[D8938AAN], Report from Edison General Electric Co, James B Williams to Edison Electric Light Co, April 26th, 1889

Item

Abstract

Office of the Edison General Eletric Company.####44 Wall Street, New York City, April 26th, 1889####To the Stockholders of the Edison Electric Light Co.:####A corporation, called the Edison General Eletric Company, has been formed to acquire the stocks of the Edison Electric Light Company and the three Edison Manufacturing Companies, to wit: The Edison Machine Works, Edison Lamp Company and Bergmann & Company, and for the other pruposes set forth in its articles of incorporation. Arrangements are also being made to acquire stock in the Sprague Eletric Railway and Motor Company should it be found desirable to do so.####The said General Company is organized under the Laws of the State of New York, with a capital of $12,000,000. Agreements have been signed for the purchase by the said Company of the capital stofk of the said three Manufacturing Companies, payable partly in cash and partly in the stock of the new Company. The purchase price of the latter is equal to a capital sum on which the net earnings of the three Manufacturing Companies, as obtained from their books, show a net income of nearly 15 per centum during the year ending November 1, 1868.####In order to add greater security to the project, it is proposed that, for the present, dividends shall be payable only on a part of the stock received by the shareholders of the Light Company and Manufacturing Interests in payment for their shares in the old Companies: dividends on the remainder to be postponed until such future time as the Board of Trustees of the new Company are of opinion that a dividend of at least 8 per centum has been earned on its entire stock.####The shares of stock in the new company on which the payment of dividends is to be postponed, as above stated, will be deposited by the General Company in trust with The Farmers Loan and Trust Company, of New York City. That company will issue Trust Certificates to represent the shares of stock thus deposited, and whenever the Board of Trustees of the General Company shall declare dividends on the entire apital, as above stated, the Trust Company will, on notice to all parties in interest, redeem the Trust Certificates by distributing to the holders thereof the shares of stock of the General Company held in trust.####TO provide cash for the immediate needs of the new Company and for working capital, a syndicate has been formed to subscribe for stock in the new Company, and, in addition to the funds received therefrom, stock in the General Co., to the amount of $2,266,650, will remain unissued for the present, available for use in the future, available for use in the future, according to the requirements of that Company.####Included in the syndicate is the General Electricity Company of Berlin, a company sixteen million marks capital paid in, mainly devoted to the introduction of the Edison system of central statino lighting on the continent of Europe. The largest stockholders in it are Messrs. Siemens & Halske, whose great establishment for the manufacture of every sort of electrical apparatus has a world-wide reputation as the largest and most successful of the kind in existence. The head of it is the eminent scientist and discoverer in the field of electricity, Dr. Werner Siemens. The identification of Messrs. Siemens & Halske with the new Company is expected insure to its continuous co-operation between Thomas A. Edison and Dr. Werner Siemens in the promotion of their art and in the regular exchange of laboratory and manufacturing experiences. This arragnement will give the new company a vast advantage not heretofore possessed. The General Company also expects to acquire liccenses for valuable patents owned by Messrs. Siemens & halske in this country.####The shareholders of the Edison Eletric Light Company are now invited to participate in this combination on the following basis: For each share of $100 of the Capital stock of the Edison Electric Light Company, deposited with Messrs. Drexel, Morgan & Company, as hereinafter provided, the depositor is to receive $175 in the stock of the Edison General Electric Company, carrying full rights as to dividends, and $91 2/3 in Trust Certificates representing stock of like amount in the said General Co., on which dividends are deferred as stated above. Thus each depositor will reeive a total of $266 2/3 in stock and stock trust certificates of the General Company for each share of Light Co. stock deposited, making a total of $4,000,000 for the enture $1,500,000 capital stock of that Company, all of which is more fully set forth in an agreement, copies of which may be had on application at this office or at the office of Messrs. Drexel, Morgan & Co.####In order to avoid so far as desirable fractional shares of stock in the General Co. and fractional amounts in the Trust Certificates, the same may be equalized by payments in cash, in the discretion of Drexel, Morgan & Co., at the par or face value of the said shares or Trust Certificates, respectively.####If the foregoing project meets your approval, you are invited to deposit your certificates of stock with Messrs. Drexel, Morgan & Co., No. 23 wall street, New York City. They will give you a Temporary Receipt therefor, and after a majority of the stock of the Light Co. and of the several Manufacturing Companies, referred to in said circular, is deposited, you will, upon the surrender of the said receipt to them, receive from them the shares of the stock in the General Co., and the Trust Certificates mentioned above set forth and as more fully detailed in the agreement already referred to.####Respectfully, EDISON GENERAL ELETRIC COMPANY, By James B. Williams, President####[name mentions: Drezel, Morgan & CO., Simens & Halske, Edison Electric Light Co., James B. Williams, Edison General Electric Company, James B. Williams, Werner Siemens, Thos Edison, Edison Machine Works, Bergmann & Co., Edison Lamp Co., Farmers Loan and Trust Company of New York City, Sprague Electric Railway and Motor Company, General Electricity Company of Berlin]

Date

1889-04-26

Decade

1880-1889

Type

Identifier

D8938AAN

Folder Set

D8938

Title

[D8938AAN], Report from Edison General Electric Co, James B Williams to Edison Electric Light Co, April 26th, 1889

Microfilm ID

126:415

Publisher

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