[LB039406], Letter from Alfred Ord Tate to Benjamin F Stevens, April 9th, 1890
https://edisondigital.rutgers.edu/document/LB039406
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Title
[LB039406], Letter from Alfred Ord Tate to Benjamin F Stevens, April 9th, 1890
Author
Recipient
Mentioned
Date
1890-04-09
Type
Folder/Volume ID
LB039-F
Microfilm ID
140:974
Document ID
LB039406
Publisher
Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University
Has Version
Item sets
Transcription
Apl 9/90
My dear Mr. Stevens
I am glad to learn of your return to Boston.
Mr. Weld has kindly set me copies of MR.. Yeoman's ad Mr. Hutchinson's cable. "[Friend?]. I cannot tell exactly from these what Mr. Yeoman's scheme is but it appears to me that he is going to attempt to float a public company. You are doubtless familiar with the way this is done in England and aware that unless Mr. Yeoman's can get the company underwriter we take upon our own shoulders all the risk of failure.
If we are to undertake such a risk as this the amount that we are to get is entirely inadequate. We could solicit public subscription ourselves and, with exactly the same risk take all the profits, which will amount to two or three times as much as it is now proposed to give us.
This matter is extremely important to us. I would not advise our taking the risk of public subscription even if we were to reap all the profit. It is far less desirable that we should take the risk and have someone else get the lions share in case of success, while we alone would suffer from a failure.
I think that a cablegram like this should be sent to Mr. Hutchinson
"Does Yeoman's proposition [mean?] public subscription will completely be underwritten or how will [we?] be secured from possible failure of stock going to allotment. We will not consent to share risk of public issue.
There should be no misunderstanding about this matter as a failure would mean that in addition to losing all anticipated profits and being out the expense already incurred, the collapse of the scheme would receive the widest publication and do us a vast amount of injury by handicapping us in any future endeavor to capitalize our foreign business.
Yours truly,
A.O. Tate
Benj. F. Stevens Esq
Boston
My dear Mr. Stevens
I am glad to learn of your return to Boston.
Mr. Weld has kindly set me copies of MR.. Yeoman's ad Mr. Hutchinson's cable. "[Friend?]. I cannot tell exactly from these what Mr. Yeoman's scheme is but it appears to me that he is going to attempt to float a public company. You are doubtless familiar with the way this is done in England and aware that unless Mr. Yeoman's can get the company underwriter we take upon our own shoulders all the risk of failure.
If we are to undertake such a risk as this the amount that we are to get is entirely inadequate. We could solicit public subscription ourselves and, with exactly the same risk take all the profits, which will amount to two or three times as much as it is now proposed to give us.
This matter is extremely important to us. I would not advise our taking the risk of public subscription even if we were to reap all the profit. It is far less desirable that we should take the risk and have someone else get the lions share in case of success, while we alone would suffer from a failure.
I think that a cablegram like this should be sent to Mr. Hutchinson
"Does Yeoman's proposition [mean?] public subscription will completely be underwritten or how will [we?] be secured from possible failure of stock going to allotment. We will not consent to share risk of public issue.
There should be no misunderstanding about this matter as a failure would mean that in addition to losing all anticipated profits and being out the expense already incurred, the collapse of the scheme would receive the widest publication and do us a vast amount of injury by handicapping us in any future endeavor to capitalize our foreign business.
Yours truly,
A.O. Tate
Benj. F. Stevens Esq
Boston