Morning Oregonian., March 13, 1908, Page 7, Image 7

THE MORXIXG OREGONIAN. FKIDAT, 31 ARCH 13, 1908.
LILLEY EXPOSES
SUBMARINE LOBBY
Boatbuilders Claimed Influ
ence Over Cannon and.
Members.
EXORBITANT PRICES PAID
House Committee Begins Inquiry
and Lllley Names Men He Ac-,
cuses Detectives Follow Ac
cuser at Every Step.'."
WASHINGTON, March 12. The- Lilley
submarine boat inquiry vu begun in
earnest today by a special House com
mittee. Beginning at 10 o'clock the com
mittee continued' its work during the
greater part of the day. Representative
Lilley was heard at length. He began his
testimony by reading a long typewritten
statement, a part of which was in the
nature of an affidavit in which he out
lined his charges in detail. When he had
completed this formal presentation he
was questioned at length by Representa
tive Olmstead of the committee, who was
designated by Chairman Boutell to per
form that service.
Has Influence With Cannon.
During the afternoon session. Representa
tive Richmond P. Hobson testified that
he had been approached by a man rep
resenting the Electric Boat Company, who
told him that, if he would support the
claim of that company before Congress,
the company could bring influence to bear
upon Speaker Cannon to have him (Hob
eon) appointed on the committee on
naval affairs.
At the suggestion of Boutell the names
of the attorneys representing interested
parties were entered upon the record.
Lilley introduced Frank T. Brown, of
Norwich and Stat Senator Stiles Judson,
of Bridgeport, Conn., as his counsel.
Martin W. Littleton, of New York, an
nounced that John D. Lindsay, also of
New York, and himself represented the
Electric Boat Company. In reply to one
of Olmstead's questions. Ulley said the
Electric Boat Company had no plant and
no assets. He declared that that com
pany did not build boats, its only busi
ness being to secure contracts for boats
and then sublet the contracts. ,
Men Who Expected Rewards.
Lilley gave the names of the Connecti
cut manufacturer and the attorney who
had asked him, according to his state
ment, to vote for an appropriation tor
submarine boat legislation. The manufac
turers, he said, were Franklin H. Taylor,
of Waterbury. and A. M. Ferris, of the
Bridgeport Brass Company; the attorney
was John T. Kellogg, of waterbury.
Lllley said it was his understanding
that there was an agreement between the
Klectrlc Boat Company and Vlckers Sons
A Maxim, of England, who are building
Knglish submarine boats, whereby all the
Improvements made by the Electric Boat
C ompany are, turned over to the English
rompsny, but under- which all the im
prnympnti made . by Vickers Song &
-Araxlm are not given to the Electric Com
pany. Working the Newspapers.
A discussion arose between Olmstead
and Lillley over that portion of Lilley's
statement relating to newspaper corres
pondents and the part they have taken in
creating what Lllley termed a sentiment
for submarines, particularly on the Pacific
Coast. LUley eald:
While I have no direct testimony to offer
on that mihjeet. I am told .that they (the
Klectrlc Boat Company) have men who at
tend meetings of the Boards of Trade.
Chambers of Commerce, etc.. and who get
up In their meetings and make addresses
en the un preparedness of the Pacific Coast
and the tear that the Japanese will be over
on the next boat, and thus ret resolutions
passed instructing their Congressmen to
vole for a large number of submarines as
the bent means of protecting them from In
vasion. 1 think It reprehensible conduct on
the part of the company to hire lawyers
and newspaper men to ko about and create
war scare and work throush Boards of
Trade and Chambers of Commerce to bring
pressure to bear on members of the House
to vote the Government's money for their
boats.
Air Pull of Influence.
Lllley said he could only name two
newspaper men at this time who had
worked for the Electric Boat Company,
and he gave the names of two who, he
said, had admitted having worked for
the company.
Lllley Insisted that, if the comm'ittee
would call the witnesses whose names
he had given. It would ascertain that
there were a great many such men em
ployed, and that a great deal of money
had been spent that way. "The air is
full of it," he said.
During his examination. Lilley men
tioned the fact that he had consulted
ex-Senator Thurston, of this city, who
is the attorney here for the Lake Sub
marine Boat Company, but insisted that
that gentleman had not formulated his
(Lllley's) charges.
Hobson Scorned Help.
Hobson testified that Lawrence Speer,
ef New York, told him last November
that the Electric Boat Company would
be ahle to help Hobson to get a place
on the naval committee if he "stood
right on submarines," that It had in
fluence with the Speaker. Hobson
said:
"I told Mr. Speer that I did not want
the influence that his company had. and
1 made no promlae to support any
naval proposition he might have to
offer."
Hobson said that he had seen Mr.
Speer since this conversation occurred,
and in reply to a question propounded
hy Mr. Littleton, said that he and Mr.
Speer had been classmates at Annapo
lis, and that they had belonged to the
same corps In the Navy. Their rela
tions had been cordial.
Detectives Shadow Lilley.
Lllley waa recalled. He was ques
tioned by Olmstead regarding the state
ment he made to the committee that
lie was being shadowed by detectives,
and was asked if they were hampering
htm in his work before the committee
He said:
I have had a very large number of men
he.inwtng me since the resolution was In
troduced, one man has been standing near
my door dally In this office building, and
t more usually at the entrances. Fre
quently I have run Into three here. At the
hotel there have never been lees than three,
o the House detective tells me. The de
tective stationed at the House of Repre
sentatives says there have been at least six
in there. I did not protest agalnet this pro
ceeding until they began to shadow the
members of my family, and Major Sylvester,
the Chief of Police here, told me he would
Jiave them arrested If I so desired.
Influence, Xot Bribery.
Lllley In his prepared statement says
he doe not charge that anv member of
for areas was actually bribed or know
ingly participated in wrongful attempts
of the Klectrlo Boat Company to Influ
ence legislation, but purposes to show
that wrongful methods were used by that
company to secure legislation. He was
prepared to name witnesses. Whether
money had been improperly used could be
shown only by the examination of the
officers, attorneys and agents of the Elec
tric Boat Company and a careful scru
tiny of the company's books, vouchers,
check stubs and accounts.
He then demanded the summoning of
Isaac Rice, president of the Electric Boat
Company; Ellhu B. Frost, vice-president:
Maurice Barnett, treasurer; August
Treadwell. assistant treasurer, and that
they be required to lay before the com
mittee documentary evidence in their pos
session. He opposed beginning the inves
tigation by Informing the accused of the
precise character of the evidence to be
produced. He declared the persona
named to be the ones, if any, who had
made improper efforts to influence legis
lation, said they were reluctant and ad
verse witnesses, and that the facts in
then- knowledge could only be elicited by
careful and thorough examination.
Objects to Procedure.
He opposed following the lines of pro
cedure proposed by the committee, and
asked for a change in the order of sum
moning witnesses as necessary to bring
out the facts fully and to substantiate
the charges. He asked whether the com
mittee still adhered to its decision to
prohibit him from calling the witnesses
and presenting their testimony under the
examination of Its attorneys.
Boutell replied that the business of the
committee was to conduct an investiga
tion, not as prosecutors, and it would
allow Mr. Lllley to appear as prosecutor.
Witnesses would be called as the neces
sity for their presence developed.
Expensive Lobby at Capitol.
Lilley promised to show that for several
years the Holland Boat Company and its
successor, tlje Electric Boat Company,
maintained a lobby in Washington to in-
fiuence submarine boat legislation. He
said it retained C. B. Gracey, General
Eppe Hunton, ex-United States Senator
Marion Butler, S. C. McNair. Dr. W. B.
Kerr and others. Mr. Frost, he said, was
a continuous visitor in Washington dur
ing sessions of Congress and spent thou
sands of dollars in entertaining Congressmen.
He said that the Senate amendment to
the appropriation bill of March 2, 1907,
was prepared and drafted by the attor
ney for the Electric Boat Company for
the purpose and with the intention to
eliminate competition in submarine con
struction and to prevent the Secretary of
the Navy from exercising any discretion
In awarding contracts for submarines.
The Electric Boat Company, its officers
and agents, he said, had contributed larg?
sums to the campaign funds of Con
gressmen who favored giving it a monop
oly of submarine boat building; and spent
large sums to defeat opponents of such
a monopoly. He charged that the books
of the company and of the Holland Boat
Company would show these expenses.
He also charged that correspondents of
leading newspapers had been paid for fa
vorable articles. '
Repeated efforts had been made by the
Electric Boat Company and its predeces
sors to influence the action of Navy De
partment officials, and such efforts be
came so notorious as to call forth the
condemnation of high officials' of the De
partment.
Competition Is Stifled.
These efforts had caused the suppres
sion of competition since 1893 by securing
the awarding of contracts either by spe
cific appropriation or by appropriation so
skillfully drawn as to render competition
impossible. Former investigations, on
which no report was made to the House,
have shown, he says, that the companies
named have made reprehensible efforts to
Influence Congressmen and Navy Depart
ment officials.
. Lllley repeated the charge that a large
manufacturer In his home town had told
him that he (the manufacturer) had the
promise of a large order for submarines
if Lllley would vote for them, and that
a lawyer of his home town tried to in
fluence him. Ho told of -efforts to influ
ence him through promises to his con
stituents and of indirect efforts of other
Congressmen to influence him.
He expressed the opinion that the Elec
tric Boat Company and its predecessor
have already received an excessive profit
of more than Jl.000,000 from the United
States, and would receive another il.OOO,-
000 in excessive profits under the pending
bill, and that this charge can be substan
tiated by expert officials and construc
tors. He charged that the submarines
already built and now under contract
were inferior in type, speed, power, arm
ament and efficiency to those now in the
possession and under contract for con
struction for foreign governments.
Mr. Lilley concluded his protest against
the mode of procedure adopted by the
committee and then offered himself as a
witness.
STAYS TO PKESS RATE BILL
TuIton Will Xot Return to Oregon
Before Primaries.
OREGON! AN NEWS BUREAU, Wash
ington, March 12. On account of the
pressure of public duties here. Senator
Fulton probably will not return to
Oregon prior to the primary elections
further to answer Heney's charges or
take part in his campaign. Advices re
ceived by Senator Fulton from many
parts of the state Indicate to him that
Honey's charges had little injurloua ef
fect and had not jeopardized his
chances for renomination.
Senator Fulton considers it essential
that he remain here to press his
amendment to the rate bill concerning
the advances of freight charges, his
resolution for land grants and the
claims bill in his charge as chairman
of the claims committee. While not
fully determined, the chances are that
Senator Fulton will remain here until
the close of the session.
PKXSIOX BILLS ARE KILLED
House Committee Against Dawes
and Bradley Measures.
WASHINGTON, March 12. By a -tie
vote, a motion was lost today in the
House committee on military affairs to
report favorably the Dawes bill creating
a roll to be known as the volunteer re
tired list and placing thereon, with re
tired pay. the surviving volunteer officers
of the Army. Navy and Marine Corps of
the Civil War. Estimates Indicated that
the first year's operation of such a law
would cost the Government 111.000,000.
The committee similarly failed to act
favorably on the Bradley bill, which. In
addition to the provisions of the Dawes
bill, proposed the payment of monthly
to every surviving enlisted man In lieu
of pensions now drawn. The War De
partment estimated that the operation of
such a law would cost JS9.oiio.000 the first
year and perhaps JlSO.OOc.oo annually
thereafter.
EXTRA OFFICERS FOR ARMY
Senate Committee Favors Bill Add
ing 651 Commissions.
WASHINGTON. March 12. The Senate
committee on military affairs today rer
ported favorably a bill authorizing extra
officers for the Army. It ie intended to
meet what is generally referred to as the
absenteeism of company officers from
their commands by reason of detached
service.
The bill reported would add 631 officers
to the Army distributed as follows among
the grades: Thlrty-ix Colonels. 54 Lieutenant-Colonel.,
SO Majors. 163 Captains,
144 Lieutenants and 136 Second lieuten
ants.
PRIEST'S SLAYER
TO FORFEIT LIFE
Jury Convicts Alia of First De
gree Murder, After Three
Hours' Deliberation.
LAW GIVES SHORT DELAY
Is There "o Appeal?" Is Only Re
mark Made by Italian Who
Killed Father Leo in
Denver Church.
DENVER,- March 12. Giuseppe Alia,
who shot Father Leo Heinrlchs in St.
Elizabeth's Catholic Church, in this city,
Sunday, February 25, was today found
guilty of muraer in the first degree.
Hanging was fixed by the Jury as the
penalty. The verdict was announced at
2:45 P. M., the case having been given to
the Jury at 11:45 A. M.
"Is there no appeal?'
These were the only words spoken by
Alia when Informed by Interpreter Mat
ter that the jury found him guilty of mur
der in the first degree and fixed sentence
at death. Alia cannot bo hanged within 80
days of the rendering of the verdict under
the laws of the state.
Masked Epilepsy Defence.
With a bare suggestion of "masked
epilepsy" as his only defense. Alia await
ed stoically the result of his trial on the
charge of having murdered Father Leo.
The evidence for the defense was
completed yesterday. Only two wit
nesses were called and but one of them.
Dr. Baron G. Tosti, ttie Italian Consul,
testified that he considered the slayer
of Father Leo insane, basing this opin
ion upon the fact that the murder
was without apparent motive. No ex
planation of Alia's terrible act other
than that given by him In his various con
flicting statements made In jail, was
offered and no evidence of any plot
against Father Leo or priests in gen
eral has been presented at the trial.
A special guard of armed deputies
was stationed in one of the side rooms
of the courthouse this morning, but
there was no demonstration or appar
ent reason for this precaution.
In hie instructions. Judge Whltford
Informed the jury it could find a ver
dict of murder in the first degree, mur
der in the second degree, voluntary
manslaughter; or not guilty. He then
defined the meaning of the law in re
gard to murder in its various forms.
Judge Instructs the Jury.
"If the jury entertains a reasonable
doubt of the sanity of Alia at the time
of the commission of the act," -Judge
Whltford said, "it should acquit the
defendant. But if the Jury believes the
prisoner to have been of sound mind,
but carried away by passion or revenge,
and not influenced by an unsound
mind, it should 'convict."
First Assistant District Attorney
John C. Hiles made the opening ad
dress for the state. He asked the jury
to find a verdict of murder in the first
degree. He reviewed the testimony to
show that the murder was willful, ma
licious and premeditated.
Mr. Widdecombe, attorney for the de
fense, dwelt upon the point that the
state produced the evidence of alienists
to show that the prisoner was sane
when the law Itself presumed him to be
sane. This auction was taken because
Alla's act was one to indicate to 'the
District Attorney . that the defendant
was crazy.
District Attorney George A. Stldger
made the closing argument in the case.
HIT DRINK ON CAMPUS
SEW RULES ANNOUNCED FOR
STANFORD STUDENTS.
Undergraduates Bitterly Opposed to
Regulations That Punish Misuse
of Liquor With Suspension.
STANFORD UNIVERSITT, March II.
The student affairs committee made
public today a eet of rules governing
the use of intoxicating liquors by Stan
ford men. The rules forbid the use of
intoxicating liquors on the campus, and
state that violations of this rule will
be punishable by suspension.
The committee also states that a
similar penalty will be inflicted on
students who become intoxicated of! the
campus. The students' body is bitterly
opposed to the new regulations, and is
awaiting with interest the first move
of the committee under these regulations.
WOULD SHELVE HIGH LICENSE
San Francisco Committee Opposed
to'Kaiaing Tax.
SAN FRANCISCO, March 12. An
effort was -made today by the license
committee of the Board of Supervisors
to shelve the agitation to raise the re
tail liquor license in this city from
500 to $1000 per year. At an execu
tive meeting the committee adopted the
following:
We recommend the indefinite postpone
ment of all the proposed liquor ordinances
now pending. In the opinion of this commit
tee a radical chance in the lice nee tax as
proposed in eald ordinances, should not be
made unless the question has been first sub
mitted to a vote of the people and approved
by them.
The matter will now be fdught out
before the full board.
City Votes for Saloons.
MODESTO. Cal.. March 12. At an
election which called out the largest
vote ever polled in this city, on the
question as to whether or not the city
trustees should grant licenses for the
j THIS WEEK ONLY
: A Lady's Suit :
: FREE I
WITH EACH ORDER FOR A
t,KT!JiMAN S SUIT.
J. M. Acfieson Co.
TWO LEADERS
Our double-breasted
Sailor Suit and our Rus
sian Sailor Blouse full
knee pants. -
With the improve
ments we have added,
these new Spring Suits
are the most graceful
garments little boys can
wear.
CLOTH RiGCO
GuS KuhnPrcp'
166-168 Third Street.
sale of liquor, the vote for the saloons
carried by a majority of 1000.
iiOTEiSlT RAGES
HUGHES WINNING FIGHT IN
NEW YORK.
Assembly Committee Reports BUI
That Will Put End to Practice
of Playing the Ponies.
ALBANY, N. T., March 12. Another
substantial step toward the statute books
was taken today by the legislation to
abolish gambling at racetracks in this
state, as recommended by- Governor
Hughes in his annual message to the
Legislature.
After a protracted meeting, the assem
bly committee on codes reported without
amendment the bills embodying the Gov
ernor's recommendations.
The committee by a vote of ten to
two refused to accept the amendment
made yesterday by the corresponding com
mittee of the Senate which would defer
the taking effect of the legislation until
September 1, and thus exempt most of
this year's racing schedule.
It is the general opinion here tonight
that while there may be a stirring debate
in the Senate over the measure, they are
practically as good as passed In the
form desired by the Governor. . Senator
Raynes. the majority leader of the Senate
said this afternoon:
There will be no deadlock between the
an
"NEW
PROCESS"
GAS RANGES
Are heavily built and in several sizes, to meet the demands
of any kitchen bodies are of polished steel no enamel
finish to peel off tops and frames of cast iron efficient
burners can be taken apart in an instant and cleaned
most economical in operation double the amount of work
is obtained for every foot of gas used. ' Burners are all
operated independently, thus enabling baking, roasting,
frying, broiling, stewing and boiling to be done at the
same time, if desired. The remarkable' efficiency and
economy of the "New. Process" Gas Ranges are impor
tant features that command the attention of those who contemplate installing
a gas cooking apparatus in the home. The complete line of these ranges dis
played in the Basement Departments
CAT C 4T? UPHOL.
sis
STERY
FABRICS
In the Decorative Department Sixth Floor A
large assortment of fine and medium-price im
ported Furniture Coverings, discontinued pat
terns, which we are unable to duplicate to be
closed out this week, at about one-half of their
regular values. Bring in the sizes or send in
your pieces of furniture. You will be able to
select suitable coverings at . a saving.
ml WlSS&L
mm
GREAT SALE
OF
TODAY
IN THE
BASEMENT
fr TOW Cf WT f
I KOOOO J
COMPLET'I1QU5E-FURm5i1ERSI
KAHc'OUR'ji
asrnusj
DOMESTIC
AND
IMPORTED
ART
WALL
PAPERS
two branched of the Legislature. I shall
personally vote to restore the Senate hill
to Its original form.
FUGITIVE'S WIFE ON STAND
Mrs. John Dalzell Robertson AVecps
Before Grand Jury.
SAN FRANCISCO, March 12. Mrs. John
Dalsell Robertson, wife of the fugitive
assistant treasurer of the defunct Cali
fornia Safe Deposit & Trust Company,
was on the witness stand for two hours
this morning before the grand jury,
which is investigating the failure of the
corporation. She went through a ter
rible ordeal and was on the verge of col
lapse when she left the jury room. Her
cheeks were wet with tears.-
Mrs. Robertson was discovered at her
Greenwich-street home, from which she
and her husband fled to New York sev
eral months ago, and to which she re
turned quietly two days ago.' She came
back to look after their property in
terests while her husband remains a fugi
tive in Scotland.
Shortly after their flight it was learned
that Robertson had hypothecated the
bonds of the Colton estate which had
been left in the hands of Walter J. Bart
nett as trustee. A contest over the Col
ton will is being waged in New York.
PROSECUTE THE QUACKS
Coroner's Jury Strikes at Cause of
Murder by Eckler.
SAN FRANCISCO, March 2. Fred
erick Eckler, a waiter who shot and
killed Fred Beddell, a chemist, em
ployed by a medical company with of-,
flees at Geary and Fillmore streets, on
Friday evening last, and fatally wound
ed Richard Parker, was held to be in
competent by a Coroner's jury today.
The Jury further recommended that
Eckler be examined by the Insanity
Commissioners. The verdict concluded:
We further recommend that the chief of
police make a thorough Investigation of the
Institutions such as Dr. Miles & Co.. the
California Medical Institute and mil lnsti
tutions of that character, as they tend to
prey upon the minds of weak and unfor
tunate persons In circumstances similar to
those ot Eckler.
National Creamery-Owners Meet.
ST. PAUL, March 12. The members of
the National Creamery Buttermakers"
Association assembled here this morn
ing for a two days' session. The con
vention was called to order by President
Farrell A. Jensen, of Eureka, Cal.. who
delivered an address on "How to Secure
Uniformity in Over-Run and Quality of
Butter."
Among the best beers, the differences
are not largely due to materials.- 'Twould
be folly to skimp there. .
Most differences in taste are due to the skilly or
the Lack of skill, in the brewing. And to the yeast.
But quality refers, above all, to the purity. Pure beer
has no germs in it, and it does not cause biliousness.
It is not only good, but good for ybu.
Purity is rare because it is costly. And because its
lack . is not easily noticed. But in Schlitz beer it is
Ask the Briery Bamt. tne lirst requirement.
Common bser is sometimes substituted for ScJtHtz. SPCTld ryjrg X.Q
aimm it man on any
other cost of
our brewine.
Sherwood & "Sherwood,
8 Fsorrt sS&seet, Portland.