Business possibilities for foreign countries have never been mentioned which may result from American credits to foreign countries or from building contracts of American shipyards, gun factories, etc., and for which you might be considered as subcontractors. Such business would according to Paragraph 3 of the agreement need a special understanding between us but is not excluded. In view of the extremely serious economic situation in the world it would seem most urgent in our mutual interest that we endeavor to bring about a more intensive cooperation between us in the frame of our agreement and we therefore ask that you make known your position and make proposals as to how far and in what manner these relations could be furthered and the possibilities of business could be more rationally exploited. We would also be thankful for a comprehensive economic report which would enable us to judge conditions. Yours very truly, N. V. NEDERLANDSCHE INSTRUMENTEN-COMPAGNIE, "NEDINSCO." Translated by WM: LM 8/10/39. Mil. Dept. 8909. EXHIBIT NO. 422 DECEMBER 14, 1933. Subject: Report for the months of August, September, October, and November. Mr. AUGUST LOMB, c/o Bausch & Lomb Optical Co., G. M. B. H. Schillerstrasse 30, Frankfurt a. M., Germany. DEAR MR. LOMB: We are sending you herewith our report which unfortunately had to be delayed by reason of the pressure of work which had to be taken care of in this department, due to the sudden activity brought about by the N. R. A. By reason of special secrecy clauses of late attached to each bid and contract, these reports, as harmless as they are considering that they have a commercial purpose only, are contrary to these clauses. We cannot very well eliminate them under the existing agreement with Carl Zeiss; however the regulations are so stringent that particular care must be exercised to keep these reports in strictest confidence and they should be kept in a separate file under lock and key. We would ask that you be governed accordingly and that you bring these facts to the attention of Messrs. Carl Zeiss. Mil. Department, Rochester, N. Y. GENTLEMEN: Since writing you December 5th, your letter Nr. 8909 of December 14th was received. It just arrived before the writer went to Jena and could therefore be discussed there. Monthly report. That enclosed in your letter Nr. 8909 was therefore transmitted personally, impressing again the necessity of considering this information strictly confidential and secret. This is fully understood by the management as well as their Mil. Department and we were again assured that these reports are locked up and only accessible to a few people who are fully responsible so that you can depend on your instructions being carried out. The contents of this report were very pleasing so far as the important orders are concerned which you were able to secure. It is to be regretted that the thirtyfour 11 ft. R. F. were lost, but evidently other firms also have to expect part of the business. This is equally true of the large Alti-Periscopes for which you could partly not quote for lack of designs. The latter were delayed on account of the missing specifications in English which Nedinsco asked you to send in their letter N XIII/2994 of November 29th. As soon as this information is to hand, the construction work will be continued and probably be completed within several months. Order 241. The tracings mentioned in your direct letter Nr. 8861 of November 24th were sent in the meantime. We were told that by a very regrettable misunderstanding Nedinsco omitted to send them, although they were ready since July. You have no doubt received them since and thus been able to obtain payment of this contract. Wishing you a happy and prosperous new year, hoping that the good prospects for business in your Department will continued in it, we remain, % Bausch & Lomb Optical Co. GmBH, Schillerstrasse 30, Frankfurt, a. M., Germany. DEAR MR. LOMB: We are very sorry to find that we neglected to send you our report for a considerable length of time. As you know, we are not free to give you these reports. This is about the best excuse that we can offer; the less reports we make the less the chance of any going astray. We shall try to keep you informed more regularly having your assurance that these matters will be treated by you and Carl Zeiss in strictest confidence. Very truly yours, AM: AK BAUSCH & LOMB OPTICAL COMPANY. EXHIBIT No. 425 OCTOBER 16, 1934. STATEMENT OF MILITARY DEPARTMENT TO MR. AUGUST H. LOMB 1. Deliveries during December 1933 and Jan. 1934: No sales. 3 261⁄2-ft. range finders. 12 M range finders. Deliveries during May: 2 26-ft. range finders. 321⁄2 M range finders. Deliveries during June: 1 26% ft. range finders. 5 2 M range finders. 1 Stereo Training Instrument. Deliveries during July: 5 2% M range finders. Deliveries during August: 7 21⁄2 M range finders. Deliveries during September: 72%1⁄2 M range finders. 2. Deliveries scheduled for the month of October: 8 2% M range finders. 3. Deliveries scheduled for the month of November: 72% M range finders. 1 sample height finder. 1 15 ft. range finder with special design features. 4. Deliveries scheduled during December: 5 2 M range finders. 1 15 ft. range finder with special design features. 5. Prospective work: There are important prospects ahead. These refer to additional business in 261⁄2 ft., 15 ft., and 21⁄2 M range finders, stereoscopic training instruments, telescopes, turret periscopes, etc., which will be dealt with later in reports as soon as they assume more concrete form. 6. Information for Zeiss and inquiries awaiting answers from Zeiss: While dictating this letter your letter of October 8 and Zeiss letters dated October 5 reached us. Submarine periscopes.-While we do not know exactly when the next bids will be received, it is a safe guess that this will take place within the next three or four months. If no designs are available from abroad by that time we shall not be able to submit a bid and the results will be that all of the labor we spent and which Carl Zeiss might have given to this problem will be in vain. Unless we can show a solution by the time the next bid comes up for consideration we shall not be able to recover the ground lost in the past in the submarine periscope business. Our design force now consists of thirteen men all occupied on present contracts so that it cannot be assumed that we want to throw the burden of the design work on Carl Zeiss. As a matter of fact we could not do this under the secrecy clauses of the "Recovery Act"; but surely we ought to be able to rely on Carl Zeiss for support when and where it is most important. We are hopeful that the promise made in letter of October 5 to give us this design by next spring can be considerably improved, in fact that every effort will be made to bring the solution of this problem to a point which will enable us to enter into competition in the next bid. Kogned Model '6.-We are glad to take notice that the information asked for will come forward during the current month. Light Beam Telephone.-We note your comments and would ask that you keep this question in mind and report to us again later. 7. New business and the results of bids made. Since our last report we have booked the following additional orders: 3 26-ft. range finders_ 17 26-ft. range finders_ 6 15-ft. range finders_. 10 21⁄2 M range finders 35 Stereo Training Instrument- We lost the following order: 4 131⁄2 ft. height finders awarded to Keuffel & Esser. $12, 800.00 each $12, 700.00 each $15, 200. 00 each $5, 600.00 each $2,075.00 each No other bids have been opened since our last report was made so that the above makes a very good showing for our company. 8. Action of authorities on new designs: There is nothing of particular interest to report. WM: AK MILITARY DEPARTMENT. EXHIBIT No. 426 Mil. Dept. 260 Confidential Subject: Altiperiscopes. Reference: Your letter Tele N XIII/61474 of March 16, 1936, (Attention Mr. Neuffer.) OCTOBER 20, 1936. DEAR SIR: With your letter in reference we received from you a new optical layout in the form of your drawing A 33 08 65/Opt. L. No. 2 for altiperiscopes of 34 foot optical length. We recently learned that our Government is now contemplating the use of 40-foot submarine periscopes and that bids for these will soon be submitted for consideration. These periscopes will be built according to the identical specifications as those you have in your possession with the exception that, as already stated, the optical length has been increased from 34 feet to 40 feet and the reduced section has been increased in length as shown on our drawing Mil. 458 84949-44-pt. 16-14 sent herewith. Moreover, the inner diameter of the main body tube now measures 6.500 inches diameter for a distance of 11 feet from the eyepiece end while its remaining length has an inner diameter of 6.375 inches as shown on our drawing Mil. 458. We would ask that you kindly prepare for us immediately a new optical layout conforming to these changes and that you give us this information at the earliest possible date. As stated, this question will soon need our consideration and unless we have the data available by that time we shall have to forego bidding on this new proposition. GENTLEMEN: We last heard from you by letter Nr. 919 of February 24th, but there was no occasion to write. During last week's visit of the writer in Jena the following matters were briefly discussed. Special Range Finder. That last referred to in your letter of February 24th is a pattern which, as you correctly assumed, cannot be freely offered to other countries. Brazil. Since several warships are now being built there according to the U. S. A. type by the Brazilian Government, optical instruments for them will also come into consideration. It may be that you will be invited to bid for such and some kind of an understanding should be reached with Zeiss in this respect. You will remember that in October-December 1925 we had arranged with Zeiss that so-called protective offers were to be made for foreign governments outside of the U. S. A., if they should ask you for such. If you have anything to suggest, so as to avoid losing this business to other competing firms, please do so. Such cases were provided for in the above mentioned additional agreement signed in Rochester on December 11th, 1925, which is not valid anymore. Sales. Prior to the years 1935 and 1936 Zeiss have always received a list of numbers, kinds, and prices of the instruments furnished during one year when the commission statement for the respective year was rendered. Since 1935 such a statement was not received, probably because you did not want to furnish any such data in accordance with your letter Nr. 9383 of October 16th, 1934. Zeiss, however, would be satisfied with very brief and condensed information, for instance Range Finders abbreviated to R. F., etc., if possible. Of course you will have to consider this with the Executive Office and may let us know occasionally whether feasible or not. Alti-Periscopes. The problem mentioned in your letter 763: 936 of March 16th, 1937, is very difficult to solve, but Zeiss keep it in mind as you know from their letter dated April 6th. To: Bausch & Lomb Optical Co., Rochester, New York. Subject: Contract of November 25, 1926. GENTLEMEN: We acknowledge receipt of your detailed letter of February 10. With regret we note therefrom that you are under an unjustified impression in several respects and that you derive your conclusions from incorrect pre sumptions. We shall interest ourselves in clearing up these errors and the misunderstandings resulting from them, and we feel confident that we shall succeed in doing this without difficulty. This, however, will require the cooperation of several gentlemen who are not immediately available either because of other special work, or on account of absence from Jena. That is why a detailed reply to your letter will require a little time yet. Nevertheless it seems appropriate to us to give further consideration now to your proposal and its effect. For this purpose it is absolutely necessary, and that is why we ask you for it, that you supply us, before we arrive at our final decision, with a precise statement of those patents of ours which you use in your manufacturing processes, designating at the same time those instruments in whose manufacture these patents are used, also indicating the turn-over you have had in these instruments during the last two business years, and the volume of orders which you have at present on hand for such instruments. We take it for granted that your Administrative Division can make up such a statement without trouble and loss of time so that we may expect it within a month at the least. Subject: Navy Contract No. 25341 for Submarine Periscopes-Our Purchase Order 4241-Special Instructions. GENTLEMEN: From the copy of the above contract which we have sent you with our other letter of today, Mil. Dept. 8077, you will take notice that the contract provides that customs entry will be taken care of by the Government. In view of this, and in order not to divulge to the Navy Department that we earn a commission of 10% on this transaction, it will be necessary that the consular invoices and export declarations which you will have to make out be higher in this particular case than your net invoice prices to us. Your shipping papers, consular invoices, and export declarations, etc., accordingly should state the following prices, f. o. b. Venlo : Item 1 -The unit price to be declared by you will be_-_1a-The unit price to be declared by you will be Total Unit $7,400 $14, 800. 00 470 6,780 470 470.00 20, 340. 00 940. 00 2 The unit price to be declared by you will be__-. (Note: The repeater motor is here included) 2a-The unit price to be declared by you will be‒‒‒‒‒‒ The difference between the above prices and those stipulated in the official contract are satisfactorily explained by shipping expenses, etc. It goes without saying that you will bill us for these periscopes in accordance with your letter of December 29, 1931 (M XIII/6661), less 10% commission. In view of the fact that the contract provides that the periscopes shall be consigned to the Supply Officer, Navy Yard, Brooklyn, N. Y., and that we prepay all expenses to Brooklyn, it will be necessary that sufficiently in advance of the date of shipment we arrange with you the final shipping instructions. You will therefore oblige us to keep us in touch with the progress that is being made on this contract, and that you notify us from three to four months in advance of the shipping date to this effect, to give us sufficient time to give you the final instructions. Please take notice that all insurance from Venlo to the Navy Yard, Brooklyn, N. Y., is automatically covered under our floating marine insurance policy, and all that will be necessary for you to do is that you advise us promptly of the date of shipment, name of steamer, and sailing date, in order to enable us to report the shipment to our insurance company as early as this can possibly be arranged. Very truly yours, WM/RDW. BAUSCH & LOMB OPTICAL CO. |