From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Supply of Grav-Vac apparatus and detailing the legal history between the Grav-Vac and Autovac companies.
| Identifier | ExFiles\Box 40\4\ Scan231 | |
| Date | 9th March 1927 | |
| W/S From ROY.{Sir Henry Royce} c. to Her c. to BY c. to HS.{Lord Ernest Hives - Chair} c. to Wn. X3575 ROY{Sir Henry Royce}2/109.3.27 Autovac and Grav-Vac This morning Mr. Fletcher, a Director of the Grav-Vac Syndicate, left with us a sample of their apparatus, which BY, Hs{Lord Ernest Hives - Chair}, and I (and later Wn) discussed with him. The Experimental Shop are submitting same to exhaustive test which will doubtless take some time. Mr. Fletcher thinks he could supply this apparatus, embodying the special finish we require, at about 20/- to 22/6d. Our present Autovac figure is 38/-. He stated that their manufacturing arrangements had been seriously impeded by the threat contained in the Autovac Company's letter of December 21st, 1925 to the Motor Industry. To-day they are producing about 150 such apparatus per week, but have a capacity for producing up to 3000 per week. As far as the legal position is concerned, Mr. Fletcher advised Wn and myself that it was understood the Autovac Company's legal expenses in their Action against the Grav-Vac Syndicate amounted to at least £40,000. After Justice Russell had given his decision in the Chancery Court in December 1925 that the Grav-Vac does not infringe the Autovac, the Grav-Vac Company were approached by the Autovac Company with the following offer: 1. That the Autovac Company would pay:- (a) All their legal and Patent expenses, amounting to some £7,000. at that date. (b) Interest on their Capital of £15,000 amounting to 15% or 20% (the actual percentage was not agreed) for the lifetime of the Autovac Patents - the last of which expires Aug. 19th. 1931 - i.e., a sum ranging from £13,500 to £18,000. 2. In consideration of which the Grav-Vac Company were to agree:- (a) To limit their output of Grav-Vacs to 5000 per annum (b) Not to sell such apparatus at a figure less than 30/-. The Autovac Company adding that they had a monopoly of the Motor business and could charge whatever figure they wished for the apparatus. The offer was refused, and the Autovac Company then lodged their Appeal, which was heard in May 1926, and rejected by three Judges who unanimously upheld Justice Russell's previous decision. I am sending this on to you in duplicate, in case you care to pass a copy to R.{Sir Henry Royce} ROY.{Sir Henry Royce} | ||