In 1939 agreement was reached with the American Electric Launch Company (Elco) to purchase a British Power Boat 70-footer (later named PT9), as a template for American production under licence. PT9 was taken by the SS "President Roosevelt" to Elco’s works at New London, Connecticut. On 3 October Scott-Paine met President Roosevelt and senior Elco representatives at the White House to authorize the creation of a new naval arm, the PT Boat Squadrons. (PT boat was short for patrol torpedo boat). Production started at a new Elco factory at Bayonne, New Jersey in January 1940.