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).
Contractual obligations regarding the supply of 'SS' Chassis drawings to an American company for local manufacture.
Identifier | ExFiles\Box 19\3\ Scan036 | |
Date | 22th September 1924 | |
To Messrs from Cg. To EY from Cg. To Rs.{Sir Henry Royce's Secretary} from Cg. re "SS{S. Smith}" Chassis for USA. From a letter received from Mr.Fuller this morning, it would appear that the American Company have now reversed their decision to purchase chassis from us and have decided to manufacture them in America instead. The chief reason given is in connection with the total price rendering it prohibitive, but this is not anything to do with the net price at which we had offered to supply but is due to the extraordinary and heavy sums which they have added to the cost figures for selling expenses and profit. They are asking for us to supply them in accordance with the contract with all drawings so as to enable them to manufacture in America. The contract says: "The English Company will supply the American Company free of charge with one set of drawings of everything now or hereafter manufactured or passed for manufacture by it." In view of the above wording it would appear that we ought to fall in with their request for a set of drawings of everything that is now finalised and gone forward for manufacture, but a complication arises in connection with drawings for the left-handed chassis as I assume that none of these have been released for manufacture. I should be glad if you will hold a conference with those concerned and let me know what you recommend we do, bearing in mind our contractual obligations. The real position is that under our contract we are not obliged to supply them with left-handed drawings, but I believe that practically all the work in connection with this has been done (vide Mr.Burton's visit over here last year etc.) in order to enable us to build the experimental chassis which are in hand, and if such is the case, we would not wish to refuse to supply the left-handed drawings. What we should like to know is what right-hand drawings we could send which have been passed for manufacture and which are common to the left-handed chassis, and further what left-handed drawings are made but presumably ought not to be sent at this juncture because they have not been passed for manufacture, and ought not to be sent at all until the first experimental chassis has done its 10,000 miles. | ||