The sun., 1904-11-26
SUBMARINES MADE FOR RUSSIA
AGENT SUES THE HOLLAND co.
FOR HIS COMMISSIONS.
They Reply That Q Russian Company Is
Building Six Under Their Patents
and That They've Received $500, 900
-.Order to Examine Rice and Frost.


Building Six Under Their Patents
and That They've Received $500. 900
-Order to Examine Rice and Frost.
Isaac L. Rice. as president. and Eihu B.
Frost, as director Of the Holland Torpedo
Boat Company. must submit to an examina-
tion before trial in the suit brought against
the company by Francis r. B. Sands to
recover commissions for his services In OBJ
tanning orders from the Russian Govern
ment for submarine torpedo boats
Justice Laughlin in the Appellate Division
of the Supreme Court decided yesterday
that SANDS WIS entitled to examine Rice
and Frost in order to enable him to frame a
complaint. But Sands's application for q
similar examination OF the officers OF the
Electric Boat Company, which, he says,
has absorbed the Holland c.mpany, is
denied. Rice is president and Frost a
director OF both companies
The decision and record show that sub
marine boats are admittedly being built for
the Russian Government on plans supplied
by the Electric Boat Company and under
it's patents.
Sands, in an affidavit sworn to at Wash
ington, d. c.. on June 27 last, says that he
became an agent for the Holland company
in 1895 on a written contract authorizing
him 10 secure orders for submarine boats
from the Russian Government on 10 per
cent. commission. He continued as such
agent, he says, down to July, 1908. In the
course OF his negotiations not only was
new type Of boat invented, but the Holland
company became merged into the Electric
Boat Company, with the same board Of
officers.
Thereafter, he says the Russian Govern
ment, acting under the negotiations that
he had opened, did buy some submarines
from the Holland company and paid its
representatives for them But Sands got
no commissions.
He asserts that he Ia ignorant OF the
particulars OF the contracts between the
Russian Government and the Holland COM
pany and wants to have the latter's officers
examined so that he may determine just
how much in commissions he is entitled to.
He also wanted to examine the officers OF
the Electric Boat Company, as he alleges
by some deal between the two companies
contracts have been made in the name Of
some other person or corporation. He
would like to find out who this third party
is. He also wants to know how many boats,
at what price and when. the Russian Gov
ernment has contracted for.
Sands got his order. and in applying to
have it vacated Elihu B. Frost made an
affidavit. verified July 10 last, In which he
stated that the Electric Boat Company
had purchased the outstanding stock OF tie
Holland company, and is merely stock
holder therein Frost also says that Sands
while acting in legal capacity for the
Holland Company at Washington re ivcd
more than $1,000 for his services : prior to
1893.
Frost saws further that Sands knows
abs solutely all the information he seeks.
He came to Frost on May 10 last and asked
if it were true that the Holland company
had got an order for twelve submarines
for the Russian Government Frost says
he replied that this was not So but that
Russian shipbuilding company was building
six submarines for the Russian Governme mt
under the FL ctric Boat Companys patents
Frost says he also gave Sands other in
including the fact that the
Boat Company had received $780,
900 from the Russian shipbuilding company
on account of the boats then being built
by the latter. Frost says that these state
merts are true. but that it is not true that
either the Electric or the Holland company
has any contract with the Russian Gov
err ment Between May 10, the date Of
the interview, says Frost and July 10. the
date of his affidavit, another 100000 had
been received by the Electric Boat Com
pany from the Russian concern, as an ad-
ditional payment for the use OF the patents.
Sands replied to Frost's affidavit by
another in which he denies that Frost made
to him the statements referred to and AYERS
that he is still ignorant whether the Hol-
land company did not assign either its
or patents to the Electric com-
rany, the latter reassigning them TO a Rus
sian shipbuilder
On these affidavits the examination
order was vacated, and from this Sands
appealed. In granting again the original
order, 70 far as it relates 70 the Holland
C )my any, Justice Laughlin says that
Sands's affidavit is sufficient to indicate
that he is entitled 20 recover some COM
missions from the Holland COMPANY And
in order that he may determine how much
to sue for he should have an examination
Of its officers. But as regards the Electric
company, he fails to show that it assumed
o,, obl;nat;ope nf tho Holland O,mnapy