Evening star., 1934-09-06
SUBMARINE DEAL
BR|BES CHARGED
Probers Told Turkish Min
lister of Defense Was
Offered $12,50O.
Continued From First Page.)

testimony about the dealings of Sil
Basil Zaharoff.
Carse and Spear resumed their &C.
count of the submarine sales of their
concern, for which Zaharoff was their
Spanish agent.
Carse testified under questioning BY
Senator Clark that at one time III
objected to payment of per cent
commission to Zaharoff on business
he obtained for Electric Boat and at
tempted to reduce this commission
through negotiations with Zaharoff
but failed.
A letter written in 1892 by Carse
to Zaharoff, complaining about Wick
ers getting Spanish submarine busi-
ness, was read into the Record by
Clark.
1t was developed that through an
agreement, Vickers used Electric Boat
patents and was supposed to pay a
royalty. At first, officials of the COM
pany said, they shared the Spanish
business with Vickers and Zaharoff
who dominated the Spanish COM
panies.
The Spanish government owed
money to the Sociedad Espanola, a
Spanish naval concern, which in turn
owed money to Vickers, Carse testi-
fed. AS result, Sir Charles Craven
managing director of Vickers, not only
got the Spanish business, but became
an offlcer Of the Spanish company.
"Vickers was able to intrude' be-
cause your Spanish concern Sociedad
Espanola owed money to Vickers The
Spanish government owed money to
Sociedad and, therefore much of the
Spanish governments business found
its way to Vickers Is that not true?"
asked Senator Clark.
"Yes, in effect" answered Carse.
Free From Interference.
When today's hearing opened the
investigating committee carried the
assurance Of President Roosevelt that
there will be no interference with its
work.
Previously the committee had re-
ceived word that certain Government
departments and munitions manufac-
turers' representatives wanted to con-
fer with 1t about keeping some evi-
dence from open hearings. The group
met in executive session, but the rep
resentatives did not appear.
Committee members said that at
first some of the Government depart
ments had been reluctant to turn over
certain files about the activities of
munitions manufacturers, but that the
President had sent word to make the
Information available
After winding up with the Electric
Boat Co., Senator Pope, Democrat, of
Idaho, planned to switch the inquiry
into the briggs Ordnance g. En-
gineering Co. and the reported use of
the American naval cruiser Raleigh
as show case" in 1929 in an effort
to sell Turkey special type of anti
aircraft gun.
L. l.. briggs, company president,
failed to sell to Turkey so guns. But
the Navy, Pope said, sent the cruiser
to Turkey in the hope that briggs
could make the sale, enlarge his plant
and thereby give this country more
gun manufacturing facilities.
Spear told the committee yesterday
Its hearings would drive all foreign
munitions business from American to
foreign concerns.
Ambassador Is Involved.
As q climax to yesterdays hearing
1t was disclosed late in the day that
an American Ambassador and other
high Government officials had helped
the Electric Boat Co. sell submarines
in South America. It was developed
that Edwin v. Morgan, former Am
bassador to Brazil, had aided the con-
cern back in 1922
A letter from Morgan to Frederick
=. Chaplin, company representative,
was put in the record, in which the
then Ambassador said he had con-
suited Luis Aubry, South American
submarine salesman, over a three
month period. He added that the
American Naval Mission would be con-
suited before further orders were
given.
This revelation was mixed with an
other-a statement by Vice President
Spear Of Electric Boat, that in his
opinion civilization cannot stand
under the blow of another World War
He added, however, that he was q
business man and that his business
was selling submarines"
Electric Boat, which is allied with
the giant British armament firm
Vickers, Ltd, in submarine building
was shown by evidence introduced
earlier yesterday to have been aided
in South America not only by Nor
gan, but also by American Naval Mis-
riOna tn BRO 1i1 ond Darn
Passage Declared Paid.
1t developed further that the con-
cern paid for a passage to Europe in
1928 for the wife of Admiral Howe,
former head of the American Naval
Mission to Peru, and her son. Navy
records show Capt. Alfred G. Howe
was head of the Peruvian Naval Mis-
sion from 1926 to 1928.
This episode was disclosed in a let
ter by Carse to Spear. Neither could
throw much light on the matter
yesterday.
Carse's letter mentioned another
outlay" and asked If the Leviathan
fare was extra" He promised to re-
fresh his memory and clear up the
matter
It had been testified earlier that Rear
Admiral Clark H. Woodward, also
former head of the naval mission to
Peru. was favorably disposed toward
Electric Boat.
Woodward agreed, letters showed
that he would ask the Navy to send
any inspectors to Peru that Electric
Boat might recommend.
The inspectors duty would be to ap-
prove for the Peruvian government
the submarines sold by Electric Boat
List of Activities.
"Yes," Spear agreed, I'VE wanted q
nnronatanf man.