Show r BOAT COMPANY HAS NO TUg PlANT AND NO ASSETS Inquiry Started By Lilley of Connecticut ut Prom Promises Promises Promises to Develop a Scandal Grafters Had Influence With Speaker Cannon Facts Are Brought to Light in Spite of the Committee Washington March 12 At the afternoon session Representative Hobson testified that Lawrence Speer of New York representing the Electric Boat company had told him that his company had influence with Speaker Cannon to get g t him appointed on the committee of nf naval af at affairs affairs fairs if he stood right on submarines March 12 The Lilley boat Inquiry was vas begun in farnest arnest today todar by a special house ho se com corn committee Beginning at 10 the committee continued its work during the greater reater part patt of ot the day Representative Representative Lilley was heard at length He began his testimony by reading a along along long typewritten statement a part of which wa was in the nature of an In which he h outlined his charges in de detail detail tail tall When he had completed this for formal mal inal presentation he was questioned at length by Representative Olmstead of the committee who was designated by Chairman Boutell Jo to o perform that service Hobson Approached During the afternoon session Representative R pre Richmond P Hobson testified that he had been approached by A man representing the Electric Boat com corn yany any inny who told him that If it he would the claims of that company be bemore more ore congress the company could bring influence to bear upon Speaker Cannon to have him Hobson appointed on the committee on naval affairs At the suggestion ft If f Chairman Bou Boutell Boutell I Itell tell the he names of ot the attorneys representing interested parties were entered upon the record Mr Lilley introduced Frank T Brown of Norwich and State Ser tor ator Stiles Judson of Bridgeport as a his counsel Martin W V LIt Ht LIttle tle on of or New York announced that I Johir TX D or NewYork and himself represented the Electric Boat company No Plant No Assets In reply to one of ot Mr r qu Mr Lilley said the th Electric Boat company had no plant and no assets He declared that that company did not build boats its only business being to secure contracts for boats and then sublet the contracts Mr Lilley gave the names of the Connecticut manufacturers and the at attorney attorney torney v who ho had asked him according t statement to vote for an p lion fion for tor f r submarine boats legisla oh frh The manufacturers he said were franklin H Taylor of Waterbury and andA A M 11 Ferris of the Bridgeport Brass company the attorney was John T Kellogg of ot Waterbury Agreement Mr Ir Lilley said it was his under understanding understanding understanding standing that there was an agreement between the Electric Boat company and Vickers Sons and Maxim of Eng England land ind who are building English sub submarine submarine submarine marine boats whereby all the Improve Improvements Improvements Improvements ments made by b the Electric Boat oat com corn company company pany are turned over to the English company but under which all of the Improvements made by Vickers Sons and Maxim are not given to the Elec Electric Electric trie company compan companA A discussion arose between Mr Ir Olm Ohm Olmstead Olmstead stead and Mr Lilley over that portion if f Mr lIr statement relating to Newspaper correspondents and the part partry wy ry have taken in creating what Mr Lilley L ley termed a sentiment for sub submarines submarines marines particularly parti on the Pacific coas COa i How Scheme Is Worked While he said I 1 have no direct testimony to offer on that subject I Iam Iam Iam am told that they the Electric Boat company have men who attend meet meetIngs meetIngs meetings Ings ol of boards s of ot trade chambers of commerce etc and who get up In their meetings m and make addresses on the of ot the Pacific coast and the fear that the Japanese will be beIver over Iver on the next boat and thus get resolutions passed instructing their congressmen to vote for a large num number number ber her of submarines as the best means of protecting them from Invasion I think It reprehensible conduct on the part of ot the company compan to hire lawyers a er men to go about and andr r te war scares and work through boards of trade and chambers of ot com corn commerce commerce merce fierce to bring pressure to bear on members of the house to vote the gov governments gO governments money for their boats Mr Lilley LUley said he could only name two newspaper men at this time who had worked for the Electric Boat com corn company company pany and he gave the names of two who he said had admitted having worked for the company Mr Lilley insisted that th t if it the com corn committee would call the witnesses whose names he had given it would ascer ascertain ascertain tain tam that there were a great many such men employed and that a great deal of money has been spent that way The air is full of it he said During his examination Mr lIr Lilley mentioned the fact that he had con consulted consulted suited with former Senator Thurston of this city who is the attorney here for the Lake Submarine Boat com corn company company pany but insisted that that gentleman had not formulated his charges Testimony of Captain Hobson Congressman Hobson testified to Lawrence Speer of ot New York Tork telling him last November that the Electric Boat float company could be able to help Hobson to get a place on the naval committee if he stood right on sub submarines submarines submarines marines that it had influence with Speaker Cannon Mr r Hobson said saidI I 1 told Mr air Speer that I did not want the Influence that his company had and I made no promise to support any an naval proposition he might have to offer Mr Hobson said that he ht had seen Mr Speer since this conversation oc currel and in reply r pl to a question pro propounded propounded propounded pounded by b Mr Littleton said sald that t he and at 1 Annapolis and that they had belonged to the same corps in the navy Their relations had been cordial Shadowed by Detectives Mr Lilley was recalled He was questioned by Mr Ir Olmstead regarding the statement he made to the commit committee tee that he was being shadowed by de tie s arid and was asked If it they the were hampering him in his work before the Committee ommittee I lave have had a very vory large number of men shadowing me since the resolution resolution resolution tion was introduced said Mr Lilley One man has been standing near my door daily dally in this office building and Continued on Page 2 BOAT COMPANY HAS NO I i PlANT AND NO ASSETS Continued from Page 1 I I I I two 10 more usually at the entrances Frequently I have run into three here At the hotel there have never been less than three so the house detective tells me The detective d stationed at atthe atthe the tte house of representatives says there have been at least six In there I did not protest against this proceeding un until until unU til U they began t to shadow shidow the members of my family and Major Sylvester the chief of ot police here told me he would have them arrested arr sted If It I so 50 desired Tho The committee adjourned until 10 Monday morning STATEMENT OF MR M LILLEY Committee tee Put in a Hole by bythe the Con Can Connecticut CanI Connecticut Congressman Washington March 12 Tho o special committee appointed by Speaker Can Cannon Cannon Cannon non to Investigate the charges made by Representative Lilley that undue ef efforts forts forte have been made by the Electric Boat company to Influence legislation resumed Its sittings today With all ail the five members of oC the committee pres present present present ent and the spacious room In which the committee is sitting well filled with newspaper men and other Interested spectators At the opening of oC the sea ses session sion slon Mr Ir Lilley addressed the commit committee tee saying that he desired to correct I the impression sion that had bad been created by the report of oC the committee on rules to the effect that he lie had charged that members of oC congress had bad been bribed He denied that he had made such charges but said that up to the pres present present pre ent time tUne his accusations have been sole solely solely ly against the Electric Boat Boal company and its predecessor the Holland Co and had covered the point that these companies had made an effort to In fn Influence fluence legislation by congress Statement Carefully Prepared Mr Lilley then read a carefully pre prepared prepared pared statement receiving the closest attention of all the members of or the committee He called the attention of the committee to the fact that his charges do not embrace the accusation or Inference that any any member of ot con congress congress congress gress has actually been bribed or know knowingly knowingly knowingly had participated In iii or been In Influenced Influenced d by wrongful efforts on the part of the Electric Boat company to se so secure cure legislation His purpose he said was to set on foot and assist the carry carrying carrying carryIng ing out of an investigation which he lie believed if iC properly conducted would show that wrongful methods had been used by the Electric Boat company to secure legislation in congress Mr 11 Lilley said ld he was now prepared to furnish the committee with the ad addresses addresses dresses of all witnesses whom he de do desired desIred sired to have called He said that whether money had been improperly used to secure legislation In the Interest of ot the Electric Boat company could be shown only by the examination of ot the officers attorneys and agents of that company compan and a careful scrutiny of the books vouchers check stubs and accounts Insists Upon Witnesses Witness s sJ I J now Insist said Mr rr Lilley that you summon hummon as witnesses Isaac Rice president of ot the Electric Boat company Elihu B Frost vice president Maurice Barnett treasurer August Treadwell assistant treasurer and that they be required to lay before the committee documentary evidence in their posses possession possessIon possession sion The calling of these witnesses Is necessary ry to disclose methods used by bythe bythe bythe the company to secure legislation and money disbursed by it 1 I I never knew kne continued Mr rr Lil LII Lilley ley hey of an Important and successful In fn Investigation investigation begun by informing the par parties parI parties I ties to be Investigated of ot the precise character of the evidence that would be beI I produced to show their corrupt practices tices and having informed this com corn committee comI I on my responsibility as a mem mern member member ber of oC congress of ot the witnesses ex exhibits I hibits etc pond and from whom and which can be obtained the necessary Information Information mation to show that the charges now being investigated arc established it Jt is for this committee and not for me to determine whether or not these wit witnesses witnesses witnesses nesses shall be brought before the com corn committee committee and examined A conspiracy to corrupt public morals or unjustly In Influence Influence influence fluence legislation and official action cannot be proved by the testimony of one witness These practices are not conducted in open day or In public view Their methods are secret and the aim always is to so carry on such an effort that no proof will be left from which their real character can be disclosed Turned Down by Committee Not being an attorney and an l not in any way experienced In n developing and presenting testimony I am not qualified in person to examine witnesses and therefore I i requested that I be placed in a position to develop the facts This request has been by the committee re fused The witnesses es I have named to the committee are nearly all officers neYR agents agent and representatives of the Ule Electric Boat company or have been such and they are the persons If any who have been engaged In the Improper efforts to Influence congressional l ac c cf tilon if IC any such Improper efforts have f been made They are what the courts always recognize as reluctant and imd an ad adverse adverse verse erse witnesses and the facts resting In their knowledge alone cannot be fully brought to light except by b careful and thorough examination of each wit witness witness ness by an attorney qualified to con conduct conduct conduct duct such an examination i iAn An Incorrect I Statement The committee on rules In Sn Its reso resolution resolution resolution lution under which this committee is acting has said to the country that you are arc to Investigate the charges made by me However Incorrect this statement may be It is nevertheless the official statement of the resolution under und r which I this committee Is appointed I 1 had sup Up supposed supposed posed that H tt t was the function of this committee to sit here bere as Judges and nd not notto notto notto to act as prosecutors pose or defenders and therefore that the orderly and effective I procedure would be to have witnesses examined e in the first Instance by some II other than a member of this official tribunal The suggestion of your committee that the line of procedure indicated t by you Is In fn accordance with the welles well weli s i precedents of or both boti bot houses of Is not in accordance with my m conception of the precedents So far as I 1 am individually con concerned concern concerned cern d I am ready to obey any an order by b this committee requiring me to be bea a witness before It but In doing so ao I state upon my responsibility as a member of oC the house of representatives tives tI s that in order to fully lull bring out the necessary evidence and nd substantiate ate the charges the order of the ex examination examination examination of witnesses should be other otherwise otherwise otherwise wise arranged and such testimony as asI asI asI I may be able to give should be e pre presented presented presented in the natural order and se sc sequence quence of ot the investigation such as would be presented by counsel learned In the law Request Again Denied I 1 ask your our honorable committee whether or not after atter consideration of whit what I have just stated the commit tee still sUIi adheres to its determination to prohibit me from calling the wit witnesses witnesses nesses and presenting their testimony under the examination of my attorneys attorneys attorneys This request being denied by the committee through Chairman Boutell Mr Ir Lilley said saidI I 1 now feel that I r am relieved from any responsibility of this investigation and as an Individual I submit myself to the direction and orders of this com corn committee committee I still protest that It would be detrimental to a thorough and com corn complete complete investigation to have my testimony testimony testimony mony taken at this time for by so o doing you would advise the parties charged with Improper actions in In congressional action in such sucha a manner as would enable them to prepare for or a pos ble defeat of Qt the purposes of the investigation 1 I now waive service of r summons and It if you now order me to do BO so I will wiil take the stand as a witness j Committee Against Him When hen Mr hr Ir Wiley came to the first stopping point at which time he in a desire to know the wishes of the committee in the matter of ot summoning witnesses he stopped for fora a response and was told by b Chairman Boutell that under its instructions the business of the committee must fleece necessarily be confined to the th conducting of an investigation The members of the committee he said were not there thereas therea as a prosecutors nor would they the permit Mr Lilley to assume the role of a prosecutor Witnesses would be call called called called ed as the necessity for the presence was developed by the progress |