The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-01-23
SHIPPING GRAFT
DENIED BY PIEz
Defends Charles Schwab,
Charged With Getting
a Big Slice
EVEN PAID EXPENSES
Steel Magnate Foresaw Criti-
cism Because His Company
Had Contract, He Says

WASHINGTON, Jan. 22.--Charlcs
picz OF Chicago. former director
general of the emergency fleet cor
poration, appeared today before the
house committee investigating ship
ping board operations TO deny
charges against the operation of the
corporation. which were made by
Martin J. Gillon. formerly assistant
to The chairman Of the board. in q
special report submitted to the COM
mittec some weeks ago. Mr.. Picz
had prepared 5000 word state
ment In which he took up tho
charges In dotail. but II was not
read. Chairman Walsh said the wit.
ness could read u " nc desired. hut
that all members Of the committee
already had examined the copies
furnished them and that time
would be saved by merely admitting
It to the record. This was done.
Schwob Got Nothing.
Chairman Walsh questioned the
witness and In the course OF oxami-
nation Mr.. Picz declared that to
his knowledge Charles NJ. Schwab
had never received "a cont from the
government In salary or personal
expenses while director general OF
the fleet corporation. Commenting
on tho charge made to the commit
tee at New York by Col. ". II.
Abadie, former comptroller general
OF the board, voucher for $780,
900 had been presented for Mr..
Schwab's personal expenses. Mr..
Piez declared:
1T Is unfortunate that any sug-
Rcstion " improper action on Mr..
Schwab's part should be made at
this hearing.
Mr.. Schwab had reluctantly taken
over direction OF the fleet corpora
tion after he had been urged 10 do
go by Chairman Hurley OF the ship
ping board. Bninbridgc Colby and
the witness, and finally President
Wilson.
This was In the spring OF 1918.
when the Germans were making
their final great drive, he said, and
when tho general staff was calling
on the board to transport $4,000
troops % month to France.
That meant increased tonnage"
Piez continued, and we saw the
need of bolstcring UP the construc-
ton end OF the shipping board.
Forcsaw Criticism.
Mr.. Schwab explained that firms
In which he was interested had con =
tracts amounting to 100000, 900
with the government. He was pos
1.-Two he would be subjected 10 unfair
criticism.
know perhaps better than any.
one else tho service Mr.. Schwat
rendered to the government He
never charged his expenses TO the
government. either dirct1y or In
directly. He was too high spirited
a man for that"
Mr.. Piez recalled "A trip made TO
the Pacific coast to Inspect the fleet
corporation work there.
Mr.. Schwab paid all OF his cx-
penses. az well as those OF his pri-
vate party" the witness said. and
l paid mine"
Mr.. Piez was receiving $4,000 n
year when he Joined the emergency
fleet corporations forces Mt $500
a year. he said, adding that he also
paid his own expenses.
When Mr.. Schwab became di-
rector general OF construction, Mr..
PieI said. the general public ex-
pccted more than could be accom-
piished. Mr.. Schwab. he added. paid
little attention to detail hut did i'm
part so much enthusiasm the op-
erations division took on new llfe.