Washington, Sept. 5.
Further sensational evidence was given to-day before the Senate committee of inquiry on relations between American armament manufacturers and foreign arms firms.
Officials of the Electric Boat Ca. to-day admitted that they had paid commissions for South American business, but did not think this could be called bribery. in order to do business in South America, you had to grease the ways," Mr. L. ¥. Spear, vice-president of the Electric Boat Ca, told the Senate committee.
'A number of letters were read showing that Commander Aubry, Peruvian representative of the Electric Boat Ca, had unsuccessfully tried to get himself appointed Peru~ vian delegate to a meeting held in connection with the Disarmamen: Conference of 1925. Commander Aubry wrote to his company, saying he would urge that there would be quotas for submarine construction in South America, and that the submarine should be classed as a defension weapon.
Mr. Spear, in reply to a question from the chairman of the Senate committee, Senator Gerald Nye, declared that the policy of the United States was to have South American countries well equipped with ships of American type so that, in the even!
their ald as allies would be greater.
Mr. Henry Carse, president of the Electric. Boat Ca, continuing his testimony, said that, during the recent Leticia dispute, his firm sold ammunition to Peru which had been supplied by Messrs. Vickers Ltd. and delivered through the West Indies, after an unsuccessful attempt to send it via Brazil.
Revelations made at the inquiry are causing a sensation in the United States. Yesterday, Mr. Carse stated that his company and Messrs. Vickers, Lid, had divided the world into exclusive areas for the sale of submarines, and had interchanged patents applying to ship construction.
He further stated that German "U" boats used during: the Great War were built on an American-owned patent through an infringement of patents which had been obtained from the Austrian Government, with
Text read from the printed page and cleaned; old type leaves the occasional error.