Every evening, Wilmington daily commercial., 1921-01-21
.SCHWAB DENOUNCES
. CHARGES OF AbAD|E,,
PAID OWN EXPENSES
Latter Declares Steel Magnate
Got $3.50, 900 in One Month
From Ship Board.
GOES BEFORE COMMITTEE
BY Associated Press to Every Even'ns.


BY Associated Press TO Every Eve,tns.
New York. Jan 81 I.--Charles NJ Sohwab
appeared before the Walsh Congressional
committee this morning and denied testl-
monv given Yesterday by Colonel r.. IL
Abndie, former comptroller of the United
States Shipping Board, 20 the effect that
Mr. Schwab's personal expenses Ton
October. 1919. amounting tn s2SOGD,
were charged 10 the Suhipping Board.
Mr.. Schwab declared the statements
were absolutely, unqIalihedly and ma
Iiciously false, and that be personally
paid all his own expenses during his term OF
office as Director General of the Erner-
gency Fleet Corporation.
New York, Jan .21. Charles NJ Sohwab
has been subpnnaed 20 appear next Wed
nesday before the Walsh Congressional
committee To testify regarding financial
transactions between the United states
Shipping Board and the Bethlehem Steel
Corporation during Mr.. Schwab's incum-
bency as Directors ieneral Of the Elmer
gency Fleet Corporation.
The summons was issued. il was said, AZ
n result of testimony gwen before the
committee Yesterday by Colonel Eugene
II Abadie. former comptroller Of the
Shipping Board. to the effect that Mr.
Scilwab's expenses for the month OF
October. 1918. amounting 10 $500 900
were charged 10 the shipping Board and
that 500, 900 of this amount was NJ
bitrarily charged 20 ship construction
This was characterized by the witness
as "one Of several serious ITreUllaritlca
that occurred during Mr. Schwabs dual
q hxst rfan
genoy Fleet Corporation and official Of IN Q
bethlehem Steel Corporation lie added
however, he believed they occurred with
out Mr. Schwab's personal knowledge
Eugene v. Grace, president of the Beth
lehen company issued statement en-
phatically denying that any improper pay-
ments had been INSIDE to his company.
while Mr.. Schwab was director general
of the Emergency Fleet Corpor alton
Among other witnesses 20 he called e
/ rte.tify next week are Edward Y Hurley.
| former chairman 0f the Shipping Board
/ Charles T. Piez, former Director General
j Of the ErnsrTe Corporation; Com
/ mandsr r. d Gatewood, head of the
! division Of construction and repairs, anc
Robert Hague, his predecessor
/ In hss testimony yesterday. MIR Ab8d1'
| declared n voucher for $3.50 900 'fol
/ personal EXPENSES of an officer Of tn
/ Bethlehem Shipbuilding Corporation,
WAS found in an audit of the main Office o
that company II, identified this officer q,
/ Charles sf. Schuah, who 1as then dsrec
/ tor-gensral of the Emergency Fleet Cor
poration. The voucher WIS made for tn
mont h of October, 1918. One hundreC
thousand dollars Of this amount, he testl
/ fed was arbitrarily chsrged TO shil
] construction.
The evoucherin question, Colonel Abadl'
added. was not seen by him, nor was :
alleged amount Of purport ven cd. Ri
said it was reported TO him by Mr.. Morse
! of the firm Of Perley, Morse and Com
pany, expert accountants, employed b.
him as general comptroller of the Shippinl
Board, 70 make an independent audit o
shipbuilding companies. He also testIFe'
that from what he knew Of MIR. Schwa
he would be the first man 70 condemn an
injustice By his corporation toward til
government.
Continued on page s