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"In the meantime, a significant reorganization had taken place within the Holland Torpedo Boat Company. On 7 February, the Electric Boat Company was incorporated and the Holland Company became its major subsidiary. Certain privileged holders of Holland stock converted their assets into preferred shares of Electric Boat. The management of Holland's company did not change, but the power structure did. Isaac Rice became president of both companies; John Holland was retained as manager; Charles Morris continued as superintending engineer; Charles Creecy still represented the Holland interests in Washington as legal counsel. E. B. Frost, secretary-treasurer, emerged as the real overlord of the submarine enterprise. In a letter to an official of the newly formed Electric Boat Company, Frost protested with shrewd modesty:"
"While I think it is entirely natural and proper that the dominant stockholders should wish control of the treasuryship of both companies, I am convinced that if there is any field of usefulness for me in connection with the Company, it will be greatly impaired by divesting me of every official title. Personally I do not care for office or title; but as a matter of fact title and office in Washington are regarded as of some importance ... I would suggest that I be left with the simple title of Secretary, the duties of which involve very little detail, from which I am happy to be relieved. I should prefer so far as my work is concerned to remain upon a salary."1
"The Electric Boat Company soon absorbed, into one vast combine, The Electro-Dynamic Company of Philadelphia and the Electric Launch Company, among other Rice enterprises. The full impact of this power shift on the fortunes of John Philip Holland and his associates became increasingly evident as the months advanced."
1. "Letters of the John P. Holland Torpedo Boat Company, 1899" (Submarine Library), E. B. Frost to R. McA. Lloyd, 28 March 1899. |