The Thomas A. Edison Papers Digital Edition

Transcription

Dear Mr Edison
Please read the attached re duplicating. Have you anything to add  If so let me have it so I can use it when occasion requires
A.O.T.
Jan 12/92
<Edison marginalia: OK Edison>
<Stamp: RECEIVED
JAN 13 1892
Ans'd ______18> MEMORANDUM FROM MR.  INSULL TO MR. TATE. 
January 11th, 1892.
Referring to the enclosed correspondence with relation to supplying musical cylinders, I think that we are going to get into a great deal of trouble with such Companies as the New England Company by the course that we are now pursuing in the musical cylinder business. I am speaking both on behalf of the North American Company and on behalf of Mr. Edison.  I cannot forget that Mr. Edison, a year or two ago, absolutely refused by letter to do anything with relation to the musical cylinder business and threw the thing entirely open. I should like to have from you an exact statement as to the present methods upon which this business is being run as I want to take the matter up with Mr. Edison at an early date. I should also like to know what you have got to say with relation to the New England Company's letter attached hereto.
INSULL.
Enclosures. COPY.
Boston, Dec. 21, 1891.
Edison Phonograph Works,
Orange, N. J.
Gentlemen:-
We have received a circular from you dated December 18th, in which you quote that you have in stock duplicates of the celebrated “Casey” records, enumerating the same, and we desire to say, that we must ask you to discontinue the manufacture of these as duplicates as these records are solely the property of the New England Phonograph Company. Mr. Russell Hunting is under contract with this Company to make these records, made the first records that were ever made of that series for this Company, and has always been connected with this Company in making records and is now enrolled as a regular employee of this Company, and we cannot allow his records to be duplicated and put upon the market at all. 
We therefore notify you, that if you have purchased any of these records from the New York Company, we desire to say that it is entirely irregular. That Mr. Hunting made for Mr. Haines a few records while he was sojourning in New York City in connection with the Soudan Company, at the Academy of Music, to pay for the lease of his Phonograph which he used in his family for their own amusement. No records should have been put out for duplication, and Mr. Hunting, himself, states that it was entirely against his wishes and opposite to anything that he had ever supposed that these records should ever find their way into your place to be duplicated and be put upon the market, and if we learn of any being sold we shall expect that you will give us the benefit of all received on them; or that you will notify us how many you have in stock and either sell them to us at a reduced price, or have them shaved off. 
This matter we feel very strongly upon as we have developed this series of records ourselves, been at a great deal of expense to fit up and take them, and have coached Mr. Hunting in the method of using the Phonograph, and introduced it to him. 
Awaiting reply, we are, 
Yours very truly, 
(Signed) Aug. N. Sampson, 
General Manager,
New England Phonograph Company. MEMORANDUM FROM MR. TATE TO MR. INSULL
January 12, 1892.
Referring to your memorandum of the 11th instant in regard to the Musical Record business, and to the letter of the New England Company complaining that we have duplicated records made exclusively for them, I hand you herewith draft of letter which we I propose sending to the New England Company, and which is substantially the same as a notification that has already been served by us upon the Columbia Phonograph Company, who made a complain similar to that entered by the New England Phonograph Company.
You are entirely in error when you assume that the letter which Mr. Edison wrote some eighteen months [illegible] or two years ago threw the Musical Cylinder business open. Mr. Edison was at that time making original records in his Laboratory at the request, and for the convenience of the North American Company and its licensees. He was not obliged to make these records, and when he declined to continue the work the North American Company should, under its contracts, have called upon the Edison Phonograph Works to furnish the records. This relates only to originals.
There is another and more important question which is entirely separate from any entanglement that may be the portion of the former. I refer to duplicating. It was not until long after the date of Mr. Edison's letter, mentioned by you, that the duplicating process was applied. The Local Companies certainly have no right to employ this process of manufacture, notwithstanding the fact that their methods of duplicating are entirely different from those used by Mr. Edison. I believe that the manufacture of musical and other records, both originals and duplicates, is secured to the Edison Phonograph works under its contracts with the North American Company. But, in view of the present situation, I believe that Mr. Edison would assent to an arrangement whereby the Local Companies could make original records, providing all duplicating was turned over to the Edison Phonograph Works, and, providing, of course, that the North American Company will take proper steps to maintain such an arrangement.
There is another important point which you do not appear to have considered. When we commence in the near future to sell phonographs, the satisfaction which the many purchasers will derive from this these will depend largely upon the class of musical records which are procurable and the price at which they can be obtained. The prices which now prevail are absurdly high, and the general character of the records is very poor. It is only by employing an adequate method of duplication that the prices of these records can be brought down to a reasonable point, but this cannot be accomplished unless the work is concentrated in one spot, so that whoever takes it up can have the full benefit of the whole of that class of manufacture. 
In fact no progress will ever be made in this direction unless the work is concentrated. Another point to which I wish to direct your attention, is that I think it would be excellent policy on the part of the North American Phonograph Company to stop these Local Companies from continuing in business as semi-manufacturers. If they attend properly to the Sales end of the business, and leave manufacture where it belongs, the result all round will be highly beneficial. As the business is to-day it gives too much opportunity for the formation of wheels within wheels, and distracts the attention of local executives; and the legitimate business of these concerns suffers seriously in consequence. 
A.O.T Proposed letter to New England Phono Co
Aug. N. Sampson Esq., General Manager,
#657 Washington Street, Boston, Mass.
Dear Sir:-
Referring to your letter under date December 21st, 1891, in regard to the duplication and sale of musical and other phonographic records, we take pleasure now in advising you of the position of the Edison Phonograph Works as established by its agreements with The North American Phonograph Company and the contracts between The North American Phonograph Company and its licensees, including the New England Phonograph Company.
These contracts confer upon the Edison Phonograph Works the exclusive right to manufacture musical and all other records and sell the same to authorized purchasers and the making and selling of such records by the New England Phonograph or other licensee Companies is in violation of the contract rights of the Edison Phonograph Works.
Under these circumstances, in law and in fairness, the party entitled to make complaint is the Works whose rights are being invaded by the local Companies and we take this opportunity to protest against the violation of contract obligations by your Company to the injury of the business of the Edison Phonograph Works. 
Concerning our intention respecting the duplication of records made by the New England Phonograph Company and others, I beg to say that the interests of the Works demand the adoption and endorsement of a policy which will give them control of the business in question. 
We are in no way responsible for the present situation and are acting purely on the defensive; and any methods which we employ are forced upon us through the necessity of self protection. 
We have made a large investment for the purpose of carrying on this branch of manufacture and we hope that at no distant day The North American Phonograph Company will with the co-operation of its licensee Companies unite with the Edison Phonograph Works in putting the record and duplicating business on a basis which will justify the heavy expenditures already made and about to be made in this connection, by Mr. Edison and the said Works. 
Yours truly,  
SECRETARY.
No Enc.