Evening star., 1921-01-22
P|Ez CALLS G|[LEN
CHARGES UNTRUE
Also Denies Schwab Used
Shipping Board Funds for
Personal Expenses.

.CnaTleS p1eZ OF Chicago, f0fmer ul-
rector general of the Emergency
Fleet Corporation. appeared today be-
fore the House committee investigat-
ing Shipping Board operations to deny
charges against the operation Of the
corporation which were made by Mar
tin J. Gillen. formerly assistant to the
chairman of the board, in a special
report submitted to the committee
some weeks ago.
Mr.. Piez had prepared 5.0o0word
statement, in which he took up the
charges in detail. but it was not read.
Chairman. Walsh said the witness
could read i. il he desired. but that
all members Of the committee already
had ggexe mined the copies furnished
them and that time would be saved
by merely admitting 1t 10 the record.
This was done. ~
Chairman Walsh questioned the wit
nation Air. Piez declared that. to his
knowledge. Charles N. Schwab had
never received a cent from the gov
ernment in salary or for personal cx-
penses while director general of the
Fleet Corporation.
Z, Witness Defends sehwab.
Coinmenting on the charge made
TO The committee at New York by
Col.1 E. B. Abadie. former controller
general of the Shipping Board. that
q voucher for $260.000 had been pre-
sentpd for Mr.. Schwab's personal ex-
pcnses. Mr.. Piez declared: 1T is un-
fortunate that any suggestion Of i'm
proper action on Mr.. Schwab's part
has been made at this hearing"
Mr. Tiez told the committee how
Mr.. Schwab had reluctantly taken
over dire ection of the Fleet Corpora.
ton after he had been urged to do SO
by Chairman Hurley Of the, Shipping
Board. cambridge Colby. then a
member of the board. and the wit
ness, and finally by President Will
son.
This was in the spring of 1918.
when the Germans were making
their final great drive, he said, Sand
when the general staff was calling
on the board to transport $4,000
troops q month to France
That meant increased tonnage"
P1ez continued. land we saw the need
of bolstering up the construction end
of the Shipping Board. We needed
a man of MIR. Schwab's experience,
ability and enthusiasm.
Il know. perhaps better than any
one else. the service Mr.. Schwab rem
dered to the government.
He never charged his expenses to
the government, either directly or in
directly. He was too high spirited
a man for that"
cific coast for an inspection of the
Fleet Corporations work there.
Paid Expenses to Coast.
'Mr. Schwab paid all of his ex-
penses. as well as those Of his pri-
vate party" the witness said, "and
paid mine"
Mr. Piez said he was receiving $75.-
oOo a year. when he Joined the Emer-
Eency Fleet Corporations forces at
$500 year, and Il always paid
all of my own expenses"
In the statement Mr.. Piez claims
that statements in Mr.. Gillen's report
do not square with the facts in a sin
IN Criticism concerning the division
OF constructions; that Mr.. Gillen's
statement that there was interfer-
ence between management and trus-
tees in placing of contracts is wholly
untrue; that Mr.. Gillen is guilty Of
gross misstatement OF facts regard.
ing the Fleet Corporations $3.50 900
900 mortgages and securities, and that
Mr.. Gilten's statement of lack of an
accounting system is wholly wrong.
were built to meet the necessities of
war. not to establish a merchant ma
rine: that the Emergency Fleet Cor
poration delivered 47s ships before
the arftistice was signed; that the
task was to build ships faster than
submarines could sink them. which
was a war assignment and not a
peace undertaking. and that the
building of ships was conducted in a
systematic and businesslike manner.
Public In Nisled.
The statement says there was some
pay roll padding, some petty dis
honesty, but no more than there
would be in yards under private con-
troll.
Mr.. Piez continued: "This infer
ence on the part Of the public is in
large measure the result of the wild
stat tementS made by Mr.. Gillen con-
corning tie methods Of the fleet cor
poration. and to the general state
ments Of graft and corruption con-
tanned in the Fisher-Richardson re-
port. The public does not differentiate
the division Of construction from that
of operations. and concludes that be-
cause there was petty graft among
minor ships officers in the victualing
and repairing of ships in operation.
that the entire structure Of the cor
CONTINUED on Page 2, Column -