Evening star., 1934-09-05
Senator Clark Charges Die
tator's Son, EmpIoye of
Munitions Company, Ar
ranged to Get rs Million.
SALESMAN SOUGHT POST
IN 1925 PEACE PARLEY
Real Foundation of South Amer
ican Business Is Graft" Official
Wrote English Concern With
Whom He Divided World Sub
marine Sales.
BY the Associated Press.

By the Associated Press.
An American submarine building
concern was accused today in the
hearing Of the Senate Munitions Com
mittee of being instrumental in saw
ing on" on the American people
worthless" Peruvian securities that
were fioated in this country in 1928.
Senator Clark, Democrat, of Mis-
souri, leveled the charge at the Elec-
trio Boat Co. of New London, Conn,
when the committee received testi-
mony relating to Peruvian bonds sold
in this country after that company's
statesmen had sold submarines to Peru.
Testimony was received that Juan
Leguia, son Of the former dictator
Of Peru, came to the United States
to arrange for the sale Of about $75,-
100000 Of bonds while Leguia was re-
ceiving pay from the submarine build
ing company.
THE truth of the matter was"
Clark said, that Juan Leguia came to
this country to obtain money to build
up big Peruvian navy"
In earlier testimony today talk of
bribery in the sale of submarines to
South American countries mingled
with evidence that a Peruvian sales
man Of the undersea craft sought to
serve as q delegate to the 1925 Dis
armament Conference.
Letter Refers to Graft.
Oficials of the Electric Boat Co.
said they paid commissions for South
American business, but, under ques-
ffnVHtnn Rofd fhau IfH txnLr
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 Coop
Grated In submarine business, said:
I'VE all know the real foundation
Of South American business is graft"
Other letters disclosed that Comdr.
Louis Aubry, Peruvian salesman for
the submarine company, proposed to
get himself appointed as a delegate
to the 1925 Disarmament Conference.
No Boat Quotas.
my flag will be-: No quotas in
submarines, construction In South
America and classify it as a defensive
weapon" he wrote.
The company did not object to his
going, but refused to pay his expenses,
it developed, and he did not attend.
Earlier at today's hearing Senator
Clark charged the purpose behind the
sending Of naval missions to South
American countries was to promote the
sale Of American warships and muni-
tionS.
Concerning this, Spear said:
1T was part of our policy at that
time to see that South American
countries were well equipped in case
we got into trouble"
The boat company official added
that 1t was the United States policy
to have South American countries
equipped with ships of American types
in order that in event of war, their
aid as allies would be greater.
Oil Concessions.
Previously the efforts of the SUBJ
marine building company to have
Peru grant oil concessions In 1920 to
an American concern in order to
finance $l2,000,0 900 warship program
had been described to the Investigate
ing committee.
Letters put into the record dis
closed that the boat company had
sought to enlist the aid of both ship
ping and oil concerns in order to
finance submarine purchases.
Clark put the evidence in the record
during the testimony Of Spear, Henry
r. Carse, president of the Electric
Boat Co., and Henry r. Sutphen, an
other vice president.
Evidence was presented that Chile
acquired a number of submarines
after the World War from England
as compensation for Englands seizure
Of Chilean war vessel that was be-
ing built In England during the war.
The conduct Of American Naval
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