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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).
Tooling costs, pricing, and supply arrangements for Watford I.S.12 magnetos for aero engines.

Identifier  ExFiles\Box 43\4\  Scan194
Date  26th November 1929
  
X4021.

To RG.{Mr Rowledge} from ROY.{Sir Henry Royce}
c. to WDR. [strikethrough]
c. to HY.{Tom Haldenby - Plant Engineer} [strikethrough]
c. to HS.{Lord Ernest Hives - Chair} [strikethrough]
c. to EFC. [strikethrough]
----------------

[Stamped: 1929]
[Stamped: RECEIVED]
ROY{Sir Henry Royce}4/MG26.11.29

WATFORD I.S.12 MAGNETOS FOR AERO ENGINES

Messrs. North now advise that they have completed their investigation of the cost of the necessary Tools, Fixtures etc. for full manufacture of these Magnetos, and find a sum of no less than £750. 0. 0d is required to cover part cost of such Tools, which they suggest should be spread over the first 500 Magnetos manufactured - whether supplied for the Rolls Royce Company, the Air Board, or other Aero Engine suppliers - after which the price would be reduced by 30/- They, however, can give no guarantee as to the proportion of the said first 500 Magnetos to be allocated to the Rolls Royce Company and other users, the net result being that, should we agree to such a scheme, we might be committed to carry all, or nearly all the load of such Tools.

After such Tools have been paid for, their price works out at some £1. 4. 6d more per Magneto than our present arrangement with the B.T.H. Company, to whom, incidentally, we pay no Tool charges whatever; in addition it is quite probable the B.T.H. Company will ease their present figures when we are next in the market for further bulk supplies.

Messrs. North advise that they can commence delivery of such Magnetos in 6-8 weeks from receipt of order, and as we have no orders outstanding now for Aero Engines requiring additional Magnetos, and the possibility of getting bulk orders in the near future seems somewhat remote, I suggest advising the Watford Company we are not prepared for the moment to authorise them to proceed with such Tools.

Kindly advise if in agreement, or if it is thought other arrangements should be made.

ROY{Sir Henry Royce}
[signature]
  
  


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