The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-09-05
SENATE COMMITTEE
PROBES Chile AND
PERU TRANSACTIONS
Promise to Show Deals in 1929.
80 Made by Electric Boat
and vickers, Ltd.
CLAIM BRIBERY WAS USED
Clark to Bring Out Evidence to
Show Sales While u. s.
Planned to Disarm
BULLETIN


Washington, Sept. 5.-(P'--A let
ter showing that the Electric Boat
Company paid in 1928 for the trans
portation to Europe of the wife and
son Of Admiral Howe. chief of the
United States naval mission to Peru.
was presented Wednesday to the Sen
ate Munitions committee
Washington, Sept. 5.-(41-Talk OF
bribery in the sale Of submarines to
South American countries mingled
with evidence that Peruvian sales
man of the undersea craft sought to
serve as delegate to the 1925 dis
armament conference in testimony
Wednesday before the senate NUM-
tons committee
Officials Of the Electric Boat COM
pany of New London, Conn.,, said they
paid commissions for South American
business but, under questioning, said
they did not think it could be called
bribery.
L. Y. Spear, vice president of the
concern. said in order to do business
IN South America you had to grease
the ways A letter from Spear to
an official of Vickers. Ltd, the Brit
ish concern with which they cooper
ated in submarine business, said:
I'VE all know the real foundation
of South American business is graft"
Letter Discloses Scheme
Other letters disclosed that Com
mander Louis Aubry. = Peruvian
salesman for the submarine company,
proposed to get himself appointed as
delegate to the 1925 disarmament
conference.
MY flag will be: No quotas IN sub
marines, construction In South Amer
lea, and classify 1t as q defensive
weapon" he wrote.
The company did not object to hts
going but refused to pay his expenses.
it developed, and he did not attend.
Senator Clark, dem. NO., in chargo
of South American angles Of the hear
ings, said:
We hope to prove that Americans
nonchalantly admitted bribery was
necessary to do business In South
America. and that it was perfectly
proper to use sabre-rattling In NUM-
tons craftsmanship tactics"
Officials of the Electric Boat COM
pany of New York and Groton, Conn,
who bore the brunt Of the first day
testimony, were called back to the
stand.
They are Henry r. Carse, pres-
dent; L. Y. Spear, and Henry r. SUIT
phen. ce-presidents. who testified
Tuesday that Sir Basil Zaharoff, mys-
FERROUS European multi-millionaire
their agent on that continent for
many years and profited handsomely
thereby.
To Reveal Firms Alliance
Senator Clark said evidence to be
laid before the committee would prove
Electric Boat and Vickers Limited, of
London, mutually profited in 1929
and 1920 when Peru and Chile were
pickering over Tacna and africa, and
that Vickers took the Chilean business
while Electric Boat handled the Peru
Wan munitions sales.
Further steps will be taken to bring
out evidence that munitions COM
panies sought United States support
III SelIlNg arms at almost the very
time the United States was preparing
to take leadership for naval. disarm-
ament.
Testimony concerning the muni-
tons traffic developed in the open
hearing included
Sir Basil in 1925 suggested inter-
vention of the American state depart
ment through Ambassador Moore in
Madrid to shut out German shipbuild-
ing competition.
Michel Clemenceau, son of the war;
time premier of France, was a British
arms company salesman in Europe,
and his name was suggested by Zah-
aroff to Electric Boat as likely as
sistant to Zaharoff in Europe and to
watch the South American business.