26 SPOGL-Patent Branch Mr. 1944 (L) James P. Hume, Esq., Wilkinson, Huxley, Byron & First National Bank Bldg., Chicago 3, Illinois. Dear July Knight Hume: In reviewing the royalty arrangements between J. M. &@ Wi. S. Browning Company and Colt's Patent Firearms Manufacturing Company, particularly with reference to the 37 mm. automatic cannon, it is noted from page 29 of the memorandum, submitted to St. Louis Urdnance District Price Adjustment Board, that this cannon embodies certain of the principles of the recoil operating mechanism disclosed in patent No. 678,937. list of It.is patents 6 April further under which noted that Colt was this patent licensed is under included the in the agreement of 1903. It is understood that the 1903 agreement gave Colt not only a license under the patents listed, but also a license under any patents which might issue covering improvements in the inventions disclosed in these patents. In this early agreement the royalty rate was 545.00 for each gun. A the 37 separate mm. cannon, agreement having dated a 3 July royalty agreement chose, so the first per per the all next 100 guns additional guns which respecting could it might have desire the relied under gun gun for for reduced 37 mm. upon comments respecting For the of the indicated It would covering foregoing are E. Lt. Col., Assistant 4l page yours, Herrstrom Ordn. the Dept. under into the that Colt, for any rights 37 mm. cannon. requested. Ordnance: Chas. on appear agreement patents truly to agreement for rights reasons for entering earlier Very respect 100 guns as cannon. the Browning Your Chief with per gun for 750 500 In view of the provisions in the 1903 inventions, inquiry is made as to the it made follows: § $ These royalty rates have been further of the above mentioned memorandum. 1931 was as $1,000 & future 1931 schedule . if