[D8956AAP], Letter from Alfred Ord Tate to Reginald Gray, June 18th, 1889

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Title

[D8956AAP], Letter from Alfred Ord Tate to Reginald Gray, June 18th, 1889

Editor's Notes

Have your letter of 24th ult. asking on Mrs. Hemenway's behalf for info on the Edison Phonograph Co., an answer to which has been delayed owing to my absence from Orange.###Contract between TAE and Edison Phonograph gives TAE the right to manufacture phonographs and supplies for sale throughout the US and Canada, the manufactured articles to be delivered to the Edison Phonograph Co. or its nominees--in other words, the company contemplated marketing the articles Edison manufactured.###TAE assigned these rights last year to a corporation called the Edison Phonograph Works, which built large factory buildings in Orange, equipping them to produce 200 complete phonographs per day.###They have now made delivery of 1200 instruments, many of which are in the hands of the public and giving satisfaction, and they are continuring delivery at the rate of 240 instruments per week.###You probably know that Lippincott of the North American Phonograph Co. purchased all the shares of the Edison Phonograph Co., except the shares previously purchased by Mrs. Hemenway, but don't think you are aware that TAE arranged this sale to protect Mrs. Hemenway from loss.###"In negotiations between Mr. Edison (representing in addition to his own holding, all the stockholders, excepting Mrs. Hemenway) and Mr. Lippincott, the total sum offered for the stock afforded an average price per share lower than the price paid by Mrs. Hemenway, which was inevitable in a transaction involving such a large amount of money and the sale of such a large number of shares. It was, therefore, impracticable to invite Mrs. Hemenway to participate in the sale, but was willing to leave her to take the customary and ordinary risks pertaining to the stock sold without guarantee, and he, therefore, made Mr. Lippincott an allowance out of the amouth paid to Mr. Edison by the latter equal to the sum paid by Mrs. Hemenway for her present holding, which as I recollect it, was to be the price to be offered Mrs. Hemenway, should Mr. Lippincott desire to purchase, and she decide to sell all her shares.###This will allay any fears which Mrs. Hemenway may have had as to the safety of her investment.###It might be desirable for you, as Mrs. Hemenway's representative, to contact Lippincott. "Phono Quantitities"

Recipient

Date

1889-06-18

Decade

1880-1889

Type

Folder/Volume ID

D8956-F

Microfilm ID

127:551

Document ID

D8956AAP

Publisher

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