Mr. MARCUs. Yes, sir. Mr. TOLAND. To show that when I made that statement there was no misrepresentation, and to show that I intended to follow it up later, isn't it a fact that in the fall of 1940 Robert Bosch, through its affiliated company in France known as Attelier de Construction Lavalette, and one of the Bendix Franch companies, Ducellier, commenced negotiations toward effecting a division of products which they would manufacture? Mr. MARCUS. We have knowledge of it. Mr. TOLAND. Isn't it a fact that on the 24th day of January 1941, your Mr. O'Hanrahan, with Mr. Dipper, who is the German representative of Bosch, was active in carrying on negotiations and submitted a draft of an agreement between Ducellier and Lavalette to Bendix for their approval? Mr. MARCUS. That is right. Mr. TOLAND. I show it to you and ask you if you recall receiving it. Mr. MARCUS. It was received by us. Mr. TOLAND. And I show you a memorandum report from O'Hanrahan to Mr. Cowan, Paris, dated January 24, 1941, and ask you if you have any recollection of seeing that. Mr. MARCUS. This one I don't know. It is not signed. It probably is a memorandum that perhaps Mr. Stanton or someone else must be familiar with. Mr. TOLAND. Aren't Mr. O'Hanrahan's intitials on the top of the page? Mr. MARCUS. E. O. H.:F. A. S. but it seems to be a memo thatMr. TOLAND (interposing). I would like to offer those in evidence. (Document entitled "Draft of Heads of Agreement," was received in evidence, marked "Exhibit No. 149" and is printed in the appendix of this volume.) (Document dated Paris, January 24, 1941, headed "Memorandum to Mr. Cowan," was received in evidence, marked "Exhibit No. 150" and is printed in the appendix of this volume.) Mr. TOLAND. Isn't it a fact that in connection with that proposed agreement your company informed the War Department of the proposed agreement and declared that it did not require Bendix' approval, when in fact it did require your approval? Mr. MARCUS. I won't say to this date that I know whether it did. or not. Personally Mr. TOLAND (interposing). Did you make, or did anybody in your company make, a statement to the War Department regarding the proposed agreement, and make a statement that it did not require Bendix' approval? Mr. MARCUS. I don't know. If they did, however, and I am sure that it must have been submitted to the War Department in common with all documents of that nature, that supports my view or thought that we wanted to be strictly away from it, and I am fairly certain that we so notified the War Department as well. Who did that I don't know, however. Mr. TOLAND. Now, Mr. Marcus, have you finished? Do you know Mr. Wild? Mr. MARCUS. There are two Mr. Wilds. Mr. TOLAND. Of the American Bosch Corporation. Mr. TOLAND. Did Robert Bosch at any time recommend that Bendix buy the American Bosch Magneto Co. in Springfield, Mass.? Mr. MARCUS. Will you state the question again, sir? Mr. TOLAND. Did Robert Bosch, in Germany, at any time ever recommend to Bendix that it buy the Bosch Magneto Co. in Springfield, or the American Bosch Corporation in Springfield, Mass.? Mr. MARCUS. Not in that form. If you like, I will tell youMr. TOLAND (interposing). Did he ever suggest to your company to buy it saying that he controlled it but didn't own it? Mr. MARCUS. Well, again I don't think I can answer that with a "Yes" or "No." Mr. TOLAND. Answer it whatever way you can. Mr. MARCUS. If you like, I would like to make a statement on it. Mr. TOLAND. Yes; anything you want. The CHAIRMAN. Go ahead and make a statement. Mr. MARCUS. I received personally a telephone call a few years back from, I think, Amsterdam; anyway, I think it was in Holland, from a Dr. Rasbach, who is one of three of the officials who operate the Robert Bosch Co.; he stated that some stock which was in the hands of a bank in New York as trustee, and representing the control of the American Bosch Co., was on the American market for sale, due to some house in, I think, Holland, which had crashed, letting it go, and at that time several financial interests in New York, banks, purported to have the right to sell that stock, which it was stated was in New York. When Rasbach called me up, it was to inform me that there were several bidders for it in this country, some of whom it would not be to their liking. He mentioned some of the principal automobile companies manufacturers. Then he added, "I can tell you that there is a string attached to this sale. The string is a license agreement between Robert Bosch, Germany, and the American Bosch Co. in Springfield, and it states that the sale of that ocmpany or its control must have our consent, or else the license which the American Bosch Co. has from Stuttgart" (to which I have referred) "is immediately nullified or canceled. Therefore," he said, "you can see the nature of that string, and I am telling you now that the purpose of this call is that you, Bendix Aviation, would be persona non grata to the Robert Bosch Co. in Stuttgart, and the other present existing bidders would not be." Mr. TOLAND. Now, have you finished? With regard to the negotiations between Lavalette and Ducellier, will you again state whether or not you knew and approved or disapproved of the negotiations and the proposed agreement? Mr. MARCUS. I will try to repeat it as I put it before. We knew of them. They tried hard to get our consent; that is to say, not knowledge, but the consent and written approval by officers properly authorized by Bendix Aviation Corporation, to sign an agreement and thus validify it from our end. That was not done, but I also state we had full knowledge of it, and we were powerless to do anything about it because we knew they would do it anyway. Mr. TOLAND. I am asking you now, and I want you to take your time. Did you yourself inform the War Department of the proposed agreement and state to the War Department that the proposed agreement did not require your approval, and did you thereafter, after informing the War Department of the proposed agreement, cable Robert Bosch to that effect? Mr. MARCUs. I don't recall. Mr. TOLAND. Do you have any recollection of talking with anybody that talked with Robert Bosch? Mr. MARCUS. Oh, yes. Mr. O'Hanrahan kept on sending messages all the time. Mr. TOLAND. After the departure of Mr. O'Hanrahan from France, didn't you carry on negotiations regarding this agreement with Robert Bosch through the instrumentality of Mr. Wild, of the American Bosch Corporation, by means of trans-Atlantic telephone? Mr. MARCUS. Did you say Mr. Wild, of American Bosch, or Robert Bosch? Mr. TOLAND. Yes, sir; American Bosch Corporation, by means of trans-Atlantic telephone. Mr. MARCUS. Well, I wouldn't talk to Mr. Wild, of American Bosch by trans-Atlantic telephone. Mr. TOLAND. No, no, no. I didn't ask you that. I said, didn't you, and isn't it a fact that you continued the negotiations regarding these two companies in connection with this agreement through J. E. Wild, of the American Bosch Corporation, with Robert Bosch of Germany? Mr. MARCUS. J. E. Wild Mr. TOLAND (interposing). Now answer the question. Did you or didn't you? Mr. MARCUS. Not in the form in which you have put that question. I can't answer "yes" to that because it is not a fact. Mr. TOLAND. Let me ask you this, then. Is it a fact or is it not a fact that you called J. E. Wild at Springfield, Mass., or that you had J. E. Wild talk with Robert Bosch in Germany about this agreement? Mr. MARCUS. J. E. Wild called me. If I put in a call for J. E. Wild, it could only be because he tried to get me and I later called him, and for many weeks, for months, in fact, he tried hard at the instigation of Robert Bosch, at Stuttgart, to get us to sign that agreement, and so did the people in Stuttgart who called us on the phone-me. Mr. TOLAND. Who was it that called you on the phone? Mr. MARCUS. Mr. Dipper called me, I think, and I think, Rasbach. Perhaps it was Dipper mostly, and each time he called, I had Mr. Stanton get G-2, through Col. Truman Smith, to listen in on the telephone. Mr. TOLAND. Which one was that? Mr. MARCUS. I don't get the question. Mr. TOLAND. Which call was that that you had him listen in on? Mr. MARCUS. There was someone in G-2 at all times on the telephone when we were talking to Stuttgart. Mr. TOLAND. At your request? Mr. MARCUS. At my request. Mr. MARCUS. Yes, sir. Mr. TOLAND. To whom did you make that request? Mr. MARCUS. Mr. Stanton made it. He will be able to tell you what his motions were. Mr. TOLAND. I will show you a letter, dated February 26, 1941, written by Stanton to Col. Truman Smith, of the War Department, and ask you if you authorized that to be sent? Mr. MARCUS. Yes, sir. That was the call that came to my home. Mr. TOLAND. I offer that in evidence. (The letter was received in evidence, marked "Exhibit No. 151" and is printed in the appendix of this volume.) Mr. TOLAND. Now, Mr. Chairman, I would like to read a report of a telephone conversation with the witness on the 17th day of July 1941, at 11:30 a. m. Eastern Standard Time: 1. As requested by Mr. Dipper in his telephone conversation of May 10, I told Marcus that Bosch was anxious to hear his reaction to the final wording of the proposed agreement between Ducellier and Lavalette. M. went into a lengthy explanation as to his attitude in this matter. He submitted the agreement to Washington for approval, as he had to on account of having been officially approached, and he cabled that fact to Bosch. M. has had no answer and expects none, explaining that with the increasing hostile attitude between the Vichy Government and this country any government official will be extremely reluctant to give an approval. Bendix has the fullest confidence in both contracting parties and will abide by whatever they do. M. has especially highest regards for Mr. Amblard (?) and thinks that any deal which he makes with Lavalette-Bosch will be fair to both parties. It is much simpler for M. not to know much about what is going on, as there is no possibility anyway for Bendix to express any wishes. M. thought that the agreement was all right with minor exceptions, but that he could not officially say so as long as he had no approval from Washington. He stressed repeatedly that he is quite pleased that the two parties apparently cooperate under some agreement in order to have orderly business conditions prevail in the automotive accessory business, in which these two companies are interested. 2. I conveyed Mr. Dipper's idea of taking the initial step to bring about an extension of the convention year available for filing of patents in foreign countries. M. thought that Mr. Stanton should contact me directly on this and he will ask him to phone me on the subject. 3. I told M. about Rudolf Wild's business relation with Farnsworth Television & Radio Corporation and his desire to change his employment. M. promised to be helpful. Signed, "J. E. Wild." Then there is a P. S.: In a subsequent telephone conversation, Mr. Staunton pointed out that under prevailing conditions it was best to file foreign applications in the usual way and claim the convention protection. If the application arrives too late, this could not be helped and probably would be remedied by legislation of the various countries. In this country, it takes an act of Congress to bring about an extension of the convention period and the Chief of the Patent Office will initiate the request for extension at some time in the future. This is what happened during the last war and Staunton thinks that the same procedure will be adopted again. (The report as read was received in evidence and marked "Exhibit No. 152.") Do you recall making any of those statements? Is his report correct? Mr. MARCUS. I do. I would say that is a correct report, plus a little diplomacy in talking to Mr. Wild, who was the representative of Robert Bosch. The facts are there. We didn't and we wouldn't sign that agreement. Mr. TOLAND. Who is J. W., Mr. Marcus? Is that Mr. Wild? Mr. TOLAND. His initials are "J. E. W." Mr. MARCUS. Yes; but this is "J. W." Mr. TOLAND. I have a written excerpt of a trans-Atlantic telephone conversation between E. Dipper, of "RB" and "J. W., of AB," which I assume to be American Bosch, on May 10, 1941: (Dipper remarks that Bosch is working on an agreement to cooperate with the Bendix-controlled factory in France.) WILD. I spoke to Marcus some time ago. He told me that he was very pleased that the Bosch Co. became interested in his French companies and he would like nothing better than to have the Bosch Co. interest itself. (Dipper remarks that Bosch is trying to form a closer cooperation with the French company.) WILD. I will tell him so. He will be pleased. (Dipper remarks that he sent the final wording of the proposed agreement to Mr. Marcus and that Bosch is very anxious to hear what Marcus has to say to that agreement.) WILD. Shall he talk to you on the phone or cable? (Dipper answers that either way would be satisfactory.) I offer that in evidence. (The excerpt was received in evidence and marked "Exhibit No. 153.") Mr. TOLAND. Now, Mr. Marcus, you make what is known as the "aleostrut." Do you have the patent for the device known as aleostrut, and are they made by your company in the Cleveland Pneumatic Corporation? Mr. MARCUS. Well, on the matter of struts, struts are made in the South Bend plant. Perhaps Mr. Breech would care to discuss the strut question with you. Mr. TOLAND. IS Mr. Mel Burns an employee of Bendix Corpora tion? Mr. BREECH. He is an employee of Bendix Aviation, Ltd., a small subsidiary in California. Mr. TOLAND. In Burbank? Mr. BREECH. Yes; that is right. Mr. TOLAND. And Mr. Cautley? Mr. BREECH. He is the sales manager at South Bend, the strut department. Mr. TOLAND. I don't suppose that either of you two witnesses is familiar with these. I will ask you if you are. Is it a fact that on January 1, 1941, your company licensed the Axelson Manufacturing Co. of Los Angeles, Calif., to build 96 shock struts for Douglas Aircraft? Mr. BREECH. I understand that is so. I have a very limited knowledge of it. Mr. TOLAND. Have you ever been advised, Mr. Breech, that Lieutenant Colonel Branshaw, chief inspector of the Army Air Corps, stated that one of the shortages in aircraft production is in struts? Mr. BREECH. One of the shortages in aircraft production has been struts from the beginning of the war effort. Mr. TOLAND. Did the War Department take any active part in attempting to get your company to get restrictive licenses so that struts could be made by several small companies? Mr. BREECH. I don't know what action the War Department took. I was a director then and it was reported by Mr. Ferguson as to what the strut situation was, and as an officer of General Motors at that time, Colonel Wolf, now General Wolf, approached me with the idea of having one of the General Motors divisions, Delco Products at Dayton, build struts under Bendix licenses, and arranged the licenses not only with Bendix but also with Cleveland Pneumatic Tool Co., who are competitors in the strut business. Mr. TOLAND. Were you advised, or was it brought to any of you gentlemen's attention, the Air Corps' attitude toward the competition |