ADDRESS ALL LETTERS TO THE COMPANY FWEMINGTON ARMS | FIREARMS, NEW YORK ARMS WORKS, ILION, N.Y. CASH REGISTER WORKS, !LION,N.Y. CUTLERY WORKS. BRIDGEPORT,CONN. WORKS, BRIDGEPORT, CONN. AMMUNITION AMMUNITION WORKS, BRIMSDOWN, MIDDLESEX, REGISTERS CABLE ADDRESS HARTLEY, NEW YORK CODES USED UNIVERSAL, BENTLEYS,WORLD ENG. CUNARD Browning Brothers Ogden, Utah. | CASH LONDON A.B. *ee Subject:- COMPANY. Inc. MANUFACTURERS OF AMMUNITION, CUTLERY AND C. 5TH EDITION, WESTERN October 30, GENERAL UNION, LIEBERS ror GENERAL OFFICES BUILDING, 25 BROADWAY NEW YORK CITY ROYALTI#S ON MODEL11 DID et SEITE ES 1925. SHOTGUN Company, Gentlemen: - you writing Since under date auditors has checked our records and the substantially the same as those reported based on the audit made record the total number by of September results by your 10th, of guns one of he obtained were letter of August According to Mr. Mr. Farr. unaccounted for amounted to your guns auditor finds the total number royalties were paid is 1L5ll. of manufactured but upon our «7th Farr's 1498; our which no According to our theory and the interpretation of the contract by ourselves and our attorneys, we were obligated to pay royalties only on guns sold prior to the expiration of the contract, but you are equally firm in your opinion that you were entited to royalties on all guns manufactured prior to the expiration of the We are not sure whether you claim that the royalties should contract. be paid on guns manufactured but never sold or whether you merely claim that the royalties accrue to you when and as guns manufactured prior to the expiration of the contract are sold. It is not necessary for us to repeat our statements in as regard to our interpretation of certain clauses of the contract, but as these questions have been covered in previous correspondence, an evidence that your people must have accepted at one time the principle that royalties should be paid only on guns sold, we are attaching hereto copy of a letter written to Mr. M.S. Browning under date of President May of 17, 1916 this by Mr. C.L. Reierson, then Vice President now company. That letter was written in reply to a request from Mr. an explanation of the number of guns on which royalties for Browning had been charged back on the Browning royalty statement for the first three months of 1916. You will note that at that time it was very evident from the fact that the royalties were charged back on the guns which had not been sold and from the explanation which clearly states in two or three instances that royalties were paid on sales, that we then believed you were entitled only to royalties on guns actually sold and as we do