[HM89ACG], Legal Testimony, Thomas Alva Edison, 1889
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Title
[HM89ACG], Legal Testimony, Thomas Alva Edison, 1889
Editor's Notes
Summary: This is Edison's deposition against Gilliland and Tomlinson, in narrative form. His story beings with enticing Gilliland away from the Bell Telephone Company in 1888 into his own employ, after which Gilliland became his friend, confidential counsel, and personal attorney. Tomlinson came on board as well, and both jointly acted as his agents and advisors in his various corporations. ## Tomlinson subsequently tried to convinced him, over the course of several interviews in May and June of 1888, to negotiate the sale of the phonograph business (his controlling shares in the Edison Phonograph Co.) for a large sum of cash to Thomas N. Vail and associates. Edison was reluctant but willing to consider the proposition. ## However, in June 1888, Tomlinson and Gilliland began to negotiate for the sale with a Mr. Lippincott and associates, rather than Thomas N. Vail, behind Edison's back. ## At first, Edison refused to sell, wishing to profit from running the business rather than selling it. He met with Lippincott and Tomlinson on the 12th of June and drew up a general memorandum on conditions under which he would fathom selling his phonograph business, and how the gramaphone business would relate to the phonograph business. During a second interview, Lippincott and Tomlinson urged Edison to amend the memorandum, and Edison refused, citing his reluctance to sell, saying he would have nothing further to do with the negotiations, despite Tomlinsons's insistence that this was for Edison's own good. ## But Lippincott and Tomlinson were persistent, and they broke down Edison's resistance, persuading him to make a fresh memorandum. ## Edison became suspicious of Gilliland's insistence on the deal, since he stood to lose a contract as selling agent for the Phonograph Company. Gilliland replied, saying that he would receive 250,000 dollars of stock, having only prospective value, in a new company Lippincott was organizing, and insisted he would receive no cash. He told Edison that he expected the stock might get him 75,000 dollars. He insisted again that he would get no expenses back. ## Edison then gave Gililland and Tomlinson permission to continue negotiations on his behalf, on the basis of the fresh memorandum. On June 27th, Lippincott agreed to Edison's conditions, and they sat down to prepare a contract. But Edison was still reluctant, disagreeing with certain provisions in the draft contract that tomlinson and Gililland brought him. Particularly, Edison saw that the contract gave him little security in case of the failure of the buyer to pay, and suggested that the stock be delivered to a mediating trustee, to be dispensed to Lippincott only as Edison himself received payment. ## Lippincott anxiously and immediately agreed to the contract that Edison and his representatives gave to him, without consulting an attorney, which also raised Edison's suspicions. ## The first that Edison heard about any compensation claimed in the deal by Tomlinson or Gililland was on the 21st of June, contradicting the testimony of those two men. ## Finally, both men set off for Europe immediately after the deal.
Supplied year
Author
Date
1889-00-00
Type
Folder/Volume ID
HM89-F
Microfilm ID
144:405
Document ID
HM89ACG
Publisher
Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University