[D8743AAC], Letter from Charles Francis Stone to Alfred Ord Tate, June 7th, 1887

Item

Abstract

"I have received your favor of yesterday. You will see by the enclosed copies of a letter from me to Mr. Insull of Oct. 12, 1886, and of his reply thereto dated Oct. 18, 1886, that the enclosed account states correctly the sume due by Mr. Edison to Porter, Lowrey, Soren & Stone in the Edison Colonial Co. matter. The account now enclosed is made from a memorandum dictated to me by Mr. Insull on Oct. 12, 1886, in an interview which I had with him just before writing the enclosed letter of that date. As I understand it, the facts are these: ## Under the arrangement made between Mr. Edison and Drexel, morgan & Co. Mr. Edison was to received 65 per cent. of the net proceeds of his British Colonial Patents, and Drexel, Morgan & Co. 35 per cent. ## Mr Lowrey's arrangements on behalf of our late firm with Mr. Edison was that Mr. Edison was to deduct 15 per cent. from the above 65 per cent. leaving 50 per cent., of which one-third was to go to our firm. ## On the formation of the original Indian & Colonial Electric Light Co. of London a sum of 25,000 pounds in cash was paid to Drexel, Morgan & Co., from which they deducted commissions and expenses, Mr. Johnson's 2 1/2 per cent. and Mr. Gourand's 1/3, leaving a balance of 11,790 pounds, of which 35 per cent. was retained by Drexel, Morgan & Co. and the remaining 65 credited to Mr. Edison, of which 1/3 of 50 per cent. belonged to our firm. ## It was found necessary to subscribe for a portion of the shares of the Indian & Colonial Co at 5 pounds. Mr. Edison's proportion was 724 shares and our firm's 362 shares, making in all 5430 pounds on 1086 shares. This amount was retained by Drexel, Morgan & Co. out of the above cash Bonus. There was paid to the Indian & Colonial Co., however, only 2 pounds 10 on each share. This was in the summer of 1882. In December, 1885, when the Colonial Co's. rights were transferred to the new Company, called the Australasian Electric Power & Storage Co., the full paid value of these subscribed shares was reduced on-half,-- this making it unnecessary to make any further payments therein and leaving in Drexel, Morgan & Co's. hands the 2 pounds 10 per share (or 2715 pounds) retained by them to make that payment. Of this 2715 pounds 2/3 belonged to Mr. Edison and 1/3 to our firm -- that is 2 pounds 10 on Mr. Edison's 724 subscribed shares or 1810 pounds, and 2 pounds 10 on our firm's 362 subscribed shares or 905 pounds. The whole, however, was credited by Drexel, Morgan & Co. to Mr. Edison's account, thus making Mr. Edison debtor to our firm on December 31, 1885 905 pounds. This has never been paid. ## Mr. Edison also received his 65 per cent. of the shares of the Australasian Co., being 4225 shares. From this he deducted his 15 per cent. or 633 shares, leaving 50 per cent. or 3592 shares for division between himself and our firm. The firm's 1/3 of this was 1197, to which was added 1/3 of the 1086 subscribed shares, making together 1559 shares which were transferred by Edison to Mr. Lowrey and received by him from Mr. Insull last March or April. A dividend of 7s. 6d. per share was paid on the Australasian shares received by Drexel, Morgan & Co. and credited by them wholly to Mr. Edison's account. This 7s. 6d. on our firm's 1559 shares has not been paid and is the item of 584 pounds in our account now enclosed. ## Mr. Insull fully understands the whole matter as you will see by the enclosed copies correspondence between us." Enclosure: TAE to Porter, Lowrey, Soren & Stone (In Liquidation), dated June 7(?), 1887. "1885 Dec 31 To Cash received by Drexel, Morgan & Co. and applied by them to you’re a/c with them, belonging to Porter, Lowrey, Soren & Stone in the matter of the Indian & Colonial Elect. Lt. Co. of London and the Australasian Electric Light Power & Storage Co (Lim) being ## To bd on 1559 shares Australasia Co 584 pounds ## 2 pounds 10 s on 362 subscribed shares Ind & Col Co 905 pounds ## Total 1,489 pounds ## To bd on _______________ 1559 as above [-------] forms been on 1445, or less 42.15 ## 1446.5 pounds"

Recipient

Date

1887-06-07

Decade

1880-1889

Type

Identifier

D8743AAC

Folder Set

D8743

Title

[D8743AAC], Letter from Charles Francis Stone to Alfred Ord Tate, June 7th, 1887

Microfilm ID

120:79

Publisher

Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University