[LB020442F], Letter from Samuel Insull to Thomas Alva Edison, August 18th, 1885



I received your telegram this morning stating that you were leaving Chattaqua. I have also your comments on my letter of the 12th. I have seen Mr. Unz and he thinks 20 per cent is entirely too high as a royalty. He says that the present instruments are retailed at $10 each and as he will be obliged to quote probably a slightly lower price and give very large discounts (as high as 40 per cent to wholesale dealers), he would be unable to make money if he had to pay such a royalty. He is willing to pay you 10 per cent on the net price which he receives or he will pay you a royalty of 75 cents on every outfit disposed of. I think that it will be better to accept this offer rather than take 10 per cent inasmuch as he will be compelled to pay us royalty on every set he makes in this whether he sells them or gives them away. He says that the cost of the apparatus will be at the very least from two to four and a half dollars. If he charges $10 less a discount of 40 per cent this leaves oly $6, and then to pay you 20 per cent on this {illegible} would leave him no margin. You are better able to judge than I am what the apparatus should cost him. He says that it is not clear that you are entitled to the claims for doing the work by a wheel, but that if you make this deal he will recgnize your rights in this connection. I suppose he simply means that he will acknowledge your patent as covering this point. I showed the Florida papers to Tomlinson and he says that with the information at hand it is impossible for him to give any opinion on the matter. I gave him all the papers including the abstract. Can you tell me exactly what you his opinion on? I also spoke to him with relation to his letter to you. He seems very anxious that you should come back here. But on this matter I should prefer to him write to you.








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[LB020442F], Letter from Samuel Insull to Thomas Alva Edison, August 18th, 1885

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

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