[LB055322], Letter from Alfred Ord Tate to Sherburne Blake Eaton, February 1st, 1892
https://edisondigital.rutgers.edu/document/LB055322
Transcription
Feb. 1, 1892. Major S. B. Eaton, Edison Building, Broad St., New York City. Dear Sir:- Referring to your letter of 28th ultimo, the point which we wish to cover is this. The Board of Directors of the Edison Phonograph Works increased the Capital Stock at their meeting of October 8th, 1890, from $600,000.00 to $1,200,000. No entries have ever been made in our books showing this increase, our Capital still being carried at $600.00. Is it not the duty of the officers of the Company to make the records conform with the action of the Board, or in other words, should not the full amount of this increase, namely, 6,000 shares of stock be placed in the Company’s treasury. The Treasurer of the Company has already been instructed by the Board, through the resolutions passed at the meeting of Oct. 8th, 1890, that fifty-two per centum of these 6,000 shares are to be issued to Mr. Edison as and when the remaining forty-two per centum is issued; but pending the issue of the latter it is the opinion of the writer that the whole of the authorized increase should go into the Company’s treasury in compliance with the resolutions adopted by the Board of Directors at the meeting referred to above. There does not seem to be anything up to this point that would necessitate consultation with Mr. Seligman. The Capital has actually been increased and the figures ought to show on the books of the Works. The promise made by Mr. Insull to Mr. Seligman that this increased capital should not be issued without first advising Mr. Seligman would not be broken by placing the stock in the Company’s treasury. This promise relates to the issue of the stock from the treasury, or at least such is my understanding. Please let me hear from your further. Yours very truly, [A. O. Tate?]