The sun., 1918-12-10
SUIT BEGUN TO
GUST HEAD0F
SUBMARINE CO.
Complaint Lodged Against
Henry r. Carse Involves
Ross McAdOO. =
L. S. NAVY OFFICIAL TOO
$4,000 to Be Used to In
fluence Him for Contracts,
It Is Alleged.


with Offices at Nassau street. begaI
a suit yesterday IN the New Jersey
Court of Chancery for the removal o.
Henry r. Carse. president Of the Elec
trio Boat Company. from his position
Ross McAdoo, said to be a brother Of
William G. McAdoo, Secretary OF the
Treasury, is mentioned in the bill Of
complaint in connection with an allie
cation that Carse paid to McAdoo $40
600, of which "at least $4,000 thereof
should be used in attempting to ap.
proach and influence a certain higi
official in the United States Govern.
ment" in the interest of certain pro-
posed contracts for submarine boats
on which the company had submitted
bids. Malcolm r. McAdoo of 629 West
il5th street, consulting engineer and
brother of the Secretary Of the Treas
ury, could not be reached last night.
Frost's attorneys are McCarter 6
English of Newark, OF which firm
Robert H. McCarter. former Attorney
General Of New Jersey, is senior men,
Der.
The bill of complaint was filed by
Elihu b. Frost, individually and as
trustee under voting trust, and An
toinette F. Stout and Elihu b. Frost
as executors of the last will and tesla
ment of Calvin Frost. decedent.
Charge Against Carse.
Almost Immediately after the maxi
mig of the voting trust agreement. the
complainants charge, Carse set about
TO use his position as one of the trus-
tees and his covert and secret infiu-
ence over at least two of the trustees
TO obtain the office of president at a
salary Of $4,000.
Frost had personal charge OF the
business Of the company in Washing
ton up to the time of Carse's election
and a short time afterward. 1t was
set forth that 1t was his peculiar
duty to manage and conduct the bust
ness of said company at Washington
in connection with the company's
dealings with the Government Of the
United States touching the obtaining
and proper performance of contracts
for the construction of submarine
boats for the Government"
THAT in or about the month Of No
vember. 1916" the bill of complaints
recites, while the complainant, Elihu
B. Frost. was still supposed to be in
control of that branch of the COM
pany's business. the said Henry II.
Carse. without the knowledge or con-
sent of said Frost and without the
knowledge or consent of the board OF
directors Of said company, paid to one
Ross McAdoo the sum of $4,000 in
cash with the intent and for the pur-
pose that at least $4,000 thereof
should be used in attempting to ap-
proach and influence a certain high
official in the United States Govern
ment with the pretended claim that
thereby the said company would Sc
cure favorable recognition in and
about proposed contracts with the
United States Government for the
construction of twenty-eight subma-
rine boats. for the making of which
said company had submitted bids.
Ross McAdoo was not at that time
either an officer or employee of said
Electric Boat Company" the bill con-
tinues, nor was he upon its payroll
he had no personal experience or
technical knowledge of or concerning
the construction Of submarine boats
or the business of said company, but
was solely selected by the said Henry
r. Carse and paid said sum because of
his family relations and because of his
alleged influence at Washington; and
the said Henry f. Carse engaged said
Ross McAdvo TO go TO Washington ana
endeavor to induce favorable consid-
Grafton of certain bids of said Electric
Boat Company for submarine boats,
and in order to conceal his identity
said Henry r. Carse introduced the
said McAdoo as Mr.. Ross a person
connected with said Electric Boat
Company; and at or about the same
time the said Henry r. Carse improp-
eriy. and for the purpose of carrying
out his own ideas as TO the methods TO
be pursued in the conduct of the COM
pany's business at Washington. with
out the knowledge of the complainant,
Elihu Il. Frost, or OF the board OF
directors of said company, placed the
entire maDagement Of the company's
business ut Washington in the hands
of said Ross McAdoO, although he was
not at that time either an employee
or upon the payroll OF said COMPANY.
and in order to conceal the true nature
OF the transaction involving the pay
ment of $4,000 by said Henry n.
Carse to said Ross McAdoo, he went
through the formality of having the
said Ross McAdoo give TO himself. the
said Henry r. Carse. demand notes
payable TO said Henry r. Carse per
sonally for the sum OF 100000"
The bill continues:
That in further pursuance OF his
purpose and design to use inproper
methods, 10 further the interests of
the company by improper means, the
said Henry r. Carse. in or about the
month of March, 1916. without the
knowledge or consent OF the board of
directors Of said company, or any OF
Them, undertook to influence the solic-
tor of the navy by having the said
Ross McAdoo offer him a check OF
$1,000 ostensibly to purchase a patent
known to be Of no value, and owned
by relative OF said solicitor, but that
the said solicitor Indignantly refused
TO accept the said check or to have
anything to do with the transaction A"