[D8704AGT], Incorporation Record, Edison Industrial Co, 1887
https://edisondigital.rutgers.edu/document/D8704AGT
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Title
[D8704AGT], Incorporation Record, Edison Industrial Co, 1887
Editor's Notes
[This is a typed and corrected copy of the draft D8704AGS] Prospectus and Plan of Organization of the Edison Industrial Company###TAE, now that he has completed his new laboratory and is no longer consumed with the development of the electic light, wants to build proper facilities for the manufacture and marketing of his many other inventions; the new Edison Industrial Company will have sufficient capital to build and equip factories for such purposes; the advantages of TAE controlling the manufacture of his own inventions rather than farming them out would be cost savings and better quality control; "They [the new company] are not to deal in patents or patent rights but are to be restricted to manufacturing such new articles as Mr. Edison has invented or may invent or such old articles as may have been improved, or their cost of manufacture cheapened." Company will be given exclusive right to manufacture devices he has invented that "relate to methods, combinations or processes which as a whole are incapable of manufacture."###A proposed contract between TAE and the company defining the types of inventions to be assigned to the company and under what conditions is annexed to this prospectus.###Company is to be organized under the laws of New Jersey; capitalization to be determined.###When the company undertakes manufacture and sale of an invention, it will issue bonds at par to raise money to erect and equip a factory for the purpose; Bonds will run for 20 years and bear 5% interest; they will be offered for sale to the stockholders in proportion to their holdings [section excised]###For assigning his inventions, TAE will receive stock in double the amount of the issue of the bonds "one half of which he in turn will assign to the bondholders in proportion to their holdings of the bonds."###"When a new factory is started to manufacture another invention a second issue of bonds shall be made equal in amount to the actual cost and equipment of this factory, double the amount of this second issue shall be issued to Mr. Edison in stock, one half of which as before shall be returned to the bondholders in proportion to their holdings of the second issue of bonds"; this plan shall be repeated for every new factory until all the capital stock is issued; a deed of trust covering the entire property of the company, real and personal, will secure bonds, which will "be equally secured under the mortgage without preference of one issue over the other."; reserve fund from profits will be created to redeem bonds at maturity; with the exception of the reserve, entire profits will be distributed each year as dividends.###Unprofitable manufactures shall be discontinued and the factory either sold or used for another industry.###"The contract between TAE and company will continue for four years; if after two years, the company has failed to pay interest on the outstanding bonds and five percent on stock, "either party shall have the right, upon giving to the other sixty days notice of his desire and intention to do so, to terminate and cancel the same."
Supplied year
Author
Mentioned
Date
1887-00-00
Type
Folder/Volume ID
D8704-F
Microfilm ID
119:380
Document ID
D8704AGT
Publisher
Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University