The Washington times., 1921-01-21
DENIES CHARGE
BY col. ABAD|E
Never Put Personal Expenses
Up to Ship Board, Says
Steel Magnate.
FACES WALSH COMMITTEE
Even Refused What .'OoIIar-a-
/ Year" Men. Were to Gel, He
Tells congressman.

NEW YORK, Jan. 21.--Charles NJ.
Schwab, head Of the Bethlehem Steel
Corporation and former director
general OF shipbuilding for the
Emergency Fleet Corporation. ap-
peared before the Walsh Congress
sional investigating committee today
and unqualifedly denied the Ship
ping Board had been charged $780,
900 for his personal expenses dur
ing October, 1913.
This charge had been made under
oath by Col. K. II. Abadie, former
comptroller general OF the Shipping
Board.
l.. II. GRACE APPEARS.
When the Congressional committee
which is Investigating activities OF
the Shipping Board resumed it's ses-
sion, Schwab and Eugene r. Grace.
president of the Bethlehem Steel Cor
poration. and Paul u. Cravath. an at
hand. q
z ysrh@abt declared Colonel .Abadie's
eha,ge was absolutely, unmitiEated- Z
"a SHss6 Efaltsieu ~ y raise, = = 3 ~
-rrhera was no charge for personal
erpainxes OF mine ever placed against
the shipping Eoard or Emergency
Fleet Corporatior.' Schwab testified.
Il defy anyone Furthermore to show
any vouchers for personal expenses
on the books of the Bethlehem Ship
building Corporation"
Colonel Abadie had testified that
owing to alleged irregularities in the
accounts of shlpbuiiding firms hold
ing cost-plus" Government con-
tracts, he had desired to show up
nagrant accounting methods and, to
make an example" had obtained per-
mission to have a public accounting
firm go over the Bethlehem Ship
building Company's books.
Later, he said, Judge John Barton
Payne, chairman of the Shipping
Board, endeavored to stop the audit,
and it was resumed only after Ber-
nard NJ. Baruch had insisted that to
abandon the audit would bring the
whole Shipping Board into disrepute.
Colonel Abadie showed it was
finally decided to have two audits
Results did not come and he was
forced to resign for his efforts to
expose leaks in the Shipping Boards
purse. from which millions OF dol
lars, he testified, illegally found their
way into the pockets of shipbuilders.
CAREFUL, SAYS sCHwAB.
Nothing in connection with my
personal experiences ever was charg-
ed against the Government" said
Schwab: "I' was particularly careful
to see that there never would be q
possibility of an insinuation of this
kind made against me-"
He said he would gladly appear at
any time to tell anything he might
know "in connection with the opera
tion of the Bethlehem Shipbuilding
Corporation"
Grace, who preceded Schwab on
, the stand, endeavored to refute
Colonel Abadle's accusations that the
Government had bee mulcted out OF
upwards of s100,000.0 900 in the con.
struction of vessels during the war
by the Bethlehem Shipbuilding Cor
poration.
Schwab asserted that when he was
asked by President Wilson to head
the Emergency Fleet Corporation he
wrote back, pointing out his identi-
flcation with steel and shipbuildine
interests, but that the President
nevertheless prevailed upon me to
accept the position and did so,' on
the understanding there was to be no
| compensation
Although anxious to render what
war service he could, Schwab stated.
he pointed out to the President that
the Emergency Fleet position would
not be the proper place for himself.
because of his shipbuilding interests
but the President prevailed upon
him to accept.
81 never even took the dollar that
the 'dollar-a.year' men were to get"
Schwab testified.
IL was arranged that the steel mag
nate. after entering his brief but
general emphatic denial, should give
his testimony in detail next Tuesday
or Wednesday.