Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-26
scHwAB wEEps AT HEARING,
By the Associated Press.


NEW YORK. January 26.-Over-
come by his emotion. Charles NJ.
Schwab, temporarily broke down on
the witness stand during his testi-
mony here late yesterday before the
Walsh congressional committee, which
is investigating affairs Of the United
States Shipping Board With tear
filled eyes he denied charges of pre-
vious witnesses that 100000 of a
$26S.000 voucher charged to his ac-
lehem Shipbuilding Corporation had
been allocated to expense of construc-
ton of government ships.
Mr.. Schwab had been recalled to
give testimony regarding ship con-
struction matters during his term as
director general of the Emergency
Fleet Corporation. At the conclusion
of this testimony his attention was
called by Representative Israel NJ.
Foster. 10 testimony that since max
ing his denial last Friday of the
charges. he had conferred with Per-
ley Morse. Of Perley Morse & Co.. the
auditors who found the alleged
Mr.. Schwab admitted he had talked
with Mr.. Morse. stating that a Mr.
Wiidman, whom he had known for
several years, came to him with the
statement IndI MI. Morse was a man
of the highest repute.
Asked Morse to Correct Error.
II listened" Mr.. Schwab added. "and
said that If what you say is true and
what assure you 1 can prove is true.
should not Mr.. Morse be willing to
make a statement that he has made
ga mistake? Mr.. Wildman said he
thought he would do So
AS a result of this conference a
meeting between MIR. Schwab and Mr..
Hotel st. Regis, and the witness said
he represented to Morse what he had
said to Wildman-''that the facts l
had related were true and that l was
now at the end of 2. long forty-year
business career, and that it was a
matter so indescribably deep in nv
heart to be charged with something
Of that kind that 1 hoped he would
correct it.
He would not do it," Mr. Schwab
continued. He said there were ex-
plantations and reasons
Steel Magnate Breaks Down.
Here the steel mans voice became
husky and his frame shook with sup
pressed sobs.
II hope you will excuse me, Mr..
Chairman and gentlemen Of the COM
mittee." he started to continue
''but'-and here his voice broke again.
For a moment he endeavored, to
control himself, but without success.
He Eave up the attempt, and from his
eyes great tears rolled. which he
wiped away with his handkerchief.
The silence was broken by Repre-
sentative Foster, who said:
II cannot help making this refiec-
tion just at this time. AS a member
of this committee l want to express
on the record my appreciation of the
manner. Mr.. Schwab, in which you
have introduced evidence concerning
this voucher. Aside from my member
ship on this committee I want to ex-
can citizen for the services you have
rendered our country in the recent
war"
This statement was greeted by an.
plause from those in the room.
II thank you very much" Mr..
Schwab replied. "That was the sub
stance Of my conversations with MI.
Morse"
He had now regained control Of
and in answer to the chair
mans question said he had never in
stituted any steps to have any audit
stopped at his shipyard or Offices. He
said matters of this kind were never
brought to his attention.
He again thanked the committee, and
asked them to excuse him for his dis.
play of emotion and. arising, walked
from the room, passing close to where
Mr.. Morse sat among the spectators.
The Walsh committee adjourned to
meet again in Washington at the call
Of the chairman.