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

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same offer with regard to the manufac-
turer referred to. | also give the
committee the name of a manufa cturer
of Waterbury. Conn, who endeavored to
secure from the Electric Boat Company
an order to supply certain manufactured
products to that company and who was
by the representative of that company in
formed that the order would be placed
with him if he would secure my support
of the proposed legislation in favor of the
Electric Boat Company.
Il also call the attention of the com
mittee TO the character of the amend
ment proposed by Representative Louden-
slayer to the naval appropriation bill
which requires in specific terms that the
Secretary Of the Navy shall award the en-
tire proposed appropriation for the con-
structiOn of boats of the Octopus type.
constructed by the Electric Boat Com
pany, unless prior to March /, 1908. some
other boat should be presented which in
the opinion of the Secretary of the Navy
equals or excels the Octopus. 1t is Il fact
known to all men that there is not at the
present time i'm American waters and can
not in the nature of things be presented
within the period of eighteen months from
the present time a competing or rival
boat to the boats of the Electric Boat
Company
Mr.. Lilley said he had learned that the
Electric Boat Company had employed as
lis attorney w. L. COl uoH III AhC WI
gressional district of Representative Loud
Of Michigan. where the company had
or could have had no possible business
for an attorney in the conduct or It's
legitimate affairs; and this attorney was
empioyed for the sole purpose OF en-
deayoring to secure favorable action on
the part of Representative Loud for Such
legislation as the Electric Boat Company
might desire. l am not charging, said
MI I.illey, that Representative Loud was
TIA hx
charging that these efforts were an i'm
proper attempt to influence the action OF
a member of Congress.
Offer to Member of Congress.
Il state also that man in the service
of the Electric Boat Company approached
a member Of the House of Representa-
tives, then a candidate for membership
of the naval committee and now mem
Der of that committee, and offered his
services to secure for said member of
the House a place on the committee. The
offer was peremptorily declined and the
matter proceeded no further. | am will
ing TO give the name of the member re-
ferred to. as / make this statement on
his authority, with his permission to say
that he will at any time appear before
this committee and confirm my state
ments
II do not charge, and | do not believe
he person III question: tUuiu tNtlCist, any
actual influence in procuring an appoint
ment to the naval committee / do say,
and | do believe, that the purpose was
to ingratlate the Electric Boat Company
in the favor of the member of the House
without warrant by this offer of pre-
tended influence, and to misead said
| member to believe, i'll case he were ap-
pointed, that he owed his appointment
to the Electric Boat Company.
II also submit said Mr.. Lilley,s as
ina oiuo IN. infr
duce my resolution of investigation, that
i'm my judgment under special and eX
elusive legislation the Electric Boat Com
pany and its predecessor already have
received from the United States an eX-
cessive profit of more than $1.O00GOO for
the construction of its submarines, and
that under the proposed legislation now
pending it will receive a profit of more
than Sl.VOOO0 in excess of what ought
Justly and fairly be paid for the con-
struction of submarines provided for. and
that this fact can be substantated by
your committee by calling witnesses
the expert officials and constructors in
the Navy Department.
Alleged Inferiority of Boats.
Mr.. I.illey said that investigation would
also show that the submarines already
constructed by the Electric Boat Company
for the United States government or
now under contract, a$ well as those pro-
yided for in pending legislation, are in
| ferior in type. speed power, armament
and efficiency to those now in the pos
session of and under contract for con-
strrction for foreign governments He
declared il to be his belief that the pro-
posed appropriation of Si.iU.UO TO De
expended without possibility OF compe-
titiOn for the construction OF submarines
OF the Electric Boat Company type is
designed and has been urged by mat
company in order to prevent competition
i'm construction of a type winch "ouiu
be unavoidable after reasonable time had
elapsed in which a more powerful COM
peting boat could be constructed ana
placed in American waters.
Mr. Lilley reaffirmed the statement that
i'm his resolution of investigation he had
cast. or intended to cast. no rehection
| upon the official conduct of any member
| of the naval committee or of the House
of REPRESENTATIVES. I realize. he said.
that there is a wide distinction between
the fact of actual corruption of a MEM
Der of Congress and the effect upon MS
| legislative action induced by such in
| fiuences as can be brought to bear by
parties desiring favorable legislation; my
desire has been and is only to bring to
| the public attention of the Congress and
/ the country the improper methods that
/ have been employed by the Electric Boat
| Company and which tend to discredit the
! integrity of the House of Representa-
/ tives and the community.
| Having made this statement to your
committee, and bowling to your decision