Every evening, Wilmington daily commercial., 1921-01-25
VOUCHER CHARGED
TO PROFIT AND LOSS
Bethlehem Auditor Says No Part
of II Was Ever Charged to
: Ship Construction.
ny Associated Press to Ev.ry Kv-,,inx

NY Associated Press to Every Ev~,,inx
New York, Jan 2b.--positive denial
that any part Of the x2eO,0O voucher
made out for exper ses nf Charles NJ
Schwnb for the month of October, 1918
was ever charged to ship construction
was made today by u. A. Hhick, grneral
auditor Of the Bethlehom Steel Corpora
tion in testimony before the Walsh Con-
greasional committee investigating affairs
OF the Shipping Board.
MIR. Shick aaid he had personal knowl-
edge that the voucher was charged 10
profit and loss" Of the Bethlehem Cor
poration and that IL was nevcr picked mp
by tho Fmeraen cy Fleet Corporation ~ n
proper charge because it carried no sup
porting details.
His testimony contradirtrd that given
laat week by Colorel L. III Abadie, former
comptroller-Fer eral Of tho Shipping Board,
to the effect that the item was submitted
aa Mr., Sohwah'a personal expenses.
New York, Jan, 26.--Euuene u. Grace.
president of the bethlehem Steel Cor
poration, wss called today by the Con-
gressional committee investigating United
States Shipping Board affairs 60 give
further testimony regarding the e2d0,or0
personal exper SO voucher drawn in favor
Of Charles NJ Sohwah
He testified Yesterday that h,s concern
had paid MIR Schwab 5000. .543 for per-
souai expenses, but declared the COR
poratiou lad not been reimbursed by the
government He said he approved the
voucher himself and the amount was
charged to profit and loss
A member Of the invest eating com
mttee said today that Mr.. Schwab
probably would he called TO testify again.
MIR Shick said it was the general UNI
defBtending between auditors Of the
Bethlehem Steel Corporation and those
Of the Emergency Fleet Corporation that
no item would be allowed by the latter
organization unless IL carried supporting
details
Before Mr. Shick testified Eugene q
Grace, president Of the Bethlehem Steel
Corporation. was Recalled TO the etand
II reiterated his testimony Of yester-
day that the item IN question was allowed
by his company as Mr.. Schwab's Special
expenses" and not as personal expenses
Mr.. Grace testified that even had such
an item gone through and been passed as
PROPER by the Shipping Board, Il would
have been caught up bv the Bethlehem
Corporation and d'sallowed.
In preference 10 testimony Of rsrlev
Morse. head Of the auditing firm of Per
lev Morse and Company, that this vouch-
or was among list Of misplaced
items" found in The bethlehem Corpora
tiope books tota ling 1886, 900, Mr..
Grace eaid there were no misplaced items
unlees they were misplaced by the Emer-
a A
When Mr.. Morse presented the items to
the committee yesterday he said he had
not certified 10 them "a they had been
picked up in the incomplete audit
Mr.. Grace agreed 90 supply the COM
mittee with phostostat copies Of records
Of the oofporation showing the final dis
position Of s1e item in. question Those
would prove bevond doubt he said. that
no part Of il had ever boon charged 60
ship construction.
MIR Shick told the committee he called
the attention Of Mir Grace 20 his belief
that the Perley Morse auditors were max
ing inquiries in the Bethlehem plant
about things which did not concern the
audit
Testfying concerning the S2eo, 600
voucher, MIR. Shlck said such charges of
special expense were entered in the scner-
al expense ledger
do Won know that MIR Schwsb never
received any money from the United Sta tes
Shipping Board the feet corporation or
the United States government as salary
Chairman Walsh asked
81 do" Shiok replied
did he ever receive any money reiTn-
bursiue him for his general expenses"
the chairman asked
Mr. Shlck said that prior 20 1918 when
shiphulldIng wss carried on under lump
sum contracts, some money may have
boon charged 10 MIR Schwah's admins
tration expense, but that when the con-
tracts were charged TO the cost plus basis
such charges were eliminated and DO change
has been made in the practice since
even after MIR Schwah resigned rs an officer
Of the fleet corporation.
For the purpose Of record, Chairman
Walsh asked. II desire 20 risk you this
question Although there may be vouchers
in the files Of the Bethlehem Company
and there may be entries on the books
showing expenses of Mr.. Sebwab at various
times and for various amounts, you state
here definitely and positively that none
OF those vouchers and none of those en-
tries on the books for those particular
items were at that time or any time sub
sequently ever allocated or charged 10
shIp contr' 'uction costsY
Il dc, the witness replied.
New York, Jan. 25.-Total mis-
placed charges found on the books Of
the Bethlehem Shipbulding Company
amounted 10 s339 23O, 9erley Morse,
head of an accounting firm employed by
the Shipping Board. testified here yester-
day bef ore the Walsh Congressional Com
mittee
Morse said he had got in touch with
Charles NJ. Schwab, chairman of the
Bethlehem Steel Company, and Eugene
G.. Grace, president, after Schwab' 6
testimony last week. when he denied he
had received a cent from the Govern
ment for his services.
At the conference, Morse testified,
MIR Grace ard George i. Burgess, as
sociated in business with the witness,
compared notes on the vouchers and
agreed as to the details.