Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-19

thority 10 enter into contract with the
Lake company. The contracts for sub
marine boats were made under the act
of Congress authorizing the expenditure
Of a certain amount OF money for sub
marines
WHO was 4, that asked you TO submit
the questions to the Attorney General?
Former Senator Thurston. the repre-
sentative of the Lake Boat Company.
Did any member OF Congress ask you
t. submit the questions?
Il think not"
DO you remember whether any mem
her of Congress called upon you IN Ia
ver of or in opposition IN the letting OF
tie contract to- the Lake Boat Company?
Conferences With congressman.
"A number Of congressman called on
ma-not with reference to letting the con-
tract but regarding the opinion of the
Attorney General and the question Of the
discretion that was vested in me under
the act"
Who called upon you?'
''Of course. ] speaking from mem
Dry: think Representatives Butler. Rob-
crts Ioudenslager. Iilley Hughes and
Snerry and Senators Buckley and Brande-
gee. ! think Representatives Butler AND
Lpudenslager called after the awarding
OF the contract, the others before the
contract was signed.
"In the interest of Whom?
They asked me about the attitude OF
the department. | told them what | had
done and what | proposed to do. No sug-
Eestions were made by them to me in any
way. They simply felt. they said. II was
to the interest of the government to have
two companies building boats"
The Question of Profits.
The charge of Mr.. Liley that the Elec-
tric Boat Company and its predecessor.
the Holland Boat Company. have already
received from the United States an excess
:ive profit of more than one million dollars
fer the construction of its submarines. and
that under legislation now pending it will
ceive profit of more than one million
dollars in excess of what ought to justly
and fairly be paid for the construction of
submarines provided for. was called to
= cretary Metcalfs attention. He replied
that the department. under circum
s.ances would pay what was considered
sn eXorbitant price. The question of
Profits however. could be ascertained only
lv examining the officials of the Electric
1toat Company and the officials of the
.lipbuildIng companies who are construct
ing the boats.
Secretary Metcalf was next questioned
as TO the clause in the naval bill. which
las been adopted by the House naval
committee. providing, in effect. that the
Electric Boat Company for the construc
ton of submarines. unless. in the opinion
of the department. a boat equally as good
should be developed by October 1. 1908
He thought the clause limited the de-
liartment to one type of boat, it would
lie impossible to build a boat by the date
set. In answer to Mr. Omsted. he said
1T was possible. of course. for the Lake
boat already constructed and thus meet
The requirements. II the bill becomes a
law. he said. he would not contract for
any submarine boats until October l.
In answer to question, he said this
would still give the Lake company six or
eight months to further improve the
boat and in that case the bill. to GER
tain extent, favors the Lake company.
lie thought 1t would be better to leave
the entire question Of types of boats to
The discretion and Judgment Of the de-
rarfment.
In closing his testimony Secretary Met
calf said he was not in favor Of post
poning the purchase of submarine boats
until some one has developed a better
boat
Admiral Capps Questioned.
Admiral w. L. Caps. chief Of the con-
struction bureau of the navy, followed
Secretary Metcalf. He was questioned by
Mr.. Howard as to the charge Of excessive
Profits to the Electric Boat Company. He
said that the seven boats were contracted
tor at cost of 50 100000. and If there
a million dollars profit over and
above what should be a normal profit 1t
was something entirely beyond his knowl-
edge.
Cheaper Than English Boats.
so long as I hold my present Office"
said Admiral Caps, II shall not be
rarity to a recommendation which would
give on contract Of this character a
profit which would be SO grossly in ex-
cess of what might be considered fair
profit as has been charged is contem-
plated
Admiral Caps said that the depa rtment
had cut down the price asked by the
Electric Boat Company. He stated that
the Navy Department has been fortunate
recently in getting its construction work
done at very low figure. He quoted
unofficial figures to show that the English
submarine boats have cost that country
more than this class of boats has cost
this government.
Regarding the number of submarine
toats this government could use, Admiral
Caps said that the addition Of ten would
re by no means in excess of the require
n1ents for the defense of the country.