[LB051779], Letter from Alfred Ord Tate to Thomas Alva Edison, December 9th, 1891
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Title
[LB051779], Letter from Alfred Ord Tate to Thomas Alva Edison, December 9th, 1891
Author
Recipient
Date
1891-12-09
Type
Folder/Volume ID
LB051-F
Microfilm ID
142:688
Document ID
LB051779
Publisher
Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University
Has Version
Item sets
Transcription
778/809
FBM.
December 9th, 1891.
Thomas A. Edison Esq.,
New Jersey & Pennsylvania Concentrating Works,
Ogdensburg, N.J.
My Dear Mr. Edison:--
Butler has already written you in regard to my interview with Spencer Trask. Mr. Trask promised us cordial support at the Stockholders meeting of the North American Phonograph Company. Quite a number of people who bought stock through Spencer Trask intend to appear at that meeting, and it is therefore necessary for Mr. Trask to send a representative who will without doubt lead this faction. Of course, so far as the actual number of voters is concerned, they amount to very little but we want the moral support.
I have been unable to find Mr. Adams to-day, but will reach him tomorrow. I found that the Seligmans control 500 votes, and I went over there afternoon and got the proxy to vote the stock.
With reference to the Graphophone, I think that there is really no doubt that they intend putting out on less than 500 machines within a very short time. I know for a fact that they have secured sites for these machines in New York, and are starting in to run a Nickle-in-the-Slot business. I think they will meet with very qualified success, and I am satisfied that they take this action to force the hand of the North American Phonograph Company.
Mr. Easton of the Columbia Phonograph Company called to see me yesterday. You are probably aware that he is one of the Directors of the Graphophone Company. He told me that the Graphophone people were going to operate their factory and put their machines on the market, and I saw a letter in Bush’s office to-day from the Columbia Phonograph Company signed by Mr. Easton as President, asking the authority of the North American Phonograph Company to sell graphophones. They of course will not obtain this authority, which will perhaps in a new wheel being formed within the many wheels which are now revolving.
Mr. Easton stated that Mr. Lippincott owed the Graphophone people a large amount of money. I could not ascertain the exact amount, but from his general conversation I would judge that it is somewhere around $100,00 or $150,000. The effect of the arrangements which are now being made appears to be this:
We will obtain working control of the machinery of the North American Phonograph Company. As soon as this is accomplished we must capitulate with the Graphophone people. I do not think that we will find any provisions of contract which will enable us to take peremptory measures with them, and I am con- firmed in this belief by remarks by Bush during the conversation which I had with him to-day. We will have to proceed upon the line that a combination is better than a combat. As to the terms of such a combination, of course nothing can be said about these at present. We must next deal with the local companies and they must be certainly absorbed. Mr. Trask remarked to me to-day that the greatest menace to the Phonograph business is the existence of all of these individual Companies and expressed his strong belief that no real advance could be made until they were wiped out. It is a pretty large undertaking, and will consume considerable time, but it is not impossible of accomplishment. Of course, so far as the factory is concerned, we can make an arrangement that will enable us to carry on business to an extent that will prevent losses there during the time that these local Company negotiations are being carried on.
I do not think there is anything alarming in the situation taking the present status of the business as a standpoint from which to view it, and I believe that a deal with the Graphiphone crowd will be the easiest part of the undertaking.
I saw a statement the day before yesterday of the earnings of the New York Phonograph Company for the year ending December 1st of their nickel Slot machines, that they had in service 135 of these, and their gross earnings were about $50,000. They had charged $37,000 expenses against these receipts for the purpose, I presume, of reducing the amount which they have to pay to the Nickel-in-the-Slot Company. These expense in all probability represent more than the whole of their operating expenses. These [figures?] show that the earning capacity of each machine was about $370.00 per year.
Yours very truly,
A.O. Tate
Private Secretary.
No enc.
FBM.
December 9th, 1891.
Thomas A. Edison Esq.,
New Jersey & Pennsylvania Concentrating Works,
Ogdensburg, N.J.
My Dear Mr. Edison:--
Butler has already written you in regard to my interview with Spencer Trask. Mr. Trask promised us cordial support at the Stockholders meeting of the North American Phonograph Company. Quite a number of people who bought stock through Spencer Trask intend to appear at that meeting, and it is therefore necessary for Mr. Trask to send a representative who will without doubt lead this faction. Of course, so far as the actual number of voters is concerned, they amount to very little but we want the moral support.
I have been unable to find Mr. Adams to-day, but will reach him tomorrow. I found that the Seligmans control 500 votes, and I went over there afternoon and got the proxy to vote the stock.
With reference to the Graphophone, I think that there is really no doubt that they intend putting out on less than 500 machines within a very short time. I know for a fact that they have secured sites for these machines in New York, and are starting in to run a Nickle-in-the-Slot business. I think they will meet with very qualified success, and I am satisfied that they take this action to force the hand of the North American Phonograph Company.
Mr. Easton of the Columbia Phonograph Company called to see me yesterday. You are probably aware that he is one of the Directors of the Graphophone Company. He told me that the Graphophone people were going to operate their factory and put their machines on the market, and I saw a letter in Bush’s office to-day from the Columbia Phonograph Company signed by Mr. Easton as President, asking the authority of the North American Phonograph Company to sell graphophones. They of course will not obtain this authority, which will perhaps in a new wheel being formed within the many wheels which are now revolving.
Mr. Easton stated that Mr. Lippincott owed the Graphophone people a large amount of money. I could not ascertain the exact amount, but from his general conversation I would judge that it is somewhere around $100,00 or $150,000. The effect of the arrangements which are now being made appears to be this:
We will obtain working control of the machinery of the North American Phonograph Company. As soon as this is accomplished we must capitulate with the Graphophone people. I do not think that we will find any provisions of contract which will enable us to take peremptory measures with them, and I am con- firmed in this belief by remarks by Bush during the conversation which I had with him to-day. We will have to proceed upon the line that a combination is better than a combat. As to the terms of such a combination, of course nothing can be said about these at present. We must next deal with the local companies and they must be certainly absorbed. Mr. Trask remarked to me to-day that the greatest menace to the Phonograph business is the existence of all of these individual Companies and expressed his strong belief that no real advance could be made until they were wiped out. It is a pretty large undertaking, and will consume considerable time, but it is not impossible of accomplishment. Of course, so far as the factory is concerned, we can make an arrangement that will enable us to carry on business to an extent that will prevent losses there during the time that these local Company negotiations are being carried on.
I do not think there is anything alarming in the situation taking the present status of the business as a standpoint from which to view it, and I believe that a deal with the Graphiphone crowd will be the easiest part of the undertaking.
I saw a statement the day before yesterday of the earnings of the New York Phonograph Company for the year ending December 1st of their nickel Slot machines, that they had in service 135 of these, and their gross earnings were about $50,000. They had charged $37,000 expenses against these receipts for the purpose, I presume, of reducing the amount which they have to pay to the Nickel-in-the-Slot Company. These expense in all probability represent more than the whole of their operating expenses. These [figures?] show that the earning capacity of each machine was about $370.00 per year.
Yours very truly,
A.O. Tate
Private Secretary.
No enc.