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).
Negotiation terms for a licence for the Fisher Ventilating System.
| Identifier | ExFiles\Box 136\5\ scan0075 | |
| Date | 6th November 1933 | |
| W/S (C). c. Hs.{Lord Ernest Hives - Chair} X819. BY.6/G.6.11.33. FISHER VENTILATING SYSTEM. ------------------------- As apparently no decision had been arrived at in connection with the question of a licence being obtained by this Company to use the Fisher ventilating scheme, I wrote to Mr. Constantine urging that something further should be done. I pointed out that 1/3rd. of 1% on the complete car price appeared to us to be exorbitant, and as a result Mr. Constantine wrote to Detroit suggesting that our Company came in a different category to the normal car producers and suggested that :- (a). We should have permission for a licence. (b). That a revision of the terms proposed was necessary. Mr. Constantine now informs me that he has received a cable from his principals in which they agree to the principle of a licence being granted to us, and they would further be prepared to reduce the royalty from the proposed figure of 1/3rd. of 1% to a figure 50% higher than General Motors synchro mesh royalty in Europe. The original figure was three times this amount. Their present proposal is 5.25 cents per £10. of the selling price, which for a selling price of £1575 for the 20/25 complete works out at $8.24. This still appears to be high, and the suggestion has been put forward that the price should be reckoned on the chassis selling price, which at £1050 for the 20/25 and £1750 for the 40/50 would work out at $5.51 and $9.18 for the two chassis respectively. I think this latter proposal is a sound one, and gives us reasonable terms, and if you are in agreement with this I would propose writing to Mr. Constantine accepting the terms as a basis for the grant of the licence. ing BY.{R.W. Bailey - Chief Engineer} | ||