News Observer Chronicle

Spit In the Committee Room.

By Southern Associated Press.

WASHINGTON, Jan. 6.—"You're a liar, and you know it," was the startling exclamation which fell from the lips of Representative Amos J. Cummings, of New York, at the Capitol today.

The remark was addressed to Mr. J. Hale Sypher, a former Representative in Congress from Louisiana, and now a practicing attorney of this city. The scene was in the room of the naval affairs committee. The subject before the committee was a resolution introduced in the House by Mr. Holman, of Indiana, on December 13th last, which set forth the fact that more than $1,000,000 had been paid out to contractors engaged in the building of war ships for premiums; that the ships were so built as to secure a higher speed than was required by the contract, thereby permitting the contractor to earn these extraordinary and unjustifiable premiums, and therefore the committee was instructed to investigate the whole matter thoroughly and to learn especially whether or not by collusion of any officer of the government there premiums were secured.

Sypher appeared before the committee in support of the resolution. In the course of his argument he openly charged that the Committee had been formed for the express purpose of aiding the contractors in securing these large premiums.

Mr. Hulick, of Ohio, reminded Mr. Sypher that his accusation was a very grave one and asked if he did not know that Speaker Crisp himself appointed the Committees. Mr. Sypher replied that he did, and added that Speaker Crisp was also in the "ring."

"And do you mean to insinuate that I am here as a paid Attorney of the contractors?" "I do," bluntly replied Mr. Sypher, "I think you are all paid Attorneys." And, he added, glancing around the room, "I am responsible for my utterances."

At a later point in the discussion Mr. Cummings, the chairman of the committee, read a letter that was personally handed to him yesterday by Charles H. Cramp, the Philadelphia ship builder. The letter bore the date of September 25th. It was alleged to have been written by Mr. Sypher to Mr. Cramp. It contained newspaper clippings and various other data to show that the matter of premiums was one that was likely to be investigated by Congress during the present session. The writer stated that the cruiser New York was a fraud and that it was not unlikely that the premiums that had been paid the contractors for excess of speed would have to be refunded to the government. The suggestion was made to Mr. Sypher by several members of the committee that the letter might have been written with a view to securing his retention by Mr. Cramp, in a professional way to prevent the investigation. Mr. Sypher hotly denied that such was his purpose. He was actuated he said, by conscientious motives only, and he then proceeded again to charge that Secretary Herbert, ex-Secretary Tracy and other prominent officers of the Navy Department were in collusion with the contractors.

Sypher went on to say that Cramp had not answered his letter, but that a few days later he came down to Washington with Mr. Griscob, the president of the American Steamship Company, that the two invited Secretary Herbert to a luncheon, and in that way secured his friendly interest in their affair.

Sypher also insinuated that Cummings, the chairman of the committee, was also under the influence of the ship builders. It was at this point that the chairman indignantly said that Sypher was an emphatic liar, and curtly requested the attorney to confine his future utterances to answering the questions which the committee propounded to him. This practically closed the session today, which will be continued again on Monday.

At yesterday's session of the committee Phillip Hichborn, the Assistant Chief Constructor of the Navy, appeared and addressed the committee for some time regarding the question of premiums. He ridiculed the suggestion of collusion between the naval officials and the contractors, and said that such a conspiracy could only exist where it included everybody from the Secretary clear through to the members of the trial board. He explained the benefits of the premium system and showed that in many cases the government did not lose a dollar inasmuch as the contract price was usually far below the amount that would be paid if the contract was made on the basis of the maximum rate of speed.