RADIO VALVE COMPANY
(RVC) -
TUBE PRODUCTION
An event occurred
in 1923 that was to have an important bearing on the future activities
of the Canadian Marconi Company for many years, This was the signing of
agreements on March 7th , 1923 with Canadian General Electric (CGE) and
the Radio Valve Company of Canada Ltd. (RVC). The latter company had been
incorporated in November 1922 for the purpose of acquiring, as a going
concern, the business of CGE in connection with the manufacture and sale
of thermonic valves, which had previously been carried on by CGE at its
factory in Toronto. RVC manufactured vacuum tubes under the trade
name "Radiotron". and were distributed to the radio trade exclusively
by the Canadian Marconi Company (MWT) and Canadian General Electric.
MWT would change their corporate name to Canadian Marconi in 1925.
The most important
provisions of the agreement may be summarized as follows:
1. MWT and CGE would
each subscribe in equal ratio for the Capital Stock of RVC. (The amount
actually subscribed totalled $100,000 each.)
2. CGE would be entitled
to nominate three of the five directors of RVC.
3. RVC would be entitled
to receive the full benefit of all patent rights, present and future, belonging
to or controlled by either CGE or MWT for a term up to December 31st, 1944.
4. RVC undertook
not to supply or sell thermionic valves to any entity other than MWT but
the latter agreed to ensure that CGE would be supplied with its requirements
at a price equal to that charged to MWT plus a profit of 10%.
5. CMC agreed to
purchase all its thermionic valves from RVC.
It appears that the
agreement on the part of CGE to pay CMC 10% profit on all valves supplied
to CGE was mainly due to the dominant patent position of CMC. Also,
of course, CGE had at that time a large share holding in CMC. In any event,
this arrangement remained in effect until 1944 and provided a substantial
source of revenue for the Company.
Another important
agreement, known as the "Canadian Radio License Agreement" was also concluded
in 1923, It was signed by CGE, MWT , the Canadian Westinghouse Company
Ltd., The Bell Telephone Company of Canada Ltd., the Northern Electric
Company Ltd,, International Western Electric Company Inc., and Rogers Majestic.
It provided for cross-licensing under the patents owned or controlled by
the parties to the agreement and was drawn for a minimum period of 10 years,
after which anyone or more of the parties could withdraw by giving one
year's notice in writing. However, with respect to CGE only, the agreement
was to be terminated in any case at December 31st, 1944. Actually, the
basic principles established by the agreement continued to be effective,
with minor changes, until at least 1956.
Here is a series
of photos which showcase the RVC tube production line in 1944. There were
some 1,800 separate steps in the production of the typical vacuum tube.
Of the total, 450 were testing and inspection steps. By 1934, there
were 140 different tube types being produced in Canada . There was over
100,000 square feet of floor space devoted to this effort
and 1,100 people employed in the production of tubes.
