[HX88027], Legal Testimony, Jesse H Lippincott, September 21st, 1888

Item

Abstract

This is a legal statement of Lippincott in response to the accusations of Edison re: Gilliland and Tomlinson. ## According to Lippincott, he had openly intended to award Gilliland with stock from the beginning, or otherwise intended to “do something” for Gilliland in exchange for mediating the sale of Edison’s stock in the Phonograph Company. It was he (Lippincott) who had originally approached Gilliland in April or May of 1888 regarding the sale, Tomlinson he met later. The negotiations with Edison were mainly taken up with reconciling the wishes of Edison with the wishes of the Graphophone Company about how the device would be marketed to customers. Gilliland believed that he deserved half of what Edison was receiving for the deal, and that he would accept the amount in stock, provided that Lippincott would agree to buy the same from him at par, to which Lippincott agreed. Tomlinson and Gilliland told Lippincott that the agreement was acceptable to Edison. They then verbally agreed that: Lippincott was to pay Edison the half million, and to receive an assignment from Gilliland for his contract with the Phonograph Company, for which he was to pay Gilliland 250,000 dollars in stock, with an option for Gilliland to sell the same back at par. Afterwards he took the agreement to Washington, who found it unsatisfactory, so Lippincott took it back to New York to be modified. The following day, about one o clock on the 28th of June, Gilliland, Tomlinson, Edison and Tate came to Lippincott’s office and a new contract was signed. On the same day, Tomlinson brought a contract, which was signed between Lippincott and Gilliland pertaining to the $250,000. Gilliland asked Lippincott to say nothing to Edison about it, since Edison might think that Gilliland was getting too much. On July 17th Gilliland gave Lippincott a formal assignment of his contract with the Phonograph Company, and on August 1st 1888 Gilliland and Tomlinson came to his office to sell one fifth of the stock that he had transferred to him on July 17th, and they made the exchange. Neither gentleman informed Lippincott that Edison took exception to the deal, nor did Lippincott know that Gilliland’s contract could not be transferred.

Date

1888-09-21

Decade

1880-1889

Identifier

HX88027

Folder Set

HX88

Title

[HX88027], Legal Testimony, Jesse H Lippincott, September 21st, 1888

Microfilm ID

145:196

Publisher

Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University