Evening star., 1934-09-04
SUBMARINE SALES
SHARING REVEALED
U. S. Boat Firm Head
Tells of Pact With
Vickers, Ltd.
CONTINUED From First Page.)

NOOltulucu FIOuu rAct 1d8c.J 80
amounted to $292,617So from 1918
to 1894, which included salaries OF
G. S. McNeir up until 1927, and Ster-
ling j. Joyner, who succeeded him in
that year.
Nye introduced an exhibit SHOW
ing the boat company's business from
1919 to 1884 totaled $26, ,722, 1894, and
included work done for the United
States Navy and the governments OF
Argentina and Peru.
Carse said the company had re-
ceived royalties from foreign sub.
marine building companies on pat
ented devices which the United States
Navy was forced to use because they
were basic patents"
Vickers, Ltd, used the patents and
paid royalties, he said.
He was asked about q letter he wrote
his Paris agent in 1925, that the COM
pany had never "assented" to the
use by the United States Navy Of its
patents in the construction Of SUBJ
marines.
The letter had been written to Paul
Roster, q former Dutch naval officer,
who was representing the company
there.
Roster Paris Representative.
Carse said Roster represented his
company in Paris from 1912 to 1881,
when his services were terminated be-
cause of lack of business. The Paris
Office handled European business for
the company.
Carse said the boat company had
not "assented" in 1925 to the use of
its patents by the United States Navy,
but Spear interjected that the use of
the patents by the Navy had not been
challenged.
Carse said any nation had the
right to use Of his company's patents
upon payment of royalties.
Nye asked Carse to explain why he
had sent the letter saying the COM
pany had never assented to the
United States building his type of
boat.
Carse reiterated that his company
had never challenged United States
Navy use of its patents.
Nye then dropped the matter tenn
porarily, and turned to the company's
relations with the Vickers Co.
No Government Connection.
CarSe explained in some cases the
Electric Boat Co. had arrangements
with Vickers whereby its equipment
was used on the payment Of royalties
He added that there was no direct
connection between his company and
the English government. All their
arrangements were with Vickers.
Carse sat facing the committee,
back to the audience. He wore horn
trimmed spectacles and a gray busi-
ness suit. He spoke slowly in low
tones and often smiled good-naturedly.
Beside him sat Spear, a tall, angu-
lar man with thinning sandy hair.
Carse told how Electric Boat and
Vickers had an agreement on the
construction of submarines as to
profits and said the world was split
up into exclusive areas for the two
companies.
Carse said Vickers was given the
IlSIlI ny ElcCIrlC BOAT TO sell SUBJ
marines in English territory, while
the company retained the exclusive
right to build submarines for certain
other countries.
The two companies shared about
equally in profits made on building
submarines in Great Britain, or for
continental European countries.
Part of Contract Read.
Nye read part of a contract show
ing the two companies split up the
world business on submarines through
division of trade territory.
This contract indicated Vickers
reserved Great Britain and her
colonies as her own territory. while
the American company reserved the
United States and territories as well
as Cuba and neighboring countries.
Carse explained that the agree
ment forbade Vickers from compet-
ing In countries preferring the Amer
lean type boat.
Senators Bone and Pope took copi-