[D8937AAI], Letter from Edison Machine Works, Samuel Insull to William Dennis Marks, April 12th, 1889


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[D8937AAI], Letter from Edison Machine Works, Samuel Insull to William Dennis Marks, April 12th, 1889

Editor's Notes

This is an encl;osure to D8937AAH] THE EDISON MACHINE WORKS####Schenectady, N.Y April 12, 1889####The Edison Electric Light Co., Prof. W.D. Marks, Sup. Engineer, # 909 Sansom street, Phila. Pa####Dear Sir:--####We have your esteemed favor of the 10th inst. With reference to the four extra $60 Machines which your Ccompany desires us to build for them. We must confess that we do not think your offer of $16,000.00 for four machines at all a fiar one, considering all the cirumstances of the case.####We would remind you that we originally undertook to build a 1000 ampere machine at 140 volts that would stand an overload of 25% for half an hour. This overload both you and ourselves at the time agreed was hardly sufficient, but considering the circumstances of the contracted space that you had at your disposal, it was decided that you could get through on such an oerload. We aimed at delivering to your Company something more than the verbal understanding called for. Both you and ourselves thoroughly recognized the adantage of this, and we were enabled, by recalculating the machine, to come within the same space, and considerably increased the weight, which meant considerably increased cost. This increased weight naturally gave you increased capacity. AS a consequence we were enabled to deliver to you a machine that would not only stand the 25% overload for half an hour, but that would stand a 40 % overload for an hour, and it was even tested to as high an overload as 61%. You know full well the advantage of this. You know that it means very low expense for maintenance inn the future.####Considering the fact that we took the contract from you prior to even a model machine being built, and considering that after we had taken the contract, we found that by increasing the weight, and consequently the cost, we would have been fully justified in coming to you and asking for an icnreased price, owing to this increased cost. This we did not do. After several of your machines were finished we found that we were not making any money, but that we were actually losing money. We then raised the price to a point where we could get an ordinary manufacturers profit, that price bein $4250.00 per machine. Our price lists are invariably figured net, and not with the object of cutting them in order to get a contract.####Of course by curtailing the material we can make you a machine for $4000.00 but in a Station the size of yours, where the investment in dynamos forms so small a part of the total money spend, it is far more desirable, as you will know, to hae ample margin of capacity, than it is to save $250,00 per machine on the purchase price.####Yours ery truly, Sam. Insull, General Manager####Notwithstanding our gratifying success so far in the introductino of light and Power, I would like with your permission to offer special premium to wiring firms and Motor men securing customers for us and would suggest that we offer either the sum of 15 cents per lamp or the amount of light bill for two weeks to firms obtaining new customers; also that the whole district have circulars distributed throughout it every 30 days until next Autumn.####Gentlemen, because of your own wise liberality and enterprise you have an exccellent station, capable of producing an enormous output and greater profits than have ever yet been obtained. May I ask your approval of a systematic and persisitent effort to secure the largest possible returns by urging its business.####Very respectfully, truly yours, Wm. D Marks, Supr. Engr. & Genl Manager####[name mentions: William D. Marks, Edison Electric Light Co of Philadelphia, Armington & Simd, Edison Machine Works, Director of Public Works, Samuel Insull, Sawyer & Mills, Abenroth & Root Enfg. Co]




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