Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-03-20

country.
Tie total appropriations for submarine
| boats, since such boats were first con-
tracted for, was shown by Mr.. Stephens
| TO be $i,960,OOo. Admiral Capps was asked
| if I've considered there was million dol
lars of excessive profits.
las an off-hand statement" he replied
Il would say no."
THE charge is made said Mr.. Steph-
ems. "that if an appropriation of s35W,Gv
is passed. your department vii! award
contracts which will allow an excessive
profit of more than $1.0O0,00O. Is that
proper method OF administration in your
Department.
THAT is purely a prophecy and. as far
as I shall speak for my future action, l
shall not recommend any such excessive
profit. I think under their contracts the
builders have a fair but not excessive
profit"
/ In reply to Lilley's charge that subma-
iine boats owned by the government were
inferior to boats of like nature owned by
foreign nations, Admiral Capps said
there was no basis for such charge. as
no facts were available on which to base
a comparison. LAS far as 1 am aware"
he said, "our boats are just as good as
| others
| SIS the Lake Boat Co. offering to con-
struct boats more cheaply than tie Elec-
| trio Boat Co" asked Howard.
"If you get them down to the same
characteristics. should say no. replied
Admiral Capps.
Admiral Caps was asked the follow
ing question prepared by Littleton, coun-
sci for the Electric Boat Co.:
Since you became chief constructor
| has the Electric Boat Co. ever received
a contract except by winning competition
and except at a fair price and reason
| able?'
He replied: "ro the best of my knowl-
| edge. the Electric Boat Co. has not re-
ceived a contract in the last four years
| which was not fair and reasonable. So
far as competition is concerned. the con-
tracts have been based upon results OBJ
tanned after trial"
| At this point recess was taken with
Admiral Caps still on the stand.
| Before Secretary Metcalf took the
stand, Chairman Boutell had a letter read
from William Dulles of New York re-
garding the letter Mr.. Lilley had filed
with the committee. saying that Mr..
Dulles and Robert McA. Flood of Cold
Spring Harbor. n. Y. resigned as direc-
tors of the Electric Boat Co. because OF
the amount used for corruption and for
which they would make no accounting"
| Mr.. Dulles said that no reason such
as suggested in the letter caused his res
, ignation. He resigned because he did not
have time to devote to the interests of
the company. and ne did SO with great
regret. Mr. Boutell said that the COM
mittee had intended to take no notice
of the communication owing to its anony-
nous character. but since the letter had
been published and Lillev had sent it to
Mr.. Dulles. the committee decided to have
the matter entered on the record.
Edgar Clarkson, secretary to Repre-
! sentative HObson testified that Mr..
Spear told him that the Electric Boat
| Company had influence with Speaker
Cannon and could use it to secure the
| assignment Of Mr.. Hobson as men,
| Der of the naval committee but before
| this influence would be used, Mr.. Spear
would have to know how Mr.. Hobson
stood on the subject of submarine
DodIS. MI. 1ldThSOH Sdiu lildl He
transmitted this information to Mr..
Hobson and later Mr.. Spear called Mr..
| Hobson on the telephone and repeated
it to him.
Mr.. Clarkson added that Hobson told
him to call up Mr. Spear. which he did.
| and that then Capt. Hobson talked to
| him over the telephone. The witness said
Capt. Hohson told Mr.. Spear that he ap-
preciated lis interest but that he did not
| want him to help him in that way; that
he wanted absolutely no suggestion Of
| influence from any outside source. Mr..
| Clarkson said that Capt. Hobson told him
| that he had known Mr.. Spear for years
| and that it is the strangest thing to me
that he would make me proposition like
| that"
| When Mr.. Clarlson finished his testi-
| mcnv Rep. Butler of Pennsylvania APP
peared before the committee. Referring
| to See, Metcalf's testimony. he said that
he never at any time spoke to Sec. Met
! calf relative to the construction of any
| kind Of Il boat. Clayton of Alabama iden-
tilted an endorsement of Hobson by the