Evening star., 1925-04-18
Says Presidents EIoquence
OverCame Reluctance of
Steel Magnate to Serve.
ACCEPTED AFTER WEEKS
OF STRONG OPPOSITION
Bethlehem Counter Suit Asks $9,'
744,S99 for Claims Allegedly
Unpaid by United States.

By the Associated Press.
NEW YORK, April 1S.-How
Charles NJ. Schwab was drafted for
the wartime service Of the Govern
ment was described today by former
Secretary of State cambridge Colby
in commenting on suits involving mill
lions of dollars which the United
States and the Bethlehem Shipbuild
ing Corporation filed against each
other yesterday.
The controversy involves the cost
of ships built for the Government at
the Bethlehem works during the war
while Mr.. Schwab was acting in the
dual capacity of director general of
the United State Fleet Corporation
and president of the Bethlehem Steel
Corporation.
Drafted by Wilson.
President Wilson, by assuming that
Mr.. Schwab already had agreed to be-
come director general of the Emer
gency Fleet Corporation, brought him
into service, Mr.. Colby said.
Weeks had been spent in endeavor-
ing to convince Mr.. Schwab, but he
was of the opinion that he should not
withdraw any of his energies from
the important work which he then
had in hand.
At a luncheon with Mr.. Colby. pre-
ceding an interview with the Presi-
dent, both Eugene G.. Grace, president
of the Bethlehem Steel Corporation,
and Mr.. Schwab insisted that the
later was doing all he could by keep
ing his companies at top speed on
Government contracts.
Facts Behind Suit.
Frederick I. Thompson of the United
States Shipping Board today said
''As one of the commissioners of
the United States Shipping Board. at
one period of such service having
much to do with the settlement of
shipbuilding claims and is one urging
the action of that body in instituting
suit against the Bethlehem Ship
building Corporation, it would appear
to me as essential that the elemental
basis of the action be clarified and
the injection of Mr.. Schwab's war
service be separately considered.
THE record evidences that Mr.
Schwab, as director general of the
Fleet Corporation, very properly and
very soundly asserted that any profit
in excess of 10 per cent on ship con-
struction was improper and officially
acted in support Of such policy, but
admitted an earning of IS per cent on
the contracts of the companies in
which he was personally interested.
Source Of Concern.
Il cannot agree in the asserted po-
sition of Mr.. Schwab that he could
not with propriety have concerned
himself with the contracts of his own
company while serving as director
general of the Fleet Corporation.
They were the first contracts he
should have assured himself were
within the earning limitation of the
profit he set.
''The service of Mr.. Schwab to the
Government in wartime Is not of
issue. That service is clearly recog-
nized. But 1t was patriotic, not com
pensatory. 1t would appear unfortu-
nate and unfair to Mr.. Schwab to
confuse the two issues. 1t would also
be unfortunate if those charged with
the responsibility of protection of the
Governments interests in connection
with wartime shipbuilding contracts
be subject in such circumstances to
criticism for doing what obviously
was a duty
THE President, who was fully in
sympathy with the effort to requisi-
ton Mr.. Schwab, came out of an
inner room assuming that the matter
was settled" said Mr.. Colby, "and
that Mr.. Schwab was willing to un-
dertake this work.
this work.
Schwab and spoke in acknowledgment
of his sacrifices and of his patriotism
in way that would have moved any
man.
Agreed to Draft.
1T affected Mr.. Schwab, and in that
instant his doubts and hesitation were
gone, and he agreed to be drafted.
With the reaching Of a decision Mr..
Schwab threw himself into the work
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