The Birmingham age-herald., 1908-03-20
Excessive Profits.

country.
 Excessive Profits.
 The total appropriations for subma- rine boats since such boats were first contracted for was shown by MT Stephen to be $4,96O, 900, and Admiral Capps was asked if he considered there was million dollars of excessive prof it's.
 As an off-hand statement,p he re- piled, T would say no. l think under their contracts the builders have a fair but not excessive profit"
 In regard to MT. Lilley's charge that submarine boats owned by this gov ernment were inferior to boats of like nature owned by foreign nations, Ad- miral Capps said there was no basis for such charge.
 "Is the Lake Boat company offering to construct boats more cheaply than the Electric Boat company" asked MT Howard.
 "If you get them down to the same characteristics, I should say mo-" re- piled Admiral Capps.
 Admiral Capps was asked the fol- lowing question prepared by Mir Little ton, counsel for the Electric Boat com pany:
 Since you became chief construc tor has the Electric Boat company ever received contract except by winning competition and except at price fair and reasonableP"
 All Contracts Competitive.
 He replied: "To the best of my Knowledge the Electric Boat company has not received a contract in the last 1our years which was not fair and reasonable. So far as competition is concerned the contracts have been
 
 trial"
 After. this point recess was taken. l Before Secretary Metcalf took the stand at the afternoon session, Chair man Boutell had read a letter from | William Dulles of New York regarding the anonymous letter MT. Lilley had left with the committee stating that i MT. Dulles and Robert McA. Floyd of 1 Cold Springs Harbor, N. Y., had re- signed as directors of the Electric | Boat company because of the amount ] of money used for corruption and for | which they would make no account | ing"
 l MT. Dulles said that no such fact as l suggested in the anonymous letter caused his resignation. He resigned because he did not have time to devote to the interests of the company and had done so with great regret MT.
  intended to take no notice of the com munication owing to it's anonymous character, but in view of the fact that the letter had been published and as MT Lilley had sent 1t to MT. Dulles, the committee had decided to have the matter entered on the record. Clarkson's Testimony. Edgar Clarkson, secretary to Represent | tative Hobson testified that MT. Spear | told him that the Electric Boat company had influence with Speaker Cannon and could use 1t to secure the assignment or l Mr Hobson as d member of the naval 1 committee, but before this influence would 1 be used MT Spear would have to know l how MT Hobson stood on the subject of | submarines. MT. Clarkson said that he | transmitted this information to MT. Hob l son on the telephone and repeated IL 10 | him.
 The witness said Captain Hobson told | Mr Spear that he appreciated his inter est, but that he did not want him to heip him In any way; that he wanted aDso- | lutely no suggestion of influence rom any l outside source. MT. Clarkson said tha' Captain Hobson said to him that he had known MT. Spear for years and "tha' is the strengest thing to me that ne i would make me proposition Ike that When MT. Clarkson had concluded his testimony, Representative Butler Of Penn l syivania appeared before the committee and referring to Secretary Metcalfs tes
 timony said he never at any time spoken to Secretary Metcalf relative to the con- struction of any kind of boat Evidence was here presented showing that the only indorsement that Captain | Hobson had for place on the maya l affairs committee was from the Alabama 1 delegation in Congress. Representativ, l Clayton of Alabama identified an indorse 1 ment of MT. Hobson by the delesatioi 1 and l.. w. Busbey, secretary to Speaker l Cannon. produced the books of his off1c' which showed that no one but the Ala | bama delegation had indorsed MT. Hob son for the place. Representative JohE l Sharp Williams, the minority leader, ha' 1 recommended his appointment to th' speaker and that recommendation ha' l been accepted by MT. Cannon