The Thomas A. Edison Papers Digital Edition

Transcription

MEMORANDUM FROM MR. TATE TO MR. INSUL. 
January 12th, 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 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 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 or two years ago threw the Musical cylinder business open. Mr. Edison. 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 licenses. 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 duplicate, is secured to the Edison Phonograph works under its contracts with the North American Company. But in view of the present solution, 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 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 many purchasers will derive from 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 prevail are absurdly high, and he demand 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 over 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-manufacturer. 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 whole within wheels, and distracts the attention of local executives and the legitimate business of these concerns differs seriously in consequence. 
A.O.T.