38 Newton Street,
Newark, New Jersey,
February 8, 1906,
Hon. C. E. Foss,
Chairman Committee on Naval Affairs,
House of Representatives.
Dear Sir:
I am the inventor of the Holland submarine boat, now in use in the United States Navy and in Europe. My old patents, to the number of about twenty, are owned by the Electric Boat Company. On June 16, 1900, I entered into a contract with that company to serve as their engineer for five years, dating back to April 1, 1899, and expiring April 1, 1904. Since the expiration of my contract with the Electric Boat Company I have devoted myself to remedying the defects in my old inventions, and perfecting designs by which the low speed of the present Holland boats can be increased three or four times. Having perfected these inventions until I was sure I could obtain about 25 knots per hour submerged, and after making numerous other alterations, greatly improving the efficiency over my submarine boats now in use in the Navy, I procured the organization of a company, "John P. Holland's Submarine Boat Company," May 18, 1905, with sufficient capital to build a boat under my new plans and inventions, and was about to start to work, when the Electric Boat Company filed a suit against me in the Court of Chancery of New Jersey, applying for an injunction, and claiming substantially that I had agreed to assign to them all my inventions and patents during the term of my natural life. Two other suits have been started, one against my new company in the United States Circuit Court to enjoin the use of the name "Holland"; the other against me personally, alleging a verbal contract never to compete with the Electric Boat Company, was commenced in the New Jersey Court of Chancery. My contract with the Electric Boat Company to act as their engineer, and to give them my patents and inventions, was for the five years during which I acted as engineer, and no longer, and expired April 1, 1904, as stated above.
These suits have had the effect of frightening off the capital that I had enlisted, and I have not as yet been able to get the capital to build my new boat, by reason of these suits. The only object of these suits was to prevent me from building a boat and going into competition before the Navy Department with the submarine boats now being built by the Electric Boat Company under my old patents.
The Electric Boat Company makes the allegation in their last bill of complaint that by threatening to discharge me from their employ and break their contract with me and stop my salary, that I agreed to a contract which prevents me from using my brains and inventive talent in building submarine boats for the balance of my life. This allegation is absolutely false, even though under affidavit by Mr. Rice, and would be, if true, most inequitable on account of duress and on account of want of consideration. This alleged agreement was not reduced to writing; the only evidence the Court has is the sworn statement of Mr. Rice; and when the fact is considered that Mr. Rice, formerly a professor of law at Columbia University, and having the assistance of Mr. Frost, also a lawyer, failed to have such an important agreement reduced to writing and signed by me, the whole proposition appears ridiculous and silly. The further fact that this bill of complaint containing these allegations, has been printed and distributed at the Capitol would seem to indicate that the principal object of this suit is to frighten away the capital I had enlisted, and prevent the consideration of my new patents and claims by your honorable committee.
My attention has been called to the bill (H.R. 10070), entitled "A Bill to Increase the Efficiency of the Navy." It must be apparent to every member of your committee that this bill is drawn solely in the interest of the Electric Boat Company monopoly. The clause in it that "The Secretary of the Navy shall purchase or contract for said submarine boats within four months of the completion of the contract trials of the submarine boats now building for the Navy" is against all public interest, and is something extremely unusual. If the Electric Boat Company should not complete its contract for a year or two years or never, the whole business of the Navy Department in this line would be held up. The bill excludes me, the inventor of the Holland boats and who constructed and built the original Holland, which is now in the service of the Navy, from submitting my plans and models to the Navy Department for consideration, for it would be useless to do so if the Secretary is deprived, by the proposed law suggested by the Electric Boat Company, from adopting them, though considering them superior in efficiency and economy to the plans upon which the present boats are being built.
I have recently had my models tested in the government tanks at the Navy Yard in Washington by the United States officers in charge, and their official reports will show that I can get a guaranteed speed of 22 knots per hour submerged, and the same speed on the surface, and this speed can be obtained in vessels of the same or greater tonnage as those now being built by the Electric Boat Company.
I hardly think, Mr. Chairman, that your committee, in making an appropriation for submarine boats, will exclude the Navy Department from any consideration of the plans made by me when I say to you that these plans have the approval of some of the most expert officers in the Navy on the question of submarine boats, and that the boats can be built at one-third less than is now being paid the Electric Boat Company for boats of two-thirds less submerged and more than fifty per cent. less surface speed.
If I am prevented by the suits filed against me by the Electric Boat Company from obtaining capital with which to build my boats, which will have three times the submerged speed of the present boats, and a vast improvement in other directions, then I want the law so framed that I can present a proposition to the Secretary of the Navy to cause my plans and new inventions to be thoroughly examined by a board of experts, and if favorably reported on, that the government may build the same in its yards under my supervision, and pay me a reasonable royalty. That is all I ask your committee to do, and to not frame a law that will exclude me, the inventor of the present submarine boats, from having my improvements considered by the Secretary of the Navy, and pass one in the interest of the Electric Boat Company under its monopoly now of the business of the department under my old and obsolete patents.