New-York tribune., 1921-01-21
Sh;nBoard's sEx-C Controller
Saws Amount Was for
One Months Expenses;
Saws He Was Framed
Walsh Committee
Calls Steel Chief
Ex.Official Says Survey
VIII Show That Nearly
100 Million Was Over
paid Various Companies

co,onel E. H. Abadie, formerly con-
..s,ler-ceneral of the United States
ch;nn;nr Board, told the Walsh Con-
,,.ssional committee investigating the
.s.irs Of the board, when it resumed
ts hearing At the Hotel Pennsylvania
yssterday, thu he was framed" into
rrssigning his office with the board be-
,suse vu he Insisted on having an audit
made Of the books Of the Bethlehem
Shipbuilding Corporation.
Colonel Abadie told the committee
ss was framed" by Martin j. Gillen,
,uesial executive assistant'to Chairman
John Barton Payne, and later to Ad-
airal Benson. when the auditors, Per-
lsy Morse & Co., of New York, whom
s. haa engaged to make an audit of
the Bethlehem corporations books
unesrthsd voucher for $260,000 on the
records Of the corporation for personal
expenses for Charles NJ. Schwab for
Oc.eber, 1918. OF this sum, the wit
aess testified, 100000 had been
charged to overhead on ship construc-
ton during the aforementioned month.
Ar Schwab resigned from the Emer-
gency Fleet Corporation two months
later.
Colonel Abadie charged that "insidi-
ous propaganca" had been brought to
bear upon Chairman Payne, especially
through certain anonymous letter,
which prompted Judge Payne to have
| the audit of the Bethlehem Shipbuild-
ing Corporation halted. Representa-
| tires Of the auditing firm had presented
themselves daily for q considerable
period at the Offices of the Bethlehem
torporstion, but were refused admit
isnee, the witness said. Finally, they
;acefeded III gaining entrance to the
plant .sssassS
Corporation Counsel Blamed
Paul D. Cravath, counsel for the
Bstalehcrl corporation, was also con-
sidersd by the witness to have been re-
sponsib.e for having the audit of the
sarp-zation's books stopped.
eelaael Abadie testified he was told
IbysMs Morse Of the s26o,o0O voucher
| icr. Mr.. Schwsb. ze-- = . '--.s''
Pressed BY Chairman Walsh, the wit
sess said:
ut was voucher of the Bethlehem
#Shiptuilding Corporation, drawn to Mr.
Schwab personally" :"
Under further questioning by Chair.
| man Walsh. Colonel Abadie admitted
hat the S160,0o0 not charged sto ship
tcnstruction might have referred to ex-
senses on work being done by the COR
portion other than ship construction
and nos OF government contracts.
Vas this item you refer to exces-
.lve! querried Congressman Walsh.
4 can't conceive of any mission on
which Nj. Schwab might have been en-
aged for the Fleet Corporation which
yould justify an expenditure of $100, 900
os ore month" replied Colonel Abadie,
and added:
II he had any expenses that should
hase been paid by the Fleet Corporation
:nsy should have appeared on a Fleet
Cooperation voucher That was the only
say we could possibly approve them"
Couldn't Explain 100000 Charge
The difficulty, he said, arose when the
Ssinlehem concern was unable to pro-
asse any supporting documents to ex
pam the 100000 charge. The cor
posslon's explanation was, according
the witness, that the supporting
2spefs had been mislaid by mad
sts.enee
telonel Abadie testified also that as
result Of the audits now in progress
xeald be disclosed that at least $780,
,Dysn vas overpaid by the Shipping
s0afa 70 shipbuilding companies,
'hong them the Bethlehem corpora
ion.
is witness charged "a great many
IssuIaFisiesv in dealings between the
raNhem Shipbuilding Corporation
- Me government az a result of the
saselaon Of Mr.. Schwab with both.
sslensl Abadie said the audit of the
~ cf the Bethlehem Shipbuilding
ssS'safion and other companies had
- 81 aeIdered because of reports re-
Dy the plant protection section
az shipplng Board charging irregu-
~. ihe charges, the witness said,
az ne. confined 10 the Bethlehem
.,sssioing Corporation, but con-
ssa various other shipbuilding
- battered throughout the coun-
~ fe:ut of the testimony given by
,ssss: ssss:s Aoadie, Chairman Walsh OF the
g sses .s announced last night that
as.s would continue it's scs-
~ = tnis city until Wednesday of
~ .s' nssk and that Mr.. Schwab had
~ t.slamoned 10 appear.
~. WHO will testify are Edward
formerly chairman of the
sssaleHe6 sp ssaa nfsstseat