[HX89057], Incorporation Record, Edison General Electric Co, 1889
https://edisondigital.rutgers.edu/document/HX89057
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Title
[HX89057], Incorporation Record, Edison General Electric Co, 1889
Editor's Notes
Summary: This is regarding the consolidation of the Edison Electric Light Company, the Edison Lamp Company, Begmann & company, and the Edison Machine Works into one new company to be known as the Edison General Electric Company, existing relations between the companies being such that consolidation will be to the benefit of both patent-owning and manufacturing interests, resulting in more general and rapid introduction of Edison electric light in the country. The proposed new company has been organized under the laws of the State of New Jersey with a capital of $12,000,000. Preliminary agreements have been made for the purchase by this new company of the stock of the manufacturing companies, the price equal to a capital sum on which the absolute net earnings of the manufacturing companies show a clear income of 15 per cent, during the year ending november 1, 1888. The terms on which the stockholders of the Edison Electric Light Company are invited to the new combination are believed to be liberal. The net income of the manufacturing companies, together with the available income of the Edison Electric Light Company, would permit the distribution of 8 percent dividends on the entire stock of the new company to be used in carrying out the consolidation project. ?? The stockholders of the Edison Electric Light Company are to receive for every $100 share $266.66 nominal in the stock of the new company. Of this amount $175 will be stock immediately entitled to 8 per cent dividends, $58.33 will be stock to be deffered as stated, and $33.33 will be stock to be issued only at the expiration of two years from February 1, 1889. The stockholders of Messrs. Bermann & Co are to receive for every $100 share $120, of which one-third will be cash, one-fourth will be stock on which the dividends will be deferred and the balance will be stock immediately entitled to 8 per cent dividends. Any dividends paid by Messrs. Bergmann & Co on or after November 1 1888, will be deducted from the cash payment to be made to the stock holders. [This paragraph is half-circled by hand] In order to provide the part cash payments to be made to the stockholders of the manufacturing companies, and to furnish the new company with the necessary working capital, a syndicate has been formed that will subscribe for $2,000,000 of stock of the new company at par. The entire capital stock of the new company will be made full paid through the several transactions described, but in pursuance of these transactions, there will be at the disposal of the new company through a trust $3,166,000 of full paid stock, which, with a cash working capital of nearly $1,000,000 will abundantly equip it for carrying on a large business. The members of the syndicate referred to include the following: Messrs Drexel, Morgan & Co., Messrs. Winslow, Lanier & co., Thomas A. Edison, The Deutsche Bank, Berlin, and Mr. Jacob S.H. Stern, of Frankfort-on-the-Main, composing a financial syndicate for which Mr. Henry Villard is acting in this country. The General Electricity Company of Berlin. Messrs. Siemens & Halske, Berlin. The General Electricity Company of Berlin is a company with 12 million marks capital paid in, mainly devoted to the introduction of the Eidosn system of central station lighting on the continent of Europe. The largest stockholders in it are Messrs. Siemens & Halske, whose great establishment for the manufacture of every sort of electrical apparatus has a world wide reputation as the largest and most successful of the kind in existence. The head of it is the eminenet scientist and discoverer in the field of electricity, Dr. Werner Siemens. The identification of Messrs. Siemens & Halske with the new company will insure to it the great benefit of a cooperation between Thomas A. Edison and Dr. Werner Siemens in the promotion of their art and in the regular exchange of laboratory and manufacturing experience. This arrangement will give the new company a vast advantage over all competitive interests. The new company will also hold licenses for all the valuable patents owned by Messrs. Siemens & Halske in this country. [Name mentions: Messrs Drexel, Morgan & Co., Messrs. Winslow, Lanier & co., Thomas A. Edison, The Deutsche Bank, Berlin, and Mr. Jacob S.H. Stern, of Frankfort-on-the-Main, Henry S. Vilard The General Electricity Company of Berlin. Messrs. Siemens & Halske, Berlin. Messrs. Bergmann and Co Edison Machine Works Edison Lamp Co Edison Electric Light Co]
Author
Date
1889-00-00
Type
Folder/Volume ID
HX89-F
Microfilm ID
145:375
Document ID
HX89057
Publisher
Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University