Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-12
READS HIS STATEMENT

Continued from First Page)
still protest that it would be detrimental
to thorough and complete investigation
to have my testimony taken at this time,
for by so doing you would advise the
parties charged with improper actions in
influencing congressional action In such
a manner as would enable them to pre-
pare for possible defeat of the purposes
of the investigation. l now waive serv-
| ice of summons, and If you now order me
to do so l will take the stand as wit
ness.
| When Mr.. I.illey came to the first stop
ping point, at which time he indicated a
desire to know the wishes of the commit
Itee in the matter of summoning witnesses,
he paused for a response and was told by
Chairman Boutell that under it's instruc
lions the business of the committee must
necessarily be confined to the conducting
of an investigation. The members of the
committee, he said, were not there as
prosecutors nor would they permit Mr..
Lilley to assume the role of prosecutor.
witnesses would be called as the neces-
sity for their presence was developed by
the progress of the inquiry.
| After reading another paragraph. in
(which he expressed his willingness to sub
init to the will of the committee, Mr..
Ienough to be sworn, and then proceeded
under oath. Before he went on, how
lever. the chairman announced that Mr..
Olsted. one of the members of the COM
Imittee would ask whatever questions
might be necessary in the conduct of the
Investigation.
Mr.. Lilley's Charges.
Mr.. Lilley's statement, under oath, was
| as follows:
Il propose to show that for several
years prior to the LESSER investigation
cessor, the Electric Boat Company, main
tanned in Washington an organized lobby
| for the purpose of influencing legislative
| appropriations in favor Of the submarine
boats built by that company, and that 1t
had under annual retainer c. u. Creecy,
Gen. Eppa Hunton former United States
Senator Marian Butler s. G. McNeir, DIR.
w. r. Kerr and others.
| That for several years Elihu B. Frost.
| vice president of the said company, has
been continuous visitor at Washington
during congressional sessions and has
| spent large sums of money in furnishing
entertainment TO members OF Congress,
his expenditures along this line amount
ing to thousands of dollars.
THAT the Senate amendment to the ap-
preparation bill of March 2, 1907, was pre-
pared 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 prevent the secretary OF the navy
from exercising any discretion in award
ing contracts for submarines.
| THAT a thorough investigation by an
Impartial committee will show that large
sums of money have been by the Electric
Boat Company. it's officers or agents, con-
ltributed to campaign funds of members
of Congress who favor and have Favored
the Electric Boat Company monopoly OF
submarine construction; also that large
sums of money have been spent TO &C
dnfoo nf nj
naval committee who did not favor the
Electric Boat Company.
THAT an examination of the books and
records of the Electric Boat Company
ana of its predecessor, the Holland Boat
Company. will show that large sums of
money have been paid from their treas
uries for the above purpose.
.That continuous and repeated efforts
have been made by representatives OF the
Electric Boat Company and its predeces-
sor to influence the action OF the onclals
Of the Navy Department. and that such
efforts in the past were SO persistent ana
notorious as to call form the cohoeIhn ma
! ton and criticism of high officials OF the
Navy Department, whose testimony can
he secured by the investigation commit
tee.
To Suppress Competition.
THAT from 1893 up to the present time
these efforts of the Electric Boat Com
nanv and the Holland company have re-
sulted in absolutely suppressing any posi-
bi,tv of competition in submarine con-
str,ction and securing and awarding of
all contracts. either by specific appropria-
tor or by legislative appropriation skill
fully drawn. to this company without
possibility of competition.
| THAT ii can be shown by former lnVes-
LEGATIONS before the naval committee OF
the House. upon which no report was
made to the House Of Representatives.
that the Holland Boat Company and the
| Electric Boat Company have been en-
Gagged in reprehensfble efforts to influence
! members of Congress and officials OF the
Navy Department in favor OF their boats
and appropriations therefor.
That it can be shown upon investiga-
ton that certain representatives of lead
ing newspapers have been subsidized and
maid by the Electric Boat Company for
favorable newspaper arucles and reports
in behalf of said companies.
| IF these things are not actually without
the pale of the law. they are wrongful
nractices and tend TO throw discredit upon
the Congress of the United States.
II have taken it for granted that If
these things are not true "A full investiga-
ton would be welcomed not only by every
member of Congress- but by every MEM
Der of the naval committee, as we'll as by
the officers and agents of the Electric
Boat Company. in order that there
might no longer remain in the public
mind the idea that the Electric Boat
Company had been unduly and improperly
endeavoring to influence congressional
action.
II cannot be expected to have a per-
sonal knowledge Of all these transactions
which. if they exist, must necessarily re-
main largely in the secret possession OF
the officers and agents Of the Electric
Boat Company. and of those with whom
they have conferred in the prosecution OF
their attempts to influence Congressional
action.
Mr.. Lilley repeated to the committee. as
confirmatory of his suspicious against the
Electric Boat Company. the incident re.
lated by him to the committee on rules
wherein an intimate friend of his. a large
manufacturer in his home town, told him
that he (the manufacturer had the prom
Use Of a large order If he Qilley) would
vote for the submarines; and that a law
yer of his own city came to Washington
land stayed with him and underworld to
influence him In favor of the Electric
Boat Company.
Prepared to Give Names.
II am prepared to give the committee
the name of this lawyer said Mr. Lilley
"and my statement can be verified if you
Twill Call him as g. witness. I make the