[HX88035E], Letter from Jesse H Lippincott to Thomas Alva Edison, June 21st, 1888
https://edisondigital.rutgers.edu/document/HX88035E
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- Title
- [HX88035E], Letter from Jesse H Lippincott to Thomas Alva Edison, June 21st, 1888
- Editor's Notes
- Lippincott let's Edison know that his associates are not willing to make a purchase under the conditions that Edison made at a previous conversation. First, they do not think they should have to pay royalties after already paying a large sum of money for title. Second, Lippincott is obliged to take so many graphophones a year, and the Graphophone Company is not willing to give Edison exclusive rights to manufacture those instruments. Third, Of course, they agree not to sell any Phonographs for export except for to Canada. Fourth. "After date of turning business over any future improvements, on Phonograph to go to Company free, but any special Phonograph or special extra, which is sold as an extra Edison to get fifteen per cent royalty for invention, Clocks are excepted from all contracts," This they would agree to, the Patents coming to them. Fifth. If Edison succeeds in devising a process of printing duplicate records commercially valuable the Factory is to manufacture such duplicates at regular allowance or profit, that is twenty per cent of the cost, and Edison is to get fifteen per cent royalty," to this they agree the Patent coming to them. Sixth. Both the Phonograph and the Graphophone are to be put on the market, the later to be known as the Phonograph-Graphophone. The Edison Co is to manufacture all phonographs and supplies for the US and Canadian market, always to have preference over any orders for shipment to foreign countries, the E Co. to receive %20 profit over actual cost on all products. Seventh. The Edison manufacturing Co is to have the opportunity to manufacture the graphophones of the graphophone co, in other words to compete with other companies such as the western electric co., which currently manufactures graphophones. The graphophone co is prepared to let contracts to manufacture any number of them. Eighth. The Graphophone co wishes to both sell and lease machines to the public and does not want to be constrained by the price Edison named. Ninth. In regard to experimental expenses they would be willing to allow fifteen thousand dollars the first year, ten thousand for the second, seventy five hundred for third, and five thousand thereafter, for the next ten years. These expenses to be actual cost, making drawings constructing modes and making experiments but to include no compensation or profit to Mr. Edison. Tenth. "Phonograph" refers to the machine Edison currently manufactured, one of which Lippincott requests immediately. Eleventh. Lippincott is to have the right to require Edison to place names numbera and dates of Patents upon the Phonographs he manufactures, to be necessary for the protection of said patents under the law. If Edison is willing to accept the modified conditions in the proposal as the basis of a sale, the Lippincott is authorized to offer $500,000 to be paid as follows: one fourth in sixty days from the signing of the preliminary agreement, one forth ninety days from the same date, the remaining two hundred and fifty dollars in four months from the same date. Edison is to deliver only his capital stock and the certifiacte that he holds twelve hundred shares of the Edison Speaking Phonograph Company and five shares in same Company held by Mr. Batchelor, they purchasing the balance of the stock and no part of the money paid to Edison to be used for that purpose--so half million dollars to go to Edison "clean and clear." "phono quantities"
- Author
- Lippincott, Jesse H
- Recipient
- Edison, Thomas Alva
- Date
- 1888-06-21
- Type
- Letter
- Folder ID
- HX88-F
- Microfilm ID
- 145:267
- Document ID
- HX88035E
- Publisher
- Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University
- License
- CC0 1.0 Universal
- Has Version
- Archive.org Viewer, Microfilm Series Reel 145
- Item sets
- [HX88-F] Miscellaneous Legal File (1888)