Los Angeles herald., 1908-03-13

fdNal cOmnnlttee VINO ala llot AaFoa '"~
Electric Boat company.
THAT an examination OF the DOCKS
and records of the Electric Boat COM
uany, and of its predecessor, the Holland
Boat company, will show that large
sums of money have been paid from
their treasury for the above purposes.
THAT continuous and repeated ef-
forts have been made by representa-
tives of the Electric Boat company ana
its predecessor to influence the action
OF the officials of the navy department
and that such efforts ia the past were
so persistent and notorious as TO can
forth the condemnation and CRITICISM
of high officials of the navy department,
whose testimony can he secured by IN :
| investigation committee.
THAT from 1898 up to the present
time these efforts of the Electric Boat
company and the Holland compans
have resulted in absolutely suppressing
any possibility of competition in sub
p.arinc construction and securing AMI
awarding of all contracts, either BY
Sreciffc appropriation or by legislative
appropriation, skillfully drawn, to this
company without possibility of COM
petition.
THAT it can be shown by former in
yestigations before the naval committee
of the house, upon which no report was
made TO the house of representatives,
that the Holland Boat company and
the Electric Beat company have been
engaged in reprehensible efforts to in
nuence members of congress and Of
ffoials Of the navy department in favor
OF their boats and appropriations
therefor.
THAT it can be shown upon investi-
cation that certain representatives of
leading newspapers have been subsi-
died and paid by the Electric Boat
company Cor favorable newspaper ar
ticles and reports in behalf of said
companies.
IF these things are not actually
without the pale of the law, they are
wrongful practices and tend to throw
dlscredit upon the congress of the
United States.
No Presidential Insight
II cannot be expected to have
presidential knowledge of all these
transactions, which, if they exist, must
necessarily remain in the secret pos
session of the officers and agents of the
Electric Boat company and with those
with whom they have conferred in their
attempts to influence congressional
action"
Mr.. Lilley repeated TO the committee,
as confirmatory of his suspicious
against the Electric Boat company, it
is said the incident related by him to
the committee on rules. wherein a
large manufacturer In his home town
told him that he (the manufacturer)
had promise of large sum if he (Lil-
ley) would vote for the submarines,
and that lawyer of his own city came
to Washington and stayed with him
and endeavored to influence him with
the Electric Boat company.
Mr.. Lilley also told of other efforts
to coerce him by promises made to
his constituents and of efforts to in
fiuence other members in a direct way.
81 also submit" said Mr.. Lilley, 'as
one of the facts influencing me 60 in
troduce my resolution of investigation.
that in my judgment under special and
exclusive legislation the Electric Boat
company and it's predecessor already
have received from the United States
an excessive profit of more than ST.,
600 900 for the construction of its sub
marines, and that under the proposed
legislation now pending it will receive
a profit of more than $1,000000 i'll eX-
cess of what ought justly and fairly
be paid for construction of submarines
provided for; and that this fact can
be substantiated by your committee
by calling as witnesses the expert Of
ticials and constructors in the navy de-
partment."
Other Accusations
Mr.. Lilley said that investigation
would also show that the submarines
already constructed by the Electric
Boat company for the government, or
now under contract. as well as those
provided for in pending legislation, are
of inferior type, speed, power. arma-
ment and efficiency to those now in the
possession of and under contract for
construction for foreign governments
Mr.. Lilley reaffirmed his statement
that he has not cast, nor intended to
cast, any reflection ION the official con-
duct of any member of the naval COM
mittee, or of the house of representa-
tives."
Il realize" he said, "that there is a
wide distinction between the fact of
actual corruption of a member of con-
gress and the effect upon his legisla-
tive action induced by such influences
as can be brought to bear by parties
desiring favorable legislation. My de-
sire has been and is only to bring to
the attention of congress and to the
country the improper methods that
have been employed by the Electric
Boat company and which tend to dis
credit the integrity of the house of
representatives and the community.
Having made this statement to
your committee, and bowling to your
decision that you are to conduct this
investigation without further assistance
from me or my attorneys, / am now
prepared to answer so far as l can any
questions you may desire to ask"
Gives Out Names
When Mr. Lilley had completed his
written statement he was questioned
| by Mr.. Olmstead.
He gave the names of Franklin H.
Taylor and John H. Kellogg of Wa
terbury, Conn, and a Mr.. Ferris of
Bridgeport as those of persons who
had asked him to vote for an appro-
priation for submarine boats.
| He also said that Representative
Hobson had been appointed by mem
| ber of the Electric Boat company with
a proposition to get him on the naval
affairs committee if he would favor
| submarine boat legislation.
| He spoke of an amendment to pre-
Vious legislation offered by. Mr.. Lou
| denslager, which he said he thought
had been prepared by Mr.. Kellogg, an
attorney for the boat company.
At the afternoon session Representa-
| tive Hobson testified that Lawrence S.
Steer of New York, representing the
| Electric Boat company, had told him
that his company had influence with
Speaker Cannon to get him appointed
on the committee of naval affairs il
he "stood right on submarines"
| E