[LB021175], Letter from Samuel Insull to Thomas Alva Edison, December 16th, 1885

Item

Abstract

Your telegram asking for municipal lamps came to hand yesterday and I immediately communicated with the Lamp Co., who expressed the lamps last night. ##I enclose {to} you two letters from Tate. I have kept copies of them in case you may want to refer to them for reply on your return. I have written Tate that you are away. ##I was sorry to miss you Sunday. I wanted to see you about the Machine Works consolidation. It is necessary that we should get the Illuminating Stock {-----} off the books, and also the Shafting Co. Stock owned by the Machine Works ($8,800) total ($21,800), so Batch and myself agreed that a dividend should be declared of 99{?}% ($20,800){?} to {----} these two amounts off. You will remember also I told you the Machine Works assets figured up $250,000{?}. Of course, this dividend will reduce it to $229,000{?}. Then, the profits for this quarter should be at the least $12,000, so that would bring it back to $241,000. Then I think that when we come to value the stock of material on hand, we can increase it a further $10,000. Our effort will be to keep the assets up to $250,000 and yet distribute between you and Batch the Illuminating Co. and Shafting Co. Stock. ##I am arranging with Batchelor for the Machine Works to buy from you all that stuff that came in from Menlo Park. It will amount up to quite a figure, I think. Of course, I cannot{?} get cash for it, but I can get stock in the new organization. It is necessary that all these things be finished{?} before Batch and myself to to see D. Moir Co.{?} about Ferlse Co.{?} ##After looking at offers with Batch, we have about come to the conclusion that the best way will be to organize a Co. of $750,000{?}--invest{?} $600,000{?} to buy the three concerns (Machine Works, Tube Co. and Shafting Co.) and leave $150,000 in the Treasury. The investment in the three concerns today amount rougly to {----------}, of which the Stock owned by you represents about {---,880}, so that of the $600,000 of the new concern, you would get about $442,300 of the $600,000 issued. ##This, I will show you, is a first class deal for you. Today you have the following interests in the three concerns: ##Machine Works 80 per cent ##Tube Company 36{?} per cent ##Shafting Company 68 per cent. ##In the new organization, your total interest will be 73 per cent. In other words, you will give away 7% of your interest in the Machine Works business in order to get 37%{?} more interest in the Tube Company business and 5 per cent more interest in the Shafting Company business. I call this a good deal for you, of course, always assuming that the Tube Co. and Shafting Co. businesses will be good from now on.

Date

1885-12-16

Decade

1880-1889

Type

Identifier

LB021175

Folder Set

LB021

Title

[LB021175], Letter from Samuel Insull to Thomas Alva Edison, December 16th, 1885

Microfilm ID

83:380

Publisher

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

Item sets