Every evening, Wilmington daily commercial., 1921-01-21
scHwAB DENoUNcEs
Con tlnusti from r,aOs

A An OitlrNr Of tn0 neeh r'HIVIhtIvHt h's
witncs replied that had il been 10, the
amount should have BEEN covered by
flcet corporation voucher.
Colonel Abndie declared ~ iesst
500 O0O, 900 improperly paid sbip-build- |
err by the Shipping Board will be disclosed
through the audit Of accounts now In prog
r~s.
Colonel Abadie charged that thon
were IN great many serious ifreguisn~
ties' in the dealings between the Bethle- |
hem Shipbuilding Corporation md the
government as a result III the connection |
Of Charles Nj. achwab with both the board |
and the corporation. -.
Things had been done and allowed,
he testified, because of MIR. Sshwab
connection which probably would not he
allowed otherwise, and, though ] am
satisfied Mr.. Sohwab knew personally
nothing of them the influence from Mr.
Sohwab'a dual position was prevalent
Just the same.
Though nj that time | had newer
met Mr. Schwah. ] was satisfed nom
my knowledge of his record that he would
bo the first Go condemn any injustice by
his corporation toward tho government
and would willingly and gladly return any
moneva improperly paid his corporation.
Colonel Abadie aaid the accounts of
the bethlehem Corporation were ordered
audited firnt because of reports made by
tho plant protection section OF the boafd
charging Irregularities The audit, which
will include all ahiphuildine companies
which had contracts with the governme nj
will cost 81 .noo. 900 hr testified
The audit bv certified public account
anita the witness said was ordered a year
apo, and was the cause of controversy
between Colonel Abadie and Martin J
Gilen. epecial assistant to tho chairman
Of the board Colonel Ahedie predicted II
would form tho basis for action looking tn
recover ~ vast sums.
The witness said he never talked To MI
srhwab about the alleged irregularities,
hut believed Mr. Schwah would have
welcomed an audit of the Bethlehem Cor
poration.
In reply 20 questions he made i plain
that his charges did not include their
pe,hlehem Corporation alo ne, hut var
U,s shipvartls throughout the country
Washington. Ian ~ An invrr'iga-
| son bv tho Shipping Board WAS IN pros
| poet TODAY in connection with charges
| made against the international Mercsn-
| tile Marine Company bv Senator Jones OF
| Waahington. in his address yesterday
| before the National Merchant Marine
/ Asaociation
| Chairman peneon announced N the
dolapetaa that he intended " refer the
matter 60 his board with recommends
ton that any action warranted he taken.
| He said later that he WINS making efforts
| a. Obtain a COPY NJ the agreement which
waa referred - and quoted by senator
Jones and which the chairman said he only
heard Of recently.
Washington. Ian u How phipyard
| workers may aid in relieving the existing
| staguaton IN the ahlphuiidfng INDUSTRY
wa a question 20 which heads of labor
untona with members in the shiphullltine
TRADES IN conference here had found NJ
answer today The question WAS con.
s,dered from various angles Yesterday and
| no decision having heen reached. another
meeting WAS called for to-day.
| Tho Union hnada also were understood
to have under confederation tho possibility
that ahipyard owners faced with a con
tiuuailun ~ Tho present depression un'sh
decide on ahrnratnn of the present waE'
contracts
Mir Srhwah said that although he was
auptnaed to receive dollar year salary
lp.p did not oven collect that and for hif
travels from ehipyard TO shpyard while
while nj tho head of tho Fleet Corporation
hr assertsd he never received any coin
ponsation end did not want any
IIe admitted such voucher "a tha
charged hy Colonel Ahadle may nv
been paid 20 him b1tt ccclarcd II was no
for the purpoee claimed by Aliadie an'
80 part of II was charged to- ship con
, | atnlction.
|, His acceptance oi the position aa heat
of the Fleet Corporation, hc told the com
| mttee, wac Only at the urgent request Q
the chairman oi the board and the Pfesi
8 dent Of tho United States. nnd ~ accept
. ing the place. MIR Schwab declared, h
insisted TINT al matters connected W.T.
his own shipbuilding companies toe handie'
by other membera Of the board
CoIonel Abadie, who again took thu
stand. aid he regretted the recesslt,
for oonnectirg Mr.. Schwnb with tho vouof
or. and said he hoped II was an errct an
S that MIR Schwah would be cleared.
= Asked further concerning tho vouchel
g Colonel Abadic reiterated his preuou
g testimony that information conoerf IN
q II had been gwen TO him by MIR. Mors'
s of Perley Morse Il Co. accountants EN-
j. ployed to audit shipping board book
O He said the charge wes entered as owe
/ head" in the main office of the Bethlehel
!. Company and 100000 was charge
J. 10 ship construction.
X The witness, in reply To a question
= admitted that MIR Morse had told hi
\, how the other sl60000 had been spei
Y. but declined 10 repeat what he had be'
z. told. and said il concerned the Betheho
d Corporation only Mr. Schwab, who W
/ slit ng nearby, spoke up and said: y
are at perfect liberty TO give that info
nation If you desire.
Colonel Abadie said, however, 1T "
given TO him con6dentially and tn
z be would not repeat 1T
n Mr.. Schwab was called before I
a. committee at his own request, and int
|, rupted Colonel Abadie's running tes
=, mony TO enter his denial.
- @vs The chairman asked Mr.. Schwab
:, appear again next Tuesday to test
s. concerning matters relating to the Sh
ping Board IL was made clear, howey
n, that he was not being called IN relatt
II ~ to the voucher MIR Schwab said he wol
90 be willing to appear at anytime the co
l., mittee desired
y; INCORRECT HEAD LINE.