As president of Electric Storage, he became aware of the attempts (despite financial difficulties) since 1896 to deliver the first modern submarines for the US Navy, which ran on electric power while underwater. A year after the 1897 launch of their first vessel, the "Holland VI", the management of John Philip Holland and Lewis Nixon (owner of the Crescent Shipyard in New Jersey, where "Holland VI" was built) found it difficult to finish making the last details operable and were running out of cash. Isaac Rice moved in, taking over and renaming the company as the Electric Boat Company on 7 February 1899. After a few months of negotiations and multiple tests, the United States Navy purchased "Holland VI", renamed it USS "Holland", and awarded the new company a contract to build its first fleet of s. Also in 1899, Rice added the Electric Launch Company (Elco) to his family of companies.