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Show ICHWAB FRIGHTENED GERMANS, HURLEY SAYS I PROBE Of SHIPS I BOARD ACTIONS ; TAKEN LIP AGAIN I Former Chairman Hurley Pays Tribute to Work of Director General Schwab 1 ADMITS THERE WERE MANY ERRORS MADE But He Says Increased Expenses Ex-penses Were Justified By Reason of Great Need WASHINGTON. Feb. 1 2 E. N Hurley, of Chicago, former chairman H of the shipping board, testified today H before a house committee investigate J ing shipping board operations, that H he had been told by Clemenceau at the Paris peace conference that th H appointment of Charles M. Schwab ai 1 director-general of the eraergenc.-' H fleet corporation had frightened tin H Germans, heartened the French ami H enthused tho British. H FOREMOST CAPTADS Describing Mr. Schwab as "foremost captain of Industry' in the H country," Mr. Hurley said he had IH I been Instrumental In getting Mr. 1 Schwab to serve, because he realized dH j that "satisfactory proKress was not H I being made in the building of now H yards and in the construction of H wooden ships.' H Reviewing the board's work gen- H erally during the world war. Mr. . H Hurley said mistakes had been made. H but that the board was able to turn out ships In great enough numbers H to help turn tho tide at the most ; H critical period of the war. 'sLsfl lI KIED ktio.n Mr. Hurley denied he had promised 'wooden ship yard owners sufficient , I contracts for three turns on their 1 ways, regardless of an early termlna- H lion of thc war. H I Discussing the placing of contract? 1 I in Japan, for steel ships Mr. Hurley 1 said the increased expense was Jus- H tified because the United States had to have ships In a hurry and the Jap-anese Jap-anese yards were able to rush dellv- 1 Mr Hurley said he was optimistic 1 as to thc future of the American . merchant marine. He recommended some changes in the LaFollette's sc-a-man's act, chief I) to prevent the desertion of crews. I S 1BOUT SMF "Our ships do not operate at any considerable disadvantage," he said, 'adding that wages did not differ 1 much " Great Britain, he said, can-not can-not produce ships ' much cheaper than we can." I A gigantic merchant marine will I prove a liability If an international surplus of ships developed. Mr. Hur-ley Hur-ley declared. Asked whether any ship construe-tlon construe-tlon companies had 'held up" thc government during the war, Mr. Hurley exclaimed: They drove hard bargains, every- J one of them you would have dona J tho same but they delivered ships." |