[Trade Journal]
Publication: Verbatim Record of the Proceedings of the Temporary National Economic Committee
Washington , DC, United States
vol. 1, no. 13, p. 353-402, col. 1-3
VERBATIM RECORD
of the
Proceedings of the
TEMPORARY NATIONAL
ECONOMIC COMMITTEE
VOLUME 1
December 1, 1938 to January 20, 1939
CONTAINING
Economic Prologue
Automobile Patent Hearings
Glass Container Patent Hearings
Presentation on Patents by Department of Commerce
Published 1939 by
THE BUREAU OF NATIONAL AFFAIRS, INC.
WASHINGTON, D. C.
·
·
Appendix and
_______________
Cumulative Index
___________________
Dec. 12 Through Dec. 20.
__________________________
VERBATIM RECORD
of the Proceedings of the
Temporary National Economic Committee
Vol. 1, No. 13 WASHINGTON, D. C. Dec. 20, 1938
+ APPENDIX +
TUESDAY, DECEMBER 20 , 1938.
THE OFFICE OF THE TEMPORARY NATIONAL ECONOMIC COMMITTEE
MADE PUBLIC DECEMBER 20, 1938, TEXTS OF EXHIBITS
RECEIVED IN EVIDENCE IN THE HEARINGS IN THE WEEK BEGINNING
DECEMBER 12 , NOT HERETOFORE PUBLISHED. A SUMMARY
OF EXHIBITS INTRODUCED AT THE HEARINGS FOLLOWS:
A series of contracts between Owens-Illinois and Hartford-Empire, 1924 to 1935, referred to in the Verbatim Record, page 269, Dec. 14, and marked as Exhibits Nos. 135 to 141. These exhibits consisted of photostatic reproductions of the contracts, from two to sixteen pages each. Exhibit No. 139 was printed on Page 350 of the Dec. 19th issue. The others are printed in this issue as follows — Exhibit No. 135, Page 393; Exhibit No. 136, Page 402; Exhibit No. 137, Page 402; Exhibit No. 138, Page 354; Exhibit No. 140, Page 357; Exhibit No. 141, Page 358.
Letter dated Dec. 13, 1938 , signed G. S. Quay, Vice President of the Hartford-Empire Company, recapitulating the amounts paid to and received from the Hartford-Empire Company by the Hazel-Atlas Glass Company on royalties. Referred to in Verbatim Record, Page 272, marked Exhibit No. 142, and printed on Page 276 of the issue of Dec. 14th.
The "General Feeder License Agreement" between the Hartford-Empire Company and Ball Brothers, dated March 25, 1933, outlining an arrangement for patents on "Feeder" glass machines. A typewritten document of 44 pages. Referred to in Verbatim Record, Dec. 15, Page 278, as Exhibit No. 143, and printed on Page 374 of this issue.
Letter dated Sept. 1, 1932, from J. H. McNash, president, Hazel-Atlas Glass Company, Wheeling, W. Va., to William E. Levis, president, Owens-Illinois Glass Company, Toledo, discussing glass jar licenses to Ball Brothers. Referred to in Verbatim Record, Page 281, Dec. 15, as Exhibit No. 144. Printed on Page 281, of the Dec. 15 issue.
Hartford-Empire Company memorandum, dated Feb. 9, 1933, taken from the files of that company, on license negotiations with Ball Brothers. Exhibit No. 145. Referred to in Verbatim Record, Page 282. Printed on Page 282 of the Dec. 15 issue.
Photostatic reproduction of five pages of a memorandum dated Dec. 13, 1930, to President W. E. Levis, from Mr. Henry W. Carter, Vice President, Owens-Illinois Company, anent the general licensing agreement of that company with Hartford-Empire. Referred to in Verbatim Record, Page 283, Dec. 15, as Exhibit No. 146, and printed on Page 381 of this issue.
Letter from Hartford-Empire Company to the Hocking Glass Company, relevant to complaint from Ball Bros. of packers' jars entering domestic fruit jar field. Referred to in Verbatim Record, Page 285 as Exhibit No. 147. Printed on Page 285 of the Dec. 15th issue.
Correspondence between Ball Brothers and Hartford-Empire Company relative to competition from packers' ware. Referred to in Verbatim Record, Page 285, as Exhibit No. 148. Printed on Page 295 of the Dec. 15th issue.
Letter dated May 3, 1933, from Mr. Ball to Mr. Smith of Hartford-Empire Company relative to jars at cut rates. Received in evidence and marked Exhibit No. 149. Printed on Page 296 of the Dec.15th issue.
Photostatic copy, consisting of 30 pages, of agreement between Hartford-Empire Company and Lynch Corporation, dated August 23 , 1933. Referred to in Verbatim Record Page 297, Dec. 15, as Exhibit No. 150 and is printed in this issue on Page 382.
Letter from A. T. Safford, secretary and counsel, Hartford-Empire Company, to President Werbe of the Lynch Corporation, dated September 20, 1933, discussing terms for licenses of "forming" glass machines. Exhibit No. 151. Printed on Page 386 of this issue.
Photostatic reproduction of nine-page document entitled "Amended Agreement between Hartford-Empire Company and Lynch Corporation," dated Nov. 12, 1938. Referred to in Verbatim Record Page 298, Dec. 16 as Exhibit No. 152 and printed in this issue on Page 387.
Analysis of financial statements, Hartford-Empire Company. A mimeographed document of seven pages containing re-capitulation of income and profits of the company for more than twenty years. Referred to in Verbatim Record, Page 299, Dec. 16, as Exhibit No. 153. Printed in this issue on Page 388.
Photostatic copy of letter addressed to George Day, Detroit, Mich., written by an officer of the Hartford-Empire Company, dated Feb. 1, 1936, discussing proposed glass factory in Detroit. Exhibit No. 154 printed in the transcript text, Verbatim Record, Page 304, Dec. 16th issue.
Four letters exchanged between Lawrence C. Kingsland, patent attorney, Obear-Nester Glass Company of St. Louis, with the Lynch Corporation discussing licenses on glass machines. Referred to in Verbatim Record, Page 308, Dec. 16, and marked Exhibits Nos. 155 to 158. These letters were not set out in the extension of the record but were ordered filed by the committee.
Letter dated Nov. 20, 1937, to Amory Houghton, President Corning Glass Works, signed "Goodwin," discussing possible competition in heat resisting glass ware. Referred to in Verbatim Record as Exhibit No. 159 and printed on Page 314 of the Dec. 16th issue.
Copy of contract between the Owens-Illinois Glass Company and the Corning Glass Works for the formation of the Owens-Corning Fiberglass Corporation, October 28, 1938. A printed book of 40 pages certified as a true copy of the original. Referred to in Verbatim Record, Page 316, as Exhibit No. 160. Printed on Page 391 of this issue.
Copy of the contract between the Owens-Illinois Company and the Italian Modigliani Company, which set up provisions for control of re-import of materials made under Fiberglass patents. Document consists of nineteen typewritten pages. Referred to in Verbatim Record, page 318, as Exhibit No. 161. Printed on page 392 of this issue.
Photostatic reproduction of two-page letter to the Lynch Corporation from the Hartford-Empire Company, dated March 31, 1936, discussing opposing claims as to "forming machine" patents. Referred to in Verbatim Record, page 320, Dec. 16, as Exhibit No. 162. Printed on page 393 of this issue.
(Exhibit No. 138)
General License Agreement
between Hartford-Empire
Company and Owens-Illinois Glass
Company.
Agreement made and entered into as of the 1st day of July, 1932, between Hartford-Empire Company, a corporation of Delaware, having its principal place of business at Hartford, Connecticut (hereinafter called 'Hartford') and Owens-Illinois Glas [sic] Glass Company, a corporation of Ohio, having its principal place of business at Toledo, Ohio, (hereinafter called "Owens-Illinois").
Whereas Hartford is engaged in the manufacture of glassworking machinery and in the licensing of machinery and methods for the manufacture of glassware and Owens-Illinois is engaged in the manufacture of glassware and each respectively own many inventions, applications for letters patent and patents of the United States, relating to the manufacture of glassware, and
Whereas, Hartford and Owens-Illinois are desirous of avoiding patent litigation between themselves and desire further that Owens-Illinois be enabled to continue the use of its present machinery in the manufacture of glassware and to use other machinery developed by Hartford, and Hartford desires to obtain the right to extend to its other licensees, rights under the inventions and patents of Owens-Illinois;
Now, therefore, in consideration of the premises and of the mutual promises and covenants herein contained, it is agreed as follows:
Section 1. Definitions of Licensed Inventions: "Licensed Inventions" shall be defined as and held to include the following inventions and/or interests therein now owned or controlled, or hereafter and prior to January 3, 1945, owned, acquired or controlled by either party hereto, in so far as the same are included in the Inventions described below in this Section 1.
Inventions of apparatus for or methods of feeding mold charges of molten glass (hereinafter called "Feeders") from furnaces to forming machines, excluding, however, from this definition apparatus for, and methods of, drawing glass by suction into molds. Drawing glass by suction into a gathering cup (not a mold) and discharging the gather into a mold, shall be included in "Licensed Inventions."
Inventions of apparatus for or methods of forming glass by forming machines (hereinfater [sic] hereinafter called "Formers") if and so far as such inventions are used or usable with, but only for use with, apparatus for and/or methods of glass feeding, other than said drawing glass by suction into molds, and other than hand-manipulated punties, hand-manipulated blowpipes or other hand process.
Inventions relating to furnaces as such and other apparatus, and not being functional parts of the feeding or forming process, shall not be included in Licensed Inventions.
Section 2. Hartford's Release and License to Owens-Illinois. Hartford releases Owens-Illinois, its present subsidiaries and each of them, from any and all claims and demands by Hartford in law or equity for profits and/or damages arising from any past infringement of any and all patents, owned or controlled by Hartford, on any Licensed Inventions.
Hartford grants to Owens-Illinois a non-exclusive, non-assignable (except to its successors in business) and non-divisible (except to its subsidiaries in accordance with the provisions of Section 13 of this Agreement) license to make or have made for it, and to use, machines and/or methods embodying Licensed Inventions for the manufacture of glassware (and parts thereof or therefor) subject, however, to all the exclusions of Hartford enumerated in Schedule A attached hereto. Such license to Owens-Illinois shall be under all Licensed Inventions and under all United States patents now issued or hereafter issued thereon in so far as such patents cover any Licensed Inventions, such license to run to January 3, 1945, unless sooner terminated as hereinafter provided, and shall be evidenced by the issuance to Owens-Illinois by Hartford of an individual license, in substantially Hartford's standard form as illustrated in Schedule B attached hereto, covering each mechanism used and owned by Owens-Illinois embodying any Licensed Invention.
Owens-Illinois shall not sell or otherwise dispose of any feeder mechanism so licensed by Hartford, except to a subsidiary of Owens-Illinois and subject to the license thereon.
Section 3. Royalties Payable by Owens-Illinois. Owens-Illinois agrees to pay to Hartford royalties on all merchantable glassware manufactured by Owens-Illinois, during the life of this Agreement, by the use of any Licensed Invention, at Hartford's Lowest Rates as defined below in this Section 3.
A. Feeders. Schedule C attached hereto is a schedule of Hartford's Lowest Rates applying to Feeders now operated by Owens-Illinois, except Howard Feeders. Hartford shall promptly notify Owens-Illinois of any change therein.
In the event that Owens-Illinois shall use, in lieu of Licensed Inventions relating to Feeders, any apparatus or method (other than apparatus for or methods of drawing glass by suction in molds) not embodying any such Licensed Invention, Owens-Illinois shall pay royalties upon glassware so produced; be if, in any calendar year, such production of glassware by Owens-Illinois shall exceed one-fifth (1/5) of the total glassware produced during that year by Owens-Illinois (other than with apparatus for or methods of drawing glass by suction into molds), then the payment by Hartford to Owens-Illinois for that year under this Agreement shall be reduced by an amount equal to two-thirds (2/3) of the royalties which would have been payable (at the rates provided by Schedule C or any modification thereof) on such excess production if such excess production had been manufactured by the use of Licensed Inventions relating to Feeders.
B. Formers. For the purpose of this Agreement, Formers are of different types when they have features or methods of operation differentiating them from other Formers. Such differences are illustrated by the differences among the Formers known in the glass industry as Lynch 1, Lynch LA, Miller MA, O'Neill No Boy, Owens AW, Owens AY, Hartford IS, Hartford Narrow Neck, Hartford 12, Miller Press and Hartford Milk Bottle Machines
(a) As to the individual Formers of any particular type, except as provided in paragraphs (c) (d) and (e) hereof, acquired by Owens-Illinois prior to July 1, 1932, no royalties shall be payable by Owens-Illinois until such time as Hartford is receiving from one or more of its Feeder licensees, other than Hazel-Atlas Glass Company royalties upon one or more Formers of the same type acquired by such licensee or licensees prior to July 1, 1932, in which event Owens-Illinois shall, from such time, pay royalties for its use thereafter of a number of Formers equal to the number (but not to exceed the number so used by it), of the same type, so acquired, as to which Hartford is thus, from time to time, receiving royalties.
(b) As to the individual Formers of any particular type except as provided in paragraphs (c) , (d) and (e), hereof, acquired by Owens-Illinois subsequent to July 1, 1932, no royalties shall be payable by Owens-Illinois until such time as Hartford is receiving from one or more of its Feeder licensees, other than Hazel-Atlas Glass Company, royalties upon one or more Formers, of the same type, acquired by such licensee or licensees subsequent to July 1, 1932, in which event Owens-Illinois shall, from such time, pay royalties for its use thereafter of a number of Formers equal to the number (but not to exceed the number so used by it), of the same type, so acquired, as to which Hartford is thus, from time to time, receiving royalties.
(c) As to Formers of any particular type used by both Owens-Illinois and Hazel-Atlas Glass Company, but by no other Feeder licensee of Hartford, no royalties shall be payable by Owens-Illinois until such time as Hartford is receiving royalties upon one or more Formers, of the same type, from Hazel-Atlas Glass Company, in which event, Owens-Illinois shall
from such time, pay royalties for its use hereafter of a number of Formers equal to the number (but not to exceed the number so used by it), of the same type, as to which Hartford is thus, from time to time, receiving royalties.
(d) As to Formers hereafter acquired by Owens-Illinois otherwise than from Hartford and covered by any patent of Hartford relating to Licensed Inventions, out of a type not used by Hazel-Atlas Glass Company or by any other Licensee of Hartford, the question of whether or not royalty shall be payable by Owens-Illinois and the amount of royalty, if any, shall be determined by agreement, or in default thereof, by arbitration. In the event of such arbitration, no royalty shall be payable unless the arbitration decides that Hartford has made a substantial contribution, which is utilized in said Owens-Illinois Formers.
(e) As to Formers acquired hereafter by Owens-Illinois from Hartford, royalties shall be payable from the date of acquisition, and as to Formers heretofore so acquired, royalties shall be payable in accordance with existing contracts.
In case of any disagreement between the parties hereto regarding the foregoing provisions of (a), (b), (c) or (e) as to Formers, or as to whether the use of any particular method or apparatus by Owens-lllinois does or does not constitute a use of Licensed Inventions, the matter shall be settled by arbitration.
C. Hartford's Lowest Rates. This shall mean the lowest rates of royalty for any given ware (whatever form such royalty may take) which shall at the given time be charged by Hartford to any licensee in the United States for the production of the same class of ware by the same type of machine and/or process. If Hartford has no licensee for a given class of ware by a given type of machine and/or process, and if Owens-Illinois and Hartford are unable to agree upon such rates, the same shall be determined by arbitration with due consideration of the lowest rates under similar conditions charged others by Hartford for the manufacture of similar, but not necessarily identical, ware by the same machine and/or process, or the identical ware by other, but not identical, machine and/or process and the relative efficiency thereof.
D. All royalties shall be paid monthly, at Hartford's office , in New York funds, on or before the fifteenth (15th) day of each month, for and upon all merchantable glassware manufactured by Owens-Illinois under this Agreement during the preceding calendar month.
Section 4. Owens-Illinois Right to Lease or Buy Machinery from Hartford. Owens-Illinois shall have the right to take, on lease from Hartford, for the uses within the licenses herein granted to Owens-Illinois and at the Royalties provided in Section 3, such mechanisms embodying any of said Licensed Invention, as shall be built by or for Hartford, paying therefor a license fee as low as is charged any other licensee by Hartford for any such mechanism under similar conditions. The leasing of each such mechanism shall be evidenced by the issuance to Owens-Illinois by Hartford of a lease contract in substantially the same terms and conditions as are at the time of such leasing contained in Hartford's standard lease contract relating to similar mechanisms; provided, however, that the terms and conditions of such lease contract shall not conflict with any of the terms of this Agreement.
If Hartford sells any such mechanisms, Owens-Illinois shall have the right to purchase such mechanisms on the most favorable terms granted under similar conditions to any other.
Section 5. Owens-Illinois Release and License to Hartford. Owens-Illinois hereby releases Hartford, and Hartford's present licensees, from any and all claims and demands, in law or equity, for profits and/or damages arising from any past infringements of any and all patents, owned or controlled by Owens-Illinois, on any Licensed Inventions.
Owens-Illinois grants to Hartford, a non-exclusive, divisible and assignable license to make or have made for it, license, use, lease and/or sell machines and/or methods, under all the Licensed Inventions of Owens-Illinois as to which Owens-Illinois has or shall have the right to grant licenses, and under all United States patents now issued or hereafter issued thereon in so far as such patents may cover Licensed Inventions, such license to Hartford to run to January 3, 1945, and to be subject to the exclusions of Owens-Illinois set forth in Schedule D attached hereto. Owens-Illinois expressly reserves the right to grant to others licenses under all said Licensed Inventions as to which it has or may have the right to grant licenses."
Section 6. Payments by Hartford. In consideration of said release and licenses granted by Owens-Illinois to Hartford, and licenses granted hereby agreeing to furnish Hartford the advantage and benefit, with respect to Licensed Inventions, of the knowledge and experience of Owens-Illinois' engineers and technically trained employees, obtained in the practical commercial use of Licensed Inventions, at the cost to Owens-Illinois of furnishing such advantage and benefit, and provided that such furnishing does not interfere substantially with Owens-Illinois' production, Hartford agrees to pay to Owens-Illinois one-third (1/3) of the Net Income of Hartford earned between the date hereof and the 3rd of January, 1945, and collected, and also one-half (1/2) of all moneys heretofore or hereafter recovered and actually received by Hartford (whether by way of damages, profits or settlements) on account of any infringement of Licensed Inventions occurring prior to the date of this present Agreement, and also one-half (1/2) of any amount by which Hartford's payments to Hazel-Atlas Glass Company (under the third paragraph of Section 3 of the General License Agreement between Hartford and Hazel-Atlas Glass Company, dated July 1, 1932) are reduced.
(a) In order to make the fiscal year under this Agreement correspond to the calendar year, the following method will be followed:
(b) For each quarterly period ending March 31st, June 30th and September 30th in each calendar year the Net Income of Hartford shall be computed by deducting Two Hundred Twelve Thousand Five Hundred Dollars ($212,500) from Hartford's Income from Licensed Inventions for said quarterly period, and then Hartford shall on that basis make payment on account.
(c) At the end of each calendar year, the Net Income of Hartford shall be re-computed for the year (but only for the last half year in the case of the year 1932), making due allowance for any payments on account made by Hartford. Payments shall be made by Hartford on or before May 1st, August 1st, November 1st and February 1st of each year on the Net Income for the preceding quarterly period.
(d) Hartford's Income from Licensed Inventions. This phrase shall be held to include, and be limited to, the total collected income of Hartford derived from (a) royalties, (b) net difference between license fees and cost of manufacturing of licensed machines, (c) profits on manufacturing, lease, or sale of machines, or parts, (d) settlements for damages and profits arising out of infringements of Licensed Inventions which infringements shall have Occurred subsequent to the date hereof, and (e) other revenues from the disposal of rights in Licensed Inventions, all of the aforesaid items being restricted to income arising from Licensed Inventions; provided, however, that there shall first be deducted from said total collected income for any year, all sums which Hartford may by judicial decree be compelled to pay during such year for settlements of damages or profits arising out of infringements by Hartford of the patents of others, or which Hartford may by judicial decree be compelled to pay by reason of any assumption or guarantee by Hartford of such damages or profits recovered from its licensees, all arising from the manufacture, use or sale of mechanisms and/or methods embodying Licensed Inventions, provided that any such deduction because of such assumption or guarantee on any given mechanism shall not exceed the equivalent of two years' royalties thereon.
(e) Net Income of Hartford. The net income of Hartford shall be calculated as follows:
From Hartford's yearly Income from Licensed Inventions there shall be deducted yearly the sum of Eight Hundred and Fifty Thousand Dollars ($850,000), which sum shall be retained by Hartford for its own use. The annual excess or remainder over and above such deduction shall constitute and be held to be the Net Income of Hartford.
(f) License Fees and Royalties. "License fee" shall be held to mean any initial payment, in installments or otherwise, made upon the leasing or licensing of any mechanism embodying any Licensed Invention. "Royalty" shall be held to mean any recurring periodical payment made inconsideration of the right to use such a mechanism or process.
Section 7. Manufacture by Hartford. In the event that Hartford, its successors in business, any subsidiary of Hartford, or any one or more of them shall prior to January 3, 1945, engage in the commercial manufacture of glassware using Licensed Inventions, Hartford shall thereupon, until such date, pay into its Income from Licensed Inventions, royalties at rates not less than those payable by Owens-Illinois for corresponding ware, made under similar conditions.
Section 8. Validity and Scope. During the life of this Agreement and while a party is enjoying the benefits of the Licensed Inventions it acknowledges within the scope of its license the validity and broad scope of all United States patents issued or to be issued on Licensed Inventions.
Section 9. Inventions by Employees. Each party hereto will use reasonable efforts to cause each of its present and future officers and employees engaged in the designing and/or development of ma-chines, processes, methods or inventions ,to sign an appropriate agreement with it to transfer and assign it to the full United States rights in and to any and all inventions, patents and patent rights de-signed, developed or discovered by him in the course of and during his such employment and coming within the definition of Licensed Inventions, to the end that such party hereto may be enabled to, and will license the same as contemplated by this Agreement.
Section 10. Disclosure of Inventions. Each party hereto agrees to disclose to the other all of its Licensed Inventions within a reasonable time after their acquisition.
Section 11. Accounting. Owens-Illinois shall keep proper books and records showing the length of time each day that ma-chines embodying any of the Licensed Inventions are operated by it and the location thereof, respectively, and the number, kinds and sizes of glassware produced to each machine and all other facts each day thereby, all stated separately as necessary or advantageous for carrying out the purpose of this Agreement, all in such form, within reasonable limits, as shall be specified by Hartford. Such books and records shall at all reasonable times be open to the inspection of Hartford or its duly authorized agents. Owens-Illinois and its subsidiaries shall on or before the 10th day of each month, furnish to Hartford, upon blanks provided by Hartford , de-tailed statements giving in itemized form all the data above mentioned, properly certified, as to their respective operations, so far as may be required by Hartford, for the preceding calendar month. Hartford shall likewise keep proper books and records showing its receipts of in-come from Licensed Inventions and such books and records shall at all reasonable times be open to the inspection of Owens-Illinois or its duly authorized agents. Hartford shall, on or before the 25th day of each month, render to Owens-Illinois a statement, properly certified, showing the receipts of income from Licensed Inventions during the preceding calendar month, showing separately the amounts received from the various sources of such income mentioned in Section 6 (d) hereof.
Section 12. Termination of Agreement by Owens-Illinois. Owens-Illinois may, on six months' written notice to Hartford terminate this agreement and the General License Agreement between Hartford and Illinois Glass Company dated May 9, 1924, as amended, and the General Agreement beween [sic] between Hartford and Berney-Bond Glass Company, dated February 15, 1926, and the Settlement Agreement between Hartford and Illinois Pacific Coast Company, dated October 18, 1930, and all the rights and obligations hereunder and thereunder, except (a) the releases provided in Sections 2 and 5 hereof, and (b) the non-exclusive, assignable and divisible license herein granted to Hartford by Owens-Illinois under Licensed Inventions acquired by Owens-Illinois prior to the date of such termination, and (c) the right of Hartford to extension of license to it under the provisions of Section 16 herein, and (d) the obligations to pay amounts due or accrued at the date of such termination, and (e) the obligation of Owens-Illinois and of Owens-Illinois Pacific Company) to return the leased machinery in accordance with the Sections of said agreements, and of the individual leases held in accordance with said agreements and/or this Agreement, entitled "Repossession of Machinery."
Section 13. Extension of Rights and Obligations to Subsidiaries of Owens-Illinois. All the rights and obligations acquired by and assumed by Owens-Illinois in this Agreement are hereby extended to each and every present and future subsidiary of Owens-Illinois, which rights and obligations are to continue only so longas it remains an Owens-Illinois subsidiary. Owens-Illinois shall be responsible for the performance by every such subsidiary, while it remains an Owens-Illinois subsidiary, of all obligations of this Agreement as assumed by Owens-Illinois herein.
Section 14. Arbitration. All matters for which arbitration is specifically provided for by this Agreement, or any dispute arising out of or relating to this Agreement, or as a result thereof, shall be settled by arbitration under the rules of the American Arbitration Association and judgment may be entered on the award in any Court having jurisdiction.
Section 15. United States Rights Only. This agreement covers rights under United States patents and does not extend to any rights in countries foreign to the United States or to income therefrom, or to income from machines sold or leased for foreign countries.
Section 16. Status After January 3, 1945. On January 3, 1945, Hartford, and Owens-Illinois if it has not theretofore exercised its option to terminate under Section 12, shall each have the option, by giving written notice at least six months prior thereto, to continue, for such period of time as specified by the party giving the notice, some or all of the license rights under Licensed Inventions granted to it hereunder. If such option be exercised, the amount of royalty and the conditions of such license shall be determined by agreement, or, in default thereof, by arbitration in accordance with the provisions of Section 14 hereof. All the rights and obligations provided by this Agreement, except those contained in this Section 16, and except the obligations to pay amounts due or accrued at that date, shall wholly cease and terminate on January 3, 1945.
Section 17. Definition of "Subsidiary". For the purpose of this Agreement, a "Subsidiary" of any corporation is any corporation or association of which such principal corporation owns over fifty per cent. (50%) of the voting capital stock or has equivalent ownership. The words "Owens Illinois" and "Hazel-Atlas Glass Company," when used in this Agreement shall include their respective subsidiaries
Section 18. Binding on Successor. This Agreement shall extend to and be binding upon the successors in business of each party to this Agreement. In witness whereof, the parties hereto have hereunto set their hands and seals acting herein by their respective afficers [sic] officers duly authorized therefor.
Hartford-Empire Company,
by F. GOODWIN SMITH,
President.
Attest:
ARTHUR T. SAFFORD, JR.,
Secretary.
Owens-Illinois Glass Company,
By WM. LEVIS,
President.
Attest:
LLOYD T. WILLIAMS,
Asst. Secretary.
Owens-Illinois Pacific Coast Company, a corporation of Delaware and a subsidiary of Owens-Illinois, hereby accepts, concurs in, and agrees to be bound by, all the provisions of the foregoing General License Agreement.
Owens-Illinois Pacific Coast Company,
By WM. LEVIS,
Chairman.
Attest:
LLOYD T. WILLIAMS,
Asst. Secretary.
SCHEDULE A
Annexed to General License Agreement between Hartford-Empire Company and Owens-Illinois Glass Company, Dated July 1, 1932.
EXCLUSIONS OF HARTFORD
The following articles are expressly excluded and shall not be produced under this General License Agreement.
(a) Bulbs and tubing and cane all when for use in the manufacture of incandescent electric lamps or for any other permanently sealed enclosure for electrical purposes.
(b) Signal and optical ware.
(c) Ware intended and adapted for use where its heat resistance, physical strength or chemical resistance or electrical proprieties in such ware is of substantial value, and made from glass having a linear coefficient or thermal expansion of less than .000006 per degree centigrade, or containing more than five per cent. boric oxide, or having a higher electric strength or higher thermal endurance or higher chemical resistance than a glass containing 80% silicia, 10% sodium oxide, 5% boric oxide and 5% calcium oxide.
(d) Ware intended and adapted for holding food in the process of cooking or sterilizing, other than ware intended and adapted for packages for storage and sale of goods or for transportation of goods.
(e) Hot mold or paste mold tumblers; lantern globes; gas globes; chimneys; drawn tube and cane.
(f) Marbles and lithographers' balls.
(g) Flat glass, that is to say, plate glass sheet glass, window glass, rough rolled and ribbed glass and also figured glass, colored and wire glass of the foregoing kinds in this paragraph (g).
(h) Glass vacuum bottles comprising any bottles, jars, jugs, and/or carafes containing or consisting of a glass filler constructed of an inner cylinder enclosed within an outer cylinder with a substantial vacuum between the two cylinders.
(i) All of the following ware when made on glass feeding machines or the Tucker and Reeves type which embody a swinging pressure cup in which gas is burned or embodying a swinging pressure cup in combination with an annular burner surrounding the outlet to wit:
1. Pressed tumblers and pressed jelly lasses, blown tumblers, blown stemware, pressed and blown tumblers and pressed and blown stemware.
2. Packers' ware, block mold type, with jelly rings thereon; all other ware which is pressed only, and not blown or pressed and blown-except vault lights; ointment jars; finger bowls; plates; nappies, salt shakers; individual salts; wax cups; stoppers, caps and covers for bottles and jars (not including fruit jar caps and covers); drawer pulls, furniture balls, (substitutes for casters); lenses for flash lights, bullseyes, headlights, etc.; mangin mirrors (for movie picture production); prism glass; novelties and toys (fuse cases; animals); all ware for the production of which Federal Glass Company has exclusive rights under existing contracts and not heretofore granted by Federal Glass Company to Capstan; paper weights; stem ware (example, wine and cocktail glasses); measuring glasses — packers’ jars adaptable for top seal, top side seal, and side seal caps of types such as American metal top side seal, or friction seal caps, or Anchor Cap and Closure caps, or Phoenix Hermetic “Cinch” or “Hermetic” caps, but of no other type of finish.
3. Glass insulators when made on glass feeding machines or said Tucker and Reeves type.
(j) Articles of glass which are especially adapted by reason of form or composition for electrical purposes when made on machines embodying rights controlled by Empire Machine Company on June 7, 1922 or which by reason of contracts then in force it should acquire.
(k) Milk bottles or cream bottles when made on the Hartford Paddle Needle Feeder and/or the Hartford Milk Bottle Machine.
All of the foregoing exclusions (except hot mold or paste mold tumblers, gas globes, chimneys, and flat glass as described in (g) above) are made because of the fact that Hartford has outstanding contracts granting exclusive rights on such eluded [sic] excluded ware. If, during the life of said General License Agreement, any such exclusive right, excepting those exclusions set out in the parenthesis above, shall cease to be excluded to any one concern, Hartford will remove said exclusion or exclusions from this Agreement and will so notify Owens-Illinois.
SCHEDULE B
Annexed to General License Agreement between Hartford-Empire Company and Owens-Illinois Glass Company, Dated July 1, 1932.
FORM OF INDIVIDUAL MACHINE
LICENSE
OWENS-ILLINOIS GLASS COMPANY
..............................Feeder (Former) License
No.............
This License No ........ made this ........... day of ........ 193.., between the Hartford-Empire Company, a corporation organized under the laws of Delaware and OWENS-ILLINOIS GLASS COMPANY a corporation organized under the laws of Ohio, in consideration of the mutual covenants herein set forth and referred to,
Witnesseth, That it is agreed between the parties hereto that a certain glass feeding (forming) machine described as follows:
(Number and description of machine) shall be held subject to all the provisions of a certain General License Agreement between the parties hereto dated July 1, 1932, which provisions are expressly made a part of this license.
HARTFORD-EMPIRE COMPANY
By..............................................
OWENS-ILLINOIS GLASS COMPANY
By..............................................
See attached letter dated Aug. 12, 1932, amending and interpreting this Schedule C.
SCHEDULE C
Annexed to General License Agreement between Hartford-Empire Company and Owens-Illinois Glass Company, dated July 1, 1932.
SCHEDULE OF LOWEST RATES NOW
APPLYING TO GLASS FEEDERS
OPERATED BY OWENS-ILLINOIS.
The weights below specified are the weights of the finished articles.
For glass brick and tile royalty rates, see H. E. letter of Mar. 14, 1933, herewith.
Owens-Illinois shall pay, while the said General License Agreement is in full force and effect, a minimum royalty of Fifteen Hundred Dollars ($1500.00) each year, upon each Feeder operated at some time during that year (and under whatever agreement or license held and operated) payable on or before the 15th day of January for the year last preceding, provided, however, that Owens-Illinois shall pay no minimum royalties for any calendar year in which Owens-Illinois shall pay to Hartford, in earned royalties on ware produced, a sum not less than the total of the number of Feeders, so operated and upon which royalties are payable hereunder, times Fifteen Hundred Dollars ($1500.00). For the purposes of this paragraph the Feeders operated by Owens-Illinois Pacific Coast Company shall be deemed held and operated by Owens-Illinois so long as Owens-Illinois Pacific Coast Company remains a subsidiary of Owens-Illinois.
No royalty shall be payable by Owens-Illinois upon stoppers, caps, lids and/or liners.
The royalty rates on milk and cream bottles shall be twenty (20) cents per gross for one quart size, and fifteen (15) cents per gross for one pint size, and twelve (12) cents per gross for one-half pint size, and ten (10) cents per gross for one-quarter pint size, and for other sizes a royalty proportioned by weight of product to the royalty for the nearest size.
Whenever Owens-Illinois in any one calendar year shall have produced, with Licensed Inventions, a total of five hundred thousand (500,000) gross of milk bottles, Hartford will, during the term of this Agreement, pay to Owens-Illinois, a refund upon the royalties paid by Owens-Illinois upon additional milk bottles thereafter produced, during such year, by Owens-Illinois. Such refund shall be equivalent to seven cents (7c) per gross upon such subsequent additional production, but shall not be paid upon more than a total additional production of five hundred thousand (500,000) gross. Such refunds shall be paid monthly within ten days after Hartford shall have received from Owens-Illinois the monthly royalty payable upon such additional production; provided that no milk bottles of a size smaller than one-half (12) pint shall be included or counted in such first total of five hundred thousand (500,000) gross or in any production additional thereto.
Exhibit No. 139. Suction invention license agreement between Hartford-Empire Company and Owens Illinois Glass Company, dated July 1, 1932, printed on Page 350 of the Dec. 19th issue.
(Exhibit No. 140)
Supplemental Agreement between
Hartford-Empire Company and
Owens-Illinois Glass Company.
Agreement, made and entered into as of the 1st day of July, 1932, between Hartford-Empire Company, a corporation of Delaware, having its principal place of business at Hartford, Connecticut (hereinafter called “Hartford”) and Owens-Illinois Glass Company, a corporation of Ohio, having its principal place of business at Toledo, Ohio, (hereinafter called “Owens-Illinois”).
In consideration of One Dollar ($1.00) by each of the parties to the other paid, receipt of which is hereby acknowledged. and of the mutual covenants hereinafter set forth, it is agreed between the parties as follows:
1. In the event and at the time that Owens-Illinois, prior to January 3, 1945, shall be deprived of its right under the General License Agreement between Hart-ford and Owens-Illinois dated July 1st, 1932, to receive one-third of the Net Income of Hartford, otherwise than through the default of Owens-Illinois or by reason of the termination by Owens-Illinois of the General License Agreement under the provisions of Section 12 thereof, Owens-Illinois shall then have and continue to enjoy such right to use and practice the Licensed Inventions of Hartford (paying royalties therefor, during the remaining life of the General License Agreement, to Hartford at Hartford's Lowest Rates), as is set forth in the General License agreement. It is estimated by the parties hereto that the value of the license rights granted by Owens-Illinois to Hartford by the General License Agreement, and of Owens-Illinois' engineering information and advice, is equal to the amount of said royalties, less an amount equal to Hartford's minimum royalties at any given time upon the Feeders and Formers from time to time operated by Owens-Illinois and upon which royalties are due to Hartford under the General License Agreement. Therefore, in said event, Hartford shall pay, as royalty and compensation, during the remaining life of the General License Agreement, to Owens-Illinois the amount received by it from Owens-Illinois, less an amount equal to the minimum royalties afore-said, calculated upon the following basis, to wit:
(a) For each Feeder or Former, subject to royalty, operated in any year more than nine months, the full minimum royalties shall be paid for that year.
(b) For each Feeder or Former, subject to royalty, operated in any year more than six months and not more than nine months, three-fourths of such minimum shall be paid for that year.
(c) For each Feeder or Former, subject to royalty, operated in any year less than six months, one-half of such minimum shall be paid for that year.
The minimum royalties for Feeders shall not exceed $1,500 per year. The minimum royalties for Formers shall not exceed $500 per year.
All other applicable terms and conditions of the General License Agreement shall remain in full force and effect.
2. Owens-Illinois may, at its option, terminate this Agreement at any time by giving Hartford six months' notice in writing of its intention so to terminate.
(Exhibit No. 141.)
(Received in evidence , Dec. 14, 1938.
Verbatim Record, Page 269).
Agreements between the Hartford-
Empire Company and the Owens-
Illinois Glass Company.
General License from Hartford-
Empire Company to Owens-
Illinois Glass Company
This Agreement made and entered into as of the first day of October, 1935, between Hartford-Empire Company, a corporation of Delaware, having its principal place of business at Hartford, Connecticut, hereinafter called "Hartford," and Owens-Illinois Glass Company, a corporation of Ohio, having its principal place of business at Toledo, Ohio, hereinafter called "Owens";
Witnesseth: That for and in consideration of One Dollar ($1.00) and other good and valuable considerations in hand paid by each of the parties to the other, receipt whereof is hereby acknowledged ,and of the mutual covenants herein contained, it is agreed by and between the parties, Hartford and Owens, as follows:
Section 1. Definitions.
(A) Licensed Inventions. "Licensed Inventions" shall be defined as and held to include the following inventions and/or interests therein, now owned or controlled, or hereafter owned, acquired or controlled by Hartford, prior to January 3, 1945, is so far as, and while, the same are covered by unexpired United States letters patent or by pending applications filed at any time on inventions so owned or controlled by Hartford prior to January 3, 1945, and in so far as the same are included in the inventions described below in this Section 1.
Inventions of apparatus for or methods of feeding mold charges of molten glass (hereinafter called "Feeders") from furnaces to forming machines, excluding, however, from this definition apparatus for, and methods of, drawing molten glass by suction into molds. Drawing molten glass by suction into a gathering cup (not a mold) and discharging the gather into a mold, shall be included in "Licensed Inventions."Inventions of apparatus for or methods of forming glass by forming machines hereinafter called "Formers") if and so far as such inventions are used or usable with, but only for use with, apparatus for and/or methods of feeding molten glass, other than said drawing molten glass by suction into molds, and other than hand-manipulated punties, hand-manipulated blowpipes or other hand process; but any apparatus for, or methods of, assembling or treating glass blocks, or glass block sections, after such blocks or sections have been formed in the mold ,shall not be considered Formers.
Inventions relating to furnaces as such, and to other apparatus and/or methods which are not functional parts of the feeding or forming process, shall not be included in "Licensed Inventions."
(B) Hartford's Lowest Rates. This shall mean the lowest rates of royalty for any given ware (whatever form such royalty may take) which shall at the given time be charged by Hartford to any licensee in the United States for the production of the same class of ware by the same type of machine and/or process. If Hartford has no licensee for a given class of ware by a given type of machine and/or process, and if Owens and Hartford are unable to agree upon such rates, the same shall be determined by arbitration with due consideration of the lowest rates under similar conditions charged others by Hartford for the manufacture of similar, but not necessarily identical, ware by the same machine and/or process, or the identical ware by another, but not identical, machine and/or process and the relative efficiency thereof. The rates payable by Corning Glass Works, a New York corporation, for the glassware listed in Schedule A, hereto annexed, shall not be considered in determining Hartford's Lowest Rates.
(C) Subsidiaries. A subsidiary of a party hereto is any corporation or associa [sic] association of which such party owns over fifty percent (50%) of the voting capital stock or has equivalent ownership.
Section 2. Hartford's License to Owens.
Hartford grants to Owens a nonexclusive, nonassignable (except to the successors to its entire glass container manufacturing business), and nondivisible (except to its subsidiaries) license to make, or have made for it, and to use, machines and/or methods embodying Licensed Inventions of Hartford for the manufacture of glassware (and parts thereof or there-for), subject, however, to all of the exclusions in Schedule B hereto attached, Said license shall extend to the expiration date of the latest expiring patent on any Licensed Invention of Hartford, unless said license is sooner surrendered and terminated as hereinafter provided.
As to each Feeder owned by Owens embodying any Licensed Invention of Hartford, an individual license, in the form used at the time by Hartford under similar conditions with others, shall be issued by Hartford to evidence such licensing; provided, however, that the terms and conditions of any individual license issued by Hartford to Owens under the provisions of this Section 2 shall not alter or set aside any of the terms of this agreement.
Section 3. Royalties Payable by Owens.
(A) While Owens holds the license granted to it by Section 2 hereof, Owens shall pay to Hartford royalties, at Hartford's Lowest Rates of royalty, on all merchantable glassware manufactured by Owens by the use of any Licensed Invention of Hartford.
Schedule C , attached hereto, contains Hartford's Lowest Rates applying to Feeders and to Hartford Formers now held under license and/or lease by Owens. Hartford shall promptly notify Owens of any change in said rates. As to the Formers now or hereafter owned by Owens and not acquired from Hartford, and covered by any patent of Hartford relating to Licensed Inventions, the question of whether or not royalties shall be payable by Owens and the amount of royalty, and other conditions, if any, shall be determined by agreement or, in default thereof, by arbitration. In making their award, the principal consideration of the arbitrators shall be whether other users of a substantial proportion of the same type of formers under like conditions in the United States are paying royalty to Hartford on account of such use, and the amount they are so paying.
In case of any dispute as to whether the use of any particular method or apparatus by Owens does or does not constitute a use of Licensed Inventions of Hartford, the matter shall be settled by arbitration
(B) Owens shall pay to Hartford minimum royalty of Five Hundred Thousand Dollars ($500.000) for each year during each of the first three years from the date hereof; that is to say, if the sum of the production royalties, plus any minimum royalties, paid by Owens under-the individual licenses and/or lease agreements provided for in Sections 2 and 4 hereof, shall be less than an average of Five Hundred Thousand Dollars ($500,000)for each of said three years, Owens shall pay the deficiency in cash at the end of the third year; provided, however, that any payments made during said three years in commutation of royalties upon surrender of any such individual licenses and/or lease agreements, shall not be considered in determining such minimum annual royalty.
Section 4. Lease and Sale of Machines by Hartford. Owens shall have the right to take, on lease from Hartford, for the uses herein granted to Owens under Section 2 above and at the royalties provided in Section 3 above, such mechanisms embodying any of said Licensed Inventions as shall be built by or for Hartford, for license fees as low as are charged, and upon terms and conditions as favorable to Owens as are granted at the time of such leasing, to any other licensee by Hartford for such mechanisms under similar conditions; provided, however; that the terms and conditions of any lease contract issued by Hartford to Owens under the provisions of this Section 4shall not alter or set aside any of the terms of this Agreement.
The leasing of each such mechanism shall be evidenced by the issuance to Owens by Hartford of a lease contract of substantially the same terms and conditions as are at the time of such leasing contained in Hartford's standard lease contract relating to similar mechanisms.
If, after any such lease or leases (or any licenses under Section 2 hereof) are issued to Owens and , before the expiration of the term thereof, more favorable terms or conditions under similar circumstances shall be granted to others by Hartford. such more favorable terms or conditions shall be included by way of amendment, in such existing leases and/or licenses to Owens.
If Hartford shell sell any mechanism embodying any of said Licensed Inventions, Owens shall have the right to purchase a like mechanism under the most favorable terms granted under similar conditions to any other.
Section 5. Surrender of Hartford's Li-cense to Owens. After three years from the date hereof, Owens may, on sixty days' written notice to Hartford, surrender and terminate its license from Hartford granted to it by Section 2 hereof, providing that Owens pays or has paid to Hartford, over and above the total minimum payments provided for in Section 3 (B) hereof for the first three years from the date hereof the further sum of not less than One Million Dollars in production royalties, minimum royalties, and/or commuted royalties under the individual license and/or lease agreements provided for in Sections 2 and 4 hereof.
Upon surrendering and terminating said license, Owens (1) shall surrender and deliver to Hartford all machines and mechanisms held by Owens under lease from Hartford, (2) shall pay any commuted royalties that shall be due on such surrendered machines and mechanisms, (3) shall pay such other commuted royalties as shall be payable on other machines and mechanisms licensed under Section 2 hereof, and (4) shall pay all other sums due under this Agreement to the date of such surrender and termination
Section 6. Extension of Rights and Obligations to Subsidiaries of Owens. The rights acquired by Owens under this Agreement are hereby extended to each and every present and future glassware manufacturing subsidiary of Owens, which rights, however, shall continue only so long as Owens holds such rights and such subsidiary remains a subsidiary of Owens. While any such subsidiary is enjoying such rights, it shall be bound to Hartford for the obligations arising from the exercise of such rights. Owens shall be responsible to Hartford for the performance by each such subsidiary, while it remains an Owens subsidiary, of all such obligations to Hartford of such subsidiary.
Section 7. Arbitration. All matters for which arbitration is specifically provided by this Agreement, or any controversy or claim arising out of or relating to this Agreement, or as a result thereof, shall be settled by arbitration under the rules, then obtaining, of the American Arbitration Association and judgment may be entered on the award in the highest court having jurisdiction.
In witness whereof, the parties hereto have hereunto set their hands and seals, acting herein by their respective officers duly authorized therefor.
Hartford-Empire Company, By F. Goodwin Smith, President.
Attest: Arthur T. Safford, Jr., Secretary.
(Signed October 14, 1935-10:05 a. m.)
Owens-Illinois Glass Company, By Wm. E. Levis, President.
Attest: John H. McNerney, Secretary.
Owens-Illinois Pacific Coast Company hereby accepts the rights extended to it by the foregoing Agreement as a glass manufacturing subsidiary of Owens and binds itself to Hartford for the obligations arising from its exercise of such rights; but upon the condition that it shall not be responsible for the acts or covenants of Owens or any other subsidiary of Owens.
Owens-Illinois Pacific Coast Company, By Harold Boeschenstein, Vice President.
Attest: E. F. Martin, Asst. Secretary.
SCHEDULE A
Annexed to General License from Hartford-Empire Company to Owens-Illinois Glass Company.
(Dated: October 1, 1935)
Glassware Excluded in Determining Hartford's Lowest Rates.
1. Ware Division A shall consist of bulbs to be made into incandescent electric lamps or other permanently sealed enclosures for electrical purposes, and of tubing and cane for use in the manufacture of incandescent electric lamps and of other permanently sealed enclosures for electrical purposes
Ware Division B shall consist of signal and optical glassware. This is ware whose form or composition is chiefly intended and adapted to refract or reflect light or absorb selected forms of energy, or to absorb light of selected wave lengths. Vault lights, bulls-eyes formed as integral parts of lantern globes, and actinic absorption glasses used in containers are excluded from this Division.
Ware Division C shall consist of glassware intended and adapted for use where its physical strength or heat resistance or chemical resistance or electrical properties in such ware is of substantial value, and made from glass having a linear co-efficient of thermal expansion of less than .000006 per degree Centigrade, or containing more than five per cent boric oxide, or having a higher electric strength, or higher thermal endurance, or higher chemical resistance than a glass containing 80% silica, 10% sodium oxide, 5%boric oxide and 5% calcium oxide.
Ware Division D shall consist of glassware intended and adapted for holding food in the process of cooking or sterilizing (excluding "containers" from this Division), and of articles not now made of glass, made from novel glasses developed by Corning Company and demanding for the successful use for such article properties not found in ordinary glasses.
Ware Division F shall consist of ware (a) in part of what is commonly known as laboratory ware, to-wit, ware intended and adapted especially for chemical and physical (including biological) testing or investigation, and ware intended and adapted especially for medical or surgical purposes and having a utility or value beyond the functions of a "container," and further consisting (b) in part of what is known as art glass, to-wit, ware which is colored, translucent or opaque, and which on account of the aethetic [sic] aesthetic value which on account of the aesthetic value the market at a price substantially in excess of that which similarly shaped ware in transparent colorless glass would bring.
Ware Division G shall consist of drawn tube and cane.
Ware Division H shall consist of paste mold ware, that is to say, any ware made by rotating either the gather or the mold in relation to each other during blowing.
2. Also Ware Division E, which shall consist of articles of glass which are especially adapted by reason of form or composition for electrical purposes when articles included therein are made on machines embodying rights controlled by Empire Machine Company on June 7, 1922 or which by reason of contracts then in force it should acquire.
SCHEDULE B
Annexed to General License from Hart-ford-Empire Company to Owens-Illinois Glass Company.
(Dated: October 1, 1935.)
EXCLUSIONS OF HARTFORD
The following articles are expressly excluded and shall not be produced under this General License Agreement.
(a) Bulbs and tubing and cane all when for use in the manufacture of incandescent electric lamps or for any other, permanently sealed enclosure for electrical purposes.
(b) Signal and optical ware.
(c) Ware intended and adapted for use where its heat resistance, physical strength or chemical resistance or electrical properties in such ware is of substantial value, and made from glass having a linear coefficient of thermal expansion of less than .000006 per degree Centigrade, or containing more than five per cent boric oxide, or having a higher electric strength or higher thermal endurance or higher chemical resistance than a glass containing 80% silica, 10% sodium oxide, 5% boric oxide and 5% calcium oxide.
(d) Ware intended and adapted forholding food in the process of cooking or sterilizing, other than ware intended and adapted for packages for storage and sale of goods or for transportation of goods.
(e) Hot mold or paste mold tumblers; lantern globes; gas globes; chimneys; drawn tubing and cane.
(f) Marbles and lithographers' balls.
(g) Flat glass, that is to say, plate glass, sheet glass, window glass, rough rolled and ribbed glass, and also figured glass, colored and wire glass of the foregoing kinds in this paragraph (g) but not including glass blocks or sections thereof.
(h) Glass vacuum bottles comprising any botles [sic] bottles, jars, jugs and/or carafes containing or consisting of a glass filler constructed of an inner cylinder enclosed within an outer cylinder with a substantial vacuum between the two cylinders.
(i) All of the following ware when made on glass feeding machines of the Tucker and Reeves type which embody a swinging pressure cup in which gas is burned, or embodying a swinging pressure cup in combination with an annular burner surrounding the outlet, to-wit:
1. Pressed tumblers and pressed jelly glasses, blown tumblers, blown stemware, pressed and blown tumblers and pressed and blown stemware.
2. Packers' ware, block mold type, with jelly rings thereon; all other ware which is pressed only, and not blown or pressed and blown-except vault lights; ointment jars; finger bowls; plates; nappies, salt shakers; individual salts; wax cups; stoppers, caps and covers for bottles and jars (not including fruit jar caps and covers); drawer pulls, furniture balls (substitutes for casters); lenses for flash-lights, bullseyes, head-lights, etc.; mangin mirrors (for moving picture production; prism glass; novelties and toys (fuse cases; animals); all ware for the production of which Federal Glass Company has exclusive rights under existing contracts and not heretofore granted by Federal Glass Company to Capstan; paper weights; stem ware (example, wine and cocktail glasses); measuring glasses-packers' jars adaptable for top seal, top side seal, and side seal caps of types such as American metal top side seal, or friction seal caps, Anchor Cap and Closure caps, Phoenix Hermetic "Cinch" or "Hermetic" caps, but of no other type of finish.
(j) Articles of glass which are especially adapted by reason of form or composition for electrical purposes when made machines embodying rights controlled by Empire Machine Company on June 7, 1922, or which by reason of contracts then in force it should acquire.
(k) Milk bottles or cream bottles when made on the Hartford Paddle Needle Feeder and/or the Hartford Milk Bottle Machine.
(l) "Fibers," that is, filaments of glass whether solid or hollow as distinguished from tubing and cane, as these terms are now generally understood in the trade.
All of the foregoing exclusions (except hot mold or paste mold tumblers, gas globes, chimneys, fibres and flat glass as described in (g) above) are made because of the fact that Hartford has outstanding contracts granting exclusive rights on such excluded ware. If, during the life of said General License, any such exclusive right, excepting those exclusions setout in parenthesis above, shall cease to be exclusive to any one concern, Hart-ford will remove said exclusion or exclusions from said General License and will so notify Owens.
SCHEDULE C
Annexed to General License from Hartford-Empire Company to Owens-Illinois Glass Company.
(Dated: October 1 , 1935)
RATES OF ROYALTY
The weights below specified are the weights of the finished article.
(1) The royalty on all fruit jars for domestic (household) use up to and including one-half gallon capacity shall be twelve cents (12c) per gross.
(2) No royalty shall be payable by Licensee upon stoppers, caps, lids and/or liners.
(3) The royalty rates on milk and cream bottles shall be twenty (20) cents per gross for one quart size, and fifteen (15) cents per gross for one pint size, and twelve (12) cents per gross for one-half pint size, and ten (10) cents per gross for one-quarter pint size, and for other sizes a royalty proportioned by weight of product to the royalty for the nearest standard size.
Whenever Licensee in any one calendar year shall have produced, with Licensed Inventions, a total of five hundred thousand (500,000) gross of milk bottles, Hartford will, during the term of this Agreement, pay to Licensee, a refund upon the royalties paid by Licensee upon additional milk bottles thereafter produced, during such year, by Licensee. Such refund shall be equivalent to seven cents (7c) per gross upon such subsequent additional production, but shall not be paid upon more than a total additional production of five hundred thousand (500,000) gross. Such refunds shall be paid monthly within ten days after Hartford shall have received from Licensee the monthly royalty payable upon such additional production; provided that no milk bottles of a size smaller than one-half (1/2) pint shall be included or counted in such first total of five hundred thousand (500,000) gross or in any production additional thereto.
(4) The rate of royalty for the Hartford Individual Section Machine shall be two cents (2c) per gross; for the Hartford Press & Blow Machine it shall be six cents (6c) per gross for, ware other than fruit jars for domestic (household) use.
May 8 1936
Owens-Illinois Glass Co., Toledo, O.
Attention: John H. McNerney
Gentlemen: We have decided to make an adjustment of our standard Feeder Royalty Rates for Blown and Pressed and Blowng glassware in weights of One and One-half (1 1/2) Ounces or less as shown in the Schedule of your Feeder Royalties attached hereto.
This simply means that in lieu of the rates of royalty shown on Page 14, Schedule C of the General License from Hartford-Empire Company to Owen-Illinois Glass Company dated October 1, 1935, and the equivalent Schedule on Page 24, Schedule D annexed to License and Lease No. HSF — which is the first schedule of the Consolidated Feeder and Former License and Lease, the attached rates of royalty will be substituted. This does not change the royalties on the other types of ware.
This adjustment will become effective May 1, 1936.
Very truly yours,
HARTFORD-EMPIRE COMPANY,
A. T. Safford, Jr., Secretary.
Amendment to General License from Hartford-Emipre Company to Owens-Illinois Glass Company.
This Agreement made and entered into as of the first day of January, 1936, between Hartford-Empire Company, a corporation of Delaware having its principal place of business at Hartford, Connecticut, hereinafter called "Hartford" and Owens-Illinois Glass Company, a corporation of Ohio having its principal place of business at Toledo, Ohio, hereinafter called "Owens";
Witnesseth that for and in consideration of one dollar and other good and valuable considerations in hand paid by each of the parties to the other, receipt of which is hereby acknowledged, and of the mutual covenants herein contained, it is agreed by and between the parties, Hartford and Owens, that Schedule "C" of the General License from Hartford-Empire Company to Owens-Illinois Glass Company, dated October 1, 1935, shall be amended by striking out Paragraph (3) thereof, the effect of said amendment being to make applicable to milk and cream bottles the royalty schedule set forth on Page 14 of said General License instead of the royalty rates specified in said Paragraph (3). In witness whereof, the parties hereto have hereunto set their hands and seals, acting herein by their respective offices duly authorized therefor.
Hartford-Empire Company: By F. Goodwin Smith, President. Attest: Arthur T. Safford, Jr., Secretary.
Owens-Illinois Glass Company: By C. B. Belknap, Vice President. Attest: John H. McNerney, Secretary.
December 23 1936.
Mr. C. B. Belknap, Executive Vice President, Owens-Illinois Glass Co., Toledo, Ohio.
Dear Mr. Belknap: It is our desire to assist our licensees to obtain to a greater degree the economic advantages of Hartford equipment.
We believe that a reduction in the initial investment required for Hartford equipment will materially aid in accomplishing this purpose.
Therefore, as of January 1, 1937, until further notice, we are pleased to quote you the revised license fees on the following Hartford equipment.
Single feeders, old license fee, $2,500; new license fee, $2,000.
An allowance of $500 will be made for any other make of Feeder now under license which a licensee might elect to trade in for a new Hartford Single Feeder.
Variable and spare parts for Feeders will be charged as extras as in the past.
GENERAL LICENSE FROM OWENS-
ILLINOIS GLASS COMPANY AND
OWENS-ILLINOIS PACIFIC COAST
COMPANY TO HARTFORD-EMPIRE
COMPANY.
This Agreement made and entered into as of the 30th day of September, 1935, between Owens-Illinois Glass Company, a corporation of Ohio, having its principal place of business at Toledo, Ohio, herein-after called "Owens," Owens-Illinois Pacific Coast Company, a corporation of Delaware, having its principal place of business at San Francisco, California, herein-after called "Owens-Pacific," and Hartford-Empire Company, a corporation of Delaware, having its principal place of business at Hartford, Connecticut, herein-after called "Hartford";
WITNESSETH;
That for and in consideration of One Dollar ($1.00) and other good and valuable considerations in hand paid by each of the parties to the other, receipt whereof is hereby acknowledged, and of the mutual covenants herein contained, it is agreed by and between the parties, as follows:
Section 1. Cancellations. All existing contracts, licenses and agreements between Owens and Hartford, and Owens-Pacific and Hartford, are hereby cancelled, but this cancellation does not bring into effect any contracts, licenses, or agreements heretofore existing between them. Owens and Hartford and Owens-Pacific and Hartford hereby acknowledge full satisfaction and settlement under all prior contracts, licenses, and agreements between them.
Section 2. Definitions. (A) "Licensed In-ventions" shall be defined as and held toincludethe following inventions and/or in-terests therein, now owned or controlled ,or hereafter owned , acquired, or controlledby Owens and/or by Owens-Pacific, priorto January 3, 1945 , in so far as, and while,the same are covered by unexpired UnitedStates letters patent or by pending appli-cations filed at any time on inventions soowned or controlled by Owens and/or byOwens-Pacific prior to January 3 , 1945,and in so far as the same are includedin the inventions described below in thisSection 2:Inventions of apparatus for or methodsof feeding mold charges of molten glass(hereinafter called "Feeders") from fur-naces to forming machines, excluding,however, from this definition apparatusfor, and methods of, drawing molten glassby suction into molds. Drawing moltenglass by suction into a gathering cup (nota mold) and discharging the gather intoa mold, shall be included in "Licensed Inventions."
Inventions of apparatus for or methods of forming glass by forming machines (hereinafter called "Formers") if and so far as such inventions are used or usable with, but only for use with, apparatus for and/or methods of feeding molten glass, other than said drawing molten glass by suction into molds, and other than hand-manipulated punties, hand-manipulated blowpipes or other hand process; but any apparatus for, or methods of, assembling or treating glass blocks, or glass block sections, after such blocks or sections have
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