New-York tribune., 1921-01-22
Tails Walsh Committee
Voucher Might Have
Been Drawn, but Not
for His Own Expenses
Charge Maliciously
False, He Declares
Cillen Denounces Abadie
for Accusation, Saying
Accountants Admitted
Bill Was All Right

Charles NJ. ScnWaO appcAA0o upou MS
am sinsistent demand" before the
walsh Congressional committee inves-
tIzating the affairs Of the Shipping
Board, at the Hotel Pennsylvania, yes
terday. He declared under oath the
ACCUSATION made the day before by
Colonel E. G. Abadie, formerly con-
troller general of the Shipping Board,
Who said voucher for $3.50, 900. found
n the records of the Bethlehem Ship
building Corporation for expenses for
HI. Sehwab was charged to the govern
ment, was absolutely, unmitigatedly
and maliciously false"
Mr. Schwab, visibly moved, declared
he served the government faithfully
and disinterestedly, and that he never
received even the one dollar q year to
which he was entitled. Mr.. Schwab ad-
mitted that such q voucher as men,
toned by Colonel Abadie might have
been paid to him, but not for the pur-
pose alleged by Colonel Abadic and
no part of it was charged to ship
construction.
Nr. Schwab told the committee that
be accepted the post Of head of the
Emergency Fleet Corporation with
great reluctance and only at the urgent
request Of the chairman of the Ship
ping Board and the President of the
United States. In accepting the posi-
don, he said, he did so with the dis
tInct stipulation that all matters re-
hting to the Bethlehem Shipbuilding
Corporation be handled by members Of
the board other than himself.
Reproaches Colonel Abadie
Mr.. Schwab was waiting for the
committee in the hearing room long
before It convened. He entered the
room n determined mood and while
waiting tor the committee to. appear
turned to Colonel Abadie, saying:
Colonel Abadie, you can't find such
voucher. never met you, never
nav you. Why did you make that
statement? never had any relations
With you whatever. You have done me
IN incalculable injury"
That is what heard" was Colonel
Abadie's reply. II am willing to ma AXE
public denial if it cannot be found"
The committee members then entered
ne room and the hearing was begun.
Colonel Abadie, who followed Mr..
Sehwab on the stand, said he regretted
me necessity for connecting Mr..
Mhwab with the voucher, and said he
hoped he had made an error and that
N. Schwab would be cleared of all
suspicion.
-! At the afternoon session Martin j.
eillen, formerly special executive as
nssant to Chairman Payne and .Ad-
miral Benson, denounced Colonel Aba
rie Tor his charge and declared that
reriey Morse, head of Perley Morse &
70, the accountants alleged to have
discovered the voucher, admitted to
MN That there was nothing wrong
ABOUT the voucher and the amount it
involved was charged up to profit and
ioss aad not to Mr.. Schwab's personal
expenses
Did Not Object to Audit
nj. Ar. Gillen corroborated partly the
esnmony of Colonel Abadie to the ef-
~ tnat the Bethlehem Shipping Cor
Eofstiou sought to have the audit of
Ne corporations books ordered by Col
Sael Abadie stopped, SO persistently
ast At one time Admiral Benson, chair
nan Of the Shipping Board, "lad de-
mIned to commander the yards of
as Bethlehem Shipbuiiding Corpora
avn y 1t were necessary to adjust the
msgute Of its books"
lne Bethlehem Shipbuilding Corpora
se:; Ar. Gillen testified, did not object
tne audit, but TO the employment of
Hney Morse & Go. as the auditors.
S.I; E Oiiien corroboratcd Colonel Aba
ps statement that the auditors of
sney Morse & Co. had been refused
EMISSION TO the Bethlehem Offices.
s;sssssure was brought to bear on both
11pmise. 49,
as ns; Gillen severely criticized Colonel
sss.n, sns, saying 1T was regrettable that
ssnysning should arise which would in
1e least imDu9n the motives of men
E,se Ese mad risen 20 positions Of RESPONSE
@'sU In their country"
Testimony Of Mr. schwab
81 soliowing 10 part Of the testimony
Hsa H Dy Mr. Schwab in reply to ques-
IN. 49, ~ Chairman Walsh. of the COM
- Ss'fmzn Walsh--What have you to
regarding Colonel Abadie's refer
- 70 your personal expenses hay-
~ oeen charged to the cost OF United
& ss shipping Board ships?
~; schwab-~It is absolutely, unmiti-
ecy and maliciousiy false. There Is
snarge for personal expenses Of mine
IL sny manner, shape or form, against
~ ~ shipping Board for ship construc-
- - !. % the United States government
@s Emergency Fleet Corporation.
4 -. more, no personal expenses Of
sS<as "a any manner, shape or form,
Ss'is ! vas Director General OF the
sss1geney ~ Fleet Corporation. and they
fs y neayy, vas eyer reimbursed TO me
rs United States government in any
ssr, shape or form, and defy any
800 show ON the records Of the
~ seienem Shipbuilding Corporation
Voucher charged against shipping
.ssmz mz personal expenses. and the
~ srt ~ 10 falze, 70 pernicously
& e mAlleiousIy 70, that I can scarce
~ ssa words with which 70 eharaetexfze
q "a nafm1ul influence.
S1I1as sMpsst M that no expense voucher Of
VHve admit there wAs = voucher
z q scssfsssses ~ ~ seyssJ
ssxZ43NM6RE<s7Ag@nQu TX Qu1y Direct ThrnrwIs