7 4 a HENRY M. HUXLEY CHARLES L. BYRON MILTON T. MILLER HOWARD W. HODGKINS RALPH MUNDEN JAMES P. HUME HOWARD SOMERVELL RUSSELL H. GORDON F. HOOK ENLOE GERRIT WILKINSON P. GROEN WILKINSON, HUXLEY, * ON & KNIGHT GEORGE L.WILKINSON COUNSEL HERVEY S. CLARENCE CLARK KNIGHT es F. POOLE ASSOCIATE ATTORNEY J anua a shh g th 4, = * BYRON FIRST NATIONAL BANK BUILDING CHICAGO = 194A TELEPHONE RANDOLPH 4848 LEAVE Mr. Gordon M. Baxter, SCHOLEFIELD, WELLS & BAXTER, 1219 First Security Bank Building, Ogden, Utah. Dear Gordons At the time of our last meeting in St. Louis you will recall that Mr. Chester Burke indicated that there are two aspects of the contractual relationship with Brownings that provide some room for adjustment if it should be the desire of Browning to voluntarily better the situation. The first of appeared 37 mm. guns, which out of line with the two models of these is the $60.00 royalty Burke to to Mr. $5.00 and $10.00 machine guns. the be royalties on the somewhat paid on The second is the contractual obligation found in the machine gun sub-license to the Government requiring the Government to purchase from Colt's to the extent of its capacity. As you know, irritating to the Government crepancy situation which was confidence. this feature was somewhat because of the price disdiscussed to some extent in You will further recall that Mr. Burke did not even go so far as suggesting that anything be done, but he certainly expressed a hope that the parties would find some way to better the contractual situation on these two points. This idea was further discussed with Mr. Burke when I was on the train, and whereas he did not disclose ‘anything new over and above what he stated in St. Louis, he did elaborate to some extent on the difficulty presented by the price discrepancy situation. He made it clear that the price discrepancy was a difficult problem in and of itself which gave the Government considerable concern, but that this difficulty was made much more serious by the requirement of the Government's sub-license to continue to buy Colt's capacity.