Word: zeiss
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...modern business of optical instruments is heavily indebted to the work of a painstaking German scientist, Carl Zeiss, who nearly a century ago in the little town of Jena tried to make good microscopes. Largely because of that fact a Federal grand jury in Manhattan last week handed down a stiff anti-trust indictment...
John J. Bausch, a German immigrant who originally peddled spectacles in Rochester, and his partner Henry Lomb, who during the Civil War served as a captain in the Army under Grant, got the right to use Zeiss patents nearly 50 years ago. They not only licensed Zeiss patents but made an arrangement for exchanging skilled men, techniques and manufacturing secrets. Their military products, only about 10% of their output, have become so vital to national defense that since 1912 the U. S. Navy has kept experts stationed continuously in the B. & L. plant as observers...
Last week the Federal grand jury accused B. & L. and Carl Zeiss of Germany of having entered into a secret agreement in violation of the anti-trust laws. Under this agreement, the Government charged, the American company is powerless to sell range finders, gun sights and other fire-control instruments to any foreign nation without consent of the German firm. Although the indictment did not say so, it was plain any foreign nation meant France and Great Britain...
...Zeiss refused to allow use of any of their methods or devices (thus hindering the establishment in the U. S. of other companies which might wish to make military and naval optical instruments...
Under the 1921 Zeiss-B. & L. contract (revised in 1926 to avoid any violation of the anti-trust laws) Zeiss makes all its patents exclusively available to B. & L. for U. S. use; Zeiss also provides technical knowledge in return for a royalty on all B. & L. military goods...