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August 21, 1950 

REF ID:A70989 . . '' .,.• -

- - MEMORANDUM CONCERNING 

--A 

BILL FOR THE RELIEF OF 

WILLIAM F. FRIEDMAN 

Submitted 

at R_equeat of 

MAJ'OR J'AMES R. MILLS, J'AGC 

Chief, Patents Division 

By 

L ..... ·- I ... ... ....: 

:.."": ...... .: 

-FISCHER, WILLIS AND PANZER 

Dupont Circle Building 

.Washington 6, D. C. 

--

@'pp roved for Release by NSA on 09-04-2013 pursuant to E .0. 1352a ("'~koSvRE", ) 
• 

REF ID:A70989 

Major James R. Mills. J'AGC 

Chief, Patents Division 

Bill for the Relief of William F. Friedman 

Introduction 

-

-

At a conference held on June 8, 1950, I submitted to you orally our 

roposal to have submitted to the Congress a bW for the relief of Mr. 

Uliam F. Friedman, now Chief of the Technical Division, Armed Forces I 

ecurity Agency, Department of Defense. - This proposal w~s made to you puruant to the authorization and direction your office had received through 

hannels from the Department of Defense to investigate ~nd report upon the 

atter, and to determine the attitude of the Department of Defense in that conectlon. I preeented an ol'al ar1ument to you and your associates at that time 

which I emphasized that it was not our purpose in pres~nting the matter to 

e Department of Defense to request any affirmative action on its part, but 

a.th.er, to acquaint the Department with the situation and to request merely an 

dication ~t the Department of Defense has no objection to the submiesion of 

e bill to the Congress for consideration upon its merits. At the end of the 

conference, you asked that we submit the matter fully in writing as a convenien. 

al• for your ascertaining the policy of the Department of Defense with reference to the proposed bill. This memorandum is accordingly submitted in 

iplicate in compliance with your request. If there ts any additional informaion you wish, please let me know. 

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REF ID:A70989 

---- ------~-- --- ------

William F. Friedman 

~r .. William F. Friedman has been an officer of t~e Army and a 

civilian employee of the War Department and the Department of Defense for 

almost thirty yearsi he began his civilian employment with the War Department in, 1921. Throughout the entire period of his employment with those 

departments he has worked in the highly specialized field of military communications, specifically cryptology, and for his entire period of employment the character of his work has been highly classified. He is now Chief 

of the Techn:l.Cal Division, Armed Forces Security Agency, Department of 

Defense. In World War I, Mr. Friedman ~as a flrst lieutenant in the Military 

Intelligence Division, assigned in 1918 and 1919- to-General Headquarters, 

AEF, in France, in c_harge of the German code solving section of the Intelligence Division. From i 922 to 1941, he held a commission in the Signal - -- ·-

Corps Reserve, attaining the grade of Lieutenant Colonel. He was retired in 

1941 from the Reserve Corps upon the finding of the Surgeon General of a 

permanent impairment of health. Despite his illness, however, he received 

for his work in connection with World War II the highest civilian awards of 

honor besto-wed by the United States: the Medal for Merit awarded by 

President Truman and otb.e Commendation for Exceptional Civilian Service 

awarded by Secretary of War Stimson. The citation accom.panying his 

Medal for Merit reads as follows: 

WILLIAM F. FRIEDMAN, for exceptionally meritorious 

conduct in the performance of outstanding service, conspicuously above the usual, with the Government of the 

United States during the period from 8 September 1939 _ to 2 September 1945, in duties of considerable responsibility while Director of Communications Research, Army 

Security Agency, Military Intelligence Service, Washington, 

D. C. By untiring and self-sacrificing devotion, by exceptional technical ingenuity in an extremely specialized 

- 2. -
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REF ID: A7-0-9-89 

. __________ , __ _ 

field. which ranks him ampng the world's fore:most author~­

ties, by able leadership, by initiative and zeal above and 

beyond the require:ments of duty, Mr. Friedman distinguished 

himself in contributing directly and tremendously to the 

successful prosecution of the wa.r effort. The conduct of 

Mr. Friedman has been ~ keeping with the highest traditions of the Government Service. 

The citation accompanying the Commendation for Exceptional Civilian Service 

reads a.a follows: 

For outstanding performance of service to the War 

Department, over and beyond the requirements of duty, 

during his ex.tended period of service with the Signal 

Corps. He has demonstrated a degree of initiative, forethought and leadership which has proved of utmost importance to the Army Signal Corps in the e_:x.ecution of its 

mission. His research and developments in the field of 

military communications have been valuable-to the operation of all units of the Armed Forces. 

The highly classifi~d nature of M~--~~-i!!~an's services, of course, :made lt 

impossible to set out specifically in the citations quoted above the work for 

whi$:h_ ~e -~~s honor~d. In this connection, however, it ls interesting to note --·- - .. - -· - . . - - .. . .. __ that he was one of the first bi World War II to receive these awards. 

Th~ Inve~tl~~s Involv~~ 

During the period of his employxnent with the War Department, Mr. 

Friedman invented a number of systems and devices in the field of military 

communications, some alone, others :iD. collaboration. With respect to some . . 

of the inventions, patents have be_en issuedi ~· ~ oth;era, patent applications • • : I • • - •1 • •: 

a.re being held in secrecy under the 11 three-year rule" (35 u .s.c., §37) or 

P.L. '.700 (35 U.S.C., §42) or both; as to at least two, the need for secrecy was 

su~h that no patent applications were ever filed with. respect to them. So:me. of . - - . 

the inventions on w~ich patents ha.ye iss~_~d were held in secrecy for a time 

either under the 11 three-year rule" or P.L. 700 and were subsequently allowed - --- - - --- -- - -----=-

to go to issue. The specific inventions, patents and patent applications in- - . - - - - - .. - --- I . 

volved.in this ~a~ter, with tb:e relevant information concerning each of the i - - ---- -- -- ....... ___ - - . - . - -~-. 

ln.ven_tions a.re set out in the following table: 

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REF ID:A70989 

ISSUED PATENTSJr.:;- ··: 

Held Under 

. ,~ .. 3-Yr. Pub. Used by I . 

!''Pat. No. Description Inventors Filed Issued Rule 700 Govt Owner License 

: 2 ,395,863 Crypto Device 

. . (Strip Board) 

Friedman 19 Oct39 5 Mar46 No Yes Yes In.v 

". 

., 

·: 

~ 

PENDING APPLICA TlONS - :· 

~. ~erial Nos . 

.... . 

·' 

... 

·:-.... . . r 

;_. 

682.,096 (Conv. M-134) Friedman Z5 Jul 33 Yes Yes Yes Govt 

107 ,2.44 (Conv. M-134-TZ) Friedman Z30ct36 Yes Yes Not yet Govt 

70.412. SIGABA (Conv. • Friedman&: Z3Mar36 Yes Yes Yes Govt 

M-134-C, ECM): Rowlett 

478,193 Facsimile enc. sys. Friedman 6Mar43 Yes No ? ln.v 

549,086. (Conv. M-325) Friedman 8Nov44 Yes Yes Yes Inv 

443,32.'0 SIGCUM - Friedman&: 16May42. Yes Yes Yes Inv 

{Conv. M-228) Rowlett 

In addition to the inventions set out in the table above, two basic inventions in the 

cryptanaJytic field were made by Mr. Friedman and submitted for action to the 

Signal Corps Patent Board in April, 1937. Because it considered these inventions 

so highly classified, the Board recommended that no patent applications be filed, 

and, in fac.t, no applications were ever fUed with respect to them. However, at 

least one of these basi,c inventions was u.sed and developed and extensions of it 

are now in use. 

Govt 

Inv 

Inv 

Inv 

Govt 

Govt 

Govt 

p I I I 
REF ID:A70989 

The inventions described above all arose in connection with the 

official d11:ties of Mr. Friedman, but not B;S a result of any specific direction 

or designation to invent the things involved. In fact, all the inventions Hated 

above were made while Mr. Friedman was engaged in other work which was 

in part responsible for his ultimately receiving the Medal for Merit. The 

official descriptions of the various posts held by Mr. Friechna.n in the course 

of his employment cannot of course be submitted because of their classified 

nature; but Mr. Friedman assures us thrit nowhere in the official records will .. -,,., ~ . . :-1" 0 I °' '"' 

there be found any designation to invent a specific thing, and that, in fact, no 

such designation was ever made. Further, specific findings have been made 

with respect to several of his invenUons, including one of the latest and most 

I . . - -

significant still in secrecy (Serial No. 443,320, filed 16 May 42), that they 

were not the result of any specific direction or designation to invent the thing 

involved, these findings being made by a board having special jurisdiction for 

. . -

that purpose, the Signal Corps Patent Board. And, in consonance with this 

state of the facts, under the provisions of A.R. 850-50, Mr. Friedman, along 

with his collaborators, has in fact been allowed to retain, either by ow:Q.ership 

of the pa tent or exclusive license_,_ the domes.tic commercial rights and all 

foreign rights in the inventions listed in the table above. 

·On April 25, 1936, Mr. Friedman subscribed a document purporting to constitute an agreement to make a c~mplete assignment of any inve~­

tions thereafter made by him to the United States, if the Chief Signal Officer 

requested such assignment. No such a request has been made with respect 

to any of the inventions described above and in all the inventions made subsequently to April 25, 1936, Mr. Friedm'!-11 has been allowed to retain rights 

under the provisions_ of A.R. 850-50, to the sam_e extent as _in those inventions 

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REF ID:A70989 

made prior lo that date; excepting those two so highly classified that no patent 

applications were filed. The provisions of the "three-year rule"' and P.L. 700 

were, of course, invoked to maintain secrecy. 

The salient fact regarding all the inventions which were or still remain in secrecy, ls th.at the rights retained by Mr. Friedman cannot be exercised while an invention is in a secrecy status. In making this point, we wish 

to emphasize that there is no question as to the wisdom of the judgment placing any of the inventions in secrecy. Indeed, it appears that most of the inventions still in se~recy are of such significance to our national defense, that 

the prospect of their release at any time~ the near future seems re~ote, 

and Mr. Friedman would be among the first to argue that the retention of the 

secrecy status wi~ reference to them ~s necessary in the national interest, 

whatever may be the consequences to his personal fortunes. 

Legal Status 

It is not our purpose to argue the strict legal status of the rights 

Mr. Friedman may have in his inventions or of any claim he may have arising 

from these rights. The reasons for this will become clear, we believe, when 

we discuss later in th.is memorandum the nature of the relief we seek for 

Mrp Frledman. But because the legal issues are relevant to the equitable 

considerations later to be discussed we wish to point out the nature of those 

issues·. 

It seems fairly beyond the realm of dispute that the rights which 

. - Mr. Friedman may have in his inventions have been substantially and adversely affected in at least two ways in connection with those specific inventions which were in secrecy and subseque~tly released as well as with those 

that today remain in secrecy; first, to the extent th.at the secrecy 

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REF ID:A70989 

req:uirement has prevented and still prevents the use of such rights during the 

period of secrecy and second, to the extent that foreign governments may have 

been or still are permitted the use of any of 'the inventions during the period 

of secrecy. The first type of impairment has occurred to. a more or less substantial degre~ in respect of all those inventions 'd.escribed above which were . 

placed in secrecy. Because of the secrecy surrounding the use of the inventions, the Department of the Army and the Department of Defense alone would 

know the exact measure of the second type, namely, that resulting from the 

use of any particular invention by foreign g~vernments. One of the conditions 

under which Mr. Friedman was permitted to retain counsel in this matter was 

th.at he would n.ot disclose any classified information and therefore we are not 

in fuU possesslon of the facts. 

·With respect to the inventions r.eleased fr~m secrecy. and on which 

paten~s h~ve issued, the question is raised whether Mr. Friedman has a claim 

in the case of Patent No. 2,395,863 under the provisions of P.L. 700, 35 U .S.C ., 

§42 which provides as follows: 

. - Wb,enever the publication or disclosure of an invention by the 

granting of a patent might, in the opinion of the Commissioner 

of Patents, be detrimental to the public safety or defense he 

may order that the invention be kept secret and withhold the 

grant of a patent for such period or periods as in his opinion 

the national interest requires: Provided, That the invention 

disclosed in the application for said patent may be held 

abandoned upon it being established before or by the Commissioner that in violation of said order said invention has been 

published or disclosed or that an application for a patent therefor has been filed in a foreign country by the inventor or his 

assigns or legal representatives, without the consent or approval ~f the Commissioner of ?atents. 

When an applicant whose patent is withheld as herein provided 

and who faithfully obeys the order of the Commissioner of 

Patents above referred to shall tender his invention to the 

Governm,ent of the United States for its use, he shall, if and 

when he u1timately receives a patent, have the right to sue for 

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REF ID:A70989 

e.ompensation in the Court of Claims, suc;h right to compensation to begin from the date of the use of the invention by the 

Government: Provided. That the Secretary of War or the Secretary of th.e Navy or the chief officer of Yl:Y established defense 

asency of the United States. as the case may be, is authorized 

to enter into an agreemept with the said applicant ln full settlement and comuromlse for the damage accruing to him by reasO,Q 

pf the order o{ secrecy, and for the use of the invention by the 

Governmen.t,' Emphasis added] 

:With resp~ct to those ~ventions still in secrecy, which are of such 

significance to our national interest that their ultimate release from secrecy 

seems at best remote, the·question is raised whether the Secretary of the 

Army, or the Secretary of Defense, in accordance with the authority granted 

by P.L. 700, should ~ot •enter an agreem-ent wlth the ••• applicant ln full' 

settlement and compromise for the damage accruing to him by reason of the 

order of secrecy•. 

We appreciate fully that the application of the provisions of P.L. 70 

to inventors in the position of Mr. Friedman is subject to argument: we point 

out the legal iss~es here not to argue such issues, but rather to show subsequently the relevan.ce of these issues to the equitable considerations in the 

znatter. 

The Relief S9Ught 

As we have already indicated, it is not our purpose to argue the 

- strict legal issues that may exist in the case of Mr. Friedman, the reason 

being that the strict legal issues are not the foundation for the relief we are 

seeking on his behalf. Mr. Friedman does not :req.uest any affirmative action 

of the Department of the Arm.y or of the Department of Defense. 

·What we seek on Mr. Friedman•s behalf is an opportunity to 

present his ease to the Congress without objection 011 the part of the DepB.rtment of Defense. 

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REF ID:A70989 

We propose to have submitted to the Congress a bill authorizing the 

Secref.ary of the Treasury to settle all claims and rights of Mr. Friedman in 

respect of all the inventions described above for the sum. of $100,000, the bill 

being in the following form: 

Fo:r the relief of William F. Friedman. 

·Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

That the Secretary of the Treasury be, and he is hereby, 

authorized and directed to pay to William F. Fried.man, out 

of any money in the Treasury not otherwise appropriated, the 

sum of $100, 000 in full settlement for all rights in respe~t of 

his inventions in connection with military, naval and air communications facilities, which are now or at any time have been 

placed in secrecy status by the War Department or the Depart-

·ment of De~ense, including but not limited to all rights with respect to his inventions covered. by Patent Number 2,395,863, 

and by patent application serials 682,096, 107,244, 70,412, 

443,320, 478,193 and 549,086 and with respect to all inventions 

for which patent applications have been withheld by the War 

Department or Department of Defense in order to preserve 

secrecy: Provided, That no part of the amount appropriated 

in th.is act in excess of 10~ thereof shall be paid or delivered 

to or received by any agent or attorney on account of services 

rendered In connection with such claims and rights. 

The sum of $100,000 will not be submitted as having any relation to 

the legal measure of damages due to the impairment of Mr. Friedman•s rights - -

in his inventions because o~ the secrecy orders. We think that a figure determined in accordance with any legal measure of damages could reach a 

magnitude in his case which would be far beyond the range and purpose of the 

- - - relief we seek; indeed, the experience of the w_ar Depai-tment in the purchasing of rights in inventions of this nature would probably offer a fair indication 

of the value of the foreign and domestic commerc-ial rights in Mr. Friedm.an's1 

inventions. The ~um. of $100,00_0 will _be subD?-itted to the Congress as a s~ 

.Mr. Friedman can reasonably request in the lighf of the equitable considerations to be discussed below. 

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REF ID:A70989 

At this point, we .wish to make H doubly· clear tliilt we ask nothing of 

the Department of Defense exc.ept an indication iliat the Department will not 

object ~ the. submission of the bill descr~bed above to the Congress for consideration upon its merits. It is of course, obvious that Mr. Friedman, who 

is a high level technical consultant in the Department of Defense, would be 

highly .embarrassed if he were to take any action in the matter without first 

soliciting the attitude of the Department upon it. It seems equally obviou.s 

that it is desirable from the Department's viewpoint that we ascertain its 

policy before proceeding. 

. The l;quitable Considerations 

.Mr. Friedman is now '9 years old and has dedicated his entire 

ad~H iUe to the wor'k he h~~ done for the War Department and the Department 

of Defense. He has made inventions of the greatest impol"tance, and has re- ... I JI. ' • 

tamed rights in them which he will probably never be able to exercise in his 

lifet~e because of the orders maintaining_ them in secr~cy. He has received 

the highest honors the United States can bestow upon a civilian, but, ironically, 

the very significance of the work which brought hhn honors has placed upon 

hhn burdens and disabilities to which he would not otherwise have been subjected. It will be necessary to catalogue only a few of them in order to demon 

s tra te this. 

(a) In the course of his work, but beyond the requirements of any 

of his duties, Mr. Friedman performed basic research, developed techniques 

and made discoveries and inventions of a significance to the national interest 

whieh we ~derstand would challenge the most creative imagination to eva.luat . . ·- -- ~ . 

in any mon.etary terms. In accordance with the firm policy of the_ War Department to offer an incentive for inventive genius, which brought about such 

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REF ID:A70989 

exc.eptiona.l results in the case of Mr. Friedman, he was granted the domestic 

CQmm.e;r_cla.l rights IU:l.d foreign rights in his inventions. If those inventions had 

been of only mino~ ~i~~iflcn::D.~~- to the national interest; Mr. Friedman would 

h.JLve b .. en l:n a position to benefit from those rights •. Because of their inestbnable importance to the national inter.est, however, Mr. F.riedman has 

been effe.ctively and properly (from the point of view of the_ national interest) 

fore~loised frp;m exercising any of his rights in his mos-t significant inventions. 

It seems equitable,_ and desirable from the viewpoint of the government, to 

mitigate by some token the penalty which has thus unintentionally been imposed upon high achievement, and to vindicate in. some small measure the long 

standing War Department policy of stimulating inventions, a policy which 

failed here simply because it was so ·successful. 

(b) The desirability of some relief for Mr. Friedman in this situation is heightened.by reference to the policy o!'the Congress expressed in 

1946 by the statutory authority granted to all Government departments to 

make a~ards to gavernment personnel for any suggestions beneficial to the 

governmen~ C.5 U .S.C.,§116a), without limitation in amount, so far as the Depa.rtm.ent of Defense is concerned. In furtherance of this policy, awards have 

been made for suggestions improving methods of packing, offic~ procedures, 

files and the ·like. It is not reasonable to assume that a Congress which 

authorized ~u.ch rewards for any helpful suggestions to the government, wouid 

not a~tb.orize relief for Mr. Fr~edm~ in. the ~traordinary situation in which 

he finds himself. 

(c) Although it may be that the provlsions o! P.L. 700 do not apply 

to inventors ~the position of Mr. Friedman, they point generally to the consideration given to the problem set out in paragraph (a) above by the Congress 

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REF ID:A70989 

and show a further disposition on its part i:o grant relief against inequities of 

"this ~ture •. The patent provisions of the Atomic Energy Act (42 u.s.c., §1811) 

1lke~ise sho'W the .co~_cern o~ th_e Co.n_gres~ to avo~cf: ~f;iflin_g the ~entlve urge 

in those arl!as of ou~ national interest of the highest importance by compensating for the penalties which are dicta.ted'. by ne~easity. 

(d) The secrecy which has surrounded all the achievements of .. 

Mr. ~rie~~n -~- c;~~~ection with his dutie~· for the Government, .has effectively circuinscribed any opportunities 'of Mr. Friedman to engage in his pro-

. . . .resaipn elsewhere whether by teaching, writing~ lecturing, by independent . - . . - -

invention or otherwise. lt may be noted in this coiinec~ion that Mr.- Frl.edm.~ 

. -- . ... . - has written a number of ;t>asic works in his fiel_d whi~h are maintained in 

se~re~y and are available for use onlf ~a comparatively small group within 

the Department of Defense. 

·(e) The secrecy surrounding all his work has effectively denied . .... - - -· .. . 

Mr. F.riedm.an the recognition his superior work del!!erves and to which men 

in all profe~si~ns and sciences aspire. The receiit ~xperience of the Atomic 

·Energy Commission in its ef!orts to-·retain in its employ scientists of the 

highest calibre under a blanket of secrecy is relevant to the present case. 

·(See Report of the Joint Committee on Atomic Energy, Slat Cong., 1st Session, 

Oct., 1949, ~~nate R~port No. 1169, p. 36.) 

(f) The immeasurable stress of his work and the burden of responsibility imposed by the necessity for constant secrecy ever since 192.1 were 

major factors in the impairment of Mr. Friedman's health which now makes 

his livelihood increasingly precarious. 

·It is this last consideration which finally induced Mr. Friedman to 

permit us to bring the matter to the attention of the Department of Defense. . . 

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REF ID:A70989 

Of course, this consideration needs no documen~tion beca~se much of the 

medical attention Mr. Friedman has _:m:_~c_e_ived over the past several years has 

been in army and veteran. hospitals. As already indicated, also, Mr. Friedman 

was required to retire from the Reserve Corps in 1941 for this reason. We 

are enjoined by Mr. Friedman from expanding upon this consideration and. 

laying upon it the stress we think it deserves. This alone explains the bareness of its presentation. 

The Precedents 

There are at least two precedents for the relief we propose to seek 

from the Congress ori. behalf of Mr. Friedman, both involving the invention of 

devices in the field of military communications. The first, an "Act for the . - . 

Relief of Captain Russell Willson", and the second, an "Act for the Relief of 

Maude P. Gresham and Agnes M. Driscoll"'. The full statement of facts and 

the legislative history of each of these acts is attached hereto as Appendix A. 

(a) In each of the cited cases, a single cryptographic device was invalved, invented in one case by a naval officer and in the other by a naval 

officer in ~o1laboration with a civilian employee of the Navy Departm.ent. In 

the case of Mr. Friedman, at least nine inventions are involved. 

(b) The practical significance of the inventions involved in. the two 

cited cases is unknown to us and Mr. Friedman is enjoined from disclosing 

that information. Only tb..e Department of Defense ls bl a position to weigh 

that significance in comparison with the significance of the inventions of 

·Mr. Friedman. 

(c) As in the case of Mr. Friedman, the devices involved in the 

cited ~ases were inventions by ~fficers and personnel of an organization now 

a part of the Department of Defense, made without designation to invent, put 

to use by the government and maintained in a secret status . 

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REF ID:A70989 

(d) In the two cited cases no patent applications were ever filed 

and accordingly the inventors had no patent rights in the inventions whatever; 

:with respect to two of Mr. Friedman's inventions, he is in exactly the same 

position. As to the other seven inventions listed in the table above, Mr. 

Friedman was, in fact, granted the domestic commercial rights and foreign 

rights. It _has already been indicated, however, that these rights have been 

defeated by the very importance of the inventions, and have been completely 

nullified for all practical purposes by the necessity for holding the inventions . 

in secrec;y. In the case of one of his inventions (Serial No. 682,096), these - ,-

rights have now been suspended for 17 years; in another (Serial No. 107,244), -

14 years: for how many more years they will remain suspended is not even 

su'bject to rough estimate. Obviously, suspension in these circumstances be- 1 

comes synonymous .with nullification. 

(e) The personal considerations in the two cited cases ~ere simi-. 

lar to those in this case. 

(f) In the two cited cases, the clahns submitted to the Congress 

re-=elved the express approval of the Navy Department. Mr. Friedman asks 

only that the Department of Defense express no obj.ection to the presentation ; . 

of his matter to the Congress. He would of course be happy if the Department of Defense were to give the matter its affirmative approval, but he does. 

not ask that much. 

Aside from the cases cited above, which seem parallel to the 

present ~ase in all respects including the very :nature of the inventions in- . -

volved. there are others where officers and employees of the military services sought and received relief from the Congress for inventions which were 

put to use by the government. These cases, of course, are not directly in 

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I 
point here, because we do not intend to make any request based upon government use of Mr. Friedman's inventions and for this reason are not cited here. - -- : 

·They are mentioned, however, to show generally the disposition of the 

Congress to aid in the effectuation of the War Department and Navy Department policies of offering this form of incentive to stimulate invention in the 

national interest. 

Conclusion 

It has been our purpose to make this memorandum as brief as a 

reasonable presentation of the matter of Mr. Friedman would allow. It is 

respectfully submitted as a basis for the request for an indication. that the 

Department of Defense has no objection to the pres.ent&tion of the matter to 

the Congress on its merits. The considerations which seem to make that request a reasonable one in the circumstances have been set out along with the· 

factual background of the matte-r. Favorable consideration of the request 

would be greatly appreciated. 

Respectfully submitted, 

FISCHER, WILLIS AND PANZER 

. .BY .. -·- ~~~-----~--------~~~~ Henry G. Fischer 

Attorneys for William F. ·Friedman 

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REF ID:A70989 

.-

APPENDIX A 
.................. --------------------------------~-:--~~~~~~~~~- ----~~ 

REF ID:A70989 

.. .......... ..!.• • 

i·h'H (\JNcm:ss l IIOUSJ!J 011' Rl~l1Rl~Sl~NTATIVES { 

I xi ...;, 11ai011. f REl'ORT 

No. 284 

l\I UICll ... 1035.-Cummitft'tl to thl' Commitfoc or f.ho Whule llonKc 111111 un.\crcd 

tn be 1>ri n tl•d 

:\Jr. H1·:Am:1, frum th<' ('ommitt<'o on Naval Affni~, submitted the 

follo\\ing 

['l'o IU.'l'OllllllLllY H .. R. 5564) 

'fh<' C'onunit.f.e(\ on Navnl .Affni~, to whom wnq I'<'it•rred tho bill 

(II. R. 5!;G4) fol' the r<'lh•f of Cu pt .. Russl'll Willson, lTnitl'd Stutl'S 

N 11 \".\', ]11l\·i11~ t•on1:1id<'rl'd th<' P.nnu.•, report it to t hL• House with tho 

l't'<'Ollllll<'IUl11tion thnt it do pnss. 

Th<' f>lll'J>OKl' or the pmpo~l'd lrgi~lntion is to give Capt. Russ<'ll 

"'ill.son, l Tnitl'd Stntl's N' 1L\'\", $15,000 in Cull settlement for n <'l'rb1u1 

inYl'ntion of his uscd iu <'oim<'ctiou with tho scC'ret comnmni<·11tion 

f cwilitil's of th<' N 11 \'\". 

Thl' ,·11htl' to tl1l' • N 11.\"Y uncl to thl' Govl'rnment of this in\"l'ntion 

<'1mnot be llll'111:mretl in dollnrs 11nd Cl'nt.s. Its vnluc to the Govcrnmrnt mn\• bt• judg<-d h\• the fact t.hnt. it w11s US<'d during tho \\"orld 

""111· in nfl tlii;pnt<'lu.•s b~t·Wl'l'll thl' Natv\• Dl'pnrt.ml'nt nml nnv11l hl'ndqm1rtP1'S in J..onclnn, i11l"lt1ding thosl' COJll"C.'l'ning 1110\"l'llll'Uts of tl'llJlSJ>Ol'tq, wh<'l'<' its Sl'<'l'<'<"Y protc.•ctl'd thous11ml1:1 of lives and millions of 

dollurs worth of pro pl' rt\•. 

Bl'mg nw111'l' or <"Ompairutivo ens~ witl1 whi<"h conficl<'ntial 11ncl l'll'rl'l't Jlll'SSd~CS Wl'l'l'I mtl'I't'Cptl'tl nnd cll'l'Odl'd In· unnuthol"~C'd J>C'l'SOlls, 

C11ptn111 "-illson con<'l'ivl'<l nnd J>t•rfol'tcd t.hi~ inwntion whiltl on 1L 

tour of Sl'll duty in 1016. Jl'or C11pt11m Wilkm to luwl' p11tmtccl this 

in\"l'ntitln woufd h1t\"l' dl•st.m.red it.~ lllltl'fulncss iri th11t it would thl'n 

hn.Ye hern op<'ll to fmblic.- iJ1spl'<'tio11; instrncl, he ttaivl.' it to the N nvy. 

Tiu.• eflicient'\" o th<' cll'\'irc mn\· hL' mo1·c fully 11ppreri11trd Crom n. 

st11tt'ment mn<le brfoI't' the rom1i1ittec dm'ing 'thl' bemings on this 

bill which is quotec.l us follows: 

Toward the l.'1111 of thl.' World War n. clispn.tch frulll a diplomatic agent in 

Copt•nha,..'l.'n re11urterl that copies of u.11 cal.ill.'i WL're reu.chiug 81.'rlin 111111 u.11 Wt're 

beini; dcc·i1>hercd ~·xcc11t those in Navy ci1>her. 

This bill pro,·idcs for long-deluyl'd cCo111pens:1tion for 11 deYicl' which 

during the World W11r wns the basis of the N11.Yy's system of Recrct 

comnnmicntions. 
REF ID:A70989 

2 CAPI'. BUSSELL WILLSOJ.11' 

The Navy Departn1ent favors this proposed legislation as is indicated by tlie letter of the Secretaey of the N o.vy to the Speaker of 

the House of Representath·es which is hereby made a part of this 

report. 

NAVY DEPARTllZNT, 

11•aahinoton, Februa.ru 4, 1985. 

The BPz.a.z:za OI' TBZ Ho't'BE OI' RzPBZBZNT.&TIVBB, 

11'aahinoton, D. C. 

l\ly DBAB Ma. 8PEAKEB: There la tro.namitted herewith a draft of a proposed bW for the relief of Capt. R1Dsell \\'illao.n United States Navy. The proposed legiala.tlon pro,·iciea that the Seeoretar)• of the Treaaury ia authorized and direeoted 

to pay Capt. Ruaaell Wfilaon, Unlt.ed States Navy, out of any money In the 

Treaaur1 not othen\·lse appropriated, the aum of 115,000 in full settlement for a certain 1n,·entlon of hia uaed In connection with the secret communication facilities 

of the Nan" 

Captain Willson \\'hile aer\·inf at aea in 1916 conceived and designed thfa invention relating to the secrecy o n&\•al communications, and developed it In 1917 

without auggeationa, fdeaa, or help from any other ~non at any time. He submitted the Invention to the Na'"l Department which accepted it In 1917. The 

Invention baa been uaed by the Navy continuously since that time. For reaaona of public policy, it baa ne\·er been patented. Captain Willaon baa not In any way, dlrectls or indirectly, received al!Y compeDB&tion for hla work in producing thla 

ln\•entlon, nor for fta use by the Na!Y durf!lK and since the war. The aum of $15,000, which the Na\'Y Department believes should be appro- priated, fa modest In compariaon with the vatue of the invention to the Government during the World \far and during the 16 years thereafter that it has been 

In continuous uae. The Navy Department recommends that the proposed legislation be enacted. 

Sincerely yours, Cr..&uoz A. Sw.&NBON. 

0 

·.·· 

-----.. ------- - ------ -r 

--· 

·. 
REF ID:A70989 . ---· ............ _____ ----

BENA.TE 

Calentlu No. 835 ~{ Kwon No. 792 

CAPT. RUSSELL WILLSON,· UNITED STATES NA VY 

MAY 13 (aalendar day, Jun 8}, 1936.--0rdered to be printed 

Mr. HAL111, from the Committee on Ne.val Affairs, submitted the 

following 

BEPOBT 

[To accompany H. :a. S384] 

The Committee on Naval Affairs of the Senate to whom was 

1-eferred the bill (H. R. 5564) for the relief of Capt. Russell Willson, 

United States Navy, having considered. the snn·o, report it to the 

Senate without amendment with the recommendation that the bill 

do_pass. _ · The purpose of this bill ia to give 'Captain Willaon $15,000 in full 

settlement for a eertain invent.ion of bis uaed in connection with the 

secret eommunication facilities of the Navy. · This bill, if enacted, would involve an additional coat to the Govemment of $16,000, but the bill ia reeomn\ended by the Navr Department and the committee feels that this ia a just claim in V181V of the 

great value his invention has been to the Navy. The House report, which explains thia bill in detail, is hereby made 

a part of tbia report. 

111.Repl. No. 111!1, rcth Coq., 11t ... J 

The Committee on Naval Atrair11 to whom WAI referred the bfil (H. R. 6664) for the relief of Capt. Ruuell Willlon, United States Nav:r, having oo1181dered the 

.ame, report it to the Houee with the recommendation that It do~· 

The py.rposct of the prol>Ol8d Jegilllation la to give Capt. RUl8ell Wiillon United 

Btatea Navy, $16,000 in full settiement for a certain Invention of hil uMd In con- nection with the ICCret communication facilitiea of the N&VJ'. 

The value to the Navy and to the Government of thfe Invention cannot be 

mea1ured In dolJara and cent.. Itl value to the Government may be judpc! by 1lle fact that it WAI Uled during the World War in all dilpatehes between the Navy Department and naval headqtiarten in London, including those concerning move- mentl of tranBPOJ'b, where :ltl secrecy protected thoueaD.dll of .llvea and million• 

of dollan worth of property. Being aware of eomJ>!'ratlve ease with which confidential and aeeret meuagee 

ware intercepted and decoded by unat:uthorlsed penom, Captain WIU.On con- ceived and perfected thi1 Invention while on a tour of aea duty In 1916. For 

,, -a. 
.· -- - _ .. _ .. .._.....-

REF ID:A70989 

2 C.\.PT. RUSSELL WILLSON, UNITKD STATI-:s N.\VY 

Captain \Villson to have·patentcd this in\·ention would h:L\'C destroyed its uscCul- neaa in tli..'1.t it wi>uld then ho. vo been upeu ti> public inspection: instcu.cl, be g:we it to the Na,·y. 

The emcit•nt?y of the tlovice mo.y be more Cully apprccintcd from a atatomcnt 

made before the committee during tho hearings on this bill which is quoted aa follows: - "Toward the end of the \Vorhl \Var n tlis110.tch Cn.1111 o. diplonuitic ngcnt in 

Oopenhn.gen reported that copies of u.ll cables were re:ichiug Berlin aud all were being deciphered except those in Navy cipher." 

Thia bill provides for long-del:wed compcnsation for u. de\•lce which during the 

World War wa.a the ba11is of the Na,·y'a sy11tcm uf secret communications. 

The Navy Department favors this proJ>OSCd legislation as is lnrlicated by tho 

letter of the. Secretary of the Na\')" to the Speaker of the llouao. of Rc1>reacntath•ea 

which ia hereby made a. part of this report. 

NAVY DEPART.lllB!'l'T, 

Washington, February 4, 1986. 

The SPBAKBR OP TBB lIOUBR OP Rzr REBBNTATIVES, 

1ra1hinglon, D. C. 

MT Dua l\ia. SPBA'l:Bft: Thero is tra11s1nitted herewith a draft of a proposed bDl for the relief of Capt. Ruaaell \VUillon, United States Navy. The proposed legislation provides that the Secret-a.ry of tho Treasury is authorized and directed 

to pay Capt. Russell \Villson, United States Navy, out of any money in the 

Treasury not otherwise appropriated, the sum of $15,000 in full settlement for a certain invention of his used in connection wif:h the secret co1nmunicatio11 facilities 

of the Navy. Captain ~WDlaon while serving at sea. in 1916 conceived and de11igncd this In- '"' 

vention relating to the secrecy of naval commnnicatlona, and developed it in 1917 

without suggestions, ide11.11, or help from any other person n.t any time. He submitted the invention to the Na~y Department, which accepted it in 1917. The 

invention has been used by the Navy continuously since that time. For reasons of public polic)', if; has ne\-er been patented. Captain Willson has not In any Wf!.Y, 

dlrectl7 or Indirectly, reeel\·ed ·any colnJ>ensatlon for his work in producing this 

Invention, nor for its use bf the Navy during and since the· war. The sum of Sl5,000, which the Na,•v Department believes should be appro .. prlated, Is modest in co~parison \\ith t)1e \•alue of tbe invention to the Government during the-World War and during the 16 years thereafter that it has been. 

in eonijnuoUB use. 

The Navy Department recommenda that the pMpused legislation be enacted. 

Sincetely yours, 

C1.AUDB A. SWANSON. 

0 

.,,,. 

- "'.-~ 

-~1,f 
• 

.. 

REF ID:A70989 

[PRIVATE-No. 79-74Te: CONGRESS) 

[H. R. 5564) 

AN ACT 

For the relief of Captain Ru1111Cll Willson, United States Navy. 

Btl it n1aeted by tl1e Sennte and llouRI' of /lc1we1t1•11t11ffrt•B of th6 

United 1f:Ifafea of .lmrricn in lYongl'e1t11 11.1111embkil, Thnt the Secretary of the 'freaHUl'Y be, and he i1:1 lu•rc?by, authorizecl ancl directed 

to pay to Captain U.n~sell 'Villson, Uniteil StnteK Na\'y, out of anY' 

money in the 'frt>11.,..11ry not otherwise appropri11ted, the sum of 

$15,000 in full settl1•mN1t for his invention which has been accepted 

by the Xat\'Y I>epartment for use in connection with naval comn111nication fa<'ilitieH. 

A111Jrovccl, Jur~o 13, 1935 • 

• - ':::::! 
75Tu CoNOBESS l 

lRf Bc1Rion f 

REF ID:A70989 

Calendu No. SEN~TE { 

MAUDE P. GRESHAM 

MAT 10, 1937.-0rdered to be printed 

539 

REPORT 

No. 526 

Mr. WALSH, from the Committee on Naval Affairs, submitted the 

following 

REPORT 

[To accompany S. 1463] 

The Committee on Na val Aft' airs, to whom was referred tho bill 

(S. 1453) for the relief "Of Ma-.ude P. Gresham, having considered the 

same, report favorably thereon, with amendment, and, as amended, 

recommend that the bill do pass. Amend the bill as follows: 

Page l, lines 6 to 8 inclusive, strike out tho following: 

Navy, out of any money in tho Treasury not otherwise appropriated, the 1um of 

SUS,000 in full aettiemcnt for the late Commander William F. Grcaham'e invention 

which baa. 

And insert in lieu thereof the following: 

Navy, the sum of $8,'150 and to Agnes M. Drisooll the 111m of $8,260, out of any 

money in th.e Treasury not otherwise appropriated, said BIHM to bo in full ana complete settlement of all claim• ~ mid partica 11.1t&inet the United BtatCB arising from the in,·ention of tho late \.iommander Willjan1 F. Grcaham which said 

invention hu. 

Amend the title of the bill so as to read: 

A bW for the relief of Maude P. Gresham, and for other purpoeee. 

The purpose of tho bill is to pay to tho widow of tho lo.to Commander 

William F. Gresham, United States Navy the sum of $8,750 and to 

Agnes M. Driscoll the sum of $6,250 in fub and complete settlement 

of all claims by so.id parties against the United States arising from the 

invention of tho lo.to Commander William F. Gresham which has been 

accepted by the No.vf Department for use in connection with no.val 

communication faeilities. · Tho hill was introduCt'd at the ro9uest of the No.vy Department. 

The DcJ>nrtrnont stai.tes thai.t tho bill lS in accord with tho program of 

tho President and involves an additional cost to the Government of 

$15,000. 

Commander Gresham invented a. device that greatly increased the 

efficiency ol o.n important part of the naval commun1<".o.tion Sl'rvico. 

- .... __ ,,.. __ -- -----··-... - ':'. --:· -:----........ --

• =--=---::::;;;;;;;;;;; 

---; 
REF ID:A70989 

2 M.\l"lll·: I'. CllU-!~H.\ll 

This clc\·ice wus of such n serrct and confidl'nti11l nuture, ancl of such 

imporhmce to the Xutionul defense, tlmt. the .N'tt\"Y Depul't.ment confisc11tecl it fo1· t·hl' l'xclu~ive use of tho N1l\"y 1mcl provontt'cl Commnnder 0l'eshum from obt11ining 11 pat<'nt. thereon. If this in\•ent.ion 

hncl been putentetl its usefulness would h1ivo been dMtroyecl, its it 

woultl then Im ,.e bc<'n 01u•11 to lmblic inspection. 

Pl'ior to bis cll'ath, Conmuuu l'I" Gl'es\111111 J'C(lllt'Stecl tlmt he be compensated for his im·l'ntion in tho umount of $30,000. llJJon rerl'ipt 

of his l'CC(UCSt the Serrcturv of the N'a\'Y COl\\"Cncd I\ bonrc.l or thl'ec 

officers to l'ecomml'nd the· a.mount of compensation to he puid to 

Commander Greshnm. The board found, after <'IH'l'ful compurison of Commandl'1' Gre1:1ham's im·ention with eurlier unc.l similur clevires, 

tbnt it greatly increusecl the efficienc.y of un importunt component 

pnrt of the nn,·nl rommunicntion sl'r,·1ce und that $15,000 would he 

a fair compcmsntion therefor. 

The N1wy Department hns recent)~· conducted o. further in\•estigation into the m1ltter aml is of the opmion tho.t Comniancler Grcshnm 

was the sole irn·entor of the device, hut that the fundaml'.ntal rryptographic principles which the muchine was designed to emplQY probn.hly 

w11s conceived hY :\frs. Driscoll and c.lis('losed by her to Commancll'r 

Gresham. The· committee is therefore of the opinion that l\Irs. 

Driscoll's rights nncl interests in the im·ent.ion aro substantially equul 

to those of Commanch.•1· Gresham nncl thut she is entitled to a fnir 

percentage of nny compensation whirh mny ho granted to Mrs. 

Gresham. The committee, therefore, recommeruls an amendment 

granting l\Jrs. Grcshum the sum of $8,750 an4 1\1~. l).rjsc.oll the sum 

of $6,250. 

Payml'nt of compensation in liko amount to Co.pt. Russell Wilson, 

United Stntes Nan·y, for 1111 irwention which <luring the Worlcl War 

was the basis of the Kn.vy's system of secret communico.tions, was 

authori:io;ed and c.lirectecl by the net of June 13, 1935. 

The committee has inspcctcci this im•ention nn<l helie,•cs that it is of 

great ,·alue to the Go\"e1·nment in connection with the secret communication fucilities of the ~a,·v nnd i1:1 of the opinion tbnt, although tho 

"\"aluc of this im·ention to· tho Government cannot he mensurccl in 

dollnrs nnrl cents, $15,000 is n fuir compensation therefor. 

0 

' -:- -~ 
REF ID:~70989 

7irru CoNOHF.lolM l JIOUST~ 011' REPRmmN'l'A'l'l\'ES j 

11tf S('llHiOll f 1 REPOBT 

No. 1099 

MAUDE P. GRESHAM .AND .AON:Ji~S l\f. DIUSCOLl.1 

JUNH 24, 1937.-Committl'cl to the Committl.'e of thl.' Whole J101111c ancl unll.'rcrl 

to be t>rintl.'d 

Mr. COFFEE of Wllsbington, from the Committl'c on Clnims, submittetl th<' following 

RI~ POR'l' 

['ro accom11any R. 1-153) 

Thl' Committee on C'lalims, to whom wns re£t'rl'l'U tho bill (S. 1453) 

for the rl'lief of l\fuudc P. Gr~lmm, hnYing- <'Onsiclt'ro<l tJ1c snm<', 

rt'JlOl't thl'l"t'On with tho reeomm<'ncl11tion tlmt it do pnios with tho 

following llllll'ndml'nt.s: 

Pug<' 1, line 6, strike out tbl' figuJ"es "$8,i50" on<l inst'rt in lieu 

t.hereof "$8_,690.55". 

Pn1tc 1, hne 11, atft.l'l' the nnmc "GJ"eFohnm ", insl'rt "und Agnes .l\f. 

Dris<'oll," . .Aml'nd the titll' of t.be bill to rood: 

A bill for the rt'lil.'f of l\fancle P. 0rl.'11ham and AKllCll l\I. Driscoll. 

ST.o\.TEl\IENT OF FACTS 

.As n1nl'nd<'d, this bill pro\"icll'S for the pnyment of $8,090.55 to 

l\[nude P. Gresluun, widow or \\'illillm F. Greslunn, lute eomnumder, 

United St.ates Na,·y, und t.l1e sum or $0,250 to .Anges 1\£. Dris<'oll, in 

full nnd <'Omplete sl'ttl<'llll'nt of nil elnims by snicl pnrtil'S ngninst the 

United Statl's arising from the invention of t·he lute Commancll'r 

Willillm Ji'. Gresham nncl .Ag_nl!ll l\f. DI"isl'oll, whil'h inn•ntion lms 

hel'n R<'<'<'pt<'cl bv the Nawv Depurtml'nt for use in l'Onncl'tion witl1 

nn,·al <'Onununi<'tttion fn<'iliti<'s. 

The im·ention hl'rc eompl'nsntecl for hns not bcl'n ,·iewecl h)• your 

eonunittl't' nncl its exn<'t 1111tul'l' is not known, hut th<' Nuvy Dcpnrtme11t 1:1tntl's tlu:tlt gl'l'afl\- illCl'C'BSC!tl the t•ffil'irnl.')' or Bil hn\>Ortant 1.'0lUIJllnC'llt !>art or thl' 11&\'nl 

co1111n11nil.'atio11 111.•r\'il'C and that $15,000 won 11 he a fair rompl.'nHO.tion thl.'n.•for. 

A similnr finding lms bel'n mncle by th<' St•nHtl' Committl'c on NnYnl 

.Afl"nil's, whid1 Yil'\\"l'cl the inY<'ntion, nnd whi<'l1 found thnt A~es l\f. 

Driscoll assist.eel in the design of ecrtnin or its funclumentnl prm<'it>l<'s. 
• 

"REF rn':A70989 

2 !.\(.\l""I>Jt: P. Glll•:l'CU.\l\I .\ND .\ONNS l\(. DlmKX>1.r. 

Thl'rl'forl', till' bill int'ludes am award both to the widow of Commnndl'r 

Gresham and to Mrs. Drjscoll and t.bo po:vment of these claims is 

similar to tho action tokl'n by the CongrC!BS in connel'tion with another 

no.nl invention undl'r Prh·ato I..aw No. 79, Seventy-fourth Congreu. 

It will be noted that the committee has :rt'dul'ed tho payment to 

Mrs. 0l'l'Sho.m by $59.45, whi<'h sum was ove~pnid to her husband 

as a rental u.Ilowanl'e and was the subject of S. 1313, Private Low 

No. 86, Seventy-fifth Congress. That law 1mtl1orized o. credit in the 

ac<'ounts of the disbursing officer who mo.dl' the pn.yml'nt to Comnumdl'r Gl'l'sbo.m. At the time, your committl't\ endl'avorcd. to 

IUK'ert11in why the o\·erpaynll'nt wn.s not collected from Commander 

Gl'l'Sham, and the Dl'partment replie.d that such action was usually to.ken but thut the officl'r's death hod precluded it in the case in 

question. As tltl' disbursing officer wns hl'ld liatble for tl1e payment, 

tbis ronunittl'l' rel'onunl'nded the bill, the eviden<'o tlisclosing that it 

was mude without negligence on his po.rt and prior to his receipt of 

certllin pertinent instructions. Your committee is not attempting 

to take a small position wit.h regard to tho $59.45 overpayment, but 

it is constrained to the opinion that it sbould havo been refunded to 

tho Government either liy Commander Gresham or his estate, and· 

consequentlv we can see no reason why it should not be recovered 

on behalf of the Go,·emment. The deduction here mo.do accomplishes that purpose. 

Furtl1er fncte relo.t.ive to those claims appear in tl10 report of the 

Sl'no.te Committee on No.val Affairs and a letter from the Navy Department, both appended. 

[S. Kept. No. uo, 711Sb Cons .• 1st; -.1 

The Committee 011 Na\•al Affairs, to whom waa rererred the bill (S. 1453) ror the relil'f of Maude P. Gresham, having consl<k-rcd the aame, report ravorabey thereon, with amt'ndn1cnta, and, &11 amended, recommend that thil bill do pass, Amend the bill 1111 follo\\"s: 

Page 1, line 6 to 8 inclush'c, strike out the following: "Navy, out or any mane.) 

in the Treasnr)' not otherwise appropriated, the sum or $15~000 In full settlement 

for tho late Co111ma11der William F. Gresham's im•eution wnich baa". 

And inBl'rt In lien thcreor the following: "Navy, the sum of $8,750 and to Agnes M. Driscoll the amn of $6,250, out of any money in the Trcaaury not otherwise 

a1>propria.ted, aairl sums to be in full mid eomplE'te settlement of all claims by aakl parties a~ainst the United Statea arising fron1 the in\·cntion of the late 

Commander Willian1 F. Gresham which 11&id invention hRB". 

Amend tho title of tlic bill so as to read: "A bill for the relief of Maude P. 

Gresham, and for other pnrposl'll." Tho purpc>B«l of the bfll is to pa\· to the \\"fdow of the late Commander William 

F. Gresham, United Stntw Na,•y;the sum of $8,750 and to Agnes M. Driscoll the sum of $6,250 In run and complete settlement of all claims by said parties against the United Sta.tea arising from tho invention of the late Commantier William F. 

Gresham which has bee~ accepted by the Navy Department for use in eonncetlon 

\\"Ith n&\"al eommunleahon faellltlea. 

The bill was introdueed at the l'l'qUCllt of tho Navy Department. The Department at.ates that the bill la ln accord with the program or tho President and ln-

\"olvea a.11 additional coat to the Go\·emment of $15,000. 

; Con1mander Gl"Cflham in,·entcd a device that greatly increaRCd the effiolenoy of an import.ant pa.rt of the na,·al communication litJn•icc. Thia device was or such a secret and eon&dentlal nature, amt of aueh lmportanco to the national 

dl'renal', that the Nan• D«.'pa.rtn1ent confiBl'ntcd it for the cxoluaive use of the 

Nnvv n11d pre\'l'llted dommnmler Gre11ha111 froin obtaining a patent thereon. If 

thla lll\·enhon had bl't"n patented its naefulncaa would ha\'O been destroyed, as it 

would tben h&\"e been opeu to publie inapeetion • 
REF ID:A70989 

• 

M.\UDitl P. Olll<JSJIAM: AND AGNES 1\1, DIUSCOLL 3 

Prior to hla death, Commander Greah&Jn requeetcd that he bo eompenaatcd - -for his Invention in the amount of IB30,000. Upon rcoolp~ of his requeet the 

Becrotary of the Na\'Y convened a board of three offtcen to recommend the 

amount of compenaatiou to be paid to Co11unander Grcaham. Tho board found, 

after careful comparison of Ccmuna.nder Gl'C!llham'• Invention with carlk•r and 

similar devlCC!I, that it p;reatly lncrcaacd the efficleno_y of an Important com,POnent 

part of tho naval commuuleatlon service and that 515,000 would bo a fair eom- penaatlon therefor. 

The Navy D8J>&l'tment baa recontly conducted a further invcatlgatlon Into the 

matter and la or the opinion that Commander Gresham W&B tho solo Inventor 

of tho device, but that tho fun""moutal eryptogra.phlo principles which tho 

machlno was designed to omploy probably was conoe1ved by Mrs. Driscoll and 

diacloaed by her to Commauder Gresham. Tho committee la thereforo of the 

opinion that Mn. Driscoll'• rlirhts and Interests In tbe Invention are aubltantially equal to thOllG of Commander Gresham and that aho la entitled to a fair percentage 

of any compeD1&tlon which may ht\ granted to Mra. Greaham.. The committeo 

therefore, recommonda an amendment gretlng Mn. Greaham the aum of $8, 750 

and Mn. Driscoll the aum of 16,250. 

Payme11t of compenaatlon lu like amount to Capt. Ru11Cll Wllaon, United 

States Navy, for an Invention which during tho World War 1''&8 tho hula of the 

Navy'• ayatem of secret communlcatlona, waa authorlled and directed by the act 

of June 13, 1935. 

The committee baa inapected thia Invention and bellevea that It ill of ~at 

value to the Government In connection with the aeoret communication facilltlea 

of the Navy and la of the opinion that1 although the value of thla Invention to the 

Government cannot be meaaured fn aollara &11d cents, $15,000 la a fair compenutlon therefor. -

N .a. VT DmPABTlllllNT, 

lV aal&iftffon., l'ebrv.o.f'J/ 6, J 987. 

The Sn.a.ua OI' TB• Houu OP RBl'BlllamNT.a.T1v111a, Wo.al&iftffon, D. C. 

MT Dua Ma. BR:uua: Then fa tranamltted herewith a draft of a propoaed 

bW for the relief of Maude P. Oreaham. 

The purpoae of thia_ptouoaed ~latlon fa to~ to the widow of the late Commander William F. Gi-ealiam, Umted Btatea Nav;y, the aum of 1.111,000 In full 

settlement for &JI invention Of the late CommanCler Greaham wl'iloh baa been 

aeoei>ted b;r the Navy Department for uae In oonneotlon with naval communication -Yaoilltlea. 

Prior to his death, Commander Gresham requested that he be compenaated for his Invention fn the amount of IS0,000. Upon receipt of this regueat the Becrutary of the Navy oonvened a board Of three offioen tO recommend the &JDount of 

oompenaatiln to be pJ&id to Commander Greaham. The board found, after careful com~n of Cowmander Greaham'a invention with earlier and almiler devloea, 

that it greatl)' inoreaaed the eflloienoy of an important oomponent part of the 

naval communication aervioe ed that $11.000 would be a fair compenaation therefor. P~t ·or compeDB&tlon In like amount to Capt. Ruuell WW.on, United 

Stat.ea Navy, for an invention waa authorised and diiectcd by the aot of June 18, 193a (49 Stat.-). . The ~ lellalatfon, If enaoted Into law, would Involve an additional 

expenae to the Government of IUS,000. 

The Navy DePartment recommends that the propoaed leldalatlon be enaoted. 

The propoudlellalation la In accord with the program Of the Prealdent. 

Blnoerely youn, 

CLAUDll A. SWANBOK. 

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REF ID:A70989 

[PRIVATE-No. 2G7-75TH CoNGREss] 

[CHAPTER 583-1 ST SESSION) 

[S. 1453) 

AN ACT 

For the relief of Maude P. Gresham and Agnes M. Driscoll. 

Re it enacted vy the Senate a1Ul llou8e of Hepre8entative8 of the 

lj71ited 8tate8 o / America ·iu Om1.g 1·e.~8 a.~8emhled, That the Secretary 

of the Treasury b<~, a11<l he i.-; hereby, authorized and directed to pay 

to Maude P. Gresha111, wid11w of \Villiaill F. Gresham, late commander, United States Navy, the sum of $8,()90.55, and to Agnes M. 

Dri!;coll I lie sum of $G,~:>O, out of any money in the Treasury not 

otherwise appropriated, said sums to be in full and complete settlement of all claims by said parties against the Unite<l States arising 

frc,111 I he i 11 vc11tion of I he late Com1wu1<ler William F. Gresham and 

Agnes ~.I. D1·iscoll, which said invent ion has been accepted by the 

1\a,·y Depurtmcnl for 11se in connection with m1.val cmumunication 

fal'ilities: 1-'l'ovfrle,l, Thal 110 part of the a111ount appropriated in this 

A«I. in excess of 10 per cent um thereof shall be paid or delive1·ed to 

or re<:ei ved by any 11ge11l or agents, attorney or attor11eys, on account 

of scrvic<!S rcndereJ in co11ncctio11 with said claim. It shall be 

11nla\\·ful for any agent or agents, attorney or attorneys, to exact, 

col l1.,c:1, w it.hhold, or n~cei ve any s11111 of the :unount appropriated 

in t.i1is Act in Bxccss of 10 p<'r C(~Jlt 11111 thereof 011 account. of services 

l''.::11l1:n:d in c:o1111cctio11 with ".aid clailll, any contract to the contrary 

110L1•ithstandi11g. Any person violating the provisions of this Act 

shall be d1:c11wd guilty of a 111i:.;denH•anor and upo11 couviction thereof 

shall be lined in any s11111 no! "~;c1:edi11g $1,000. 

Approved, August 11, 1937. 

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