Senator  Clark.  What  was  that  order?

Mr.  Spear.  An  order  for  some  submarines.
Senator  Clark.  For  the  Japanese  Government  ?

Mr.  Spear.  Yes.
Senator  Clark.  You  never  licensed  them  to  manufacture  for  any-
body except  the  Japanese  Government?

Mr.  Spear.  We  did  not  license  them  to  manufacture  for  anybody.
We  never  had  any  license  agreement  with  them.  T]\ey  acted  merely
as  our  agents  to  sell  our  products  in  Japan.
Senator  Clark.  Wasn't  that  10  percent  you  gave  them  an  unusu-
ally large  commission  on  submarine  business  ?

Mr.  Spear.  I  should  not  think  so  at  that  time.  I  should  say  that
is  about  what  the  business  was  able  to  pay.
Senator  Clark.  Then,  when  it  came  along  to  1926,  you  then  found
Mitsubishi,  a  different  concern,  were  manufacturing  submarine  boats
for  the  Japanese  Government.
Mr.  Spear.  Yes.
Senator  Clark.  You  suspected  they  were  infringing  your  patents,
and  I  refer  you  now  to  "  Exhibit  No.  161 "  offered  in  evidence,  which
is  a  letter  dated  September  17,  1926,  addressed  to  Mr.  Spear  from  Mr.
Carse.
