Referring to our request that you send us a statement of guns unsold and in process of manuf fract ure, we believe that accor ‘ding to our cnntract with you of December } Ae! 1903, we are entitled to payment of royalties on these gunes, and cite below our attorney's Opinion: ” The question has been propounded tc me whether under the terms of the contract the licensee w d be liable to the licensor for & royalty upon guns manufactured but not sold at the time of the expiration of the tern baa the patent. As I read the eo nites’. it seems that its stipulations pel the conclusion = the licensee “becomes liable to the licensor upon he menufagture of f Shot guns, because it will be noticed, first, that the licensee 7 Revs the richt to manufactur e, and secondly, requires the licensee to keep a full, true and accur ate account of all automatie shot cuns reget ie pis ag which account is -at reasonable times open to the inspection. of the liisensor or its duly authorized representatives fo my mind this shows that the licensee's liability to the licensor arises at the time of the manufacture of the guns. Shot - Ae to the ount of the As ¥,. and as to the time of payment of the royalty Such ma tter end. upon sales made and the time of the sale and th t of the sellins price, out all such ma tere may be resar< 3 mere ine ideieat standards for the determination of a lise bility alresdy fixed and created by the manufac ture of the auto matic shot guns statements eco mpel the conclusion upon my ont. and such is my opin n2G tne lieensee is liable to the licensor for a upon all automa thot 2 hat the licensee has manufactured at any time during the term of the ideene @ contract. The mere fact that the licensee has not Sold these guns cannot affect the question of the latter's liability to pay ¢ royalty when a sale is made, and I doubt very much whether i an unreasonable fF 5. © vn . 4 t « n : refusal L 1ecesg to make f, > LiOl ssa Lr’ y a sa . ie } this We, like yourselves, do stipu Late, but believing that you one of our guns without payment suns vithout payment, we must ~ , > ‘Sak ih ah latte ess a sf; 79 %, C8 TTP vy = n had us a 7s a 4 to us ~ Poa! steps - Oe > . or to 4 these ye hy % have on cu - ¥Y3 Suns 3 yy such - juestior ei 4 ”“ te Fe an ~ Oo _ ? account = +> ho "4 " * —_— is . une ro | 4 -1L, <=; -f? a . 2 it 9 expect more than our agreeii eeic neontcsS no more richt to manu? ractur than you had to Sell one of ouzx ask that an accounting be made 4 Ootnervis raOt} h 9 _ 2 - ‘assume~ wi rr 5 bd 7 be 2k necessary for . = us 3 rrt to * 4. ry a von <3 ~