Waterbury evening Democrat., 1908-04-21
WANTS RECORDS
Congressman LilIey Thinks Boat Co Should Be Compelled 10
 Produce Them
FLJNT'S LIVELY TALK

I the submarine Investigating commit I tee that the Electric Boat company
 be compelled to produce it's records
 showing the cost of producing the
 Holland boat and the price charged
 the United States government. He
 also suggested that President Bowles of the Fore River Shipbuilding com 1 pany, the builders of the boat, be 1 requested to produce all records, re- lating to contracts made between his l company and the Electric Boat com
 pany.
 Mir Liley based his request upon
 the action of the committee yester- day, as indicating that it deemed II
 necessary to exercise it's powers to
 compel Charles R. Flint, a party,
 according to Mir Lilley. not within
 the scope of the inquiry, to produce
 his contracts for the sale of the
 Lake submarines to foreign coun-
 tries, in order that the committee
 might ascertain whether the Electric
 Boat company has made greater
 profit in the sale of the Holland
 to the United States. MT Lilley's s request was taken under advise l ment.
 Attorney Littleton for the Electric
 Boat company filed the original grant
 of patent to Charles F. Nelson, which was allowed in 1907 Mir Lilley on Saturday had presented a letter from the commissioner of patents stating
 that no such patent had been issued
 for the past ten years. At the con clusion of this evidence adjournment
 was taken until Thursday.
 Prior to the regular session an ex-
 ecutive session of the committee was
 held T. P. Cummings and w. A.. Portous, managers respectively of the Western Union and Postal Telegraph companies in New Orleans, were ey-
 amined in regard to telegram said
 to have been sent to J. c. Lake and received by him while in New Orleans.
 Mir Lake had testified that he, had not sent nor received any telegram and
 his evidence was eOrroborated by the two telegraph managers.
 Charles R. Flint of New York, tes- tified before the Lilley investigating committee concerning negotiations for a merger between the Lake and the Electric Boat companies prior to May. 1907, when he said, Grant Hugh Brown called on him with view of securing consolidation.
 Mir Flint testified also that the contract prices paid to the Electric Boat Co by the government, which Mir Lilley alleges to have netted that company an excessive profit of $1,- 100000, are not in excess of prices paid to the Lake company and the Electric company.
 Mir Olmsted sought. to have MT Flint tell how much he was paid as selling agent in Europe for the Lake company. MT Flint replied: "The question of my compensation would be a very complicated matter to go. into. For instance, an item of my ex- penses in selling submarines to Rus sia was a telegraph and cable bill of $50, ,0O0."
 Mir Brown, who also was witness, admitted that before the Newport contest he had approached Mir Rice of the Electric company as a broker with proposition that he buy out the Lake company. but that he later dismissed the entire matter from his mind until, on March IT. when he read of the Lilley investigation. he thought conditions were ripe for re- suming his negotiations. He then went to Mir Rice and again proposed a consolidation of the two companies Mir Rice asked him whether in case the Lake company was bought out-the would be stopped. "I said. sure. make that a sine qua non to the agreement
 The committee was inclined to lose l patience with Charles R. Flint, sell | ing agent In foreign countries for the | Lake Boat Co and man If affairs in | New York. because he could not | throw much light on the status of | affairs. though he had spoken to Mir Lake. and acted as go between in the merger prospects. It was all i right. though. Everything was cleared up as simply as chasing a fly from the wall when Grant Hugh | Brown. promoter. 1l5 Broadway. | New York. gave his testimony. He was the man who did it all. gave both sides their impressions of their relations toward the business be- tween them. got the idea himself. submitted the terms himself and had both sides thinking hard as one stage of developments Mir Brown thought it was a good thing and It was his business to make the other fellows see it.
 When Mir Brown caught Inc idea Dn the train on his way to his office he went straight to the cssice of Mr Rice. What happened after that is disclosed by bits of his testimony. ,Ir Rice asked him if he vas author zed to speak for the Lake people.
 "I was up against it. said the xitness. "snd I answered: IT you telephone them they will probably ell you no. but think they will rade"
 Mir Rice seemed to he interested md made a condition that any deal must be with the understanding that he investigation started 5t Wash BEton should stop.
 What did vou say to ;kat7- in- luired Mr Oimsted.
 ''T said. Sure. make 1t the sine Iaa non. the witness replied with flourish.
 Then hs explained vish charming rznkuess thas Nr Rice evidently De- ieved that the Lake .pe0pIe had fsrted the investigation. and he nade a lightning czlcuIzsfOa that fl , hey started It they coaId top it if he companies got togstasr. % he