Bosch to Bosch

Some years ago there was privately printed a little booklet entitled: The Rape of the Bosch Magneto Co. Therein is told how Bosch Magneto Co., New York (in which German Robert Bosch owned ten shares out of 250) was seized May i, 1918 by Assistant Alien Property Custodian Francis Patrick Garvan, sold to the highest bidder. Many have been the criticisms of this Wartime act, and only early this year was germanophobic Mr. Garvan acquitted of charges that he and associates defrauded the U. S. Government of some $5,535,000 in the Bosch deal.

Soon after the Bosch company was bought, it was reorganized as American Bosch Magneto Corp. A point brought out by the Rape author was that in 1920, the year after the company was bought for $4,150,000, it earned more than $1,000,000. Since then its profits have fluctuated, averaging over $600,000 for the past five years. Its business falls into three divisions: general magneto sales and replacement division; Ford division (furnishing 60% of Ford's requirements in timers and ignition systems); radio division.

In American Bosch's progress an impediment appeared in 1921 when an affiliate of the original and potent Robert Bosch Aktiengesellschaft of Stuttgart was formed in the U. S. as Robert Bosch Magneto Co., Inc. Immediately Robert Bosch Magneto Co. started to do battle with what it considered the illegitimate offspring of the first U. S. Bosch company. Patent litigation over the name continued for many years, was decided in favor of the U. S. company a year ago (TIME, July i, 1929). But Robert Bosch prepared to appeal for the right to use his own name and last winter a truce was established. To run 49 years, it provided that in Cuba, Mexico, Canada, U. S. and U. S. dependencies American Bosch could use the magic word "Bosch," outside of this territory it would have to use "American Bosch." Similarly, in this U. S. territory Robert Bosch would have to use its full title, whereas in the rest of the world "Bosch" would mean German Bosch.

Last week a far more effective truce between Robert Bosch A. G. and American Bosch was contemplated. American Bosch plans to issue more stock, acquire the U. S. Robert Bosch, become United American Bosch Corp. Significant is the omission of the word "magneto," since the Bosch activities are constantly widening. Instead of competition, complete harmony will reign over the relationship between Robert Bosch A. G. and United American Bosch, each acting as a sales outlet for the other, each cooperating 'in research. What thinks Germanophobe Garvan, who stoutly protested the formation of American I. G. Chemical Corp. (TIME, Feb. 10), of this second U. S.-German alliance, has not been recorded.

This file is automatically generated by a robot program, so reader's discretion is required.