The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-03-20

wv MetCdlI ana Sdpps,
" chief of the Bureau OF Con-
struction OF the Navy De.
partment, to-day testified before the
special committee of the House that is
investigating the charges made against
the Electric Boat Company by Repre-
sentative Lllley. of Connecticut. Both
stated that they did not believe the
Electric Boat CompanyLh had secured an
excessive profit on the contracts al
ready awarded them. nor did they be-
lieve they would make an excessive
profit on any future contracts they
may secure. Secretary Mctcalf ex-
planned the letting of q contract to the
Lake Boat Company. saying that 1t was
a conditional one, as no money was to
be paid the company unless 1t built a
boat that equaled in speed and steam
ing radius the best submarine boat
now possessed by the government or
under contract for It, Admiral Capps
said that the navy was getting It's
construction work done at a very low
figure.
Representative Butler, OF Pennsyl-
vania, denied statement by Secretary
Metcalf that he had called on him with
reference to submarines.
| Edward L. Clarkson, private secre-
tary. testified that Lawrence Y. Spear,
a vice. president of the Electric Boat
Company. told him that his company
had Influence with Speaker Cannon.
and could use 1t to help Captain Hob
son get on the Naval Arrairs Commit
tee, but before doing so would have
| to know how he stood on the PROPOSE
ton In which he was nterested-the
question of submarine boats"
/ Congressman Clayton, of Alabama,
| testified that the Alabama delegation
In Congress indorsed Captain Hobson
| for assignment to the Naval Affairs
Committee, and l.. w. Busbey, secre-
| tary to Speaker Cannon, stated that
| the only request made to the Speaker
to appoint Mr.. Hobson on that COM
mittee was made by alr. Williams, the
minority leader in the House.
Representative I4illey did not attend
to-day's session of the committee, ex-
| cept at the opening.
The public sessions of the commit
tee were adjourned until next Thurs
day.
Session I'm Detail.
4 Secretary Metcalf, the first witness
4 to-day. was on the stand concerning
the section OF his annual report Of 1907
i concerning submarine boats, including
the report Of the board which con-
Quoted the trials OF submarines, and
I which recommended the adoption of
/ the octopus type of boat He said that
In the same annual report recommen-
dation was made for four additional
\ submarine boats OF the same type as
those recommended as the result of
the competitive tests. provided more
satisfactory type was not developed in
the meantime. That, he said, was the
only report he made.
Secretary Metcalf stated that the
contract for the Lake Company's boat
). was entered into by the department
on certain guarantees.
u That company's bid was $3.50 and
the department agreed to pay S45O,0OO
for one of their boats to approximate
, the octopus, no money to be paid on
. this contract until after the >boat hal
been fully tested and had developed a
speed equal to the speed Of the sub
marine boat owned bH the government
Contract to Loser.
How was it the contract was made
> for boat that was loser In the
competitive trial?" asked Mr.. Olmsted
some question was raised as to the
: ldiscretion vested In the department. and
the department referred certain uues-
tions to the Attorney General, who de-
cided that the Secretary OF the Navy
had authority to enter into a contract
with the Lake Company. The con.
tracts for submarine boats We're made
under the act OF Congress authorizing
the expenditure of certain amount OF
money for submarines"
"Dld any member OF Congress asl,
you to submit the questlon?'
I think not"
DO You remember whether an,
member Of Congress called on you witt
reference to letting the contract to thu
lake Boat CCmpany?"
"A number of Congressman called or
me--not with reference to letting III,
contract. but regarding the opinion o
the attorney and the question OF tn,
= discretion that was vested In me unde,
) the act"
Who called on your"
II think Representatives Roberts
Loudenslager, Lilley. Hughes and
! Sperry and Senator'S Bulkeley and Bran.
:. degee. I think Representative Louden.
5 Slayer called after the awarding OF the
!, contract; the others before the con.
= tract was signed"
In the interest OF whom?''
"They asked ME about the attitude
of the department. No suggestions
We're made by them to me In any way
: They simply felt, they said it was tc
the interest Of the government Il
have two companies building boats"
r No ExorbItant Price,
: The charge OF Mr.. Lilley that the
! Electric Boat Company and It's prede.
| cessor. the Holland Boat Company had
s already received from the United States
! an excessive profit OF more than $1,000.
: 900 for the construction OF its subma.
!. rines, and that under legislation nov
+ r|pending 1t willreceive profit OF more
/. than $1,o00,000 In excess OF what ought
= to be paid for the construction of sub.
marines provided for, was called tc
: secretary Metcalf's attention. He re.
/, piled that the departmenet would not
Il pay what was considered an exorbi'
: tant price.
i Secretary Metcalf was next quos
toned as to the clause In the nava
bill providing that the governmant