The Montgomery advertiser., 1908-04-01
SWEEPING
DENIAL MADE
Statements Denounced as
Malicious Lies.
slIrrAsuvE INVESTIGATION
n. me-, Presa1snt Of the Electric
Dsst Cs.pssy. Refused -
Dsvulss Ns.ss q Fsreis.
ossehAss1ers - Company.

AZ the H0uDo that - invostl8atihs
fhoss charges. He denounced seyeral
a. the statements a. malicious lies. and
eaia that others were too absorb to
He tssfifsd that he had been APP
plioAched by agents Of the Lake Boat
Company with propositions for the
Electric Boat Company to buy out the
Lake Company. the negotiations to be
contingent upon the stopping OF tne
Mr.. Rics acccrding to his testimony.
w1rs ". Grant Brown and Charles r.
Flint. beth Of New York, but Mr.. Rice
eaid he did not know beyond Mr..
Browns statement that the latter was
an agent Of the Lake Company. When
asked how the present investigation
was to be stopped. Mr.. Rice said that
Mr.. Brown said 1t could be stopped
~ United States Senator Buckley of
Connecticut.
(, The other two witnesses of the day
wore John p kellogg. assistant States
Attorn4y for Connecticut. and william
D. Gordon Of Midland, Mich, both at
torneys for the Eiectric Boat Company.
They denied, knowledge Of any wrong
fpi Influence being used by the Electric
Boat Company t. secure legislation in
nj. Rice denied that large sums of
money had been spent IN Washington
FOR ciiAmpagne q for lavish entertain
ment % members Of Congress or ON
efsls Of the Navy Department, or that
HE company ever made q Gift to any
nsnber cf ccngrsss or any naval Of
b Nj. Liliey presented request to the
,oemmittee that Admiral Capps, chief
81 the Bureau of Construction of the
Navy Wepartment, who testified last
wflk be called and all his questions
prSpounded IN the order in which he
IA pFspaEeA thsH'
ny. L.liey also asked that expert
accountants be appointed by the COM
rnitfke to exAnsine the records. ac-
counts, vouchers. checks and other
documents that may be brought before
the committee, and he further sug-
eested that such experts, If appointed.
81 put under oath to make thorough
Investigation and accurate report as
basis, npon which alone your commit
tee will be able TO fully interrogate the
witnesses (onic.als of the company
when placed upon the stand
John p. Kellogg. of Waterbury. as
sisf&nt states attorney for Connecticut
and representative of the Electric
Boat Company In that state, today tes-
tined regarding a conversation in 1907
with Mr.. Lilley. At that time he
said he showed Mr.. Lilley a memoir
andum prepared by Mr.. Frost providing
for a blank application of submarine
boats. bids to be submitted to COM
petitive tests. The memorandum said
the Electric Company did not want any
thing but fair show. According to
the witness. Mr.. Lilley said this was
q fair proposition.
Mr.. LfIiey. he said knew that he
was representing the Electric Boat
Company. Mr.. Kellogg did not confer
with any other member of the navy
AFFAIRS committee.
Did you ever seek to bring any
politioaI influence to bear on Mr.. Lill-
eys, ON behalf of additional submarine
legislation?"
,gt.Never."
IN reply to questions by Mr.. Howard.
Mr.. kellogg said that he did not con-
slider Mr.. Liiley's interest in the Lake
boat at all reprehensible. He did not
feel that Mr.. Lilley was in favor of a
monopoly concerning contracts for
submarine boats. His talk was not
in favor OF any one boat.
william y. Gordan. of Midland. Mich
iran; an attorney for the Electric Boat
Company which is resident of Con-
gresham LIQUIDS district denied that
he had ever attempted in any way to
influence Mr.. LIQUIDS vote as a member
of the naval affairs committee.
.IAt the conclusion of Mr.. Gordon
testimony. the committee took re-
cess.
isaac L. Rice president of the Elec-
trio Boat Company. was the only VIII
ness at the afternoon session. He
states that the Eleclrrc Boat Company
owns the Holland and number of 9TH
err companies. The charges of Mr..
Iilley were read to Mr.. Rice.
The only influence we have used
with. the navy department" said Mr..
Rice. -'is the best boat The rest OF
the story is a malicious lie.'
Regarding the charge that the Elec-
tric Boat Company has suppressed
competition Mr.. Rice said that is so
utterly absurd 1t sounds like rawlings
He denounced the charge that the
company had subsidized newspapers.
Campaign Funds.
Mr.. Rice denied that the company
had made any contributions to the
campaign funds of any members OF
Congress or had helped to defeat any
member who did not favor submarine
Hesitation. He claimed that the re-
ports derogatory to the Electric Boat
Company we're being circulated by
members Of the Lake Boat Company
and while he absolved Mr.. Lilley from
any Interior motives in bringing these
charges. he maintained that he had
gotten his information from the Lake
people. Mr.. Rice claimed that he had
been approached on four occasions by
the representatives of the Lake Com
pany to buy out that company or
merge the two companies. The repre-
sentatives of the Lake Company who
he said approached him. were y. Grant
Brown and Charles SR Flint. both OF
New York Mr.. Rice said that he de-
clined all the propositions.
Mr.. Rice testified that he was given
TO understand by Mr.. Brown that these
proposals were made contingent to the
present investigation being stopped;
that Il could be stopped If the consol-
idation were effected.
"Did he say who could stop it?" ask
ed Mr. olnisted.
He said through United States SEN