When Imperial Germany went to war in 1914, the German empire was barely 40 years old. Lead by Prussia, the German states had defeated France in the war of 1871 and Prussian Chancellor Bismarck maneuvered the Prussian king into becoming the German emperor. Although Prussia was the most powerful of the states forming the empire and, following Bismarck's machinations, its king became the German emperor, the other states and principalities retained significant autonomy. Like the other German states Bavaria, the second most powerful kingdom in the empire, wished to retain as much independence as possible. One result was that the kingdom encouraged a Bavarian aviation industry before and during WWI. The Otto company was one of the first aviation companies founded in Bavaria, followed by Pfalz in July 1913. Pfalz was founded by the three Eversbusch brothers, one of whom had learned to fly in France at the Morane-Saulnier company. The new factory was built at Speyer on the Rhine. Encouraged by the Bavarian Flying Service, Pfalz obtained a license to produce the Otto pusher. Subsequently, Pfalz also acquired a license to produce the successful Morane-Saulnier Type H and Type L monoplanes.
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