[D8959ACR], Letter from Alfred Ord Tate to Samuel Insull, July 23rd, 1889


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[D8959ACR], Letter from Alfred Ord Tate to Samuel Insull, July 23rd, 1889

Editor's Notes

[SELECTABLE] The Sunday before I sailed I had a conversation with Mr Edison in regard to the formation of companies abroad and the question of foreign manufacture at which time he gave me his views as to how he should retain the manufacturing rights. His idea was that when it became necessary for any company to have a factory of its own, he would undertake to erect it; run it for a period of say five years and then turn it over on the basis of earning capacity.##In talking with Gouraud I have indicated that Mr Edison would only consent to the formation of companies by including some arrangement whereby he should retain absolute control of manufacture for a period of years, giving all the various reasons why this is necessary that I need not repeat here and have told him of Mr Edison's plan of establishing a factory and giving the company the right to buy it out at the end of a period of years by capitalizing the earnings.##He says he considers this an excellent idea and that it could be presented in the light of a positive advantage to any company as it can.##I have not gone into details just far enough to make it clear to him that the manufacture must be left in Mr Edison's hands which fact he understands very clearly.





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