Evening star., 1923-07-24
SCHWAB TEST|F|ES
At MORSE TRIAL
Says He Criticized Father for
Hiring Own Sons in Of
ficial Positions.

Charles n. Schwab, director general
OF the fleet corporation from April
to October. 1918. testified today be-
fore Justice Stafford and a jury In
Criminal Division I, at the Morse
conspiracy trial.
The witness said the Morse yards
erly established and we'll equipped to
carry out the shipbuilding contracts
with the government and that he
never saw anything In connection
with work to indicate any intention
20 delay or retard the government in
Mr.. Schwab admitted that he had
received complaints about the work
It the Morse yards and that they
did not stand high on the list of
the shipbuilding plants. but none Of
full delay. He criticised the employ
ment of Morse's sons as head OF
the yards. Mr.. Schwab said. as like
all rich mems sons they would not
work like I would have men work
for me-" and the witness did not
regard the arrangement as calculated
to get the best results from the men
under them. He cut the salaries
OF the Morse boys" 80 per cent, but
allowed them to remain in their posi-
tions.
Warning to Morse.
I'm all my forty years of business l
have never allowed relatives TO hold
important positions in the companies
with which l am connected, and told
Morse that II was a mistake to have
his sons in charge, for the sake Of ex-
ample. as II was not the best thing
for efficiency and progress said Mr..
Schwab
Schwab was on the witness stand
less than an hour. although he had to
wait more than an hour for his turn
to tsstify. He was on hand before
court convened at 10 o'clock, and re-
mained In the courtroom while the
prosecution completed the cross-ex
animation Of Dwight n. Burnham.
certified accountant.
Attorney Nash lockwood for the
defense conducted the examination of
Mr.. Schwab. He had the witness tell
OF the general condition of the ship
building interest in the United States
during the war. Judge lockwood
sought to qualify Mr.. Schwab, but
Justice Stafford suggested that every
body knows of the business ability
of the witness.
Mr.. Schwab said that the details
in connection with the contracts
with the fleet corporation were left
to General Manager Piez and the wit
ness gave his attention to what he
called the human engineering" by
visiting the yards and encouraging
the men to greater activity and more
results. He said he visited the yards
at Alexandria and at Groton and
spoke to the men as his theory was
encouragement rather than from
criticism"
The witness declared that In his
judgment there had been spent be-
tween $1,500.000 and 100000 on the
Virginia yard when he visited the
plant in April, 1913. and that he pre-
vailed on Mr.. Piez to grant a loan of
s750,000 to the Morses. He declared
he relied on his own Judgment and
not on any representations made to
him by Charles w. Morse. whom he
had known for many years
Mr.. Schwab detailed conference
with Morse and his sons after COM
plants had reached the Fleet Cor
poration Of the low standing of the
Virginia Company. He said he told
Morse Of his objection to the boys be-
ing IN charge of the work and that
Morse differed with him. But Morse
reduced the salaries of his sons.
Mr.. Schwab identified a congratu-
latory letter which he sent the Morse
companies as he was retiring from
the Fleet Corporation. in which he
prasied their patriotism and untiring
efforts. With this letter his direct
examination was compl.Aed.
Meaning Of Lettnr.
Assistant Attorney General Tur-
Der oss-examined Mr.. Schwab. He
brought out that the purport of the
letter of congratulation was sent to
each of the shipbuilding concerns in
the country. and was IN the nature
of an official adieu from the witness.
He had the witness identify a letter
Of later date than the one in which he
complained to the elder Morse, in
which he stated that things were not
going we'll at the Virginia plant The
witness thought the second letter re-
ferred to another matter than the
reduction of the salaries Of the boys.
Did Morse ask you for loan at
that conference?" inquired Judge Tur-
ner.
Il rarely met Morse that he did
not want loans" responded the wit
ness.
The answer brought forth a burst
of merriment, which was repeated
when the witness. after being unable
to recall some things asked by Judge
Turner, said that he had once bought
a book containing a memory course
and had laid it down somewhere and
forgot where he placed Ii.
Mr.. Schwab motored from his
home, at Loretta. Pa. to take the
witness stand following & conference
last Saturday with Attorneys Wilton
]. Lambert and Nash lockwood, for
the defense. He is leaving this even
ing for New York. he stated. When
the newspaper men surrounded him
this morning he said he had hoped
my limited knowledge about this case
would not be needed"