New-York tribune., 1921-01-23
Piez Testifies
Schwab Got No
ExpenseM Money
Abadie's Charge Shipping
Board Chief Took Gov
ernmeni's $500, 900 De-
clared To Be Croundless
Cillen Also Contradicted
Walsh Committee Told That
Arraignment of Builders
Harms Merchant Marine

WASHINGTON, Jan. 22.-If the
American merchant marine is to be
developed successfully the Shipping
Board must be relieved of the task
Of operating ships and settling claims
growing out-o Of the cancellation IF
war contracts, Charles Piez, of CHI, :
cago, former director general of the
Emergency Fleet Corporation, declared
to-day before the House committee in
vestigating the boards operations.
Coupled with these declarations was
fiat denial by Mr.. Piez of various
charges of mismanagement made
against the construction divisions of
the board by Martin ]. Gillen in recent
testimony before the committee.
The witness also denied that Charles
NJ. Schwab had been reimbursed by the
government for his personal expenses
while Mr.. Schwab was director gen
eral Of the Fleet Corporation.
Schwab's Service Praised
Mr.. Piez made no direct reference tc
the charge of Colonel E. H. Abadie, for
merl" comptroller Of the Shipping
Board, that a voucher for $25O,O00 had
been presented for Mr.. Schwab's "per-
sonal expenses" but he did say posi-
lively that he was certain that no
voucher had ever been issued either for
salary or expenses for Mr.. Schwab.
Praising Mr. Schwab's service to the
CrfV 20 ,l NJ q nj IT.
fortunate that any suggestion of i'm
proper action on Mr.. Schwab's part has
been made at the hearing."
Mr. Piez told the committee how Mr.
Schwab reluctantly had taken over di.
rcction Of the Fleet Corporation after
he had been urged to do 80 by Chair.
man Hurley of thH Shipping Board
cambridge Colby, then member Of
the board, and the witness, and finally
by President Wilson.
Criticism Anticipated
This was in the spring of 1918, wher
the Germans were making their fna]
great drive. he said. and when the
general staff was calling on the board
to transport 1000 troops month to
France.
THAT meant increased tonnage" Mr.
Piez continued, "and we saw the need
of bolstering up the construction end
Of the Shipping Board. We needed 6
man of>Mr. ScRwab's experience. abil.
ity and enthusiasm. Mr.. Schwab ex.
planned that firms in which ne was in.
terested had contracts amounting tc
s500,000000 with the government.
He was positive he would be sub
jccted to unfair criticism, but finally
agreed if the situation Were outlined to
President Wilson and the President in.
sisted, he would take charge Of the
Emergency Fleet Corporation.
II know perhaps better than ann one
else the service Mr.. Schwab rendered
to the government. He never charked
his expenses to the government, either
spirited a man for that"
Back to New York
The committee will return to New
York tomorrow night and on Monday
morning expects to inquire further
into Colonel Abadie's charges.
Mr.. Piez's reply to Mr.. Gillen's
charges was in the form of prepared
statement, which was filed with the
committee and which was not read be-
cause Chairman Walsh suggested that
ali smembers had acquainted them
selves with it.
In this statement Mr.. Piez declared
that Mr.. Gillen's report did not "aquare
with the facts" in "a single vital in
stance" and that the charge of lack
of an accounting system In the division
Of construction was wholly wrong. The
claim also was made that Mr.. Gillen's
report regarding the Fleet Corporation
checks against authorizations and ap-
propr ations was absolutely wrong, and
that the destructive effect Of Mr.. Gill
lens testimony had seriously impaired
public interest in the establishment OF
tContlnued on page seureen)