[D9241AEK], Memorandum, Edison United Phonograph Co, 1892
https://edisondigital.rutgers.edu/document/D9241AEK
Transcription
Approximate idea of contract for Great Britain We [illegible] to get in cash 40000 as follows:- 10000 at execution of contract 10000 delivery of first 500 machines (1000 machines to be ordered) 20000 upon floating of public co 40000 Beside this cash we get 2/3 interest in first 1500 automatic machines + 1/3 common stock of public co. It is proposed to start by establishing syndicate of either 60000 or 75000 nominal capital of which 1/3 of the stock is given to us in fully paid up shares. The other 2/3 to be paid in cash to be called where necessary. When the public co is founded the members of the Syndicate would be entitled to reimburse themselves for their cash outlay. Public Co might possibly be formed on some such basis as follows 150000 preferred stock 350000 common stock 500000 The preferred stock to holder for cash + the proceeds applies 1st paying us our last 20000 2nd Reimbursing Syndicate for cash outlay 3rd Balance to remain in Treasury to be used in purchase of machines etc There would be a provision preventing further increase of capital or bonded debt without our consent + so would get 1/3 of cash increase. WHERAS. THE EDISON UNITED PHONOGRAPH COMPANY propose to make a contract with a certain London Syndicate for the disposition of the Phonograph for the United Kingdom of Great Britain on the following conditions: The Capitalization of the Syndicate to be: 250,000 Preferred Shares 250,000 Common Shares Of such Capitalization the Edison United Phonograph Company is to receive 33 1/3 percent of each of the respective stocks, and, in addition thereto 40,000 cash; also 23,000 out of the first earnings from the Automatic machines. If the Edison United Phonograph Company desire to purchase from the Edison Phonograph Works the right to manufacture Phonographs in and for use in the United Kingdom of Great Britain only, then the Edison Phonograph Works agree to permit the same for the consideration of 1/4 of the said 33 1/3 percent of respective stocks and cash, waiving any part of the 23,000 to be received out of the first earnings.