Bosch Unbosched

Turn-of-the-century automobile owners considered a magneto-less automobile useless. Full of praise were they for the inventor of the gadget which supplied the spark, which exploded the gas, which made their cars go. The Bosch Magneto was referred to as "heart of the automobile," was considered its most important organ. That its inventor was a German did not in those days detract from his genius. Herr-Inventor Robert Bosch found a great demand for his product in the U. S. In 1906 he sent two compatriots, Herren Otto Heins and Gustave Klein, to New York to incorporate a U. S. subsidiary. When U. S. efficiency developed the self-starter and brilliant ampere-eating headlights, battery ignition supplanted the magneto in passenger cars. Magneto-maker Bosch therefore turned to trucks, racing cars, motor boats, airplanes, continued old prosperity in new markets.

Last week, however. Inventor Bosch found himself legally excluded from his U. S. markets. During 1917 hysteria Bosch Magneto Co. of New York was one of the many "enemy owned" companies which were sold at public auction by the U. S. Alien Property Custodian. One Martin Kern purchased it for $4,500,000,* resold it soon after to American Bosch Magneto Corp. which had incorporated for the purpose of buying Kern's Bosch stock. In 1921 Inventor Bosch initiated a new attack on U. S. markets and incorporated the Robert Bosch Magneto Co. to sell German-made Bosch products. Hence there were two distinct magneto companies selling the same magnetoes in the same market. American Bosch Corp. sued Robert Bosch Co.. claiming as its most valued asset, exclusive right to the Bosch name in the U. S. Inventor Bosch contended that his name did not become the property of American Bosch Corp. in 1917 since he had an agreement with the original company that they might use his name only so long as they bought their materials from the German parent plant. But no written agreement to this effect had been made. Inventor Bosch's contention collapsed. Nor could he protest the original seizure of the Bosch stock, because of a restraining post-War German-American treaty. Under this treaty Germany agreed that its citizens would institute no legal proceedings over U. S. war-time acts.

Supreme Court Justice Thomas C. T. Grain, therefore declared on those merits of the case which were, admissible, ruled the Bosch name an American Bosch Corp. property, denied to Inventor Bosch the right to use his own name to sell his own products. Should the appeal of the Robert Bosch Magneto Co. fail to reverse Justice Grain's decision. Inventor Bosch will have to market his magnetoes, spark plugs, et al., under a new trade mark. Other purchasers of properties under the Alien Property Act will find in the Bosch precedent a promised security from competition of former German owners.

*Money from this, as from other A. P. C. sales, reverted to the U. S. Treasury. A recently passed law refunds 80% of the purchase price to original "enemy owners." The remaining 20% will be returned when final settlements under the Young Plan are made.