[LB048067], Letter from Alfred Ord Tate to Sherburne Blake Eaton, March 3rd, 1891


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[LB048067], Letter from Alfred Ord Tate to Sherburne Blake Eaton, March 3rd, 1891




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


March 3, 1891.
Major S.B. Eaton,
#120 Broadway,
New York City.
Dear Sir:-
Referring to the waivers of toy Phonograph royalty which were executed by Mr. Edison, I find that there were only two of these covering the first two quarters of the first year, that is to say, the quarter ending January 1, 1890. Today the contract royalties were payable within thirty days after these dates. The third quarter would therefore end July 1st and royalties would be payable July 30th, and the 4th quarter would end October 1st and royalties become payable Oct. 30th. The record shows that the royalty which we verbally agreed to waive was for the third quarter, that is to say, for the quarter ending July 1st, payable July 30th. In proof of this I hand you (1) copy of letter from Daniel Weld, Sect. Edison Phonograph Toy Mfg. Co. to Sam’l. Insull, dated August 29th, in which Mr. Weld refers to a meeting of his Directions held on August 7th, at which Mr. Insull was present and during which Mr. Insull offered to attend to the matter of waivers of royalty; (2) letter of Sept. 3rd from Mr. Insull to Mr. Weld, in which he (Insull) states that he and had an interview with Mr. Lippincott and that I was to to obtain the papers; (2) letter of Sept. 3rd from Mr. Insull to myself confirming his understanding. It would appear from this that the fourth quarter, that is to say, the quarter ending Oct. 1st, was not touched upon, and that therefore the notification terminating the foreign license is justified.
Mr. Edison would like to commence the manufacture of toy phonograph mechanisms for sale in foreign countries. In the event of his starting this business would it be attended with my great risk? That is to say, if the Toy Phonograph Company should be able to prove eventually the validity of their foreign license, would Mr. Edison be liable only for an accounting of profits, or could they claim damages in addition thereto? Mr. Edison would also like to commence the sale of toy phonograph mechanism in the United States and Canada. This brings into question the relations between Mr. Edison and the N.A.P. Co and is more complicated than the foreign matter. If the latter question will take any considerable time to decide, will you be kind enough to give theformer preference in replying.
Yours very truly,
(Signed A.O. Tate)
Private Secretary.
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