New Britain herald., 1923-11-08
SCHWAB EXPLAINS
 LOANS ID WOMAN
Says His Motives Of Kindness Are
 Misunderstood

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 New York, Nov. s.-Charles M Schwsb was on the stand yesterday before Charles NJ. Tipling. referee in bankruptcy in Long Island City, in the proceedings against William C. Tobey. contractor and builder of this city and Boston. who filed a voluntary petition in bankruptcy last spring with liabili- ties of more than s175,o0o.
 Tobey, it has been said, was backed in tho erection of the Chatham Hotel in Brookine and the Bostonian Hotel in Boston by Mrs. Myrtle E. Hayes. She has been indicted for alleged forging of Mir. Schwab's name to notes of s750,000 or more. These notes, 1t is contended, were used in connection with the erection of the Boston hotels.
 George E. Joseph, lawyer for some of the creditors. endeavored to get from MT. Schwab statement of his transactions with Mrs. Hayes. The substance of Mir. Schwab's testimony was that from 1902 until last year he had, through his attorneys, paid money to her merely because he wanted to help her and that he did not know what she did with the money. He had no intention of assist ing her in her business enterprises.
 Mir. Schwab arose from the witness stand and, pointing finger at Mir. Joseph said:
 Ninety per cent of my r1isfortunes in life nave come through kindness 10 others Don't think. gentlemen. that am trying to avoid any just responsi- hility I nar. ;aced many times re- sponsibility far greatar than this one and I never have. ard never wir shirlk any responsibility.
 At the outset Of his examination Mir. Schwab said:
 My first business with Mrs. Hayes, or Miss Myrtle Bowman as she was known, was loan of s2,000 in Jan uary, 1909. Subsequently she had busi- ness difficulties and went into bank ruptcy and l was told that unless I aided her with further money there would be publicity and comment that probably would be unfavorable. The public likes to misinterpret matters of this kind"
 "How many Of these loans were theres"
 Every few years" replied Mir. Schwab.
 The loans were paid through his lawyer, Mir. Mitchell, to whom he gave power of attorney to give money to Mrs. Hayes when she wanted it. No mention was made as to the total of these loans.
 Mir. Schwab was asked when he first learned of the Bostonisn hotel and hc replied that he was asked if hc was interested in this hotel and said that he was not.
 Mir. Schwab then admitted that in A way all the loans that he made to Mrs. Hayes in all the years were to avoid the publicity and comment that might arise from the first loan.
 offered to Help Tobey
 Mir. Schgab was asked if he had offered to go ahead with these build ing projects in Boston and lond ssbo,- 00O or s300,o0o so the work could be completed
 "I said, 'Tobey. old man, l hate 10 | sec you losing so much money"
 The witness continued that out of for Tobcy and the others he eaid hc would lend s250,0oo in | steel and cash and an extra s1oo,oo0 ater if 1t was needed and the pro- position warranted it. For this hc sas to receive stocks and bonds. This | never went through. Soon | ifier this came tho indictment Of Mrs. Hayes.
 Mr. schwab insisted he had not lided Mrs Hayes since her indict- ncnt. but explained.
 "In tho district attorneys office in New York county did say that I was ,tili willing to go forward. oven at hat time. for Mr. Tobey's sake"
 Mir. Joseph again asked Mir. Schwab bout the notes and Mr. schwab re- 1lied.
 "1t seems inconvicsablc to me that nen would accept my notes for these argo sums of s75O. ooo or s1,o0o, ,oo0 without ever talking to me or con ulting mo about it."
 "A great compliment to your credit. ir schwab." remarked MT. Joseph.
 "t don't want that kind of com replied Mr. Schwab.
 Tine hearing was adjourned until fir. Joseph can produce an important witness who ls out of the city.