The Thomas A. Edison Papers Digital Edition

Transcription

[Letterhead of Edison General Electric Company] 
September 29th. 1892. 
A. O. Tate, Manager, 
Edison Manufacturing Company. 
Dear Sir:- 
Referring to our verbal understanding as to terms upon which your Company will have the exclusive right to sell my socket, I beg to submit the following as comprising all the terms and conditions as I understand them. 
FIRST.	I give to the Edison Manufacturing Company, the sole and exclusive right to sell my socket, and will sell through no other source. 
SECOND.	   I will consign to your Company at once, a stock of 5,000 sockets, (This to relieve you of carrying stock for the time being, but you to carry your own stock after the first year.) 
THIRD.	 All sockets sold to be ordered from me, and paid for 90 days from delivery. 
FOURTH.	 Your Company to advertise in trade papers, solicit orders through your canvassers, and exploit the business actively. 
FIFTH.     I will bill the sockets as follows: 
Key sockets, 12 cents each. 
No Key sockets, 10 cents each. 
SIXTH.	You are to sell not less than 100,000 sockets the first year, 200,000 sockets the second year, and 300,000 sockets the third year, and each succeeding year during the continuance of this agreement. 
SEVENTH.	You to sell at any price you may elect, so long as you keep the sales up to the guarantee minimum of sales as above. If, however, the competition in the business becomes so strong that there is less than a selling profit of 20% to you, then you can demand of me a reduction in the price to such an amount as will give you a profit of 20%. That is, I will sell to you at such a price that with 20% added for your profit, will bring the price of the socket within the market selling price. So long, however, as the market selling price is not less than 20% above the price paid me, you shall not be entitled to any reduction of above amount. 
EIGHTH.	Should the sales amount to less than the guaranteed number, as provided in section fifth, then I am to have the right to personally take charge of the selling in your company, and direct all agents, agencies, clerks, and attaches, to the end that the selling may be conducted to the best advantage. In case occasion arrives to exercise this right, and I do so exercise it, I am to have no right to draw salary for such service, and in no event will I expend in the payment of clerks, agents or other expenses, more than one half the gross profits accruing from the business. Should the average monthly sales of sockets fall below the monthly average of the guaranteed annual sales, for three consecutive month I will have the right, if I so elect, to direct the sales as above. I think the above expresses concisely, our agreement. The clause giving me the right to conduct the sales without pay, conveys a sentiment which I cannot rid myself of, and that is to be connected with the name of Edison in business. As the maximum guarantee is less than 10% of the socket business, I never expect to exercise my right on this point, but I will expect to always keep in close relationship with the business, and give you all the help in my power in all directions. 
You can either reduce this agreement to legal form, or have a letter written me from Mr. Edison signifying that this meets his approval, and we can consider the matter closed. 
Yours very truly
J. Hutchinson [TAE?]
[illegible]
[illegible] C
[W Morton Grinnell?]
[Arthur Butler Trombley?]
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J.H.
134 Manhattan Ave