The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-01-29
SCHWAB WEEPS
ON THE STAND
Steel Magnate Bitterly
Denies Graft in Con-
nection With Ship
- ping Board

ness stand during his testimony here
Today before the Walsh committee
wnich h Investigating affairs of the
united states shipping board With
Tear hlled eyes. he denied charges OF
previous witnesses that 100000 of a
s26s.OO0 voucher charged to his ac-
count I'm the home Office of the Beth
ichem Ship building corporation had
been allocated to expenses OF construc
tfcn 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
rHeet corporation. At the conclusion
or his testimony his attention was
called by Representative Israel Nj.
Foster to testimony that since max
Ing his denial last Friday Of the
charges he had conferred with Perley
Morse of Perley Morse and Co, the
auduors who found the alleged
voucher.
Mr.. Schwab admitted he had talked
With Mr. Morse. stating that Mr..
Wiidman. WHOM he mad known for
s<verai years. Came to him with the
statement that Mr.. Morse was a man
or tue highest repute.
II listened" Mr.. Schwab added.
and said that IL what you say is
true and what I assure YOU | can
prove Is true. that received none OF
mls money. should not Mr.. Morse be
WINNIE TO make u statement that he
hao made mistake? Mr. Wildman
safd he thought he would do So"
"a As result of this conference. a
meeting between Mr.. Schwab and Mr..
Worse was arranged later ut the
Hotel St. Regis. and the witness said
ne repeated tn Morse what he had
said To Wildman-'that the facts |
had related were true and that | was
how, at the end OF long 40 years
busircss career. and that II was a
iifReter sc indescribably deep i'm my
htsrt, to be charged with something
OF that kind that / hoped he would
4 cbrrsct H.
He sWould not do It," Mr.. Schwab
continued. "He said there were ex-
plantations and REASONS
Here the steel mans voice beca me
husky .and his frame shook with sup
tresrrd sobs.
II hope you will excuse me. Mr..
Cneirman and gentlemen of the COM
uhtce." he started ------ but" -
ana here his voice broke again.
as For moment he endeavored TO
control himself but without success
He gave up the attempt and from his
eyes great tears rolled. which he
wiped away with his handkerchief.
( The committee room was filed with
witnesses and spec s,tors and IL was
evident that hc had the sympathy OF
sll fr the silence that prevailcd-a
silence broken by Representative
Foster. who said:
. Il can not help making this rcnec-
ton just at this Nmc. AS a mem
her Of this committee. I want to ex-
press on the record my appreciation
Of the manner. Mr.. Schwab, In which
you have introduced evidence con-
ccrping this voucher Aside from my
membership on this committee.
want to express my appreciation as
an American citizen. for the services
you have rendered our country in
the recent war"
There IL no jury" Mr.. Foster con-
tnucd. Ito he affected. or court 10
ne influenced. but I say that out OF
an appreciation or the situation |
feel that i ann compelled to give cx-
preston To- H.
This statement was greeted by APP
plause from those In the room.
Il thank YOU very much" Mr..
schwab replied. THAT was the SUBJ
stance OF my conversations with Mr..
Morse"
He had now rcgalned control of
himself AMI I'm answer to the chair
mans question said he had never in
STUFFED any steps to have any audit
stopped mt his ship yard or offices.
fte said matters OF this kind were
never brought to his attention.
He again thanked the committee
and asked them To excuse him for
his display of emotion and arising.
walked from the room. passing close
to where Mr.. Morse sat among the
spectators
Mr.. Schwab appeared before the
committee again this afternoon and
testified concerning matters that
canrs directly under his attention
while director general OF the Elmer
gency Fleet corporation. lie decIar-
I'd 10 was with reluctance and with
the understanding that all matters
having to do with contracts between
the fleet corporation and his com
panies he handled 10y other men. that
he took the office and only at the
personal solicitation of President
Wilson and the chairman of the
board.
Questioned AZ 10 his views con-
corning the shipping situation he said
the whole program of ship construc-
iion at tho time was one of war en-
Urgency aud tho Fundamental idea
was to get ships. The program in
cluded the building OF wooden ships
and Mr.. Schwah said that. while at
first he did not favor the wooden
vessels. he WIS convinced that II was
wise to build ANYTHING that could bc
used fpr t,etnSnortati,,, l,,,t,,,, 81