. Schwab uas
willing to welcome any other firr1 OF
public accountants in good standing
Deadlock over Auditors.
Col. Abadie refused TO modify Ht~
contract already made by him with pti.
ley Morse & Co.. and Rear Aduiifrl
Benson sustained him. be testified. r
that position. Within fifteen days nffav
the occurrence described. dvring wh'c
Nh Schwab got access TO the terms qf
the Porley Morse contracf however cv
Abadies resignation vas virtually 1f-I
manded by the slipping Board anH%
when he rendered IL. Admiral Bcufen
accepted II on April l 20 take ctfeet
April 30, but relieved him Of his dnlltN
instantly and placed him on dets 1ttt
leave. For more than two months sritr
the execution Of the auditing cor AsN
the employees OF Perley Morse Co. utak
daiiy 10 the doors Of the several FOO
building plants and demanded cntrfi ~
TO begin the work Of the audit, bu -e
mittanoe was denied them
THAT deadlock continued until i@n
after Col. Abadic's retirement. wv
according 20 the testimony Of Mr.. uNe+ y {
a compromise was brought about by Mr.,
Gflen. acting at the instance OF the
chairman OF the Shipping Board An
amicable understanding was reached
whereby the Perley Morse forces were
10 conflne their bethlehem audit to tho
labor and material accounts, while tho