further provisions could be carried out, also that of section 4. Perhaps our letter of October 30, 1939, was not quite clear. As in all cases since, signing the new agreement, we maintained also for the order from Rumania the prices, we agreed upon with your London company long time ago, it is for the directional gyro £55 and for artifical horizon £50. We shall keep up these prices also in future, the more as we would like to see the price for the directional gyro even higher. Should the competition require a reduction of the present prices we will negotiate with you first. The prices we were asking for in Mr. Roux's letter of October 30, 1939, were for such territories which are under your management and not under London's. You will recall from the visit in the last year that we should receive from you such prices for territories which are now also open to us. Very truly yours, EXHIBIT No. 617 ASKANIA-WERKE, [Letter from Siemens Apparate u. Maschinen G. m. b. H., Berlin-Siemensstadt, Germany, signed by Altvater and Klein, to C. Marcus, vice president, Bendix Aviation Corporation, New York, N. Y., dated November 29, 1938] [Translation from German into English] SIEMENS APPARATE U. MASCHINEN G. M. B. H., Re Construction of SAM Instruments by you. Our ref.: SLF/Jae/988. New York, N. Y. DEAR MR. MARCUS: This is to acknowledge receipt of your two letters dated October 14, 1938, and addressed to our Captain Altvater, advising us that you intend to take over the construction of our electric horizon and our directional gyro. The compilation of the building data and specifications for the two instruments taken over by you for construction, namely: Electric horizon construction plan LEH 2b. Electric directional gyro construction plan LKu 4. as well as the forwarding of one model each of the said instruments will require a certain period of time because negotiations are still pending with our competent authorities and these must first be brought to an end. May we ask you, for this reason, to have some patience? With friendly greetings, Siemens, etc. EXHIBITS Nos. 618, 619, AND 620 ALTVATER. KLEIN. [Letter from H. H. Thompson, Sperry, N. Y., to Askania-Werke A. G., Berlin-Friedenau, Germany, dated April 2, 1940] Reference: Our 3. 4. 5. ASKANIA-WERKE AKTIENGESELLSCHAFT, Berlin-Friedenau, Germany. APRIL 2, 1940. DEAR SIRS: We beg to acknowledge receipt of your cable of April 1, reading as follows: Siemens is negotiating since year's license agreement with Bendix for Siemens course steering device for which they use electrical gyro and patents from Kreiselgeraete Co., Berlin, which company we bought only last year. We cannot judge consequences for your company, but if this should bring any difficulties to you we shall prevent Kreiselgeraete from granting such license to Siemens for Bendix. Please wire your viewpoint. to which we replied today as follows: Greatly appreciate your cable. We prefer that Kreiselgeraete grant no license to Siemens for Bendix for automatic course steering. When writing, please give list of patents involved. 2. At stated in our cable, we appreciate your taking this matter up with us. It seems to us that the granting of the suggested license to Bendix would tend to weaken the joint patent situation that you and ourselves are trying to build up in the United States, and therefore we request that the proposed license be not granted. In addition, we thought we had an understanding with Bendix that they would stay out of the automatic pilot field in this country, so we are surprised at their endeavors to acquire this license. 3. We are not familiar with the patents of Kreiselgeraete and would appreciate if you would give us a list of the same when you write. Very truly yours, EXHIBIT No. 621 [Letter from Askania-Werke A. G., Berlin-Friedenau, Germany, to Sperry Gyroscope Co., Inc., Brooklyn, N. Y., dated June 27, 1940] 1st mail by airmail via Nordamerika 2nd mail via Sibiria-Japan ASKANIA-WERKE AKTIENGESELLSCHAFT BERLIN-FRIEDENAU, KAISERALLEE 86-89 JUNE 27, 1940. Messrs. SPERRY GYROSCOPE Co., Inc., Brooklyn, N. Y. DEAR SIRS: We beg to acknowledge the following exchange of telegrams and your letter of April 2. Our telegram of Mar. 30, 1940: "Siemens is negotiating since years license agreement with Bendix for Siemens course steering device for which they use electrical gyro and patents from Kreiselgeräte Co., Berlin, which company we bought only last year. We cannot judge consequences for your company, but if this should bring any difficulties to you we shall prevent Kreiselgeräte from granting such license to Siemens for Bendix. Please wire your viewpoint." Our telegram of April 3, 1940: "Greatly appreciate your cable. We prefer that Kreiselgeräte grant no license to Siemens for Bendix for automatic course steering. When writing please give list of patents involved." Mr. Roux did write about this matter in detail directly to Mr. Gillmor, but we should like to add the following: As Siemens is for both of us a serious competitor, we should carefully watch their steps and work together in order to strengthen our joint situation. We therefore felt, that we should inform you what was going on over here and have, in accordance with your request, instructed Kreiselgeräte G. m. b. H., which we bought sometime ago, not to grant S. A. M. the manufacturing rights for the Gyro. S. A. M. is requiring for their license agreement with Bendix regarding the S. A. M. electrical course steering device. It was very interesting for us to learn from your letter of April 2nd that you expected Bendix, on account of an understanding you had with them, to stay out of this business in your country. As it is quite important for us to know whether the S. A. M. course steering device will be used in your country in greater quantities and if the electrification of aircraft instruments is gaining ground in your country, we would be much obliged for a detailed report about this question and Bendix's future policy. Your inquiry regarding the patents of Kreiselgeräte was quite justified. We have, however, to make a * of our telegram, because they are no patents * Consequently S. A. M. could grant the manufacturing * Bendix for a similar gyro. We will pursue this very carefully and ask you please to let us know what informations are receiving in this matter. As we were told sometime ago from friends in Skandinavia that you were also working on the electrification of your Junior-Pilot, we would be very interested to hear from you whether this is correct or not. Very truly yours, ASKANIA-WERKE AKTIENGESELLSCHAFT. EXHIBIT No. 622 [Letter from Siemens Maschinen und Apparate G. m. b. H., Berlin, Germany, to Bendix Aviation Corporation, New York, N. Y., dated April 20, 1940 (signed by Altvater and Rieper)] Second Mail. Air Mail via Clipper. Registered Mail. Your letter of: February 19, 1940. Our Reference: SLF/Jae/988a. SIEMENS, DIVISION FOR AERONAUTICAL INSTRUMENTS, Berlin, Germany, April 20, 1940. Subject: Construction of LKu 4 Course Gyro and LEH 2b Horizon. BENDIX AVIATION CORPORATION, New York, N. Y. GENTLEMEN: Relative to the above matter we refer to the cable of Mr. F. Bascom Smith, dated February 19, 1940, and to our letter of February 26, 1940, Ref. SLF/Jae/988a, advising you that we would resume the negotiations with a view of obtaining the gyro drawings for the above instruments, from the Kreiselgeräte G. m. b. H., who are our suppliers of the gyros used in our instruments. Prior to the Bendix/SAM agreement of January 27, March 8, 1937, namely, in August 1936 we had contacted the Kreiselgeräte G. m. b. H. in this matter and at that time they advised us that they might later let us have their drawings for you. When we recently inquired again, the Kreiselgeräte G. m. b. H. advised us that they were unable to let us have these drawings for transmission to you. We were told by this firm that the reason for their refusal is that the Askania-WerkeAktiengesellschaft, in the meantime, have obtained control over their patent and copyright holdings and this company, in turn, is tied up contractually with Sperry Gyroscope Co. Therefore, we cabled you on April 17, 1940, as follows: "Re cable Mocsab 19 and our letter of February 26. Supply of drawings at present impossible as negotiations have come to naught. Detailed letter will follow. Sorry to be unable to give you better news. Best regards." We are very sorry not to be able at this time to supply you with the drawings but we trust that this will not impair your work and the construction of the above instruments which you have taken over. Yours very truly, (Signed) SIEMENS, ETC. RIEPER. EXHIBIT No. 623 [Letter from W. A. Reichel, Pioneer Instrument, Bendix, N. J., to F. Bascom Smith, counsel, Bendix Aviation Corporation, New York, N. Y., dated May 27, 1940] PIONEER INSTRUMENT, DIVISION OF BENDIX AVIATION CORPORATION, Construction of LuK 4 course gyro and LEH 2b horizon. Mr. F. BASCOM SMITH, New York, N. Y. DEAR BASCOM: This will acknowledge your letter of April 24 to which was attached Siemens' letter of April 20 stating their inability to obtain for us draw ings of the gyro used in their electric course gyro and electric horizon. Our license agreement requires that they submit to us drawings of gyros which we wish to take over. In view of the fact that Siemens are unable to obtain drawings of these gyros from the company from whom they buy them because of their connection with Sperry, we will be unable to manufacture these instruments. I wanted to bring this point to your attention for discussion some time in the future. Very truly yours, PCM/ap CC: S. Cerstvik W. A. REICHEL. EXHIBIT No. 624 [Letter from Altvater and Wiegand, of Siemens, Berlin, Germany, to Bendix Aviation Corporation, New York, N. Y., dated October 25, 1939] [Translated from German into English] Registered mail. Second mail. Our reference: SLF/Rp/988 SIEMENS, DIVISION FOR AERONAUTICAL INSTRUMENTS, Berlin, Germany, October 25, 1939. BENDIX AVIATION CORPORATION, New York, N. Y. (Attention: Mr. Charles Marcus, vice president.) DEAR MR. MARCUS: Under our agreement, your geographical contract territory includes the United States, its territories and Canada. A state of war exists, at the present time, between Canada and ourselves. Notwithstanding the war, we are, of course, willing to live up to the agreement as far as possible. However, we would appreciate receiving your assurance that the records which you will receive from us within the scope of our agreement, will not be given to Canada for the duration of the war and that you will supply no instruments, built under a license, if you know that they are destined for our enemies. We trust that the good relationship existing between our firms will not be disturbed by the present war situation and remain With respectful regards, (Signed) SIEMENS, ETC. EXHIBIT No. 625 [Letter from Charles Marcus, vice president, Bendix Aviation Corporation, New York, N. Y., to Captain Altvater, Siemens Apparate und Maschinen G. m. b. H., dated November 22, 1939] SIEMENS APPARATE UND MACHINEN GMBH, Berlin-Siemensstadt, Germany. (Attention: Captain Altvater.) NOVEMBER 22, 1939. DEAR CAPTAIN ALTVATER: Reference yours of October 25, it is our opinion that your point is well taken. As regards the drawings sent over you may rest assured. As regards fabrication and inasmuch as the whole question resolves itself into one of fair play we will arrange, to the best our our ability, to keep this within the orbit of domestic use. It is similarly our hope that the good will so auspiciously begun between our two companies may continue, and with kindest personal regards. Sincerely, BENDIX AVIATION CORPORATION, EXHIBIT No. 626 [Letter from Charles Marcus, vice president, Bendix Aviation Corporation, New York, N. Y., to J. E. Keel, British Air Commission, Washington, D. C., dated February 4, 1941] BRITISH AIR COMMISSION, Washington, D. C. (Attention of Mr. J. E. Keel.) FEBRUARY 4, 1941. GENTLEMEN: In reply to your letter of January 6, 1941, BAC/NS 1365, we take it that the Ministry of Aircraft Production (M. A. P.) are in accord with the Zenith Carburetter Co., Ltd. (Zenith), to the effect that it (M. A. P.) may arrange for the manufacture of our injection carburetors by others than Zenith in the United Kingdom. The terms of our agreement with Zenith permit us to grant such licenses if any regulations in the country compel us so to do and then whatever considerations flow to us must be divided with Zenith. We take it that M. A. P. have made or will make its own separate understanding with Zenith relieving us of said restraint and obligations and on that basis this letter will constitute authority to M. A. P. to authorize the manufacture and sale of our injection carburetors and spare parts and accessories therefor in Great Britain and such license will in each case become effective upon notice in writing to us by M. A. P. as to the identity of each licensee and upon such licensee cabling or writing us of its acceptance of the following terms: 1. The license shall be nonexclusive and nondivisible, and unless previously terminated as hereinafter provided shall continue until the end of the war between Great Britain and Germany. The expression "end of the war" shall mean a date occurring 6 calendar months after the actual cessation of hostilities or the date officially declared to end the war, whichever shall occur sooner. The licensee must agree to cease manufacture upon the end of the war except on such terms as may be agreed upon between the licensee and Zenith and Bendix. 2. In consideration for the license, M. A. P..will cause to be paid to Bendix Aviation Corporation (Bendix) at South Bend, Ind., for each carbureter manufactured and used or sold under the authority of the license as full payment for engineering and other services by Bendix and as a contribution toward the cost of developing and perfecting the carburetors herein licensed as well as a royalty for this license insofar as Bendix is concerned, a sum calculated as follows: If the carburetor is sold separately, the royalty shall be 3.5 percent of the net sales price. If the carburetor is mounted as part of engine assembly and not sold separately, the royalty shall be calculated according to the following formula: Royalty will equal $4 plus fifty-one hundredths A. (A being the cross-sectional area of the carburetor outlet in square inches) converted into United States dollars at the rate of $1 per square inch. The minimum royalty on any licensed injection carburetor shall be $25. On spare parts and accessories, the royalty shall be 3.5 percent of the net sales price, which shall be in a reasonable ratio to the price of the carburetor as a whole. All payments under such licenses shall be payable in United States currency and any British taxes thereon shall be borne by the licensee. The licensee shall, within 60 days after the end of each calendar quarter, account to Bendix for any amounts accruing to Bendix under the license during said quarter, and remit for such amounts; upon failure of the licensee to so account and remit, if not remedied within 30 days after notice in writing, Bendix may at its option cancel the license. Bendix may in addition charge cost of blueprints or other drawings and technical information and the like, including the salaries and expenses of Bendix employees where their services are requested by you or by your nominee hereunder and where we find it possible to comply with such requests. 3. The term "injection carburetor" as used in this letter, shall be deemed to include any device for supplying a mixture of fuel and air to an internal-combustion engine having electric ignition, wherein the bead of fuel supply to the fuel nozzle is not controlled by a float but by pressure responsive membrane, and in which the fuel is introduced into the air stream under a pressure directly derived from the fuel supply pump, and in which a pressure differential due to air velocity is converted into a metering head of a metering orifice in the fuel pass; provided that the fuel is not introduced directly into the engine cylinders posterior to the inlet valves thereof. |