Contracts
After the court cases, Frederic J. Ball settled with the Automobile manufacturers - Ford and Buick. I put both contracts here because they are basically the same. Afterwards, there is a letter written by Frederic J. Ball to Ford Motor Company requesting sympathy for payment not received.
LICENSE AND AGREEMENT
THIS AGREEMENT, between the New York Gear Works, of 56 Greenpoint Avenue, in the Borough of Brooklyn, in the City and State of New York, party of the first part, and the Ford Motor Company, of Detroit, Michigan, party of the second part, WITNESSETH:
THAT WHEREAS the party of the first part is, at the present time, sole and rightful owner of United States Letters Patent No. 671747, dated April 9, 1901; No. 749516, dated January 12, 1904, and No. 749602, dated January 12, 1904, for Transmission Gear,
AND WHEREAS the party of the second part is desirous of manufacturing or causing to be manufactured transmission gear containing said patented improvements,
NOW, THEREFORE, the parties have agreed as follows:--
1. The party of the first part hereby licenses and empowers the party of the second part to manufacture or cause to be manufactured for use on its own automobiles, subject to the conditions hereinafter named, to the end of the terms for which said Letters Patent were granted, transmission gears containing the patented improvements and to sell the same in connection with automobiles bearing their name within the United States.
2. The party of the second part agrees to pay to the party of the first part one dollar ($1.00) as a license fee upon every transmission gear manufactured or caused to be manufactured by the said party of the second part containing the patented improvements aforesaid.
IN WITNESS WHEREOF the said party of the first part, has set its signature and seal by Frederic J. Ball, a member of the said firm, this fifth day of December, nineteen hundred and five, at Brooklyn, New York.
IN WITNESS WHEREOF the said party of the second part has set its signature and seal by its ______________ this __________ day of December, nineteen hundred and five.
LICENSE AND AGREEMENT
THIS AGREEMENT, between the New York Gear Works, of 56 Greenpoint Avenue, in the Borough of Brooklyn, in the City and State of New York, party of the first part, and the Buick Motor Company, of Jackson, Michigan, party of the second part, WITNESSETH:
THAT WHEREAS the party of the first part is, at the present time, sole and rightful owner of United States Letters Patent No. 671747, dated April 9, 1901; No. 749516, dated January 12, 1904, and No. 749602, dated January 12, 1904, for Transmission Gear.
AND WHEREAS the party of the second part is desirous of manufacturing or causing to be manufactured transmission gear containing said patented improvements,
NOW, THEREFORE, the parties have agreed as follows:
1. The party of the first part hereby licenses and empowers the party of the second part to manufacture or cause to be manufactured for use on its own automobiles, subject to the conditions hereinafter named, to the end of the terms for which said Letters Patent were granted, transmission gears containing the patented improvements and to sell the same in connection with automobiles bearing their name within the United States.
2. The party of the second part agrees to make full and true returns and payments to the party of the first part upon the first days of January, April, July and October of each year of all transmission gear containing the patented improvements manufactured to caused to be manufactured by them during the three months preceding each of said duties.
3. The party of the second part agrees to pay to the party of the first part one dollar ($1.00) as a license fee upon every transmission gear manufactured or caused to be manufactured by the said party of the second part containing the patented improvements aforesaid.
4. The party of this second part furthermore agrees to pay to the party of the first part a minimum royalty during each year equal to the license fees upon one thousand (1000) transmission gears containing said patented improvements.
5. Upon the failure of the party of the second part to make returns or to make payments of license fees as herein provided within thirty (30) days after the days herein named, the party of the first part may terminate this license by serving a written notice upon the party of the second part but the party of the second part shall not be thereby discharged from any liability to the party of the first part for any license fees due at the time of the service of said notice.
IN WITNESS WHEREOF the said party of the first part, has set its signature and seal by a member of the said firm, this second day of May 1905, at the Borough of Brooklyn, in the City and State of New York.
New York Gear Works __________________
BY Frederick J. Ball __________________
WITNESS to signature of New York Gear Works. Thos. H. Lockwood ______________________
IN WITNESS WHEREOF the said party of the second part has set its signature and seal by its treasurer this tenth day of May 1905.
Buick Motor Company _______________________
BY W.C. Durant _______________________
WITNESS to signature of Buick Motor Company.
H.J. Koehler _______________________
Mr. Henry Ford II c/o Ford Foundation Study 440 Park Avenue New York, N.Y.
Dear Mr. Ford:
The recent article in "This Week" telling about the Ford Foundation prompts me to write this letter. Back in 1901-1904 I invented the all spur gear planetary transmission. This invention was patented under Patents nos. 671,747 - Apr. 9, 1901; 749,516 - Jan. 12, 1904 and 749,602 - Jan. 12, 1904. At that time I was a member of a partnership with my father, the late George M. Ball; we liquidated the concern about 1918. Henry Ford I used this transmission gear in his cars, and when I learned of it, I asked that he pay me a royalty for its use similar to the one which the Buick Motor Co. was paying, i.e. $.50 each. Mr. Couzens objected on behalf of the Ford Co. and so I sent Mr. Seward, my patent attorney, to Detroit for an interview. They offered a much lower rate which Mr. Seward refused, and advised bringing suit, which I did. Due to lack of funds, I was forced to drop this suit and signed an agreement to allow Mr. Ford to use my invention. A copy of this agreement is herewith enclosed. There was also a rebate agreement made at this time equal to the license fee of $1.00 each, which was without equitable consideration. I have been a good loser for nearly 50 years. The use of this transmission, because of its low cost of manufacture and efficiency, had a great deal to do with the success of the Ford Motor Co. I think it would be fair and proper to give me some remuneration. Do you not agree that there is a moral obligation? I invented the transmission and Henry Ford never paid me for its use. I have been informed that during the life of these patents the Ford Co. made three million cars. Hoping you will consider this matter in a favorable light, I am
Very truly yours,
(Signature)
