[HM88AAV], Letter from Alfred Ord Tate to Samuel Insull, October 31st, 1888
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Title
[HM88AAV], Letter from Alfred Ord Tate to Samuel Insull, October 31st, 1888
Editor's Notes
Summary: Tate sends documents and plans regarding Gouraud's department, and the allotment of stock. Tate makes recommendations to limit Gouraud's power and control, for example, his ability to generate expenses or debts that Edison would be liable for. Tate also recommends that Gouraud's license to Edison's patents be revoked, and that his position be defined simply as "agent" of Mr. Edison. "phono quantities" Text: Cable Address "Edison, New York." From the Laboratory of Thomas A. Edison. Orange, N.J., Oct. 31 1888 Subject Sam Insull, Eq. Schenechtady Dear Sir: Enclosed please find all papers kept with me by you relative to Gourauds department, together with memo I have myself made. I enclose also copy of Mr. Edison's contract with the Phongraph works which explains fully the nature of the formation of that Corporation, and to which I have attached an illustration by means of [bigames?], of the practical effect of the methods upon thee allotment of stock. Mr. Edison's holding of regular stock is represented by about 40, the balance of regular stock being represented by 60--[Must be?] those are counted outside this as they merely represent dividends beyond 20%. Your[stung?] A.O.Tate [ATTACHMENT] Clause to be inserted comunating the consent with Gouraud's Afe = cticly not take out patents etc. in Edison's name = whenever "cost" is mentioned it should be understood to INCLUDE manufacturers [part?] of it--royalties being based upon the accounts then obtained. = [If G wants?] to be allowed to manufacture supplies abroad for ALL phonographs--i.e whether the latter be made in America or manufacturers abroad-(contract reads-710) = Limit expense to be deducted in the event of formation of Co., to the territory to be acquired by such Co.-- = Periodical reports. = Whoever is allowing Gouraud to deduct the latter Expenses in connection with any territory where Co. is formed, practically pays 1/3 of such expenses but has no control over the [acut?] expenses--[I am one?] not limit this-- = Gouraud is granted a license made all foreign patents--This should be withdrawn so as to render his position that of an AGENT--in which case he should not be allowed to involve Edison in debt. = If American Factory furnishes machines so to any of Gourard's local companies, price to be [olgo?] local cos is absolute cost plus [Mgrs?] profit of 20% = Edison should have absolute control of Gouraud in connection with the taking out of patents--would it not be better to give Gouraud no leeway in this connection in this contract, but to make him dependent upon instructions which Edison may from time to time give him. Edison agrees to furnish Gouraud data as per First section, 3rd clause=practically undertaking to PATENT every invention of the future-- (trade secret) = If Gouraud within certain limits does not appt. agents in all his Territory Edison has right to do so. GOURAUD agrees to grant Edison authority under all patents as G. may have obtained as may be necessary to enable Edison to every co. territory--Does not this foreshadow complication and is it not an argument in favor of patents or [-----?] taken in Edison's name--or Gouraud's "license being revoked--[-----?] written clearly defined as that of a Gen'l agt.
Author
Recipient
Mentioned
Date
1888-10-31
Type
Folder/Volume ID
HM88-F
Microfilm ID
144:151
Document ID
HM88AAV
Publisher
Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University