[LB023035], Letter from Samuel Insull, Edison Machine Works to Freeman and Webb, October 20th, 1886
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Title
[LB023035], Letter from Samuel Insull, Edison Machine Works to Freeman and Webb, October 20th, 1886
Editor's Notes
I have your favor of the 19th. Inst. And in reply beg to state that we desire to procure a loan of $75,000 at six per cent interest, payable either quarterly, half-yearly or yearly, as the mortgages may desire, secured by first mortgage on our property formerly known as the McQueen Locomotive Works, Schenectady, NY. The Property consists of about 8 1/2 acres of land. There are two main buildings on the property, of which I enclose you small photographs and ground plans. One buidling is 306 X 122, the other 402 X 72, exclusive of boiler room. These buildings cost $76,000 to build, exclusive of the value of the land. They are built of brick with slate roofs. We are proposing to add wash rooms, the position of which you will see on the ground plans, and these two buildings will be built of wood. We are also proposing to build {illegible} for blacksmith ship, brass foundry, and store room, and this buidling will be composed of brick. ## Up to the time of our buying this property no work whatever had been done in the two buildings which were on the property when we bought it. They were orginally built for the McQueen Locomotive Works, which Company did not actual business. We gave for the property, including the 8 1/2 acres and the two buildings, the sum of $ 45,000. If we were going to duplicate the two buildings ourselves, we could not do the work for a less sum than $76,000. ## In addition to the amount paid by us for the property, the amount we are expending is as follows: In Flooring shops Nos. 1 and 2, in extending boiler house, building two was rooms, arranging shop No. 2 for power travelling crane, $ 13,000; for sewering $1,000; for foundation of engines, boilers and heavy tools, $2,000. Engines, boilers, and shafting $6,000; new building for blacksmith shop, foundary and store room, $7,000; outbuildings attached to shop No. 1 for heat rooms and furnaces $2,000; tracks, turn tables, etc. $1,000; traveling crane $4,000; steam heating apparatus, $4,000. When you bear in mind the fac that we paid about half the original cost of the property this would seem to us to offer very good security for the loan above mentioned. ## We shall be perfectly satisfied to have the mortage run either three or five years as the mortgagee might elect. We cannot estimate the value of the ground exclusive of the property, but we may mention that property in the neighborhood of our shops has very materially increased in value since our purchase was completed. We purpose using the proceeds of the loan in our business. We have at present shops in New York and Brooklyn, the rent of which amounts to about $15,000 per annum. We are moving our whole business to Schnectady just as quickly as we possibly can. Our business consists of the manufacture of dynamo electric machines, underground cables, electrical {illegible} general heavy machinery and shafting and plleys. Our assets over and avove all liabilities, and exclusive of the money already spent and now being spent at Schenectady, amounts to about $400,000. In addition to the security of the first mortgage on our property, we would propose giving the bond of our Corporation supplemented by the collateral bond of Mr. Thomas A. Edison. Mr. Edison's interests are all represented in Corporations, and he is untrammelled by any partnerships whatever. His income outside of his interest in the Edison Machine Works, of which h is three-quarters owner, is between $55,000 and $60,000 per annum and is readly increasing. In stating Mr. Edison's income I leave out of account the amount which he receives from his interest in the Edison Machine Works because it is the bond of this concern which he proposes to guarantee. I think it would be very much better for the writer to have a personal interview with one of your firm, if you have any intention whatever of entertaining the business as information can be given personally far more satisfactorily than it can by letter. You will please treat this matter as confidential.
Recipient
Mentioned
Date
1886-10-20
Type
Folder/Volume ID
LB023-F
Microfilm ID
83:764
Document ID
LB023035
Publisher
Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University