The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-03-12
100000 CRAFT
Congressman LiIley Makes Spe-
cffic Charges Under Oath
Against the Electric and HOl-
land Boat Companies.
LOBBY MAINTAINED
At Washington for Years in
Their Interests.
Sets Forth Methods by Which
Competition Was Eliminated.

Washington, March 12.-The special
committee appointed by Speaker Cam
non to investigate the charges made
by Representative Lilley that undue
efforts have been made by the Electric
Boat company to influence legislation,
resumed its sittings today with all the
five members of the committee present
and the spacious room in which the
committee is sitting we'll filled with
newspaper men and other interested
spectators.
Mr.. Lilley called the attention Of the
committee to the fact that his
charges do not embrace the accusation
or inference that any member of con-
gress had been actually bribed or know
ingly had participated in or had been
influenced by wrongful efforts on the
part of the Electric Boat company to
secure legislation. His purpose, he
said, was to set on. foot and assist the
carrying out of an investigation, which
he believed, If properly conducted,
would show that wrongful methods
had been used by the Electric Boat
company to secure legislation in con-
gress- Mr.. Lilley said he was now
prepared to furnish the committee with
the addresses Of all witnesses whom
he desired to have called. He said
that whether money had been impro-
perly used to secure legislation in the
interest of the Electric Boat company
could be shown only by the examina-
ton of the officers, attorneys and
agents of that company and a care
full scrutiny Of the company's books,
vouchers, check stubs and accounts.
IT now insist said Mr.. Lilley, that
you summon as witnesses Isaac Rice,
president of the Electric Boat COM
pany; Elihu B. Frost, vice president;
Maurice Barnett, treasurer; August
Treadwen assistant treasurer. and
that they be required to lay before
the committee documentary evidence
in their possession. The calling OF
these witnesses is necessary to disclose
methods used by the company to Sc
cure legislation and money disburseo
by it.
When Mr.. Lilley came to the first
stopping point at which time ne 1nol-
Gated a desire to know the wishes or
the committee in the matter Of sum
monina witnesses, he stopped for
response, and was told by Chairman
Boutelle that under its Instructions the
business of the committee mus tneces.
sarily be confined to the conducting OF
an investigation. The members Oh tne
committee. he said. were not there as
prosecutors nor would they permit
Mr.. Lilley to assume the role of 9
prosecutor Witnesses would be CALI
ed as the necessity for their presence
was developed by the progress of the
inquiry.
After reading another paragraph in
which he manifested his willingness
TO submit to the will OF the committee,
Mr. Lilley suspended his statement
long enough to be sworn and then pro-
ceeded under oath. Before he went
on. however, the chairman announced
that Mr.. Olmsted. one of the mem bers
of the committee, would ask whatever
Questions might be necessary in the
conduct of the investigation.
VTuder Oath.
Mr.. Lilley's statement under oath
was as follows:
"I propose to show that for several
years prior to the I<asler investga-
ton. the Holland Boat company and
it's successor, the Electric Beat COM
ORGANIZED lobby for the purpose of in
fiuencing legislative appropriations
In favor of the submarine boats built
by that company ana tnat 1t had un-
der annual retainer c. e. Creecy, Cen
eraI Eppa Hunton, former United
McNeir, DR. w. r. Kerr and others.
THAT for several years Elihu B.
Frost, vice president OF the said COM
pany has been a continuous visitor at
Washington during congressional ses-
sions and has spent large sums of
to members of congress, his expendi-
lures along this line amounting to
thousands of dollars.
.sThat the senate amendment to
the appropriation bill of March 2,
1907, was prepared and drafted by
the attorney for the Electric Boat
company for the purpose of and with
the Intention to eliminate competition
In submarine construction and to pre-
vent the secretary of the navy from
exercising any discretion in awarding
contracts for submarines.
hof fhnrnuOh inUaEflQA hu
an impartial committee will show
that large sums of money have been
spent by the Electric Boat company.
its officers or agents, contributed to
campaign funds OF members of con-
eress, who favor and have favored
the Electric Boat company monopoly
of submarine construction; also that
large sums Of money have been spent
to accomplish the defeat of members
of the naval COMMITTEES who did not
favor the Electric Boat company
THAT an examination of the books
pany and its predecessor. the Holland
Boat company, will show that large
sums of money have been paid from
their treasures for the above pur-
pose.
Competition Suppressed.
That continuous and repeated efforts
have been made by representatives of
the Electric Boat company and its pre-
decessor to influence the action of the
officials of the navy department and
that such efforts in the past were SO
persistent and notorious as to call forth
the condemnation and criticism of the
officials of the navy department, whose
testimony can be secured by the inves-
tigation committee; that from 1893 I'D
to the present time these efforts of the
Electric Boat company and Holland
company have resulted in absolutely
suppressing any possibility of competi-
tion in submarine construction and Sc
curing and awarding of all contracts.
either by specific appropriation or by
legislative appropriation skilfully