Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-09-21
SCHWAB AND GRACE
DENY .SHEARER WAS
TO BREAK Up MEET
Bethlehem Steel and Ship
Executives Without KnoWI-
edge of His Employment.
SAY CORPORATIONS TAKE
NO PART IN PROPAGANDA
Vice President Entered Firms Into
Agreement to Retain Geneva
Representative.

Charles M. Schwab, president of the
board of directors of the Bethlehem
Steel Corporation, and E. G. Grace
president of the Bethlehem Ship Build
ing Co., appearing today before the
Senate committee investigating charges
that the Bethlehem Co. and two other
ship building companies had sent Will
liam B. Shearer to Geneva in 1927 to
break down the Three-Power Naval
Limitation Conference, denied that
Shearer had been employed for any
such purpose.
Both Mr.. Schwab and Mr.. Grace de-
clared their personal belief in the limi-
tation of ornaments They insisted
that the Bethlehem corporations never
engage in propaganda relating to the
naval mad military affairs of the coun-
try or mix in legislation and poll
tics. Such action they told the COM
corporations. Mr.. Schwab said that he
knew nothing of the employment of
Shearer to act as an observer at the
Geneva conference until long after
ward. Mr.. Grace said the same thing.
HOW agreement was Mdues
Shearer's employment so far as the
Bethlehem corporation is concerned
was entered into by S. w. Wakeman,
a vice president in charge OF ship
building operations at Quincy, Mass.
Mr. Schwab and Mr.. Grace both
agreed that the employment of Shear
er had been 'unWise." They would
not have approved it, they said, If it
had been brought to their attention.
The hearing today was enlivened by
q clash between Senator Robinson CT
Arkansas, a member of the commit
tee, and Mr.. Schwab, who took excep-
ton to the manner in which Senator
Robinson was conducting the inveSti-
CATION and expressed a hope that it
would be conducted in "a gentlemanly
way"
Senator Robinson Immediately re-
Sented what he considered an attempt
to lecture him by Mr.. Schwab and
said so. Mr.. Schwab was recalled to
the stand during the testimony of Mr.
Grace to answer questions by Senator
Robinson as to whether he had ever
met Shearer. --.-
Didn't Know Shearer.
Mr.. Schwab replied that he did not
know Shearer, although he may have
met him "at reception" He insisted
Shearer at any time on any business
matter so far as he knew.
"Shearer called at my Office many
times" said Mr.. Schwab, 80 my Secre-
tary says. never saw him. My secre-
tary, when Shearer told him what he
wanted to see me about, refused to give
him an interview with me-" Mr.. Schwab
said that his secretary had told him
that Shearer wanted to see him about
fn hn Pof
hem interests at Geneve. Mr. Schwab
saids his secretary, however, had not
told him this until this question came
up," which was after Shearer had come
back from Geneva.
At this point, Judge Daniel F.
Cohalan, counsel for Shearer, inter-
rupted;;
Mr.. Shearer at the Ritz-Carlton Hotel
in November, 1882 asked Judge
Cohalan.
Immediately, counsel for Mr.. Schwab
objected to his line of procedure. Mr..
Schwab however, expressed his willing
Aess to answer.
Il have no recollection of any such
meeting" he said Il meet hundreds
of people and I cannot remember
meeting them ALL" Senator Robinson
asked another question for Judge Co
halan.
Cohalan's Question.
"At the time you met Shearer at the
Ritz-Carlton Hotel, if you did meet
him, did you state that the matter Of
his going abroad would be taken up
with him by some officer. of the COM
pany," asked Senator Robinson.
Senator Robinson suggested that the
name of the officer was Homer.
Mr.. SchWab said he knew no officer
of the company by the name of Homer.
MIR. Grace interrupted to say that there
was salaried employe by that name.
Il do not know him." said Mr.
Schwab, adding that he had no recol-
lection OF any such conversation with
At the conclusion of the testimony
of Mr. Grace the hearing adjourned
until Monday at 10 am. 1t is expected
that Mr.. Wakeman will be questioned
at that time.
Parker Is Recalled.
Before proceeding to interrogate the
Bethlehem officials, the committee re-
called Norman r. Parker, treasurer of
the Brown Voveri Electric Corporation
and of its subsidiary, the New York
Shipbuilding Co., who yesterday pre-
sented to the committee financial rec
ords bearing on the Shearer case.
Senator Allen sought to have Parker
define an observer and estimate the
value of one in dollars and cents. Park
er parried with the Senator, explaining
that the employment Of observers did
p; come under his province. He did
say. however. in response to question:
that the Legitimate expenses" of an
observer might include transportation,
living expenses, clerical work, steno-
graphic services and so forth. Parker
reiterated that the records of the COM
pany do not show directly any pay
ments to Shearer, except in one in
stance.
weren't these facts kept off the
record to conceal them?" asked Chair
man Shortridge.
Parker said be didn't think So
Before discharging the witness, the
committee asked him to supply state
-srient of all expenditures "for lobbying,
propagap psta, observing and so FORTH
Parker said he would submit a state
ment showing all expenditures, but
could not segregate them into groups.
Schwab Is Questioned.
Schwab was the first witness to testi-
fy for the Bethlehem Steel Corpora
ton and its subsidiary, the Bethlehem
Shipbuilding Corporation. In response
to line of questioning pursued by
the chairman, the witness said that he
had been greatly interested in the
Geneva conference from the standpoint
of an American citizen. but had no
1Contirued on Pao" ?. C-'''-'~ -