Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-21
SCHWAB AND GRACE
DENY SHEARER WAS
TO BREAK UP MEET
Continued From First Page.)

recollection of having discussed 1t with
any one in business sense. He sale
there was nothing about which his com
pany cares so little as the absolute
abolition of its ordinance and anna
ment activities.
During the World War, he explained
he was proud of the ability of his com
pany to help the allies and the Amer
lean Government in ordnance work
All this work now has been Scrapped
he said, and the company is glad tx
be free of it. The shipyards have beer
continued for such work as developed
in peace time.
II may have talked with the direc.
tors of my company about the Genevs
conference" Schwab said, but If I die
so it was not in a business way.
would like to make mention at thi!
point of just one fact. AT a dinner
given to Marshal Foch before the Gen
eva conference, l said that l woult
be glad to scrap our whole armament
works if that would bring peace to th'
world. 1 have always held to thai
view. Naturally wanted the Geneva
conference to be success"
Did you keep an eye on Shearer al
Geneva?" Schwab was asked.
Agreement Not Heard OF.
mo" he replied, II never heard Of
the agreement with other companies
regarding Shearer until two years ago
when a newspaper man spoke to Mr.
Grace about rumors concerning the
matter. When Mr.. Grace mentioned il
TO me it was the first l ever heard
of it. ! didn't believe it at the time
and Mr.. Grace said he denied vigorously
to newspaper men that we had en-
ployed an observer at the conference"
Senator Allen asked Mr.. Schwab II
he had ever had any discussion with
any one as to bigger and better OBJ
servatories at Geneva" Schwab said
he had not.
IT want to tell this committee,
Schwab emphasized, that no one was
greater surprised than I was when
learned about ShearerS employment. ]
will admit now that we. did have ar
agreement of the companies, but
never knew it-never dreamed Of 1t"
Schwab was quizzed as to what mat
tiers of policy are brought to his at
tention as chairman of the board OF
the corporation, and he declared that
he had relinquished active administra-
ton of the company, but was consulted
on matters of major policy. The active
decisions and management, he said, are
left to various vice presidents.
He said that President Grace was IN
active control of the affairs of the cor
poration and that he had the utmost
confidence in him.
Wanted World Peace.
Questioned as to his interests in the
conference at Geneva, the witness sale
he was deeply interested in it because 81
wanted TO see peace brought to the
world" He said he was interest MOI
only as a patriotic citizen, but as one
who wishes to see continued prosperity
throughout the country. He said hi
had no fixed notions" about the parley
as he had never mixed into politics OF
governmental affairs. His only concern
was an assurance of peace in years &c
come, the committee was told. He said
he had discussed the question of worlG
peace with many persons, including
President Wilson. and military leaders Of
France and England.
His information as to the progress Of
the conference, Schwab said, came
through the press or in conversation
with friends. He didn't recall having
read any articles sent out by Shearel
from Geneva, but remembered he hac
been interested in the writings Of
Arthur Brisbane.
Apparently nettled at the persistent
questioning by members of the COM
mittee as to his first knowledge Of
Shearer's employment, Schwab said hi
could understand how strange 1t might
seem that the chairman of the board OF
directors of great company should
have had no knowledge of such mat
tiers, but added that there had beer
matters of greater Importance settled
without the benefit of his advice.
NJ T-&~-~,A
Gas long as have been connected
with the steel industry" the witness
stated, II have made it my policy ano
the policy OF my company never to take
any interest in politics or propaganda
My policy has been to confine activities
to business and I do not approve of any
other policy"
Schwab insisted that if his company
is propagandizing" it is doing 81
against the wishes of the controllins
interests of the corporation"
II want to make myself very plain,
Schwab declared. "I consider the EN-.
ployment of Mr.. Shearer as a mos
unwise undertaking. I do not wish tt
criticize any one for what he has done
but that is how I feel about it.
was most unWise."
Idea of observer"
Asked to give his Interpretation o.
an observer, the witness expressed thu
opinion that it would mean some ont
to watch activities unofficially. HI
said in response to question as tx
whether he considered observers neces.
sary, that "in business it is sometime:
well worth while to watch develop
mentS."
However, I think this Shearer mat
ter was an unwise arrangement. Wake
man, at the time, was new on the job
and I think any one else might have
done what he did under the circum-
stances. If had been asked about II
I would have given negative view"
S. w. Wakeman, the man referred tt
by Schwab, Is an official of the Beth
lehem Shipbuilding Co., named yester.
day as having represented that COM
pany at conference in New York
which resulted in the employment Of
Shearer by the Bethlehem, Brown
Boveri and Newport News shipbuildine
companies.
Merchant Marine Question.
Senator Robinson asked Mr.. Schwal
whether he had ever discussed the plar
for campaign regarding merchant
marine legislation. Mr.. Schwab re-
piled that he had not He said thai
Mr.. Grace had told him about the mat
ter some two years ago.
Both Mr.. Grace and ] thought Il
ridiculous" said Mr.. Schwab.
The witness Withdrew the word ri.
diculous and substituted "unwise," wher
Senator Robinson asked him Why ht
thought 1t ridiculous. "a
Who is responsible for that activ-