Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1921-01-26
SCHWAB SOBS AS HE
MAKES HIS DENIALS
But Morse Refuses 10 Retract
Claim 100000 Was Charged
TO Ship Construction.

py Associated Press to Every Evening.
New York, Jan. zss--OvercoTne by his
emotions, Charles NJ. schwab tempo
rarify broke down on the witness stand
during HE testimony yesterday before
the walsh congressional COMMITTEES
which is investigating affairs ~ the
tinted states Shipping Bosrd. with
tear filled eyes. he denied charges ~
previous witnesses that 100000 n
s1ss. 600 voucher charged ~ his sccSunt
IN the home office ~ the Bethlehem
ehiphuilding Corporation. had been alio-
Gated 10 expenses 81 construction ~
government ships
mr schwsb had been recalled % give
testimony regarding ship construction
matters during his term as director
general II the Emergency Fleet Corpo
ration ~ the conclusion If this tesu
enony his attention vas called ~ Pep
reaanfaiive Israel NJ Foster r. testi
MOI hat since making his denial last
prida ? the charges, ne had conferred
with Feriey Morse. ~ Perley Morse
nd C,ornpa nv. the auditors who found
the alleged voucher
wr schVeab admitted be rad talked
with Mr. Morse. stating that Mr.
vvndnsn. whom he had known FOR
several years. came - him With the
statement that Mr.. Morse vas man
~ the highest repute
II listened Mr. Schwab added. and
said that II what YOU sew is true. and
what assure YOU ran prove. is true.
that / received none ~ this money,
should not Mr.. Morse be willing ~ rnske
? statement that he has make mis-
take7 nr. wudn1sn said he thought ne
would do SO"
Aa result ~ this conference 2 meet
ing between NJ gchvab and Mr. Morse
vas arranged later ~ the Hotel 81
Regis. and the witness said he repeated
20 Morse what he had said 70 wil5-
n1n-.thst the facts had related were
true and that I va. now Al the end ~
q long foty years business carear. 2 m
that n vas rnstter RI indnHcr Fha bly,
deep in my heart n be charged with
something Of that kind that hope ne
could correct u.
After returning here today from New
York the COMMITTEES discussed infor-
rnaily the testimony relating 70
voucher for $3.50 900 alleged TO have
teen psid Mr.. schwab for expenses and
directed Mr. Steele 70 make state
ment.
Mr.. Steele authorized the following:
"whan asked II he cared TO make any
statement relative TO the hearing held
by the select COMMITTEES on Shipping
/ Board expenditures on the charge that
Mr.. Charles M. Sohwab had received
/ payment for expenses which we're
/ charged against the Shipping Board
! Emergency Fleet Corporation 70 chip
/ construction cost, Mr.. Steele replied
/ that the members of the committee
vino he ard all the testimony and saw
the documents we're sstished that the
charge was not proven and further that
| It was not true.
''Mr "a ele further stated this state
msnt was made with me knowledge and
consent Of the x1b--~'~ 'he oofn-
nittee.
washington. Jan. 28.-Charges that
Charles N. schwab had received pay
ment from the government for expsn-
SEES. while serving az Director General
of the Emergency Fleet Corporation
were not proven and not true, the
Walsh Investigating COMMITTEES de-
clared today IN an authorized statement
The opinion Of the committee vas ex-
pressed in a statement by Representa-
tive steele. Democrat. Pennsylvania.
who said Il was based upon testimony
and documentary evidence and that
members individually felt great in
Justice had been done Mr.. Schwa9.
s-Schwab Sobs.
He would not do it, Mr. Sciwab
continued. He said there were ex-
plantations and reasons
Here the steel man ) voice became
husky and his frame shook with iup-
pressed sops
Il hope sou VIII excuse me. Mr..
Chairman and gentlemen Of the cam
r1ittee." he started TO continue bit
and here his voice broke again.
For a moment he endeavored 20 en-
troll himself. but without success. Is
gave up the attempt and from his egss
great tears rolled. which he wiped ayyy
with his handkerchief.
Mr. Schwab took up incidents rela-
ing 70 his becoming head OF the fee
corpora r-r'>A stating that he devoted Z
considerable portion Of his time TO visit
ing the various shipyards TO inspire this
men to greater efforts.
He asserted the entire shipbuildiE1
program was an emergency one. that
General Pershing was urging ships
and more ships" and that nothing was
allowed 20 stand in the way Of con-
struction lie declared at least two bill
lion Of the three billion dollar cost
ought to be charged of as war cost
The ships should be realized on. +
he added. "at any price within reason
"a private operators, asserting that
/ private operation should be stinaula-
ted The wooden ships Mr.. Schwab
added should he scrapped
Wallace Downey head Of the Dow
neg Shipbuilding Corporation. whose
name was mentioned by Tucker 4
Sands in connection with the alleged
s35. 600 payment for a shin contract