Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1908-04-01
SUBMARINE HEARING.
House Committee Resumes Looking
Into Charges BY Mr.. Li!ley.

Washington, March 31.-The fnVestlSa-
ton OF the charges made by Representa-
tive I.illey of Connecticut against the
methods pursued by the Electric Beat
Co. in securing legislation was resumed
by the special committee of the House
after 4 recess of two weeks. The officials
of the Electric Boat Co. for whom sub
poenas had been issued We're present.
Mr.. Lilley presented a request to the
committee that Admiral Caps, chief of
the bureau of construction of the navy
department, be recalled and all his ques-
tons propounded in the order in which
he had prepared them.
Mr.. I.illey also asked that expert ac-
countants he appointed by the commit
tee to examine the records. vouchers,
checks and other documents that may be
brought before the committee, and he
suggested that "such experts. if appoint
ed, be put under oath to make thorough
investigation and accurate report as n
basis upon which alone your committee
will! be able to fully interrogate the wit
necses (officials Of the company when
placed upon the stand.'
In making this request Mr.. Lilley said:
TT is a matter of common information
that in every successful examination of
corporate transactions where money has
been expended for other than legitimate
purposes the only successful method by
which the real facts have been disclosed
has been through the employment of
skilled accountants who are qualified to
run down corporation accounts and local
expenditures of money which in the very
nature of things are generally covered up
as far as possible by bookkeeping meth
DDS designed to defeat any attempt to
disclose the true transactions.
'Tt must necessarily be almost imros-
sible for your committee. proceeding of
its own initiative in the examination Of
witnesses and records, to bring to light
the character of expenditures that have
been made by the Electric Boat Co. and
It's predecessors in securing legislation
and appropriations. especially as your
committee has denied me the privilege of
being represented by an attorney in the
conduct of such examination"
The first witness examined was John
p Kellogg of Waterbury. assistant
states attorney for Connecticut and rep
resentative of the Electric Boat Co. in
that state. His testimony dealt with a
CONVEX sation in 1907 with Mr.. I-i'iey. at
which time, he said. he showed Mr.. Lii
ley a memorandum prepared by Mr.
Frost, providing for blank appropr!a-
ton for submarine boats, the boats to be
submitted to competitive tests. The mem
ora nd,m said the Electric Co. did not
want anything but q fair show. Accord
ing to the witness. Mr.. Lilley said this
wos q fair nrnDoSitiOn
did you ever seek to bring any polit-
ical influence to bear on Mr. E.illey or
behalf of additional submarine legisla'
tion?" Mr.. Kellogg was asked.
Never" he replied.
Mr.. Kellogg related Il conversation witt
Mr. Ll!cy in January, 1905. when he sait
the latter while not enthusiastic over the
subject of submarines had expressed 6
Willingness to support Secretary Metcalf
demand for four of these vessels
| Mr.. Kellogg said he had conferred Will
two manufacturers of his state. Franklin
! Taylor of Waterbury, brass manufac
turer and Mr.. Ferry concerning subma
rine legislation.
Ibid you intimate to either of then
or did YOU cause either of them to init
mate to Mr. I.illey that orders might bt
secured in case of federal legislation?'
Il never did. l understood that they
haG been receiving orders and would con
tinue to receive them"