The Washington herald., 1908-04-01

One complication followed another ii the
Electric Boat Company investigation yes
terday. It was a lively session for the
select committee Of the House, which is
sitting the charges OF Representative Lii
ley. OF Connecticut. OF improper efforts to-
ward procuring submarine boat legisla-
t!on.
Isaac Leopold Rice. president OF the
Electric Boat Company. was the most In
teresting witness. He charged that the
Lake Boat Company. rival of the Electric
Boat Company. tried TO make a business
deal with the Electric Boat Company, and
his statements were offered as the motive
for the circulation Of scandalous stories
OF political corruption and lobbying
against the Electric Boat Company.
1t was not charged that Mr.. Lllley had
cognizance OF the alleged plot. but II was
stated that the information on which he
had based his allegations and hts prose-
cution OF them must have come from the
Lake boat people. who were said by Mr..
Rice 10 be bent on discrediting the Hol-
land type OF boat in this country aad af-
fecting the company's contracts abroad.
Testimony was submitted by Mr.. Rice
10 the effect thst the Lake Boat Com
pany's representatives had made persist
ent efforts during the investigation 10 sell
out to the Electric Boat Company or ef-
feet consolidation OF interests.
All OF these suggestions were laid down
and developed in detail in the testimony
Of Mr. Rice. Nlr- Rice has the appear
ance OF a venerable college professor. his
former occupation. Just now he IS the
head OF fifteen companies controlling pat
ents Of various kinds.
LiIIey Puts Questions.
When the committee had done with Mr.
Rice. Mr.. LILY put IN some questions
to get further light on overtures that the
witness said had been made TO him by
Hugh Grant Brown. OF New York, in be-
half OF the Lake Boat Company.
Mr.. Rice protested that he did no, wish
TO involve Mr. Brown, but as the ques-
tion was insisted upon he asserted that
Mr. Brown had told him that II he would
accept the Offer the present investigation
by the select committee would be stopped
az once.
In fact. said Mr.. Rice. Mr. Brown had
made the proposition contingent upon the
discOntinuance OF the present inquiry
Asked 20 state who Mr.. Brown had said
would be able 20 stop the investigation. he
answered:
senator Buckley"
Mr.. Bulkeley is United States Senator
from Connecticut Before the close OF the
day he asked the committee 10 put him
on the stand to-day that he might deny
any knowledge OF the negotiations or
erfrh rs~ser %
Lake Company Active
Mr.. Rice next declared that Overtures
had been pressed upon him by the Lake
Boat representatives for a year before the
Newport trials between his boat and the
Lake Boat. after the trials, and during
the conduct OF the investigation by the
select committee. the most recent proposal
having been received by him on last
Thursday. when Hugh Grant Brown, rep
resentirg himself as an emissary from
Mr.. Lake. had renewed an offer Of con-
solidatIon. the terms being an appraisal
Of the assets Of each company. distribU-
ton OF stock on an equable basis and
retention OF per cent. royalty by the
Lake Boat people.
Il was then that Mr.. Brown had made
the deal contingent on his ability 10 end
further investigation by the House COM
mittee.
Prior to this time the witness stated.
Charles r Flint, the selling agent of
the Lake Boat Company. had made a pro-
pOsal 10 him in ST. Petersburg. Russia,
10 buy his company out FOR 100000 in
case the Lake Boat won in the Newport
competition. and $4,000 nuisance value"
as Mr.. Rice described IL, in case the Lake
Boat lost.