Cl 6dv4>0ru 1 'kp£M> A SELECTIVE MICROFILM EDITION PARTIV (1899-1910) Thomas E. Jeffrey LisaGitelman Gregory Jankunis David W. Hutchings Leslie Fields Theresa M. Collins Gregory Field Aldo E. Salerno Karen A. Detig Lorle Stock Editors Robert Rosenberg Director and Editor Sponsors Rutgers, The State University Of New Jersey National Park Service, Edison National Historic Site New Jersey Historical Commission Smithsonian Institution University Publications of America Bethesda, MD 1999 Edison signature used with permission i aw-Edlson Company Thomas A. Edison Papers at Rutgers, The State University endorsed by National Historical Publications and Records Commission 18 June 1981 Copyright © 1999 by Rutgers, The State University ■ . All rights reserved. No part of this publication including any portion of the guide and index or of the microfilm may be reproduced, stored in a retrieval system, or transmitted in any form by any means — graphic, electronic, mechanical, or chemical, includingphotocopying, recordingor taping, or information storage and retrieval systems— without written permission of Rutgers, The State University, New Brunswick, New Jersey. The original documents in this edition are from the archives at the Edison National Historic Site at West Orange, New Jersey. ISBN 0-89093-703-6 THOMAS A. EDISON PAPERS Robert A. Rosenberg Director and Editor Thomas E. Jeffrey Associate Director and Coeditor Paul B. Israel Managing Editor, Book Edition Helen Endick Assistant Director for Administration Associate Editors Theresa M. Collins Lisa Gitelman Keith A. Nier Research Associates Gregory Jankunis Lorie Stock Assistant Editors Louis Carlat Aldo E. Salerno Secretary Grace Kurkowski Amy Cohen Bethany Jankunis Laura Konrad Vishal Nayak Student Assistants Jessica Rosenberg Stacey Saelg Wojtek Szymkowiak Matthew Wosniak BOARD OF SPONSORS Rutgers, The State University of New National Park Service Jersey Francis L. Lawrence Joseph J. Seneca Richard F. Foley David M. Oshinsky New Jersey Historical Commission Howard L. Green John Maounis Maryanne Gerbauckas Roger Durham George Tselos Smithsonian Institution Bernard Finn Arthur P. Molella EDITORIAL ADVISORY BOARD James Brittain, Georgia Institute of Technology R. Frank Colson, University of Southampton Louis Galambos, Johns Hopkins University Susan Hockey, University of Alberta Thonms Parke Hughes, University of Peiuisylvania Peter Robinson, Oxford University Philip Scranton, Georgia Institute of Technology/Hagey Museum and Library Merritt Roe Smith, Massachusetts Institute of Technology FINANCIAL CONTRIBUTORS PRIVATE FOUNDATIONS The Alfred P. Sloan Foundation Charles Edison Fund The Hyde and Watson Foundation National Trust for the Humanities Geraldine R. Dodge Foundation PUBLIC FOUNDATIONS National Science Foundation National Endowment for the Humanities National Historical Publications and Records Commission PRIVATE CORPORATIONS AND INDIVIDUALS Alabama Power Company Anonymous AT&T Atlantic Electric Association of Edison Illuminating Companies Battelle Memorial Institute The Boston Edison Foundation Cabot Corporation Foundation, Inc. Carolina Power & Light Company Consolidated Edison Company of New York, Inc. Consumers Power Company Cooper Industries Corning Incorporated Duke Power Company Entergy Corporation (Middle South Electric System) Exxon Corporation Florida Power & Light Company General Electric Foundation Gould Inc. Foundation Gulf States Utilities Company David and Nhia Heitz Hess Foundation, Inc. Idaho Power Company IMO Industries International Brotherhood of Electrical Workers Mr. and Mrs. Stanley H. 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PUBLICATION AND MICROFILM COPYING RESTRICTIONS Reel duplication of the whole or of any part of this film is prohibited In lieu of transcripts, however' enlarged photocopies of selected items contained on these reels may be made in order to facilitate research. National Phonograph Company Records Correspondence, Foreign (1904) This folder contains correspondence and other documents relating to the marketing, pricing, and supply of phonographs and cylinder records in Great Britain, Germany, Russia, France, and other countries. Most of the items are letters to and from William E. Gilmore, president of NPCo. Some of the letters were written while Gilmore was in Europe in April, May, and early June. Other correspondents include James H. White, European sales manager; Walter Stevens, manager of the Foreign Department; John R. Schermerhorn, assistant general manager; George Croyden Marks, British patent agent; and Frank L. Dyer, Edison’s general counsel. Among the documents for 1 904 are letters pertaining to the quality, condition, and origin of phonographs and records offered for sale in Europe, Australia, and Mexico; to litigation with Edison-Bell; and to the activities of former Edison associate George E. Gouraud. There are also documents concerning the manufacture of records in Paris, Berlin, and Brussels under the direction of Edward Riehl. These items include descriptions of the manufacturing process, the ingredients in the wax, and the prices of materials. Other documents pertain to the cancellation of Ludwig Stollwerck’s contract with NPCo, the organization of the Edison Gesellschaftin Berlin, and the finances of NPCo, Ltd., in London. Approximately 1 5 percent of the documents have been selected. Among the items not selected are letters regarding foreign patent rights, weekly and monthly remittances and accounts, and ongoing litigation over price cutting and the unauthorized use of Edison’s name. (3&omab (X£d\*oiu Cable Codes Used, a.i., a.b.c., c ■m-c-4 . OM MERCIA L, Thomas A. *ARK EBSSQIS’S EUROPEAN HEADQUARTERS F Phonographs, OP THE *pT NATIONAL PHONOGRAPH <3° Ltd. SsSF EDISON! AVANUFACTURING <30- Ltd. Motors, * ' — ■*-' V -ZZJ Edison-Primary Batteries, Bates and Edison Automatic Hand Numbering Machines. 25 Cler.kenwell Road. . ,.U4 I * ^nnu^oaio^ KC f n~~ 20 tli Januaxy, 1904, USA. it Berlin. Paris. SS W. E. Gilmore, Esq., President, National Phonograph. Co. Orange, New Jersey. U.S.A. Dear Sir, With further reference to the plan about which I wrote you some time ago of carrying a stock in Berlin to take care of the Carman, Austrian and possibly the Russian Market , I believe we should keep a complete and well assorted stock of recordB at the Berlin factory suitable for this market. As X have already advised you we are arranging to do this, but X don't want to begin t0 fill orders from Berlin until we are prepared to fill them complete. Therefore for the present we are taking care of this trade to the best of °ur ability from London. I find a great many of our people in continental Europe have been dissatisfied with deliveries as made from Antwerp ever since that office was started. Therefore x believe ws can greatly increase the business in that territory by being in a position to deliver from Berlin. I don't think it necessary to go over the Antwerp situation, but will simply say that we found it entirely impracticable to make prompt deliveries from that port, partly owing to the fact that we were unable to g9t as much stock as we required, and partly on account of difficulties in our way due to NATIONAL PHONOGRAPH COMPANY, EUROPEAN OFFICE. Custom regulations and so forth. I do not want to have a recurrence of this difficulty at Berlin, therefore I propose to go ahead, publish record and machine lists in the German language - these lists to contain only those selections which are suitable for the countries in question. I think our stock of records in Berlin shouH comprise only such songs as are listed in the German language and no other. English record lists can be supplied on special request from London. So far as Russia is concerned X cannot see^way^^or any large business in the very near future. We are extremely lame on the matter of Russian repertoire, and of course we cannot sell machines to any great extent without the proper records to go with them. The list of Russian records which we have at present X find is practically obsolete, and there is little or no demand for them, Therefore it is my idea to begin making a good class of Russian music at the earliest possible time. In Austria and Hungary the situation is somewhat different. The new records which we have been making in Germany during the past two months will be very suitable for this market, and as soon as we are in shape in Berlin to make deliveries^ I believe we will largely increase our trade in these countries, and as soon as I can spare a record-taking outfit I purpose sending one into Austria, and Hungary, to pick up local music, advertise what we are doing and probably send a commercial man along to stir up the trade. I think, as I have already written you before , it would be absolutely neces¬ sary to establish an office and perhaps a ware-room in Vienna. To sum the whole thing up I believe we. should make the following NATIONAL PHONOGRAPH COMPANY, EUROPEAN OFFICE. arrangements: Send a traveller and record-making outfit as soon as possible into Austria making records at Prague, Vienna, Budapest and other local points, advertise in that territory and open an office at Vienna. Russia - We should send a record-making apparatus into this territory as soon as possible for the purpose of making records in St. Petersburg, Warsaw, Moscow and I believe open an office in St. Petersburg. Of course this represents my general views of the situation and I do not for a moment think it can all be done within a few months' time or even that you can decide on the natter at once. I know it will take a long time to accomplish all this and involve the ex¬ penditure of a large amount of money. I wish, therefore, you would think the matter over carefully and let me have your views upon the subject. I sincerely trust what I have written will meet with your general approval. Very truly yours, J.H.W./t.D. Mf / '6'r«„je£ tAQfjvm /' ^/M/tym/Zf '(./ • fj @>a/r0 ty//ft/i(f/fee!^/r^M^f^ y ££j/ce&- Trade Mark "Edisi S&Hdl&Sfr*!' Vrt,,,Je£ fficrt/&>. (Mmr//fy[ . r > ited" <^^J^!^>^^iuary 22,1904. William E. Gilmore, Esq., Pres., National Phon. Co., • of the 20th instant, I asked i the subject of the scheme of i for registration have been made are the following: / / Great Britain / Belgium, Prance , * Holland , fi Turkey, a| India, In Servia, Im Sweden , (H Austria-Hungary, TO Great Britain, /fffi Russia, Switzerland, tp- Denmark, j Norway , V Italy, ‘5vT'- Germany , ■t^Bortugal , Wr-Mexico ',V!‘v9%.pan Spain, X New South Wales, ■o, Victoria, South Australia, Queensland, Cape Colony, Natal , Orange River Colony, Transvaal , Argentine , .Bolivia, Brazil, Chili , Colombia, Ecuador , Paraguay , Peru, Uruguay , Venezuela, Straits Settlements Hong Kong, Jamaica, Barbados s, Bahamas, Western Australia, New Zealand, Luxembourg, ^ Roumania , >0- Bulgaria This you will note floes not include Egypt which Mr. Marks thinks is important. I can have the trade-mark registered in England through Richards & Co. or can have Mr. Marks do this, whichever you say. Probably Richards & Co. would be cheaper j Yours very truly, O' C J’/l - - ELD/feiW (Ktm&u&tug (!riujinm-5:^ntot£(!rxpfri. J&dLl/uwJtem, 7 /?/ <> 50'th . ^ . Dear Mr. Gilmore, lylf |4f You will be interested in hearing that your .old emissary or whatever you prefer to call him. Colonel Gouraandf called on me on Monday, and has lost none of his original assurance. He explained that he was the Governor General of Sahara and that His Majesty the Emperor desired to have a number of phonographs for that great land. X told him that no doubt he could, be supplied as any other trader but he must go to the right quarters for that, as X was not concerned on that end of the business- He did his" best to pump me concerning Mr. Edison but obtained little information on the subject. He (Gouq*«4; has just appointed the Commander i'n Chief of Sahara and. various other officers of the State and he, the Colonel, i’s the only minister not having a salary although he was offered one by the -Emperor greater than that of the President of the United States of America, he -preferred however to be freef- He claims, as' you may expect, to have praciioally made Mr. Edison's fortune and I sat almost bathed in smiles, which I tried to hide whilst he enlarged upon his various exploits in the past and his great expectations for the future. I sent him to Mr. White not telling him his name and telephoned Mr. White he might expect this august pers'onage, and X believe as a matter of fact Mr. White- did s'ee him and has probably -written you thereon. J . An incident lilce this goes to relieve the monotony if such exists in any offioe and it is- for this that I send it not that it is of any value . Yours faithfully, N (X Sd^ian EUROPEAN HEADQUARTERS Pi . " YYUSL-^- i I It Cades Used : A.!,, A.D.C., commercial, Telegrams &• Cables : " Randomly, London.' Telephono No. SOSO, Thomas A. ©©ISO EC’S Phonographs, OF THE Gold Moulded _ _ _ Orange N.J., ^Reeosds, NATIONAL PHONOGRAPH <3©. Ltd. ur ProjeelitiE 25 Clerkenwell Road, London,. E.C. . E. Gilmore, Esq., Orange, N.J. , U.S.A. 5th P|b^uar'y;lJ l")^ I have had a call at this office from your old friend Colonel Gourud. I beg to inform you that he has "broken out in a new place", and now holds the very exalted position of Governor-General to the new King of Sahara, Mons. Jacques Lebaudy. Colonel Gourud came into my office in his usual effusive and enthusiastic manner and informed me that he was in a position to place an order for several thousand phonographs and a few million records to take out to Sahara to sell to the unsuspecting natives. Of course I was very pleased at the chances of receiving such a large and beautiful order, and answering his enquiry I informed him that we could fill such an order on two or three days' notice, but, alas, my hopes have been cruelly da3hed to the ground, inasmuch as the Colonel wanted me to get all the goods ready, and when I mentioned the cash part of the transaction he stated the cash would be forthcoming, but as I have not seen it yet I begin to suspect very strongly that 1 am not going to secure the order. Of course in this wicked world one has to 13900013 used to ouch reversals this. The Colonel la very anxious to know when Mr. Edison intends visiting this country, he having heard in some way that we was comin over in connection with the Iron Ore Co. in Norway. Of course I could give him no information as to this, and I understand he has been around Fitzhugh House in Arundel Street to see what he can find out there. This may or may not he interesting to Mr .Edison so I send it along for what it is worth. The Colonel is evidently a very hard man to keep down. He reminds me very much of the Irishman who will get up in the world, even if he has to sit in the Gallery. With kind regards Believe me, Very truly j.h.w.A*d. j. r. s,i ■ {Ousted- 7kw. ThiB matter seems to be getting quite seriouB. I hardily know what to say to Mr. White. See me in regard to it. 2/8/04. W.E.G. [ENCLOSURE] (^\omab Cl8dwon." EUROPEAN HEADQUARTERS Gold Mould Records, Projecting Kinetosco NATIONAL PHONOGRAPH ©o. Ltd. EDISON NVANUPACTURING ©o. Ltd. 25 Clerkenwell Road, London, E.C. J W.ji. Gilmore , .asq. , 1 ^ President, national Phonograph CoJ /SO Orange, Hew Jersey, U.S^A, ■ 28th January, 1904. i Esq. , national Phonograj ■ Dear Sir, ‘ — - * I enclose herewith a further letter received from H. Cooper & Co. upon the subject of Concert records which we recently delivered to them and which they reported to be very inferior indeed. I have recom-ly procured several* of our Concert records and have listened to them, making careful comparison with Concert records of various European makes , and I must admit frankly- that as compared with these several makes our records are very much inferior, I therefore do not believe it good policy to put these records out in Europe as they are certainly no credit to the name ''Edison'1. I think you will agree with me that it would be better policy for us not to execute orders for Concert records under these circumstances. How¬ ever before taking any definite steps in this matter I will wait a letter from you upon the subject, which letter I hope you will direct to me personally. You.rs very truly, J.H.V/./l.D. Ct£dw<m, E©ES©E«'S EUROPEAN HEADQUARTERS Phonographs, OF THE Gold Moulded ft53£ NATIONAL PHONOGRAPH 0o. Ltd. Kioetoscopes, EDISON MANUFACTURING <3°- Ltd. Motors, Edison-Primary Factories : Orange N. J* 25 Clerfeenwell Road, London, E.C. 16th February, 1904. ajn officeN W. E. Gilmore, Esq., Orange, New Jersey. Dear Sir, Upon receipt of yours of February 6th I have j.hstT'ei as follows "GILMORE. Advise holding Stollwarck matter. Writing. WHITE". Your letter enclosing copy of letter from Stollwerck dated January 20th this moment received, and I quits agree with you that Stoll¬ werck ‘s letter says very little. I am now firmly convinced that Stollwerck is not over friendly towards us, and I sincerely hope that negotiations with him fall through, as I believe wa can do better with this business in Germany ourselves. I would point out the fact to you that we now only have five jobbers in Germany and I believe it would be a very easy matter indeed to get the majority of the Retail Dealers1 trade. I believe that a business in Germany can be worked up to be fully as good as the trade we are no w en¬ joying in Gt. Britain. . We now have an established^ttnBerlin and will shortly have a plant equipped to take care of our entire record product, and personally I very much prefer taking the chances of finding a market for the output of this plant than in leaving the matter to Stollwerck, and 1 believe if we adopt this course we will come out on top. Stollwerck advises me that he is not willing to begin business until we can give him a catalogue of 500 new records, and that these records must be voices of the greatest artistes of Europe as well as the most famous bands. Of course the band part of it is all right and we have already made band records of the leading organisa¬ tions of Germany, but the artiste. part of it is another story and will be another story until such time as your permanent master is an assured fact. I have been devoting all the time X possibly could to arrange matters at the Berlin office so as to be in shape to. go ahead with the German business immediately after' the close of our fiscal year, and I have had Mr. Graf here this week getting tSa. line on our order, shipping and invoice system, so that same can be carried into effect in handling the German business. We are also compiling matter for a new German catalogue of both machines and records and shall be ready to circulate this shortly after the 1st of March or just as soon as Mr. Riehl is ready to give us an output of the 100 and odd new German selec¬ tions he is now moulding at Brussels, so that you may understand we are going ahead with our arrangements entirely independent of Stollwerck; in other words we are not considering hima at all. As to sending the contract schedules through me I think this is a matter which can very well be left to your own good .Judgment 2. and I do not see that it will make much difference one way or the other. Personally I am opposed to the whole arrangement with Stollwercks and I want you to know just how X feel on the matter. I believe we can do very much better by paddling our own canoe, and I feel that the Stollwerck arrangement will antagonise the entire German trade. Furthermore I am glad to advise you that I have just learned that the Allegemaine Phonographen Gasellshaft of Germany, a concern that has been manufacturing imitations of Edison's phono¬ graph, has gone to- the wall, so that we need fear nothing more from this source, and our sailing in Germany will be that much easier. Awaiting your further advice upon this matter I am, Most truly yours, / Sales Manager. P.S. I am suggesting to Mr. Riehl that he look into the matter of the Allegemaine people, as I understand their stock is to be of¬ fered at public sale and it might be that we could procure some¬ thing useful to us at a very cheap figure. C X&dViHHU \pz •'7^'^^ - CoM* Ctofo Used I A.l., A.l EUROPEAN HEADQUARTERS NATIONAL PHONOGRAPH S° Ltd. Phonographs, GoUMoulded “Is EDISON /MANUFACTURING 6©. Ltd. Motors, Edison-Primary Batteries* Bates and Edison Autotr Numbering Machines* 25 Clerkenwell Road, London, E.C. . Gilmore, Esq,, Orange, New Jersey. 27th February , Dear Sir, rhich I Bent to 5th complaining X beg to enclose you herewith copy of letter \ the National Phonograph Co . under data of Fe/ruary/ of the fact that we had not received populs£ numbers of any of the big selling titles which we have ordered in large quantities. I have since concluded that this is a matter which should be brought to your personal attention as X seem to get no satisfaction whatever by writing to the Company. Since writing this letter I have had a statement made up of requisitions which we have placed with Orange for records, and I enclose you herewith copy of same. I beg to call your particular attention to our requisition 628 placed on October 28th calling for 141,000 records and to the fact that there are still due us on this order 48,900; also our order of November 19th for 234,500 records on which you still owe us 160,500, and our requisitions 711,712 of November 18th calling for 100 D. repro¬ ducers and 1000 C. reproducers against which no shipments have been made up-to-date. We will add that we have had orders placed for C. reproducers for the last 7 or 8 months and have received nothing but a handful to say the most. The Edison-Bsll Company have placed a C. reproducer on the market and as near as we can learn are getting a large amount of "business from it. Nov/ I think you mu3t admit that this is rather a serious state of affairs from our standpoint. Y/s are doing the very "best we can to fill orders and to taka care of the trade which v/e have created "but we cannot fill orders or make the show that v/e would like to if the factory continue to ship goods to us in this manner. I have in mind also at the present time the various Continental customers who have written to New York and to yourself complaining about non-deliveries and while I do not of course blame you- for writing us and jogging us up on these matters I will simply say that it is quits impossible for us to supply goods which we do not receive from America. Since writing mine of February 5th I have personally gone through our racks and find that the records we lack are in almost every particular the titles which are most called for, and therefore I am firmly convinced that some-one at the factory is giving us very much the worst of it in delivery of popular selling records, and I must protest emphatically against thiB as I do not believe you would for one moment sanction it, and I certainly think the business we are doing entitles us to at least a fair share of consideration when records are being dealt out. We have now been stocking records in London for two months and I can truthfully state that with one or two exceptions we have never had any of the popular selling titles in our racks although we have placed orders for large quanti¬ ties as far back as last October. In fact I find that our requisi¬ tions Nos. 628 and 7i4 embrace a very large quantity of popular selections- against which practically no deliveries have been made. I win take the selection "Hiawatha" as an illustration. We have had orders in for over two months calling for thousands of this one selection and up to the present moment we have never had hut one case of 300 of "Hiawatha" in this building. How it is not pleasnt to me to write complaining letters and I do not want to bother you on these matters unless it is abso¬ lutely necessary, but I do feel that we have not been treated right in these matters find X feel also that X am justified in complaining to you. I sincerely hope you will give this matter cue consideration and that I will hear from you to the effect that we will at least be given a fair proportion of popular records which you are turning out , Very truly yours, / / European Sales Manager. j.h.w./l.d. ...-4 . [ENCLOSURE] COPY. 5th February, 1904. The National Phonograph Go., Orange, New Jersey, U.S.A. Gentlemen, We have just cabled you to ship 2000 Band records of "Hiawatha" to Manchester and send B's/L to us. This cable is sent by the request of our client Mr. Christian Duwe . We sincerely hope you will make shipment of these records immediately. In connection with this I beg to call your attention to the fact that while you are now doing fairly well on shipments of records, we are not getting shipments of popular titles such as "Hiawatha", "The Holy City", "Shade of the Palm", Bell Solos, and so forth. I have written you on this subject before both from Antwerp and London, but seem to get no reply, neither do 1 get records of these popular titles. It is fair to assume that you are turning out these popular records in large quantities, . and there¬ fore I must conclude that the domestic market is getting your en¬ tire product. While we have a good stock of records in hand at the present time I may say that with one or two exceptions our racks are entirely empty so far as popular titles are concerned, therefore I must say that I do not think we are being treated fairly in this matter, and I hope you will give the above your attention and see to it that we get at least a fair proportion of the big selling numbers which you are manufacturing. Yours very truly, (Signed) JAS. H. WHITE. J.H.W./t.D. European Sales Manager. [ENCLOSURE] ORDERS Planed. with the factory to: STOCK. 628 141,000 Records. ' ll/S4 -SI, 000 ' /:V' 112/12 -20,100 ■ " 1/5 -26,000' ■ l/lS -16,000 1 %ir 1/16 - 9,000: , , No* 2^, / Ut -tp-pJ • -7/ \ _ .)lO; //( if ! l/l -20,000' 1/12 -16,000- 1/15 -21,000 1/23-17,000- K 50,000 Record Cats. 13 742- 10,000 Shaved Blanks. l/27 - 5,000 J| 3 • 746. | 25 Each. Electrotypes. ^ No;.~,(- ' 3. 747. Sample Boards of all _ _ [_ types of Phonographs. ?}lA taZji , 12/17/04 750. Parts of reproducer _ and recorder. '"•No'/' L-C'° 1/8/04. 767. 150-14" Brass horns. ■' ' No. ' 1 [ENCLOSURE] 1/23/04 1 790 ' 1,000 "Standards". |,- No. ' rz,. j,: 1/23/04 | 804. , 200 "B" Reproducers. *9; Jz 1/30/04 | 814. 24 Oov. Springs for Victor. . ' No. . ' y/ do. | 815 5,500 Records j ^.NOg, ,v j 77.”' . 2/1/04 : 816 j _ 5,00 Lithographs, form | No. 433. 2/5/04 !j 817 j| 27 Films No. ' 0 819 2,000 Oem Phonos. No. 2/5/04 ! 820 3,000 Oem Phonos. ^No. / do. 821 1,000 Home Phonos. yvvHo/;; do. 822 | 1,000 Diaphragm Micas. No ^'''7 ■ • ' ‘ 2/12/04 840 Repair »c Supply parts. jj No- i-'./i do. 842 8,000 Records. No/'-' ?. £ 2/13/04 844 3 , 000 Records . 1 ' — 2/16/04 848 9,600 Moulded Records No. ,, 2/20/04 j 854 5 Triton Motors. | J&W if I LIAR ! ~nANS.__ Janies K, White, Esq., European Sales Manager, London, England. Dear Sir: X have your favor of the 11th, having reference to the raatl of delay in filling orders of Shnlts of Altona and 0. Detmering of Hamburg, with memorandum from your Order Department explaining the situation. Of course I am sorry that the trouble was due to the inability to get the records that you required as you should have liked. In this connection I quote memorandum from Mr. Hird, who is in charge of the Order Department, which sets forth exactly the ordere placed and from which you will see that weekly shipments on all of the orders and of the particular selections referred to were made right along. I also draw your attention to what he says about plac¬ ing larger orders in any case. Referring to the attached, I find on looking up Mr. V/hite's orders that on his order Ho. 628, dated Hov. 2nd, calling for a to¬ tal quantityrof 141,000 records, to popular selections alluded to, vis: "Hiawatha", "Holy Oity", "Shade of the Palms" and "Bell Solo", were ordered in quantities as follows: Hiawatha, Holy .City Shade of the Palms, Ho. 8295 Ho. 8416 Ho. 8379 250 200 300 300 ) 350 )- Bell 300 ) Solos. SHEET 2. DATE, 2/29/04. NATIONAL PHONOGRAPH CO. J. H. White. As to Mr. ’White's order ITo. 73 4, dated Nov . a totai quantity of 234,500 records, 1 find ions ordered are as foiiows: 30th, which ca33s for that, the popu3ar seiect- Hiawatha Hoiy City Shade of the Paims No. 8295 No. 8436 No. 8379 We have made weekiy shipment b uueos nu ori c3uded some of the above se3ections in each shlpme: 300 200 200 500 ) 500 )-Be33 So3os. 500 ) these two orders and have and present time we have fi33ed the entire qu^tity^iihesir selection* cajjea for. It seems to me that the London Office has not ordered ver» iiberaiiy of these popuiar se3ections, and I wou3d suggest that, they p3ace an order suff acient,3y 3arge to take care of their requirements. An oraer say for 2,000 of each seiection, wou3d, I think, keep them wejj suppi led . As the matter now stands, the'' have no unfi33ed orders for tliese particu3ar se3ections. The tota3 quantity of these se3ections ordered bv the London Office for their stock since Nov. 2nd, is as foiiows:" Hiawatha 350 Ho3y City 400 Shade of the I aims 500 No. 8295 800 ) 8436 850 ) -Be33 So3 os. No. 8379 800 ) These quantities tve have shipped in 3ots proportionate to the quantities of other seiections caii edj for. W011 3d say for your further information that up to the present time there remain but, 3o,600 records due on order No. 628, and that oraer No. 734 was comp3et,e this week .(week ending Neb. 27th). The orders of the London consignment account are being taken care of and as iiberai shipments made as our production wi33 permit without negiecting the domestic trade. 1 I think that, if Mr. White wi33 send us at.good 3ibera3 order' for these popuiar seiections, aiiowing us to make shipments from time to time, he wiii have no further cause for complaint in this direction." There is another thing, you are perfectly11 fami!,iar”f g£ions two months at ieast, before Christmas, and even 3ong after the Christ¬ mas Hoiidays we are simpiy overwheimed with business of aii kinds. Of course next year we are not going to have this trouble, as what we can do is for us to arrange between us, jirovided we are not in a position to furnish you these promptly, to give you mo'ids; so that the records can be made at the Brusseis piant, and then you can SHEET No. 3. DATE, 2/29/04. NATIONAL PHONOGRAPH GO. TO . White. govern their output yourself. Of course I refer only to popular selections such as those enumerated, or such selections as seem to be in great demand. You are perfectly .correct, in your supposition that these moulds were working day and night; there is no question as to this. We are unable to keep our own customers going here: Keep up writing complaining letters; that is the only way you will ever get anything. There is no use sitting down and think¬ ing that your office is neglected to the benefit of all other cust¬ omers; if you do not complain about it you will never receive any consideration. You have a good man with you who knows all about this; his name is Squire. He was on the other side of the fence, and now that he is on the opjjosite side there is no doubt that he can write as good a complaining letter aw anybody that I know of; a.t least, it would seem to me that he has had sufficient experience to enable him to do so. I understand that Schermerhorn has already written you on this general ■ subject, so it is not necessary for me to go into details. Yours very truly, WHIG /LYA'/ President 17th, together with copy of affidavit in the case that he has brought against the Edison-Bell Consolidated Phonograph Co., Ltd., also letter from 'White dated the 15th of February and copy of advertisement referred to. X have written Mr. Marks that what he has done is entirely approved, and X trust that you will sanction it also. Please return the papers in the enclosed envelope, with any com¬ ments. Enc- [ENCLOSURE] I am bringing an action against Edis'on Bell now for. the misuse of the word "Edison" I have claimed against these people before and suggested that they should make their own advertisements" dis'tinct and it is idle to write letters. I am without notice therefore applying for an Injunction and am swearing an affidavit on the terms which I enclose so that you may know exactly what the position is; you will remember that these people advertise how their own record but put at the heading "The Slew Edison" and then follow on another line with "Bell Popular Phonograph Records'" Mr. White sent you copy of the advertise- 'mdnt last wee]* and I think we shall bring them down on this matter once .and for all, You will gather the position . from the copy of the chief points' in my affidavit;! .am spending copy also to Mr. Dyer for his record. Yours faithfully. [ENCLOSURE] Thomas A. Edison & The national Phonograph Company Ltd. Edison Bell Consolidated Phonograph Company Ltd. Points of Particulars' in Affidavit. I George Croydon Marks Consulting Engineer and Chartered Patent Agent of 18, Southampton Buildings, London, W.O. make oath and say as follows":- 1. That I am attorney in England for Mr. Thomas Alva Edison of Orange, New Jersey. U.S.A. with full power to institute proceedings in his name and on his behalf. 2. I called at the head offices of the Edison Bell Cobs'olidated Phonograph Company Limited at 59, Charing Cross Road, London, on the 17th inst. and asked for s'ome of their New Edison Records. The salesman enquired whether I wanted Gold Moulded and I produced an advertisement from the Iron¬ monger" of January 16th 1904. and pointed to the samesaying that I wanted those; he said the ordinary records were one shilling and the gold moulded were one shilling and sixpence each. I asked for six of the Shilling New Edison Records and obtained them done up in a parcel before I had seen them. Upon opening the parcel I found that the records were in Edison Bell boxes and not the Edison boxes . * enquired as to whether they had anything fresh of Edison s to offer and I was shown 'a phonograph for commercial use which the salesman explained was their regular Edison Machine. . 4. I subsequently went on the sane morning to No. 20, Cheaps ide the other London address of the Edison Bell Con¬ solidated Phonograph Company Limited and enquired for New Edison Records and asked the price. The salesman asked what kind I wanted and upon my producing the advertisement from the "Ironmonger" of January 16th. he said on glancing at it "this is not ourrs this is the Edison Records which we do not stock". Upon my pointing out it was his own company's advertisement he s'aid "Oh yes, that is so I had not seen it before" and then informed me that the records were one shilp ling and sixpence gold moulded; I purchased two at that price, 5. I say that the records sold to the public as the Edison Reoord is that made under Mr. Edison's patents for which patents the National Phonograph Company Limited hold the sole license in this country. 6. The Edison Bell Company do ntt purchase Edison Record at the present time but axe rivals selling their own records in competition with the National Phonograph Company Ltd. and publicly advertise that their records axe made in London aid warn persons against fraudulent copies that are being offered to the public. 7. The advertisement which appears in the "Ironmonger is calculated to deceive the public into the belief that the New Edison Record is that one that can be obtained from the Edison Bell Consolidated Company Ltd. whereas no genuine Edison Records' axe sold by them and they have not the slight¬ est interest in any way in any of Mr. Edison's recent patents' connected with the manufacture and production of records. /& MaLyta*. March 4th /W/: re. Gouraud . rea,r Mr. Gilmore, I am obliged by your cable to me concerning the notice which appeared in many papers here emanating from Colonel Gouraud as to Mr. Edison's visit. He "Gouraud) has evidently been fooling in pretty high quarters this time, for he wrote to the King's secretary and en¬ deavoured to get the patronage of the King to some entertainment or some kind of show that was to be got up by Gouraud in honour of the '25th anniversary of the phonograph. This latter however I only have by rumour, but the other part is" public, I enclose you a cutting from one of the papers on one day and at the sane time a cutting from another paper which shows' what Gouraud is doing with his doughty friend of Sahara. This man is a very dangerous' person and may do- a great deal of harm by representing himself as being Mr.. Edison's emissary.' I consider that, a man who is' fooling away calling himself all sorts of titles' and being ridiculed in the Press by his association with J agues of Sahara is not a creditable person to be posing over here as one to commit Mr. Edison in everything, X have taken means to stop the rumours and I think we shall have no recurrence of them. Yours faithfully. Copy P'fxo , r. Yha of Minutes .of Board Meeting of the National Phonograph CoLiraitdd Held. 8th. March 1904. Presents Mr G Croydon Marks, in the chair, Mr J H White & Secretary. Mr BueJzler attended by invitation. The Minutes of the previous meeting wereeread & confirmed. The correspondence between .Mr G. Croydon Marks.* Mr W 3 Gil¬ more re the Licence, from Mr T A Edison to the N. P. Go. Ltd. . v,as read. z '/ Resolved’: - (1) That Mr Edison' s^ terma as conveyed verbally by Mr p Puehier with rggard to his trade mark viz-: £5000, per /fehnum be accepted & that an agreement embodying x such terms be prepared, if desired by .Mr Edison. (2) . That the offer as conveyed verbally by Mr Buehler, °1 the National Phonograph Co of U.S.A. to keapea recording department in this Country and to prepare moulds for all >/ records thus taken chargingjthe Co. an amount each month vary- with the selections!., be accepted^ that an agreement embody* ing such proposal be drawn up if desired by the National Phonograph Co. (3) .. That the Co. agrees to Collect & transmit any accounts for goods delivered prior tb the 31st December '03 t0 the Wat'ional Phonograph Co. Orange, New Jersey, charging tjhem One 5s on all sums thus collected. (4) '. That the D’fWer of the National Phonograph Co. to Pay a commission of I <jfi on taa amount of British business done through their Orange and Antwerp offices ftom October XOth. ’03 to December 31st '03. be accepted, such commission of i* being paid in consequence of the Co not being ready themselves Po execute orders at the ClerkenweailRd. prenW TOtll Ist>1 January '04., the National Phonograph Co. also undertaking uh?.* through Mr Buehler to pay all costs of admlnlstratiiion and staff expenses and wages up to the end of 1905. (5). That the annual meeting of the Co. -136 held as' soon *= as the Report & statement of accounts are prepared, and that Mr Callaway , Chartered accountant , he instructed to audit the ac¬ counts; and that the Directors report & statement of accounts be submitted at the nest Board meeting. (Signed) G Croydon Marks. • 9 Referring to the attacheqTlett er from Riehl, as you know, these records are hehe. iVoorhis Saafe^tested them and reports that prac¬ tically aj.1 of them are quite roAgh, some of them much more so than others. Hone of them compare with our records. I have two or three of them on my desk that X will h^lad to show you at any time you wish to [ENCLOSURE] Cl £Ma0iv+ PJofjograpji c° ^ 55, QUAI DU HALAGE 'll - ■ _ BRUXELLES (Belgique) FACTORERIES ORANGE N. J. U. S. A. RERUN (GERMANY) PARIS (FRANCE) ,N Edisotu EUROPEAN HEADQUARTERS M- Factories : Orange N* J., 3p*T NATIONAL PHONOGRAPH G°- Ltd. “*• <SSS EDISON nANUPACTURINQ 6°- Ltd. Battery Motor*, Edison-Primary Batteries. Bates and Edison Automatic Hand 25 Clerfeenwell Road, . London, EC, 18th March, 1904. The National Phonograph Co. Orange, New Jersey. ^jnii Gentlemen, The trading name of the National Phonograph Co., Berlin, has Been changed, we having registered an entirely new name as follows "THE EDISON GE SELES C HAFT M. B. H.». The new Company will "become operative on April 1st 1904 and all c cmmuni cat ions addressed to them after this date should be in accordance with the above. The offices of this Company will be 24-25, Sudufer, and the cable ad¬ dress as heretofore will be "Ediphon". Very truly yours, J*H-\V-/L.D. NATIONAL PHONOGRAPH COMPANY, LIMITED. gjtrcclnrs : W. E. GILMORE, Esq. G. CROYDON MARKS, Esq., J.P., " and J. H. WHITE, Esq. REPORT OF THE DIRECTORS To be presented at the Second Annual General Meeting of the Company , to be held at the Registered Offices of the Company , 56, Chancery Lane, London, . IV. , on the 2SI/1 day of March, 1904, at 1 o'clock. 1. — The Directors submit a Statement of Accounts and Balance Sheet as at December 31st, 1903, duly audited. 2. — -In consequence of the delay and difficulties that arose in cOiiiTection with the legal and other formalities pertaining to the acquisition of the lease of premises in 25, Clerkenwell Road, and 105, John Street, which the Directors had selected as being suitable for the Company’s business, it was found impossible to enter into actual possession of such premises until January 1st, 1904. 3. — Owing to the vexatious delays that thus arose and the impossibility of entering upon the proper premises for the storage of goods and for the ’ transaction of business, the Directors Have to report that no actual trading or business could be done directly by the Company ; they therefore made arrangements whereby the business that would otherwise have been transacted . by them should be undertaken, until December 31st, 1903,0ft commission, by the National Phonograph Company of Orange, New Jersey, U.S.A. 4; — Mr. W. E. Gilmore retires by rotation and offers himself for re-election. THE NATIONAL PHONOGRAPH COMPANY, LIMITED. BAlaKNeE SHEET, 31st DECEMBER, 1903. Authorised t — Shares of £ 1 each . 5 £ s- d. A' S. d. £ s. d. By Debtors . ... . ... „ Cash on Deposit with Guarantee Society „ Guarantee Premium paid in respect of Lease... 37 to 0 Less amount written off . 326 Shares full)' paid ;d Loan ... . d Loss Account : — ce as per Account below . 98 18 8 470 16 0 £2,569 14 8 ^ „ Registration Fees, Capital Duty and Preliminary Expenses . ... ... ... 47 10 0 Less amount written off . 3 19 2 PROFIT TKMlO laOSS pceeoUNT for* the year* to 31st DECEMBER, 1903 Tax £ s. d. £ s. d. 13 18 8 By Commission ... ... • ... on of Guarantee Premium written off... Preliminary Expenses, &c., written off carried to Balance Sheet 3 2 6 3 19 2 - 7 1 8 £491 16 ,4 holders of the NATIONAL PHONOGRAPH COMPANY, LIMITED. In accordance with the provisions of the Companies Act, 1900, 1 certify that all my requirements as Auditor have been complied with. I report that I have at of the Company for the year to 31st December, 1903, and have examined the above Balance Sheet with the accounts and vouchers relating thereto, and in my opin fair Balance Sheet properly drawn up so as to exhibit a true and correct view of the state of the Company's affairs as shown by the books of the Company. W. D. CALLAWAY. \^NAT 1 0 N AL PHONOGRAPH ^ 1 “ r COMPANY, LIMITED:- - * :f-r -.1 NOTICE ; is HEREBY GIVEN that the Second Annual General ,. Meeting of the A'.-^:^t»^.^A/iSUWt^iHONocR®n:'^c6«fpSi7r 'Limited, will be held, at , the Registered' Officds^of'.the Company, 56, Chancery LaNe,'Lqn'don;'\Y.C., on the 28th day of March, 1904, at .l .o’clock, . for the following business:— , Dated this 19th day of March, 1904. ■ 56, Chancery Lane, London, W.C. igth March , 19 04. . G. Croydon Marks, Esq.., London, England. Dear Sir: I enclose you herewith original letter dated March 28th, from Mr. Dyer to myself, relative to the organization of the German company, together with your letter to me dated the 14th of March, from Berlin. I do not think that this plan is proper. 7/hat I want to do is to have the New Jersey Patent Co. grant licenses to all the different com¬ panies that we will organize in Europe, and not through the National Phonogra.ph Co., Ltd. X want to treat the National Phonograph Co., Ltd., as a purely selling concern, handling our products throughout the British Isles, and Ido not like the method of having all these trans¬ actions go through the National Phonograph Co., Ltd. There may he a reason, however, that will not permit of thid with which I am not familiar, so I wish you v/ould think over this matter and he prepared to discuss it with me when I see you in London about the 13th of April. [ENCLOSURE] Orange, N. J. Dear Sir:- Your favor of the 25th inst. has been received, attach¬ ing letter from Mr. Marks which 1 return herewith. As I understand the scheme, a German corporation is to he formed capitalized at £20,000 of which you, Mr. Edison, Mr. White and Mr. Marks are to hold shares for £100 each, and the National Phonograph Company, Ltd; of London is to receive shares for £19,600 in payment for the German patents now owned hy Mr. Edi¬ son. These latter shares are then to he transferred to the New Jersey Patent Company, while Mr. Marks and Mr. White are to execute blank assignments for their holdings. I see no objection to this sche'me except to suggest, if it has not already been done, that the German patents be assign¬ ed by Mr. Edison to the National Phonograph Co. Ltd. and then from, the latter Company to the German Corporation, in order that there may be a bona-fide consideration for the stock. In accordance with your suggestion, 1 have written Mr. Marks to-day explaining that it will be hardly possible for me to furnish him with the necessary power of attorney before he leaves [ENCLOSURE] W.E.G.2 - German Company. for this side, and requesting him to advise me by cable as to what he wishes me to do. eld/mm. Yours very truly, Enclosure, [ENCLOSURE] M*<-7 'x -UUsC. jf/tbij. f)r, (p . So ' c(^ * 0~v jh”- ^~- (^SJ^CiXy-^A-) <’vfftv oumd . 4 <for>^p 4*^ . , <J /V& '£*** &Ck*Ui prrrtvy jh*. tbyyu- £r+*J 47 /p (P» St <4* 4 fftsyui c &■ /* 1 r7^<5W £o 0~ V Onj (/%*■ &XVWVW* ^ vfiut* t» 6yi~-j i fa* tfT^-rtru^ • e/lvyv S Q^VUYl S*. A. Uo />*. {^rfx4^ rt^^ty *L utr. ' JhX*^ iu<r9hr- f* C p~m^ 4 py. 4 CxSyry}*^ < ^7^- -tvtvflZ^ <PU U 4*<y vrfy'^i// pn- tt-list/C.. J ytcZi <LJ< ^7rf' foftyi- feu. &rv&WTy t-A*y /\AJhsi *n* ,.;_ . ';_. ^i$;X-A...t-» • REIGN DEPARTMENT NAT ID NAL PHONOGRAPH HO. EDISON MANUFACTURING ED. BATES MANUFACTURING ED. Mr. W. E. Gilmore, Pres’t., National Phonograph Co., Ltd., 25 Clerkenwell Road, London E. C. England. 1 heg to hand you herewith communication received from Mr. Cabanas, in which he confirms his cable, asking us to send Recording Outfit to Mexico. The Outfit -comprising a shipment of 11 cases- was for¬ warded the 15th inst., by Express and Mr. Werner will lwave the following Tuesday, (April 19th) and I have cabled Mr. Cabanas to this effect. 1 have forwarded one copy of Mr. Cabanas’ s letter to Mr. Schermerhorn and a copy to Mr. Miller, ESTIMATE OP RECORD TAKING: He gives the approximate cost of the 350 titles, $5600.00 Mexican Silver, equivalent to $2464.00 U,S.Cy. MR. WERNER'S EXPENSES: I advanced Mr. Werner $200.00 to pro¬ vide for his expenses to Mexico City and have aBked him to render his expense account each week to Mr. Cabanas who will O.K. same and pay the amount from cash he will draw against his letter of W.E.G.— 2. April 18, 1904, credit. Mr. Werner’s salary will Tie arranged at the factory. NUMBER OE MASTER RECORDS TO BE TAKEN: Mr, Miller ad¬ vises-; that this matter must he left to Mr. Cabanas, hut states that we should have as many if not more than the Columbia people. I have advised Mr. Cabanas, and Mr. Miller has also given Mr. War¬ ner positive instructions, that what we require is QUALITY . I shall arrange to renew letter of credit as expense vouchers are received. Very truly yours , ^ ws/al/encl. MANAGER EOREIGN DEPT, Mexioo City, April 5, 1904. Stevens, Manager "Foreign Kept., National Phonograph Co. , 83 Chambers fit., Hew York. Yesterday afternoon 1 cabled you t whioh you will read: "Arrangements are oomploted practioally. Bend as soon as pos¬ sible outfit for recording. Telegraph probable date of arrival of our expert and outfit. Although there is a great deal to be done yet with regard to selecting the music to be recorded here, moot of the obstacles ir the way of securing talent have boon overcome, and I believe that. i oan start right to work Just < i soon as the outfit arrives, even ; ' though it has beei ade ready to start o A short notice, whioh, indeed, I trust is the oase. I trust that, as was proposed by Mr. Miller, the expert will make it a point to go through Laredo at the timo the outfit does, as they are very careless in repacking there, and if he is on the ground to see that this is properly done, p robably a good deal of breakage will be avoided. I tried to have the goods oome straight through to Mexico City and be inspected by the Customs offioialB here, but was unable to do so. I was also unsuccessful in obtaining exemption from duties on the outfit. Could probably ultimately get such a oonoasnion, but it would [ENCLOSURE] NATIONAL PHONOGRAPH COMPANY FOREIGN DEPARTMENT. entail a loss of time in the arrival of outfit, which, as the duties will not amount to very rauoh, would not he worth while. ESTIMATE 0? RECORD TAKING: While I oannot ar. yet give you an absolutely aoourate estimate of the expense whioh will he incurred in this connection, I believe the following to he very nearly oorreot. In outlining this work I have very thoroughly oonBUlted both Messrs. Morales Cortaaar ft Co. and Mr. Jorge Alcalde, and have also been glided in a measure by the work done by the Columbia people, as representa¬ tive of Mr. Joaquin Espinosa's opinion of the records which will have the bent demand here. As this latter gentleman is entirely tied up with the G.P.Go., he could not be consulted direct. The distribution and cost of this work will be about as follows: 1st. POPULAR ; _ ^ Ho. Cost Songs (Solos and Duets) guitar accompaniment. ISO $600:00 National Episodes -battles etc- 20 400.00 2nd. BANDS: Mexican selections, by the three best Milita¬ ry bandB in the Republic 100 8500.00 3rd. S0HGS : Selections from most popylar zarzuelas (light opera), comprising solos, duets, trios and quartets, with ohoruseB when necessary; also typical songs not taken from zarzue¬ las -all with orohestra aooompanimont 70 1700.00 Porward- 310 5200.00 [ENCLOSURE] NATIONAL PHONOGRAPH COMPANY FOREIGN DEPARTMENT. HO. Carried forward- 310 $5200.00 4 th . K I S CELL ANEOU S : Orchestra and instrumental selections; typical voonl selections with guitar and piano accompaniment, eto. — 40 _ 400.00 Total 350 5600.00 Explaining these items more in detail, would state the songs under the 1st. are typioal of the lower classes, and have a very great demand among itB kind of people, especially for ex¬ hibitors, of which I am informed there are in the neighborhood of 2000 traveling throughout the country. The "National Episodes" are sketches from Mexioan history, comprising battles, eto. They are made only by one man and his assistants here, who make a spe¬ cialty of this work for wa x records. Although this class of reoords are Bold moot extensively among the lower classes, they have a fair demand among the upper classes, The "National Episode" reper¬ toire consists of about 100 selections, of which we have selected the 20 best sellers. 2nd. l?Dr the execution of these selections I have contrac¬ ted the Estado Mayor and EapadoreB bandB, and have secured the agree¬ ment. of the lot. Artillery Band to play for us as soon as it oan obtain a^onse from it's oontnitct with the G. P. Go., or '.said oontraot oan be gotten around, aotive stepB towards which end are being taken. We will then have the three beBt military bands in the country, and the 100 selections to be taken of this class of musio will be divided among the three bands in proportion with the popularity the dealers here believe they enjoy. The price [ENCLOSURE] NATIONAL PHONOGRAPH COMPANY FOREIGN DEPARTMENT. agreed upon ia §100.00 per session of throe hours, and we have figured four selections per session. This is conservative, I be¬ lieve, as the O.P.Co. averaged seven selections of two master reoords per session. "rd. ThiB item includes almost all of the high class sings with orchestra accompaniment, and the prices at whloh the singers have been contracted vary. Although we will gat some of the sin¬ gers of tho Principal Theatre (now under contract with the C.P.Co.) if necessary, most of these selections will he executed by parties not belonging to that troupe, although well and favorably known to tho Mexican ptfblio. In selecting these we have considered less their popularity on the Btage and more the quality of their voices than waB tho case with the other company. It is true that the Principal Theatre troupe has the most populafc artists in tho coun¬ try, and wo will secure them if we have to, hut believe there in material here from which a great deal better results can be ob¬ tained than the sample reoordB forwarded you. 4th. This item Includes selections from typical orohestraB quintets, eto,, and a few high olass vocal solos and duets with guitar and piano aooompaniment. The Mexioan typioal orchestras are oomposod almost wholly of string instruments, and are, therefore I believe, diffioult to record. We have, therefore, wherever there is any doubt, made it a condition of the oontraot that a trial be made before any number of selections are agreed upon. I have aH yet not seoured quarters for installing the plant, but have several in view. The approximate rental will bo $100.00 per month. [ENCLOSURE] NATIONAL PHONOGRAPH COMPANY FOREIGN DEPARTMENT. Of course, ell prions mentioned are in Mexican currency. I believe that the prions at whioh talent hen been contracted when converted ±h into TJ.S.Cy. , will compare very favorably indeed with the prices obtaining at the laboratory. I trust I have not gone into unnecessary details in this connection, but desire to keep yon as thoroughly posted us possible on the work that will have to be done here. MXPMRTtig EXPENSES. SALARY, CTO. 1 believe it is your wiBh that X him die the we accounts here. I would therefore request that you give ran definite instructions as to amounts, advances, if any, eto. in this connection. I request thi3, of course, on the supposition that it has been found imprac¬ ticable to have Mr. Hiller come down. HUMBRR Of MABTRR REOORSS TO BE 'OAKEN: The agreements I hare made are based on two, or at most, three masters of eaoh selection, this being the number Hr. Hiller told mo he thought would be necessary. If there has been any ohange in Mr. Miller's plans I would like to know as soon as pos¬ sible, in order to make corresponding arrangements. X have thought it advisable in most oases to pay per selection rather then Recording to time oonaumod, because I feared the latter arrangement would oause less satisfactory and more expensive wtrk. I will most heartily appreciate any suggestions Mr. Miller may deem it advisable to make in oonneotion with this work, with which I am at hc8t not as familiar as I might be. Of course Kr. Werner is I know thoroughly oapable, but everything will assist to obtain the most satisfactory results possible. [ENCLOSURE] L PHONOGRAPH C I have ntlll on hand pratioally the amount of letter of oredit (§1,000.00 II. S. Oy.), and thin will ho sufficient to cover expenses for some little time after plant starts operations, For further remittances, I believe letters of oredit will he the most satisfactory form. Mr. Hollins advised Mr. Root and myself that I could sign these here on receipt. I trust soon to receive your oahle advice os to v/hen we can expect arrival of outfit, and with kihd records, hog to remain Yours vory truly, (Signed) R. C ABASIAS. 21st April, 1904. Mr. Henry Nownld, Eq.uita.Hle Palast, Berlin, W. Dsar Sir, You will doubtless He surprised to hear from me again from london. X have just received a communication from my Orange office to -which is attached an original letter addressed Hy you to Mr. Thomas A. Edison, in which you complain most Hitterly at the so- called treatment that you have received from the management of the london office of the National Phonograph Company. In the first place let me say to you that Mr. Thomas A. Edison does not give any of his personal attention to the commercial end' of the phono¬ graph Husin8ss. He is not familiar with any of its details, and therefore is not competent to answer any communications that you may address .: to him, whether in the way of complaints or otherwise, so far as the phonograph Business is concerned. I immediately took up with Mr. White personally the general complaint that you make, and he has shewn me copies of certain letters that he has written you, one under date of April 5th, and another under date of April 7th, to whioh I understand he has received as yet no reply whatever. Now in answer to your letter X hardly think it proper that you should address such a general letter of complaint, hut that you should have been more specific aB to your inability to procure certain goods from this end of the line. Upon investiga¬ tion I find that the orders about which you complain call for some reproducers. The only answer X cam make you is that the London office of the National Phonograph Company could not furnish you with these goods as they were unable to procure them from the factories, and the reason of such inability was that the factories wore not able to take care of the demand for extra reproducers as our facilities were not sufficient at the time. X am very sorry at the sarcasm of your letter relative to Mr. Graf's form of management and your criticism that the present management "is still worse". I consider this absolutely uncalled for. Furthermore my recollection is that you have not at any .time been satisfied with the management, and as this management has been placed in authority by me I can only conclude that the question is one that I am better able to cope with and decide about than your good self. I would, therefore, prefer that such letters as this be not written, and I cun assure you that should any further com¬ munications be written to Mr. Edison or myself of this character X shall simply consign them to the waste-paper basket, and refuse to reply to them. If after due consideration you conclude that you prefer to close your account with us it will be entirely satisfac¬ tory to me. Very truly yours, NATIONAL PHONOGRAPH COMPANY, W.E.G./L.D. President. r [FROM WILLIAM E. GILMORE] 21st April, 1904. Thos. A. Edison, Esq., Edison Laboratory, W8st Orange, N.J. Dear Mr. Edison, You will remember that some time ago we advanced the National Phonograph Company Ltd. of London $10,000, which was necessary to put up as a guarantee for the rent of the premises at 25 Clerkenwell Road. On an arrangement made by Mr. Marks and myself when I was laBt in Europe we purchased through the Law Guarantee Society £2000 ($1.0,000) of 5 per cent, debentures of the Royal Hotel at Ventnor, Isle of Wight, in addition to the debentures themselves we are guaranteed the interest and principal of the Law Guarantee Society, so this is practically a safe investment. In fadt Mr .Marks assures me that the Royal Hotel is a very prosperous institution being located at one of the finest watering places in the Isle of Wight . After the first year we oan if we like reduoe this amount proportionately until the whole has been wiped out, but this is a question that oan be taken up and decided later on. The oharge for guaranteeing the rental by the Law Guarantee Company was £50 or $250. The lease and premises at 25 Clerkenwell Road will, you remember run until the end of 1909. 1 send this to you as a matter of information. Very truly yours, [FROM WILLIAM E. GILMORE TO JOHN R. SCHERMERHORN] April 22nd. 1904. My Dear John: . 1 hare been here a week, or practically a week to look around. In the first place I find that the plaoe is loaded with good and there is no. more room than is really needed. In fact it is a question whether there is going to he enough room for the Tall trade. I think not, and White will therefore have to look around for a storage room. I do not think he will find much trouble in get¬ ting it in the immediate vioinity. ' We all thought it would he plenty large enough, hut it is not* The outlook for business over here is very bright indeed, and from what White tells me there is going to hd a large business done here this I’all and Winter. The agreements are working in fine shape, and we only have one real good oase of cutting prioeB, and that is a man by the name of Gamage, who rims a large department store on one of the principal streets. He is trying now to make overtures, after doing all the damage he could, but I have given instructions to M Marks to press the case to a final hearing, so as to get a decision that can be used to good advantage later on. There were a number of Bmall dealers who out on our goods, but as soon as we go for them they lay down, as they will not fight, and there is nothing to do but sign them up, taking judgment of oourse by default. Gamage is a Com¬ pany with lots of money, wanted to fight and will get all he wants. We must push ahead ,to get a big stock of machines, as we shall require a lot of them over here to take oare not only of the English trade, but the German and Erenoh, as well as others, and to this end I am going to load him up to the muzzle. How you want to take this up with Weber at once and arrange to keep the production righ up om phonographs, and then the question of getting the new reoord plant going full must also be well mncMcK considered. Of oourse I have got tp keep the reoord plantB going here and no doubt this will relieve us materially. I have been going through the principal aooounts here, and I find that some of them have been higher than our aooounts. Eor instance, I find that Murdoch's aooount for December last wasSft.4,705. and for February of this year it was #21,777. Stookall for Deoember was 214,650. and for February #12,450. Symonds Stores for Deoember was #22,868, There are quite a few others that run from#2,000. to #7,000. How this business is going to require a great deal of nursing, and in view of the faot that White has a great deal more competition than we have in the States it is my intention that he shall be favored, and we rauBt be prepared to help him out in every way* I therefore want you to give this serious consideration, and Weber as well, and be prepared to discuss it fully when I get hack. The hooks are in had shape, hut Buehler has taken right hold of things and will soon have order out of chaos. We shall keep Jubert on until everything is satisfactory to Buehler when he will he fired. He is absolutely useless. When he gets hack tp the States he will doubtless apply for a job with you, hut do not put him on. X am through with him. Tell Westee. We expect to leave for the Continent Monday next. I should go before, hut will have to wait for the letter you sahled you mailed last Saturday, as the chances are it will not he delivered until Mon¬ day. We shall go right through to Berlin, then hack to Brussels and then to #aria, and then hack again to Bondon. I see no good reason now why we should not get away for home about May 25th. However, you never can tell Why may arise to change this. We had rather a disagreeable trip over. Xiena was ill for three days, and never left her befcth. It was very rough on the Sunday, and there were very few down to luncheon, and not many more for dinner. I had my meals that day in the room, with the exception of breakfast. I talked with Ed Waters over the telephone about an hour ago. We expect to run down to Rugby on Sunday to Bee them. I assume that Mr. Edison has returned and that he is looking and feeling well. However, your next letter will doubtless tell me all about it. X have written him a long letter by this same mail. X-ena seems to be enjoying herself on land, and Bhe does nothing but gad and look. She knows now how and where to go, and that of course leaves me to attend to business. I have taken lunch with her one day since our arrival. I have been listening to some of . there British records and they are entirely too blaBty. White tells me that the publio here are be¬ ginning to criticise this and as a consequence we have got to reduce the volume and increase the quality. I have already started this. I have also instructed Hayes to begin at once to make hiB talent with orchestra aatKHspBuxx and t.o cut out the piano almost entirely. The bands and orchestras are almost alike and very harsh indeed. How I m want you to send for Walter Miller and have a talk with him about coining over here soon. Hayes is a way behind what we are, doing and I think it would be to our advantage to have Miller come over here rather than have Hayes go over there. Of course I do not know whether Miller has the 4th. Avenue plant running smoothly as yet, but if he can ar¬ range to get over here before I leave I wish you would have him do so. How if Mr. Edison should object tell him I know the conditions as they are, and Miller mist come over. If Miller says he has not sufficient help tp operate the 4th. Avenue plant send him anyway, as I warned him a§? t0 Put on Plenty of help. He should arrange to be away mi wrt ** "'I'a Cable me about this, stating how soon he +1__ mail thiS as 1 Want t0 sure sets in the mall, so with love to the little ones at home, Angie, Agnes, Jane and. yourself, X am, 1 ° 9 [FROM WILLIAM E. GILMORE] April 22n<i.l904. My Dear Mr. Edison:- A week has passed sinoe I reached London, and I have been looking the ground over quite carefully, so X will write fully how I have found things here. In the first plaoe the hooks are as we expected in pretty had shape, hut Buehler, the expert ac¬ countant X sent over from the Works is hard at work and will get every¬ thing in good shape very .soon I hope. We are also looking around for a good accountant, and there is no good reason why a satisfactory man cannot he prooured here. This is of course having close and t •oareful attention, and Buehler will not go hack until the new man thor£ oughly understands everything. We are now closing the hooks for the month of Deoemher last, and thereafter the work will come along very quiokly I hope. The total ampunt of oash sent into Orange for the twelve months ending February 29th. J.904 was #366,208.50 The amount of money sent in during March, 1904, was #66,710.41, and this month a check has heen sent you for #25, '359. 75 to pay royalties, &o., and I have drawn down #3,000. additional, whioh I turned over to Edward H. Johnson, as in¬ structed hy you The Accounts Receivable to the 1st. April aarounted to #130,275.13 and to the 16th.Aprll they have Increased about #30,000. On the other hand they owe about #2,000. outside of the consignment account to Orange. The total sales for the twelve months ending February 29th. 1904 were #663,355., and the sales for the month of Maroh,1904, were #79,471. as against #26,128. for March 1903. The total sales for the month of April, 1903 were #18,806., and the total sales for the month of April, 1904, to the 16th. inolusive are #20,584.56 Our business here is going to grow right along, and it has got * There is a gm great deal more competition hs^e than in the States, hut I must admit that generally speaking White has things in very good shape indeed. He has a nice way about him, can sell goods and in this way retains his oustomers. Then again the agreement system is working fine here, and the only real fight we have on is a department store known as Gamage, They defied us at first, but seeing that we meant business they do no further advertising u«r.S=\?ri0^B approached Marks indireotly to settle, but as XSE «h!Jaii8flei we hBIe a e°od case I have instructed him to push ahead for a decision. We have had any number of decisions by default. i* warv,.g3oa«nwive .to., fight and the little will . .... TAB 2 not fight, bo that in their cases the victory is spmewhat hollow. We have had. here aoopunts with some of our jobbers that exceed those in the States for a single month, one of them running over #32,000. I have the details of the principal accounts and will show them to you when I get hack. The outlook for business is good and already the cry is are you going to he able to take care of our orders in the Pall and Holi£ day season. I am writing Schermerhorn about this, and I nha.n stir them up when 1 get back. The Columbia seem to be dead here and Paths has killed himBelf with the English trade by turning out the worst kind of product. The only people we have to compete with therefore is the Gramophone Co. 1 understand that they are going to have some fierce competition this Winter, however, as several manufacturers are coming out with a 25 cent disc record. This of course hurts. I am going on the Continent either Monday or Tuesday next. I shall go right through to Berlin and then back to Brussels and Paris. The three plants are now running, the last one Berlin having started up some days ago. I shall of course go into these most carefully, to get them going on a paying basis as soon as possible. I have not seen Johnson, but had a letter from him from Brelin in which he asked me to send on that #3,000., which I did. He has gone to Nauheim for treatment, and it is doubtful whether I shall see him before X leave for the States. Mrs. Johnson is in London with her son I believe. Johnson is no doubt in bad shape financially, so far aB I can learn. I am very glad I came over, as they all needed a lot of bracing up, and I can see now that I must oome over at least twice a year, as this territory is a very rich one, and we must nurse it carefully, so as to get all we can out of +** it. * . -Tru?^inf that y°u wil1 ^ve returned to Orange in fine fettle, I am7 f°r thS fray’ and 17ith iitld regards from Mrs. Gilmore and myseif, Yours very truly, S. Bye- the- way the record making over here is "rotten". I have written Schermerhorn to arrange to send Walter Miller over so that he ^ere ^efore l leave. The records are hard and blasty, and ia W^at they wanted six months ago, the public are be- f t0.discrJ"1Jnat®» and the only way to. do it is to- give them qual- no* Quantity. We have gone through this in the States, so^ nSW *n ?h» if 1 had a good recorder.’ It must come along some day, and is the next move, and the salvation of the business-that is the «d principal thiSg we w^t now° Mr.W.E. GILMORE, President of the NATIONAL PHONOGRAPH COMPANY 25 Clerkenwell Road LONDON E.C. Dear Sir:- I have your favor from April 21st. My complaint was perfect¬ ly in order, as I have the proofs in my hands. I would never do anything without a proof. If you say, that you are responsible for the management, then it is certainly your fault and it is certainly your mistake, if you say so. In regard to my complaints I beg to say that I am in such a long connection with your Company, that I think myself justi¬ fied to put such complaints either before yourself, or before Mr. EDISON or before your Board of Directors. Whether you like this, or dislike this,- I do not care. I will act always in this respect according to ray best judgment. You say, that I have always complaints about your management This is not true. I have never complained about your management in the States, but I always had to complain about your manage¬ ment in Antwerp. Whose fault this was I did not know. But I think that there _is a fault on your part and a fault on the part of your European management, TT“f.i. letters are not answered prompt ly and orders f.i. are not even acknowledged or, may be, ack¬ nowledged two months after. Similar occurrences have happened to me many of times. I never complained about your American manage¬ ment, although I have been dealing with you in the States during 6 years, but you never heard from me a wrong word or a complaint. We alwys had been on the best terms. But what I say here I can prove and I will prove it, Mr. GIL¬ MORE, and if you do not investigate it, I will have investigated it from your Board of Directors. Just because you wrote me such a letter I will prove what I have said. You can depend on it! I have appealed to yourself because I always found, that your American house has filled my orders promptly and properly. But if you write me such a letter instead of investigating the facts I will not stand. I can exist without your Company and your Company certainly does not need me at all. I know that. But just on account of the fact, that we never had a misunderstanding be¬ fore, just on account of that, you should not have written a letter like this. If you go back to the first years of ray connect¬ ion with your Company until GRAF started in Antwerp you will Company ^ 8ll§khest Misunderstanding between myself and your ... ,You say, that you have investigated my complaints. But I think you have not done so. Otherwise you would have found by going over my correspondences that in some instances it took 2 or 3 months to notify me only, that the goods were not in stock m London, when I was waiting and waiting in Berlin from week, to week. to receive the goods. If the goods are not in stock in Lon¬ don it would be a -proper management", that I should receive no¬ tice and not, that I should have to write 3 or 4 times until I get a letter or acknowledgement two months after, that the goods are not in stock, or that 5 months after I am asked, whether I before r88t °f my order» whioh has been shipped partly 5 months What I say here is true; I can prove it. If you will take the pains. of calling on my office, I will show it to you. I never oomplain just for the sake of complaining, but only if I cannot help it. _ l 9th May, 1904. W. E. Gilmore, Esq., Hotel Westminster , Rue de la Paix, Westminster. Dear Mr. Gilmore, I have pleasure in enclosing you herewith reports which have come in on Ludwig Stollwerck and the Deutsche Edison Phonographen Gesellschaft M.B.H. These reports X think you will find speak for themselves, and X would call your particular attention to the closing paragraph of the report on the Deutsche Edison Phonographen Gesell- .sohaft, in which you will see that the first steps in liquidation were taken on December 3rd 1903. According to Dr. Schneider's ad¬ vice this would make it impossible to complete the formalities until December 3rd 1904, and undoubtedly furnishes a reason for Stollwerck not wishing to trade under the old name. I think you will agree that this is very obvious indeed. I have in mind the fact that you will probably see Stollwerck in Paris, and you will undoubtedly want the information contained in these reports. I have forwarded a copy of the reports to Mr. Marks Very truly yours, i - * J.H.W./L.D. [ENCLOSURE] Deutsche Edison Phonographen GesellBchnft m. b. H» Koln, Corneliusstr. ; S. Mai 1903.. Above company has been established in October 1895. The stoclc capital amounts to M. 1', £00 ,.000. — At the founding of the Company 25 % of the stock capital were paid in, and in December 1896 further 25'^ were paid in by the partners. Partners are: 1) Director JBottinger, Elberi'eld with M„ 36,000.— 2) Carl eahn, Berlin, with M, 72,000. — 3) Johann Daniel e. Puhrmann , Antwerpen, with M. 36,000.-- 4) H. Mein^cke, Br.eslau, with Mo 72,000.— 5) Arthur Poensgen, Dusceldorf with M. 36,000.— 6) Carl Poensgen, DUsseldorf, with M. 36,000.— 7) Erh. Aug. Scheldt Kettv/ig, with M. 72,000.-- 8) .Louise Schiiraann, maiden name, Scheldt Kettwig, with M. 36,000.— 9) Peter Schumann, Bonn, with K. 36,000 10) Carl Stollwerck, K81n, v/ith i£. 36,000.— 11) Gebr. cjtollwerok (Bros.) with M. 50,000.— 12) Deutsche Automatengesellschaft Stoll¬ werck & Co., with M. 112,800.— 13) May Wilke, guben with M. 36,000 11) Edieoa United Phonograi-h Co;- Orange JJew-Jersey with M. 333,400.- ' § 15 of the Statute of the Company prescribes: If the company goes into liquidation the partners No. 1 to 13 must pay to the Company that amount of their subscribed shares which they have not yet paid in. The property left, after all debts have been met, is to be distributed among the partners [ENCLOSURE] •in such manner that in the first place M. 250,000.; — is paid hack to the partners He. 3. to X? in relation to their shares. These. 1-3 partner.** receive likewise 2/3 of the remaining property and the is at third must be turned over to the Edison United Phonograph Co. As the Company has been dissolved on Sec ember 3rd 1903, and as she liquidation commenced from that date, the ' remaining 50/ ’Of the stock capital, which were not yet paid. have been called in. •:-iuu ids. tors of the Company ore Mr. August Heise and Heinrich Trim- bora, The board of direct-ore consists of: director Bottinger, XI- Uarfeld, Carl Cahn, Hanker, Berlin, H. ICeineoks, Breslau, Carl roensge:; , Dusseldcri', Carl Btollwerck, Koln and the. lawyer Emil [ENCLOSURE] 4th May 1904. Stollwerck was horn 1657 and married 1581 Mi;;;; M. So hi a,;: loth from Koln. He possesses larger means from home as -.veil aa through hi a wife. His father in lav? is proprietor of a number of valuable houses in Koln, and from this side Stollwerck has to ex¬ pect property later. 1894, before the introduc i.ionof self-valuativ Stollwerck paid H. 2,160.— state income tax. The family of the re¬ peatedly mentioned party, (who is supposed to live with his wife in separate ownership;. ol‘ property) consists ou.'side of the couple, of 3 sons and 2 daughters. Ludwig Stollwerck is partner or share! holder of the firm «ebr. Stollwerck Actien-Gesellschaft, Koln. The Stock capital of the company amounts to M. 9,000,000.— and the shares are in the hands of the members of the' Stollwerck fainii exclusively. Besides the Join to took share company Gebr. Stollwerck disposes also over a capital of M. 5,000,000. — consisting of pre¬ ferred shares, which before long 'will be brought to quotation at the Exchange. Ludwig Stollwerck among others participated at the founding of the Deutsche Autmoater.gesellschaft, Stollwerck & Co., at the Austrian-Hungarian Automaton Company Stollwerck Bros. & Co. in Vienna, the firm of Volkmarm, Stollwerck &. Go. , in Hew-York and the firm of Stollwerck Bros, in Pressburg- He is supposed to be still a partner in these enterprises. He is still in ,the board of the managing oomlt tee of the firm of Gebruder (Bros.) Stoll- [ENCLOSURE] i werok, A0 G. in Koln, and is also engaged with the Deutsche Edison- Phonographen-Geaellschaf t nu b„ H„ in Koln, at present in liqulda- tiono-His shares of the aforesaid enterprises recruit from the oa- • pital invested by the firm of Gebr. Stollwerck with M. 30,000.— and the Deutsche Automatengesellschaft Stollwerck & Co. , with M„ 112,800o-- for he is, as mentionjled ,partner of both last named finnso Stollwerck is proprietor of the house he lives in; Hardefust - str. 16. Up to date he met his obligations in*regular manner, and he. is described as a thoroughly honorable, respectable and am¬ bitious (go'ahead) gentleman. J. R. Schermarhorn, Esq.., Orange, New Jersey. Bear Sir, I have just Rad brought to my attention copies of 2 letters written the Orange office under date of Hay 19th as to mistakes made in the machine numbers entered on the invoice rendered this office, that is, that the machines actually reoeived are in some oases not indicated, whereas the numbers mentioned as being shipped have not been received. This is very serious indeed, and you must take im¬ mediate steps to introduce a more complete method of oheoking the machines shipped here so that there will be no errors of this kind. If you will stop to think you will see what a bad effect this is going to be all round. If certain machines are shipped here, the numbers of which are not indicated on the invoice, then how are we going to traoe them if such machines get out to dealers or jobbers? What I mean is this, supposing you ship machine as indicated on invoioe No. 815., No. 159785 to the Chioago office - this particular invoice shews that it was shipped to London, whereas evidently the machine intended' to be indicated on said invoioe was No. 159705 Now, where did maohine 159785 go to, and on the other hand where was machln, 9705 shippad to prior to the date of this letter May 19th, t assuming of course that hoth machines had "been shipped, ij, tlisse two particular numbers cannot he made to indicate what I am ^riYir*.g at, then take any two others of the same letter and see & n-umber of errors oan taks place which might prove eventually ^ oi£r disadvantage. On the other hand supposing that this saina ^king occurring in connection with maohinss goig to the Ohi5#^o office and. in fact to anybody else. This is most im¬ portant, aver, if you have to put an additional olerk on who shall do nothing compare the shipping tickets, invoices, and machines, it must te ^-ranged at once . 1 v'iaj, ,/ou "would give this your immediate personal attention and intro<iUo^ a ;r8m9dy at onoe. I want to disouss this with you when X 86t ^eiz . Vary truly yours, NATIONAL PHONOGRAPH COMPANY, President. W.E.G./l,^ 24th May, 1904. J. R. Schermerhorn, Esq., National Phonograph Co., Orange, New Jersey. Dear Sir, I am in receipt Of your 2 letters of May 3rd and May 13th. V/e shall require a large number of phonographs for the European market, but I don't want you to let up on the production for one minute. Of course the record situation is another thing and con¬ ditions must govern as to this up. I am glad to see that you have received orders for a total of 600 slot machines.: Walter Miller has;, arrived and will get right down to work. I am very sorry t'o hear that the ebonite -which you ordered is not satisfactory. I h‘ave sent a transcript of this portion of your letter to Riehl, and^i have instructed Walter Miller to discuss this thing fully with Mr . '.Riehl and endeavour to find out the source of supply and so forttyi Miller has some samples of materials with him, and this 'will no dpubt.aid Riehl materially in his investigations. I have also quoted! that part of your letter having reference to the apparatus for Berlin and Brussels, and have told him to take this matter up direct with Mr. Weber. I cabled you yesterday that I would sail on June 4th on the "Campania". I sent this to the New York office but I assume that they telephoned to you. Extremely sorry to hear that the business generally is de¬ clining in the States, but I don't see that I can say very muoh about it. There is no doubt in my mind that the issuance of the circular letter as to the change in price, dated May 16th, will have anything but a good effect, but as you say we have to meet this con¬ dition sooner or later, and therefore the sooner the better. I have received Mr. Weber's letter on the record situation, and it goes without saying that we should go ahead with the new plant with the present record, making such improvements as we can and continue the experiments on the cotton reoord to sea if we can produce something that will be commercial. I note that the aooounts payable will run about ^56 ,000, but what with the money that is being sent you from here right along and what you take in on that side you should be able to swing this all right. This never worries me. It is the laboratory end that I am afraid of. J Wilson wrote me regarding taking on additional jobbers. The position assumed by ypu is entirely correct. I will prefer that any new jobbers be fully acquainted with the ohanges that are about to take place, as of course we don't want to mislead them in any way. Regarding the Douglas situation, I don't see but what this will have to await my return j I will be coming klong very soon after you get this letter, and as Dalbeer has bean unable to do anything with him it might be well to let the matter rest. However, I have written Dalbear very fully. I am glad to know that my new place in Prospect Street is look¬ ing so well. The fixing up of the building and so forth will have attention when j get back. Very truly yours, NATIONAL PHONOGRAPH COMPANY, President . W.E. G./L.L. 24th May, 1904. J. R. Schermerhorn, Esq., Rational Phonograph Co., Oranga, Now Jar say. Dear Sir, I oahled you to-day through the Haw York office as follows "Rush Brussels two eaoh all hand and orchestra moulds you "can spare". I have had quite a conference this morning between Messrs .'White, f.H.Hiller & Riehl, and it has been decided that the Brussels plant cannot continue to run unless they have additional moulds from you, and 1 understand from Mr. falter Miller that there are a great many moulds that can be spared whioh oan be used here of bands and orchestras, that is, that you have more moulds than your require¬ ments demand, and therefore you oan Bpare at least two of eaoh of them. Of oourse where you oannot spare two moulds of any certain piece there is no ubo sending any along, as to work to the best advantage they should have not less than two. I suppose that this will surprise you but aB there is no doubt that eventually the plants here will produoe reoords much oheaper than they are produced at Orange there is no reason why we should not have this advantage, and it will also enable Mr. White to obtain records very much more promptly and thus enable him to fill his orders satisfactorily. Generally speaking it has heretofore "been the oase that this end has not been given an equal chance with the domestic end. I realise of course that looking at it from the American standpoint we have got to fill our orders promptly, but nevertheless when I look the situation over here the same rules would apply equally as well, and therefore we must put this end of the business in a position that they can take care of themselves. 1 realise further that wo have always been very much hindered in that we could not furnish moulds to the plants over here, but now that the new method has been introduced we can no doubt arrange very soon to furnish the different European plants with moulds so that they can supply this market independent of Orange. Very truly yours, NATIONAL PHONOGRAPH CO. President . W.E.G./li.D. 24th May, 1904. E. Riehl, Esq., 55, Quai du Halaga, Brussels. Dear Sir, I give you below quotations from a letter I received dated May 3rd from Hr. Sohermerhorn showing trouble that they experienced with the new material called ebonite. Mr. Walter Miller has with him samples of this material and is able to discuss it quite fully with you. I have also quoted the cables that wore sent from Berlin, the replies thereto and further data regarding shipments of lathes. I assume that you are taking this matter up direct with Mr. Weber and must leave it therefore for your attention:- n-r ?ou that 1 l1"1 mada arrangements for 500,000 pounds of ebonite. 1 now regret to say that after writing you we re¬ ceived a lot of this material which was not up to the mark; a q?rn^I8iSP?dA°n t*9 r8°?rds* I immediately instructed Strohmeyer & Arpe to cable cancellation of the shipping instructions, and also had Aylsworth call on them to the end of ascertaining as to what the material consisted of. They told him, or at least led him to understand, that it was a o? °LKt°ZKot ^itumlnous ooal ““I that in the recovering of this material benzine was used. Aylsworth is of the opinion that Benzine would ;cause the fogging, and he is now experimenting to the end of overcaning it. There is every „ad^°a“on that the producers have sent a somewhat differs? ' grade of material than was first supplied us, and possible not been so oareful in the recovery. Strohmeyer & Arpe •written the producers drawing their attention to the trouble , and likewise have sent them samples of the two lots which v/ere different . Of oourse they may arrange to overcome the diff i- oulty on the other side. I find upon investigation that thi3 material is forwarded from the Port of Hamburg. One of the shipments which we reoeived left there under date of April 3rd on the s.s. "Pretoria". Possibly by searching back from this point th3 produoers might be discovered, thereby enabling us to make a better arrangement than we have made with Strohmeyer & Arpe, or, in the event of that not being possible, it would at any rate enable us to communicate direct with them to the end of having them overoome the trouble last experienced." "X duly received your cable Saturday from Berlin readings 'Ask Weber how soon can ship eight lathes. If necessary 'can purchase lathes here. Ship one tank complete here. 'Answer Brussels". To this I instructed Stevens to reply to Brussels as follows •One lathe Berlin three Brussels next week's steamers; •four additional Berlin wee k following. Ho extra tanks; 'suggest making of sheet iron there. Writing'. Prom this I take it jrou will understand that during the present week we are shipping one lathe to Berlin and three to Brussels. The shipments are mado in this manner in accordance with instructions previously received by Mr. Weber from Mr. Ri3hl. IText week we can send forward four additional latheB, and insomuch as your cablegram was sent from Berlin wo assume that they are wanted in Berlin. As a matter of fact I under¬ stand from Mr. Webor that the equipment in eaoh of the plants is as follows Paris . . . . . One tank; three lathes. Brussels . Two tanks; six lath8B ) (including the 3 whioh go forward this week) Berlin . One tank; three lathes (including the one shipped this week) . Therefore, according to our understanding Paris is fully equipped; Brussels is, or will be, fully equipped upon the arrival of the three additional latheB, and Berlin will be fully equipped for one tank upon the arrival of the addit ional lathe. Of oourse more lathes will not he needed at Berlin until an additional tank is oompletsd, at whioh time ho would 2. need three more lathes there, and these lathes will he taken care of by our shipment of next week, leaving him one extra lathe at Berlin. As I telegraphed you, we have no extra tanks here, nor have we any aluminium from the the tanks can he made. Of course wo might send one of tha tanks that has heen in use, hut these are in a more or less had condition and it would hardly he advisable to send a partly worn-out tank abroad. After talking this over with Mr. Weber and Mr. Dodd I cabled you as above regarding tho tank. Mr. Dodd and Mr. Weber both state that a sheet iron tank would be much more durable than aluminium, besides being much cheaper. Mr. Weber advised me that Mr. Rishl had complete drawings over there and without doubt sheet iron tanks oould be made as cheap, or even cheaper, in Berlin than in America, and you would save both time and shipping expenses. Mr. Weber is writing both you and Riehl fully on the subject." This may conflict with Mr. Weber's letter to me of May 3rd, a copy of which was sent to you at Berlin and Brussels. In that case the only thing I can say is that you should write Mr. Weber on the subj ect . Very truly yours, NATIONAL PHONOGRAPH COMPANY, President , W.S.G./L.D. 26th May, 1904. Jas. H. 'White, Esq.., National Phonograph Co. Ltd., 25, Clerkenweli Road, E.C. Dear Sir, Regarding the situation in the Empire of Germany, and with particular reference to the agreement with Ludwig Stollwerok, a very full disoueaion was had between Messrs. Stollwerok, White, and my¬ self yesterday. As 1 have already advised Mr. Riehl and yourself all master records and mouldB that are made in the Empire of Germany are to be made at the expense of this Company, and the fruits thereof are, therefore, to remain absolutely the property of this Company. Under no oircumBtanoes are you to manufacture master records or moulds for outside individuals or oompanies, unless you get the approval of same from Orange. The Beleotion of the repertoire is something that I must leave to you and Mr. Riehl to formulate, but of course it is distinctly understood that the suggestions of the various looal managers, (as, for instance, Mr, Graf in Germany} Mr, Kaiteneokar in Prance), should be considered for these respective countries, and the same rule ap- plies in oonneotion with any other agenoieB that may he established elsewhere. The selling end of the business, however, must not in any way interfere with the manufacturing end of the business, but any suggestions or instructions that they may have to give, assum¬ ing that you delegate to them the authority to make suoh suggestions or instructions, must be made direct to Hr. Riehl and not to any of his subordinates. Oooasions may arise wherein it may be found necessary to suggest changes that will prove beneficial to all con¬ cerned, and the Company in particular, and it will not be possible to get at Mr. Riehl at the time and where it may be necessary that suoh suggestion or instructions may have to be made direot to the parties in charge making original records, and it goes without say¬ ing in this case due Judgment should be used by all parties in interest to the end of producing the best results. Regarding the output of the plant at Berlin it is the inten¬ tion that the output of records required by Mr. Stollwerok in order to enable him to properly take care of the business shall be turned over to him as fast as produoed, but to arrange for the transfer of suoh records to his own store-house, and he will also arrange to take care of suoh phonographs and other app aratus as he may order from us (Orange), placing them at his own risk in a store-house furnished at his own oost and expense. In other words Mr .Stollwerok must arrange to take off our hands the records that he will have ordered as fast as they are produoed - these reoords of oourse to be delivered to him in cartons. In oase Mr. Stollwerok should deoide to have his store-house in Cologne then the goods should be 2. paoked and shipped to him, free on hoard oars, Berlin. In case Mr. Stollwerok decides to have his plant at Berlin then these goods oan he delivered to him in oartons on trays as it is obvious that it would not he neoessary for us to paok these goods in our factory simply to have them unpaoked in his factory again. There is a possibility that some other modification may he required as to this, hut I am perfectly willing to leave it to you to arrange with him. This will, therefore, leave us in the position that the stook whioh will he on hand at our Berlin plant will he used in filling orders for countries other than the Empire of Germany. Of course so far aB the stock to he carried by the Edison Gesellschaft is concerned this is something that you must arrange with Mr. Graf . My reason in setting forth the conditions absolutely are that the faotory end is only interested in producing goods to go into the stock of Mr. Stollwerok to enable him to take care of orders in the German Empire, and in addition thereto to provide suoh stook for the Edison Gesellsohaft or others to enable the Edison Gesellschaft as well as your other interests to he properly taken care of in countries other than the Empire of Germany. I have advised Mr. Stollwerok that he should plaoe any orders that he may require for records with you as our agent, hut that he oan plaoe his orders for maohineB direct with us at Orange as of course these machines will he shipped direct to him. Of oourse in writing this communication it is not my intention that the rules set down shall he absolutely rigid. Conditions may 3. ohangs to auoh an extent as to warrant a ohange in the methods outlined above j in that ease I am perfectly satisfied to leave the adjustment of such ohanges for Mr. Riehl and yourself to decide. Yours very truly, NATION A! PHONOGRAPH COMPANY, Vioe-President . . v> W.B.G./X.P. Telegrains & Cables : " Randomly, London.' Telephone No. SOSO, HO LB OR / / J Cl Sdworu EUROPEAN HEADQUARTERS Tltomas A. Phonographs, 0P THE Orange N. J, ‘pT NATIONAL PHONOGRAPH <3<>. Ltd. ^ oHgS EDISON /MANUFACTURING <3©. Ltd. X Battery Fa Motors, EdUon-Priraary Bates and Edison Automatic Hand Numbering Machines* 25 Clerkenwell Road, London, E.C. 31st May, 1904. Mr. Walter Stevens, National Phonograph Company, 83, Chambers Street, New York. Near Sir, Mr. White tells me that his customers in the British Isles and on the Continent still continue to receive circulars from the States, and I must of course assume that they come from your de¬ partment. This is altogether wrong, inasmuch as the prices are generally on the American baBis whereas the prints! matter that is issued from this offioe to the British IsleB particularly 13 set out in £. s. d., and of course there is a difference in the price of records. The only way in which this oan be obviated 1b by your eliminating the names from your lists, transmitting a list of such names to the London office whioh they can in turn enter up here, and then forward circulars and so forth as fast as they are issued. There is a possibility that this may not entirely emanate in your department but it may be in MoChesney's department, in that Case the same rule would apply, and I would suggest that you send him a copy of this letter so that he oan govern himself aooordingly. If you want to discuss this matter further you are of course at liberty to hold it up until my return. Yours very truly, NATIONAL PHONOGRAPH COMPANY, President. W.E.0./E..D, (^amat>(X Sdifton. EblSOK’S EUROPEAN HEADQUARTERS Kactories; Phonographs, 0F THE Orange N J 22T NATIONAL PHONOGRAPH So. Ltd. 2*“|= EDISON MANUFACTURING ©°. Ltd. A , u H d 25 Clerfcenwell Road, Numbering Machines* Berlin. Paris* London, E.C. 2nd Juno, 1904. B. Mohl, Bsq,, national Phonograph Company, SB, Qua! du Hal ago, Brussels. Door Sir, In oonnootion with tha oalootion of artistoa, tho songs which they aro to sing, duoto, trioa, quartettes, hands, oroheatrao and othera, I want it oloarly and distinctly understood that tho sailing deportments must in all oaaaa he consulted as to what is required. You of oourao understand that tha Heads of the Soiling Departments with their different branches, and particularly their close oon¬ nootion with tho trade, are in a much hotter position to determine what is heat to meet general as wall as local conditions, so there¬ fore it is my desire that in all oases you consult with the dif¬ ferent Hoads of the selling brandies. At the present time, of course, it is Hr. TShito generally speaking} in Germany Mr. Graf, and in Stance Mr. Kaltoneoker. In addition to the above the selling end of tho business know more or loss what particular pieces, Whathai vocal or instrumental, have the readiest sale, and they are there¬ fore able to indicate to you what is the beat to meet their custom¬ ers' requirements. Then again tho artistes that are the most TS Stomas A. EKISCJEC’S EUROPEAN HEADQUARTERS °pi“" NATIONAL PHONOGRAPH So. Ltd. sfs? EDISON /MANUFACTURING So. Ltd. Bates and Edison Automatic Hand Numbering Machines* 25 Clerkenwell Road, London, E.C. Factories : Orange N. L U.S.A. Paris* M Brussels* i. aLVsT-* .‘.9:1 yo".- " a : fi : i’jV; ba no ;Vlci- u/tcc- ti .aLiciinii uai a oqpy «.:* this 1.* :'*bsi':' h*c M-w trVuiB- ndCt'.-u e.o K».taj‘o. US-tits & a* fcl-.ivU thoy will ’tndoVaisni the oitws/.i.'jn, mi-i -siiasi *H you in dv.u-y .-.ssaibla .vay in obtaining bho vary l»aat as well aa th<> c«rtisrt-»a, and a reyorholro tims will isi •■:■> frond bo non* in tiwir roaiiaoUys torritori-m. It is oIko ■*•:*•. Ls intent ion t» fcaJce «|> this ja&ttar fully with «r . KaltoiirivTcon &r. *:>i? firat favourable opportunity, I ballavu that the e-bovti la 'tbaolutoly in t&oord&nus with our undor at ending at 1;1vj non v-i'Tisat ions had- in Bruauals as ws 11 aa hora. Yours vary truly, HAT IOKAIj PISOiroa&APK COSP AHY, President, (Tb- tr*— i^K. $Tf^\ oC*-^> ^^ZOj far-yy'X , /tyvfeo . <f /rilt &£ &7%. y-1 r*. <f>s ■{at zW ^V~t' ^ ^rh~ (^ hx^uJ £Z^y^ <C Csf7l~4bt^Y&a^^r* $yy. $ *t&\, (fK irisTsu&u* "aA -JLAfr/inspi-j <h^o dVfisj (at^Im^ias^9 i^vu>rtvW rrxtuOz (JYv* t/~IATH~ Yh^-i 0}^ —fv^ ~1vvd ' •S dJL <h^> vrie^Ai** '&r<>ljyyjs«c/<s ^Xa *i*~* hAwf ^ ^ O Hb- ^f^LoAr^ ^9b^^yUJ Vac.o l.. ttu rht C<J cL^u^> ft«£oi*+*' crtA. (&AAbU*? . r^cL^rbv> V/a co u Records" mruXd pAJLX U* A- <TUx+) &a*A-- /j 'i CfA ptry-^a 4-cu*~<j fb\ (yictelcJ — tbwAt*-) h> (ZsdmvtZtx *£rvyTv2A/Us*^ /7"^ ‘tTXct^j &* Ur€\i ({foetid T\a^rui - J hUa (ffouU h jpn* cj : Ofo+gr Cts^luU-* . - 'foLw, &t < Ci^\AU^ryu^A ^ ^zr>v fe*1 L^Ji t® dAj~ ^v) . &. <rO tV\&lv4v&) A^\JUAy\X*>^ cw\A ^v^ve^-j oo~Aaa)ul~<1 aJjL (\~Moc4- <Z^Ctw-* rhM- &X* l4^C^£^yy~A. <f(V^<U 9 Xu^J . /^V*0 r\. j <-^t [ENCLOSURE] Berlin N. June 17th 19o4 ChaueseeBtrasse 81 Jas. H. White , Esquire "Agent of the National Phonograph Company" LONDON. E.C. Dear Sir , I herewith beg to confirm the letter of President Gilmore Esquire of May 27th, in which he appoints you as agent for the company and informing me that you that you shall give all my record orders to the German plant whilst you would send all orders for Phonographs or parts thereof to Orange. Referring to clause 9 of my agreement with the National Phonograph Co. ,made on June 9th 19o3,of which I have already sent you a oopy, and which runs as follows : "Just as soon as Ludwig Stollwerck is adequately prepared to "take up actively the sale of Edison Phonographs and Edison "Records within the Empire of Germany, the National Phonograph "Co. agrees to turn over to the said Ludwig Stollwerck all its " business in the said territory, and will use every affort to "to divert all such business to him, and will thereafter discon- "tinue doing business direct in the territory aforesaid." I herewith kindly request you to take note that yesterday that is on the 16th day of June I got registered the firm : "Phonographen Gesellschaft fur Deutschland m.b.H. " and that the publication of this registration will follow very shortly This Company has a nominal capital of Lst 6000/ fullypaid in and its managing Directors are Mr. Charles Pathe of Cologne and' Mr. Ernest Loews of Berlin. Mr. Pathe has been for 16 years in my automatic Blot business and you met him personally last year when you were in my home with Mf. Gilmore-; Mr. ErneBt Loewe is a wellknown person in the German Phono Trade and well acquainted with it. He speakB and [ENCLOSURE] 1 2. writaB English. While the chief office is at Cologen where I stay personally X have the intention to canvass the greater part of Germany from the Berlin office through Mr Loewe who stays Chausseestrasse 8i. There he haB his offioes.show rooms and warehouse in which latter he presently can stock over 600.000 Records. My new firm is prepared to begin doing business atonce and X therefore will thank you if in conformity with clause 9 of my agreement you will advise Mr. Graf to turn over to my new firm all agreements made until now in Germany with jobbers and dealers, furthermore I am willing ,as already explained to you, to take over from the warehouse Siidufer 2oo Gem Machines loo Standard Machines 2oo Home Machines 12 Triumph Machines that is to say all thoBe for which the duty for entrance in Germany is already paid, and at last I am willing to take over all Records which he has in stock from my orders i gave you namely : Exhibits 1.2. 3. 4. In conformity with claus 13 of my agreement with the National Phonograph Co. , which runs as follows : "This contract is made with Ludwig Stollwerck and is not trans¬ ferable. This shall not prevent Mh. Ludwig Stollwerck from forming a Company for the working of this contract only Mr. Ludwig Stollwerok will remain the sole responsible party in his or his Company's dea¬ lings with the National Phonograph Co. " X herewith expresBly declare that I remain responsible with you even for any transactions made and signed by both my managing [ENCLOSURE] 3 [Directors. Under this same my responsibility I authorise Mr Ernest Loev/e to take over Records after his discretion from the Btock held by Mr Graf this not referring to the big orders which always will be signed by myself or by both my managers. Copies of this letter I have forwarded to the American Head Office and to Mr. Graf. Awaiting the favor of an early supply I am, dear Sir, lA- Cjfiomcw Cl Cclbon-. June 20th ■■1904^^- r== — ~* feTf' &o»sdeMl fe^!^Kope5iuiS,?S X Raj/ Apparatus. Numbering, ' W. E. Gilmore Esq. , President, Orange ., N.J. Dear Sir, /main OFFICES Received As suggested to you in London I have arranged a meeting of the Berlin press people in my office on Wednesday last. The atten¬ dance was excellent, over forty people Being present, representing the principal-papers of the residence, The Beginning was set at 11 a.m. and as soon as the party was full I conducted them to the factory, leading them through and explaining the various processes of manufacture of the moulded re¬ cords. The explanation was taken with great interest and many questions were Brought up ,till after an hour'B lecturing we so¬ journed to our improvised Banketting room, wl&e every arrangement had Been made for a suBstantial lunch. The room was nicely deco¬ rated and 5 large tables ready Be used By more tham 40 people. The food and wine and service had Been furnished By a good caterer of this town and in order that there should Be no* want of good feeling and humour, each member of the party was provided with 2 Bottles of good wine and ChampaignV^The party was very lively and animated and very much pleased with what had Been shown them and this was expressed in a number of eloquent speeches on the the genius and inventive fertility of Mr. Edison. Of course also the managing spirit of the whole arrangement of the day my -Rumble self was not forgotten, and I must say, that this success which we had to register is rdteXy found with such arrangements. After the dinner aud the speechmaking was over X broke up the party at about 5 o'clock and drove with number of the jour¬ nalists ;with Mr. WUrth and f oreman- 1 to a cafe garden in the neigh¬ bourhood, where the evening was spent. The effect of this day was shown in the newspapers of the next and the following days. Ar¬ ticles on the "latest" improvement of the Phonograph and about our factory appeared in every Berlin newspaper of importance. The articles were written in such a manner that they appeared like ordinary reading mattery not advertisements. They were placed in such favorable position that every newspaper-reader in Berlin has seen it, and wherever I came people told me about these articles, also — ' Of courier Mr. Stollwerck has seen them, I did not meet,- him, owing to the fact that he has been ill for the last 8 days and confined to his room; however he congratulate^ me by a letter, <tq_our suc- cessfulS1 introduction by the German press. I have been collecting a number of these articles which I am sendung you under separate cover to-get^wlth the names of the papers publishing them. The day previous I have been at a party ^ held in^histori- W.E, Gilmore Esq. , Orange. historical garden of the German ChancellorkfcPalace. ^arrange¬ ment was patronized by her Excellency the Countess v. Biilow. The Emperor and the Kronprinz and a large number of noted people were present. My object was if possible to procure a record of the Kronprinz and the Emperor. If I have failed this time ;I have never— the^less come nearer to that point by having recorded the voices of other prominent people, very influential in these cir¬ cles and sooner or later I hope to succeed in obtaining what I want. Among others there talked into the Phonograph Count Hohen- thal, Ambassador to Berlin of the King of Saxonia, Police-Presi¬ dent von Borries and her Excellency the d’ountess von Posadowsky, /the wife of the Secretary for In te rial affairs. His Excellence Count von Posadowsky^ believe to be known in America through his recent visit there. These people delivered some very interesting speeches into the Phonograph, treating some topic of the day and I took care to get these speeches into the newspapers. I am very satisfied with the effect of these 2 arrangements and I shall have reprinit’S made of these articles which I shall mail to the Thousands of newspapers in the Provinces, and I have no doubt they will be copied by a large number of them&in that, way grooved to be a valuable advertisement. With sincere regards to yourself and Mr. Edison, I beg to remain, Yours veryLiruly, TELEGRAPHIC A0DRES8: C fJiU-K YTict-'V'^ ' /S*, dau/Zur/mA/v/is 7 £?/ </? „ yO'/uMice/^y^Z-CMi^. ' nc/ows. June USth . W. E. Gilmore, Esq. Orange. N.J. Dear Sir., X Have written to Mr. Graf telling him that i/W. better that he shall take all the orders he can as ttfe'S schaft/from dealers, and himself supply the goods to thei as Stollwerck has got a visible stock that he has oirfcaJned f^om us frowr which he can execute such orders ,as the-. Edison Besselschaft will send to him as .a factor. The moment Stollwerck has a stock Mr. Graf will have to semd him orders exactly as any other factor would and that will, mean Stollwerck must order goods and pay for themi so that We' shall be 'obliging him to put in some money* I am instructing Mr..' Graf not to send the agreements that he has to ptollwerck as there is nothing whatever in Stollwerck’s contract to (require that he shall be given these, 'he will send the orders direct to Stollwerck and' then himself send to his own customers when received from Stollwerck and if Stollwerck cannot execute them promptly he will be breaking his contract.. X have written to Dr. Schneider upon this to get his confirmation of this policy and Mr.. Squires also knows at this end that he is to. send forward the orders from Stollwerck to you, and I should urge you ■ to insist upon cash payments for these goods so that there may be no suggestion upon Stollwerok’s part that we refused to Bupply vi-tm. Yours faithfully. ISABjOKAwmy* .ytf j*. Walter H. Miller, Es(i., C/o Edison Gasoil Bohaft m.b.h., 24/25 Sud ITfer, Berlin, Germany. Dear Sir: 1 am in receipt of your letter of the 10th, and note that you succeeded in getting some fairly good records at Brussels. I regret to learn that you v/ere not able to secure the same men to make your hand records; this is somewhat surprising, hut 1 suppose it is a condi¬ tion that you will have to meet. X hope that the schooling you gave Milestone will prove valuable to him and that he will now he able to give us some good results at the Brussels end. So far as the record plant at Brussels is concerned, I caiji only say that the rent was not very much and my recollection is that Biehl could not secure it except by taking it for six months, ad that if we are able to use it all well and good; if not, we will of course have to pay the rent for the six months, which I believe was $25.00 per month Of course I realize that the music as a whole in Belgitrm can, he made in Paris, as Drench is the principal language spoken throughout Belgiu^. This is something, however, that Mr. Riehl will learn all about and arrange his record taking accordingly. VThat Milestone [should do, of course, is to get Blemish records in Belgium, as the loiwer classes speak this almost entirely. TShen he is through in Belgium you can SHEET-No. 2. DATE, 6/30/04. NATIONAL PHONOGRAPH CO. To KT. H. Hiller. 0 f course arrange to send hi m either to England or France. There is no question hut that there will have to he considerable traveling about on the part of all the experts in the record taking department until we have a sufficient force to warrant locating them at a certain place permanently, and as you say, this will take time. 'Me have got to make a beginning, however, and as I stated to you when 1 last saw you in London, we have got to get Frenchmen to make French reoords, Germans to make German records, etc. etc. You cannot expect to use Americans or Englishmen on the Continent who are not acquainted with the people or their methods, and principally their language; what you have got to get is some of the people themselves who are acquainted with tho musical situation and know what is and what is not wanted and therefore can use a little judgment, and in the end we will secure the best results. You have got to build up the apparatus so as to make it absolutely thorough and complete in each and every installation being made there, or, what X might better style it is, each outf it^gfcpjjSste1 130 complete and self-oontained and should have sufficient of everything to make first-class records, and not be dependent on any other outfit or office to help them out. I hope that they will, continue to( improve the records to such an extent that they will be not only satisfactory to you but also to the public at large. Generally speaking, you want to put record makers in such shape that when you get back you can instruct them by correspondence fully, and the recording forces in the different countries want to be sufficient to take care of all requirements. Of course I do not want extra men standing around idle, but as I told you when I saw you last in London, for the present add some few additional people and then select the best of them and lay the others off. Even though those you discharge do learn something about repord making and go elsewhere to obtain positions in the same line, this cannot hurt us to any extent. TOiat X want you to do is to feel at liberty to do what you SHEET.No. 3, DATE, 6/30 /04. NATIONAL PHONOGRAPH CO. TO W. H. Miller. think is best for the business. You may get into an argument with Mr. Riehl on the subject, but at the same time you want to stand on your own feet and impress upon him the necessity of getting first-clasB people and sufficient of them to do the work in the proper manner. I ^wS^.that Mr. Hiehl, when he does come to know this part of the business thoroughly, will have no people standing around, or will arrange it, in such a way that when they are not busy ma.ld.ng records their services can be utilized*^!, ther in the manufacturing plant or in the selling end of the business. I hope matters are progressing favorably and that your next letters vri.ll be as f|ll and complete as the one you have written me. Of one thing 1 feel satisfied, and that is, now^that you are there you will see that conditions are as bright, if not brighter, than they are here, and the other side has to be taken care of as well as it has been taken care of at this end of the line. With kind regards, believe me to be. Yours very truly, weg/iot President, -/Oxs-e^i et *- TU^JL iQjJ^rv. W. . ) 'l \^JiVVviju( ‘f (fo*ALu,^l wU (fcdL AtnrwAXi 0^1 UMA^ jr- <s_«u~.gsu. | tfe ^WcA «^.'«tu(. ; ^^A.o^-0 t- cLyoXfe Ut+Xk. (^Ajd^JbCBC CUuLtfw^_ | Ix^Ca. o/ t£m. : j 0^2^- <hf^< , aJU a -teu~. _ j^L^GXC^ «/»_«__ ou jpw- \ &<n*MA 1 iXasJL OA-W. LV-Jx^o «fVxj*_ tfa. .5 jJUr^. l« y^, J^JU-zJLj (jfc^C - A*, tla. X£^ : -C^ °4A^ , ^ Kjul^cU JL_ w^U. j Ayu- ** fr****- • ^ ^-«-A a«vu^tMJel . UMli. cfcc i><Lvwio y Xu^. dh. 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(foauX ^ f- Altf-^, .&X~ l-Uhi ^ll4tly^AAK-cXjL*-- V- £-Yj-£^j(~ tc 'C*-<— - •*’t^ &t-(ZJju-tA. to>* V- (fcjyu- *M~uA*-*i t tfev/^f fajhiU**-. ^v. ^ **-_ 4-o < j u-Awtt &LoM ^o-v. -tuorwoi. vUvP JteJtCL "tfciui. "3 oi. "”cfc«wt. u«i(, /&«- .(/io-ui*At„ a-(~ TvUL . ”fe (J^XlaL x-tL i -^U^-d-»^:__7iJLaayU^ ''uJ A CUx/V. ,^-o-a^ - fTr_- 1 • 6 (X&dViOYU * . . MARK Xhomas EUROPEAN HEADQUARTERS Phonographs, 0F THE 2pT NATIONAL PHONOGRAPH ®°- £"”? EDISON MANUFACTURING SO- Motors, 25 Clerkenwell Road, Bates and Edison Automatic Hand Numbering Machine,. London, EC- r' iviAiN o, 19th July , r-1904> ; V/. E . Gilmore, Esq., national Phonograph Company, j Orange, Hew Jersey, U-»S\iAs. .. Ltd. Ltd. F!CF.\ Berlin. Paris. Dear Mr. Gilmore, After a very pleasant voyage I arrived at the office to-day and found your telegram of yesterday dated at Orange reading:- "Randomly, London. Have just cabled Mordey no proposition to "make You have no instructions to act" awaiting me. I have before me a copy of Mordey's latter of July 13th and also his cabled of July 12th addressed to yourself. Mr. Mordey has also called me on .the telephone and was vary anxious to see me personally. I shall of course see him but will simply advise him as to the details of the test to be made of his apparatus at Orange, and will also tell him that we do not see there is anything in the attachment for us, and that we have no instructions whatever to act for you. I find a great many communications awaiting me here from Stollwerck, but shall not reply to any of them until after I -hare seen Mr. Marks who is absent in Manchester to-day. I enclose for your information letter from Stollwerck dated July 16th and also enclose for your attention an order dated July 11th. I have simply acknowledged this order of July 11th and stated that same ha3 been ' N. P,. Co. Ltd. for war dad. to the Hat ional Phonograph Company of America. I am unable to write you in detail aa to how matters stand here hut will get a complete letter off to you the next post. Very truly yours, J.H.W./L.D. [ENCLOSURE] Jas. Dear Sir, On first of June I gave you an order for 80000 Records which I increased by iny orders of July 2nd and 11th for another 28000 recordB and by my order of 13th inst. for further 119000 records. Except these quantities I ordered June first 100,000 Christmas songs . I have the intention to repeat my last order for 119,000 records for each months of September, October, November and December . My first order from June 1st is not yet executed nor have X received the invoice, and even Mr. Graf as stated by him to-day has not received that part of the order the moulds of which are here in Berlin. Who is responsible for this delay? Why for my losses? I am unable to give you these new orders before all matters are settled! and I lose the season's sale! Who is responsible for this loss of traffic? I hope to receive your invoice as soon as possible as according to my agreement the National Phonograph Company of which you have [ENCLOSURE] been appointed agent has to support me in any possible way. I profit of the opportunity to advise you the visits of my two directors of the new Company "Phonographen Gesellschaft fur Deutschland m.b.H. to speak verbally about .the state of affairs and the future. I still beg to send you copy received of Mr. G. Croydon Marks and my answer to it. Yours very truly, (Signed) LUDWIG STOLLWERCK . I am ill and sorry not being able to come personally! In which position am I? Office, show room, warehouse - staff - and no single machine or records. Outlook and organisation with heavy expenses for a large business ! Telegrams & Cables : « Randomly, London.' r 77* C/Jnomad Cl Cdvson. EUROPEAN HEADQUARTERS P“ NATIONAL PHONOGRAPH Go. Ltd. 22SF EDISON MANUFACTURING 6°. Ltd. Edison-Primary Batteries. Bates and Edison Automatic Hand Numbering Machines. 25 Clerfeenwell Road, London, E.C. 26th. July, 1904. W. E. Gilmore, Esq., National Phonograph Company, Orange, New Jersej Dear Sir, Concerning the working of Russian territory i” MAIN OFFICES Received AUG ,Ans../j 1904 IY :nclo| Bolin. Paris. * you here- with letter dated June 26th written hy Mr, H. Peterson. I have had an interview with this gentleman to-day in the presence of Walter Miller. I talked with him for a considerable length of time in reference to the Russian situation. I got his ideas as to the possibilities of that territory and I v/ill say that ha seems to be a very intelligent man indeed, and I believe he will prove valuable to us. He is a Swede by birth and obtained his education in his native city, Stockholm. He presents a very favourable appearance indeed, being extremely neat and of good address. He informs me that he speaks German and French perfectly and that although he speaks Russian with an accent he is abler to converse in Russian fluently and that he also writes and .reads the Russian language. I have thought so well of the result of the interview that I have asked him to write me a letter setting forth his ideas and stating the terms on which he would be willing to go to Russia to establish our business in that territory, and as this, of course, is all to be subject to your approval X shall forward the letter to you immediate¬ ly same is received, and hope after due consideration you will then give ms a reply stating your views of the matter. I particularly wanted Mr. Miller to be present at the interview so that he could transmit verbally to you his ideas and impression of the man. Of course there is no great rush in this matter, but on the other hand I believe we should make a start in Russia as soon as possible. X am of the opinion that the war betweo n Russia and Japan will not interfere with our plans to any great extent. In fact from all en¬ quiries that I have made I am of the belief that the war is not inter¬ fering with European commerce. On the other hand I believe the situation with the industries which embody amusement, is favourable. In fact it seems to be the history of all countries that the public patronise industries of our kind even mors freely in War times than they do in times of peace, therefore I see nothing in connection with the war which should prevent our going ahead. Walter Miller will arrive in Orange about the time you receive this letter, and would suggest that you talk the matter over v/ith him. You will doubtless have my second letter on the subject in a day or two after you receive this in which I v/ill enclose Mr. Peterson's proposition. J.H.W./L.D. [ENCLOSURE] ■^t-e^a^o ^ £c y~ j iia ,7*t-*0 'sjf J /Lt-vus) y^=> Cy. — • | Tr&t&J _ ^S*c> <dLl*J~C <£ <>/- ^b ^ 5 *>*2^ |J? 4 '***y <££-vt/ri>4~£~*0 >•• •*■ •• : ^y6-£~a-^J ^&L*z~%z^-*i~4C' y^e^z-c^e^ ^ r e^C^ei Mi ^Private Hotel, ^..BLOOMSBURY STREET, ^c#to™:;. <£ <%r , ■%S~ &*s'»4o,~«r£&L) ^ J &ct'c‘ sftCc^z*,' <3k^ tZz/r/rz*^/ v- <1, ^s-a£ • i>2<^/7^-^,/ *%tr MMr >* • [ENCLOSURE] ■o^e^ -Cto v ^ ^ <><, Ztf y^^.../jf l^dinc-CtP ^k»0 (5^” s&i ^ ^^*-^~C) £Z<^> F" l EUROPEAN HEADQUARTERS Factories : NATIONAL PHONOGRAPH <3°- Ltd. UT EDISON MANUFACTURING <3°- Ltd. X 25 Clerkenwell Road, Btus«u \utomatic Hand Lond-OJlt-^C. Aug. 6th 1904 /main OFFICE- ■ W. E. GILMORE, President, jaujiui, ri-esj.aemi, NATIONAL PHONOGRAPH COMPl ORANGE N.J. 1 I have just returned from Berlin where I have seen the long cablegram whioh you sent to Mr. Marks, and I was also present when he formulated the reply to you. I note Stollwerck’s suggestions that the contract he can¬ celled with the understanding that you reimburse him for the expen¬ ses he has been put to, and at tho time Mr .Marks cabled you, I thought he should have made it clear that you should only consider expenses which Stollwerck has incurred in connection with the present con¬ tract. In my estimation these expenses would be very small, as so far as I can learn he has done very little towards perfecting an orga¬ nization, and as to his so-called show-room in Berlin, I have per¬ sonally visited this, and find that it consists of a very small window, about 4 feet wide by 2 feet deep, which window is part and parcel of his chocolate ware-house, and so far as I can see, there is no other space whatever set apart for the handling of phpnographs and records. I am having a photo made of this so-called show- room, and will forward same to you as soon aB I receive it from Berlin. I thought I would give you this information in advance, /%/ W. E. GILMOHE, President, Orange. however, so that you will not regard the matter of Stollwerck's expenses too seriously. 1 hear that Stollwerck is quite ill; this doubtless ex¬ plains Why Vollkmann has taken up the correspondence. Yours very truly [FROM LUDWIG A. STOLLWERCK] hrnnab CL Edition. PL GIRO-CONTO: BEI DER BANK FOR HANDEL UND INDUSTRIE, BERLIN W. PHONOGRAPH EN-GESELLSCHAFT FOR DEUTSCHLAND M. a , ORIGINAL EDISON-PHONOGRAPHEN PABRIKEN: ORA ORIGINAL EDISON-GOLDGUSS-WALZEN. RLIN, PARIS, BROSSEL. Dear Mr. Edison I X was ill for six weeks, according doctor's advice was obliged to go to this healthy place instead going to Grange to clear up any misunderstandings personally - arisen between Mr Gilmore and myself. - Also long cables are a bad substitute. - Wired you according enclosed copy. It was agreed last autumn when Mr and Mrs Hayes were one day in Cologne, and Mr Gilmore two days in Cologne,- that before beginning the Phono business on a large scale in great dimensions : the repertoire in German selections : band, orchestra, songs, - ought to be increased and improved. X showed to both Gentlemen that every evening we have in Cologne 7 good military concerts - that every town in Germany above 100000 inhabitants its own Opera! Therefore the public expects better class of music, - as America does. It was agreed that 500 new selections atonce to be made, - \ f recording experts to be sent to Germany and I had made by a Professor'- 1 of Music a repertoire of 500 of the most popular songs, musical pieces for Germany and sent it to Mr Graf Berlin. o o o Phonographen-Gesellschaft fQr Deutschland m. b. H. o o o MW...JBL . .« Harr . About middle of March 1904 I received from Mr Tffhite the Schedules A & B according clause 2 of our agreement! to complete contract ! At the same time I received information, that Mr Gilmore comes again to Europe. Just after his arrival I went on 28th April to Berlin - discussed all questions. There were only 90 new records made instead of 500 Mr Gilmore showed me the fine Berlin moulding Department and asked although there were only 90 new selections made, if I am prepared to organise the sale according clause 9 of the agreement. X directly gave an affirmative answer, as indeed such expensive workB ask food! I organised directly the business according my rich experience, gave the first order four weeks later on 1st June, and on 16th June the Company according clause 13 was registered before a Royal Prussian Notary. All what is necessary for a big business was done; two managing Directors engaged; office and wholesale Bhow room rented as rooms for 600000 records. This latter arrangement made according the plans and experience of Mr Graf the Berlin Manager. The Company called "Phonographen Gesellschaft fur Deutschland" was founded by my brothers and myself. I made the declaration to the Capitalists of the old German Edison Phono Co (250000 $ capital) that while the new Company (the capital was signed alone by my brothers and myself) takes alone the risk, all benefit of the new business will go first in "Total" to pay the losses to the members of the old / Company amounting to fi 120000. If that is paid my business honour is reestablished and I hoped to have some fruits personally after much excitement and work with the old Edison Co.- as I o o o Phonographen-Geseilschaft fflr Deutschland m. b. H. o o o A.l„. ...3 . » Harr . renounced, inspite of the losses on every salary or commission. So is the position! Have founded officially according an agreement with you a Company engaged two Directors and staff, rented offices etc, informed my former Phono friends : and receive no goods ' ' 1 * no declaration ! ' * ' ' 1 The causes of the disappointment of the old Edison Co were : 1) because this unlucky Mori arty asked 0 40 licence pro machine on which X paid f{ 50000 on account 2) because the supreme court (Reichsgericht in Leipzig) declared for -Null- the most important Patents of the 19 I bought from you through Mr Moriarty! every one could now make and sell machines of $ 10 to 20. - — — I told you and Mr Hayes and Mr Gilmore that only if I can make a big business in Germany the Phono business would interest me. I am no agent, being not satisfied with a success of only 5 - 10000. Will place / 50000 and more in future according developement of business into stock and credits ’ any capital necessary. Will advertise oji big scale - as ray firm counts to the largest advertisers in Germany. 1 I all told you this and made you the remark that a three years contract is very short, as I ought to have also in future the fruits of such work. You then answered in presence of my friend and partner Mr Volkmann : » Have had bad experience with long contracts - but if you have success I give you my word of honour, that I will not cansel but prolong the contract." o o o Phonographen-Gesellschaft for Deutschland m. b. H. o o I believe I was always sincere and open to Mr Gilmore and fear that third persons made informations to him - which made this situation - unworthy to my position and business reputation . The contract of June 9th is clear; no lawyer necessary to point out duties and rights again. But without yours and Mr Gilmore' s support - I will not take the business in hand! as promised by you. X will not take advice from lawyers! Will speak with you and Mr Gilmore about the cancellation of the contract! if you and Mr Gilmore will not respect the contract. I still hope you will, after misunderstandings are cleared up! - The question is for me such one of Moral Business - Honour - and Ambition. X promise you every success -but only with a hearty cooperation with Mr Gilmore and his staff. I promised my friends the success of the name "Edison" in which they placed confidence and money 9 years ago - and I would be unlucky if you take me the opportunity to fulfill itl - So -"Ich machte meinem Herzen luft" (made free my Hearts thought" - In old admiration of you and your inventions I am, dear Mr Edison, yours very sincerely 1 1'™' / . -£•••■. u'4 . — A- . 'JsorjLlr-., zfL (2 £$Lo,> /U *-&^/*&)e. C&oi^l, 74-- 4? O.rr «szl^ j ^.^4 ^oZTl s'^fLffe* yi£ . . . ^ 7^oj ££-t. jL*icl.j.A*sJL >. J S~ O ° 7u^7^rr. >>o-^^j^c- ~ o "L*-f /■ (J„ If uxUj^JJL ■J&4, . cfL. _ , jffa^Os i-v.. >a Ol-£J! . > U. . ff- if'P. jhs^isr: ■ 7f. <:^f-7-J7J USoUt- J ~Z ^Cc-o ^ /Kr-JflzLzy^L asK*4>L (VyifaU^L 1. '4- £fL, ^i&JL .^2/T—£s7/-7zr**i-<Q. . yflst-Z^LyA/Zj^t^ fbybnsO-, IZrfL&u^- .... 25^^ XO— f? £-44. <7f]f 2^1c &ro- $xa^<L<s^\ stsws . a&L&L .. < £2x3/ 1 . y./-- - y /)JLr*JU ' ; . 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Dear Mr. Edison: Referring to the cable that I received from Mr. Marks, stating- that he had a visit from Stollwerck’s solioitor, who offered to settle for £7,000 and in addition to give us 556 of their old type machines, I received your telephone message reading: "It would he all right even if we went to $15,000.00; no machines." ( Signed) EDISON." \ (;>. Immediately I received this telephone message I cabled Mr. Marks as follows: __ to pay ten thousand dollars for cancellation contract, ir unable close this basis, then will pay maximum fifteen thousand dollars, tfill not accept machines at any price; they are obsolete type." and have confirmed same by letter. This for your information. Yours very truly, j&KM&Jtje/Ui Glcrttsullntj Qrttjtuccr Q&pcid. TELEGRAPHIC ADDRESS : Gl FTEDN ESS , LONDON. n v /$, dLc/rfM/m/i-dons 7 /?/ &/iMMcc4/ip'JZevn.e'. 21st... September '/S0 A. y{. B. Gilmore, Esq., Orange, N.J., U. s. A. .Dear Mr. Gilmore, I cabled you from Gologne that I had settled with Stollwerck by paying him £2,000 cash down on my own personal cheque and under¬ taking t,o pay a further £2,000 at the end of January 1906, making £4,000 total to cancel the contract. X do not want to weary you with the very long discussion that K had .other than to say that It was one .of the most difficult nego¬ tiations that I have ever had to conduct, and I think I have saved the Company some thousands .of .pounds in thus effecting the cancella¬ tion of a most unfortunate contract. X duscussed everything with Stollwerck, and fought hard, driving points against his delay and against his method of doing business, while he on his part strenuously maintained that the late Mr. Hayes, Mrs. Hayes^and. yourself when Mrs. Gilmore was with you had all agreed that it was desirable to have a greater number of German selections, arid had acquiesced in h'is not vigorously pushing the business until these hew selections were made. Notwithstanding this discussiori of course I did not for one moment admit any poirit agairist us, but combatted it vigorously until I know that he thought that I was the villain of the piece /main office. 1 REICetVEO • SEP 30.WM i tX W. E. Gilmore, Esq. inasmuch as he actually said there was rio trouble until X came on the scene, and that you and' Mr. Edison v.-ere perfectly prepared to l let him have his contract and go on with the trade in Germany. He wanted £7,800, and actually produced books and other docu¬ ments to show the heavy sums that he had spent, and harped upon the old losses of his original shareholders who had put down over £20, 000 on the German Phonograph business. He told me that he wanted to get the money to pay back these shareholders, and hot one penny would he have until they were paid back in full, and that also any money that X paid him to cancel the contract w.oula go to them. The sum that I arrived at I found out would be less than half of the moriey that Stollwerck would get even if he were limited to 5 per cent, on the factors' orders that the Edison Gesellschaft sent him for the remaining 87 months of the contract, for I can tell you, Mr. Gilmore, that the German trade can be worked up into an immense one. When I was with Stollwerck I saw that if I did not settle then there would be litigation, as he pretty plainly told me that he intended to stop the Edison Gesellschaft from trading, and that the publicity that would result would be very unpleasant for all con¬ cerned in the Edison Phonograph business. I challenge o him at last to say yes or no to my offer of £8,00.0 cash down and £8,000 at the end of January 1906with an immediate cancellation of the contract and no further claim against anybody. He scoffed at this offer at first, and I was ,oh the point of leaving him as I told him I was certain that if I cabled to America you would wire me back not W. B. Oilmore, Esq. _ </ ■to pay such a high sum. He at last told me to dictate the letter, which X did, and a copy of which I enclose, that he duly signed, and acknowledged receipt of my personal cheque. When X got back to London yesterday I hoped to find the money fr.om you to meet the £fJ, 000, and also a further £600 that I had asked towards my general account, as I scarcely expected to find that I had balance enough to meet such a heavy sum as naturally I do not care to keep so large a sum idle in a bank getting no interest thereon. When therefore youri cable came to hand with no money I was ih an unfortunate position and my banker's sent me word that the cheque had reached them, and that they must honour it. They did so, and the money has been paid over to Mr'. Stollwerck’s account. I have had a visit today from the solicitor of Mr. Stollwerck in London, and he suggests that Mr. Stollwerck would be disposed to discount the bill that you sent so as to let the money that’ is paid be divided up at once amongst those of his old shareholders, but I told him I did not think there was much hope of this as I had already paid considerably more than my clients in America thought there was any .occasion to pay. X should suggest to you. 'if you agree about paying cash down that you discount it at the rate of about 10 per cent, per annum, and thus make an offer of about £1750 cash instead ,of the £3,000 later, but this, of course, is absolutely a matter at your own option, and the call wa3 quite gratuitous on the part of the solicitor. I was considerably worried yesterday in the matter of hot having your wire, as I felt that I had hot quite pleased you, and I Gilmore, Esq. S^f «. - .on zny part realised that it v.-as a very serious position that r;e v;ere placed, in. I have since had your cable, and the cheque will duly be paid into my bank, I understand, today from Parr’s. Yours faithfully, [ENCLOSURE] c o P /. Ludwig Stollwerclc, Esq., Cologne. Cologne, September 19th 1904. Dear Sir, I hereby undertake to nay to you the sum of £4000.- (four thousand pounds) for the cancelatLon of the contract entered Into by you on the 9th of June 1903 with the National Phonograph Company .of America. In consideration of the cancelation of this contract you will undertake hot to use the name or trade mark "Thomas A. Edison" your¬ self or to be associated with others who will use it and you transfer to me unreservedly the whole of your rights and interests in the said agreement of the 9th June 1903 and you undertake to make no claim of any kind against the National Phonograoh Company or others in respect to such agreement on the cancelation thereof and I on my Part, unc.erta.ke that no claim shall be made against you by the National Phonograph Company or others in resoect to such can¬ celation of agreement. The sum of £4,000 - to be paid as follows:- itihg this agreement and £2000.-.- by my ckeclt on your accep signing this letter. " £2000.-.- at the end. of January 1906. and I hereby undertake to give you the bond or acceptance of the National Phonograph Company and on Mr. T. A. Edison j?or the due. observance and payment of the two thousand pounds at the end of January 1906. '/ours faithfully- Agreed re accepted (SgdV G. CRO/DON MARKS. (Sgd) Ludwig Stollwerck. NATIONAL PHONOGRAPH CD. ORANGE, N.J. 0A"IyEmot” nSewyorK" EDISON PHONOGRAPHS & RECORDS. 3 904. JC_ OPT, 0. Croydon Marks, Esq., Lond on , EngS and . Dear Mr. Marks: I am in receipt of your Setter of Sept. 23 st, setting forth fu33y the conference had with Mr. 3to33werck and the settSement made with him, and a3so encSosing copy of the agreement dated Sept. 39th. After discussing the matter fuSSy with Mr. Edison I cabSed you as fo33ows to-day: "letter twenty-first received. Edison appreciate and congrat- u3ate you on settSement made. If you can c3ose second payment of two thousand pounds for seventeen hundred and fifty pounds payment October fifteenth, if RandomSy cannot advance amount wi33 cab3e money from here." My opinion of Mr. Sto33werck is on3y borne out from what you say in your Setter, and particu3ar3y that part of it reading: "WhiSe he (StoSSwerck) on his part strenuousSy maintained that the Sate Mr. Hayes, Mrs. Hayes and yourseSf when Mrs. OiSmore was with you had a33 agreed that it was desirabSe to have a great number of German seSections, etc. etc." The idea of Mr. Sto33werck bringing in the Sadies. They had nothing to do with it, knew nothing of the circumstances ■; but it shows the smaSS caSibre of the man. However, I do not think it is necessary to comment any further on this. Mr. Edison and myseSf, as I have stated in my cabSe, not onSy congratuSate you, but fuSSy appreciate the very difficuSt position in which you were pSaced in endeavoring to effect a canceSSation of this very onorous contract; when I say onorous, I mean to myseSf, for if I ever took a vioSent disSike to a man as a business man it was to Ludwig StoSSwerck. He may be abSe to selS chocoSate, but when it c ernes to taking up our Sine, I am perfectSy satisfied that he wouSd not do the business. The onSy way that he won 3d do the business wouSd be that the business wouSd do itself; that i is, we wouSd produce the goods and they wouSd seSS theraseSves, and he wouSd receive emoSuments to which he was onSy entitSed due to the very bad contract made with him by Mr. Edison personaSSy and Jro which, as you know, I was absoSuteSy opposed. Howeveh, I shaSS not dweSS on this, as it is now ancient history. I am very sorry indeed that the money did not reach you as ST No. 2. DATE, 9/30/04. NATIONAL PHONOGRAPH CO. TO G. C. Marks. promptly as it should. The fact of the matter is that I was simply staggered when I sot your cable from Cologne, and not being certain as to your figures, immediately cabled you to London, thinking, of course, that I would have ample time upon the receipt of your second message to cable you the money, although I immediately went to work to arrange for its transfer by cable; but I must admit that X should have sent thd money first and cabled afterwards. I can only ask you to accept my apology, therefore, for the dilatoriness. T„„ „ , 1Tow if y°u oan arrange for the second payment to be made at £37B£, oash* t0 be paid °et°ber 35th, go ahead and do so. If Mr. White cannot provide the money, then cable me immediately and I will arrange to cable it to you in ample time. Another reason why I was somewhat delayed in this matter was that Mr. Edison was at the Cement plant at Stewartsville, N.J., back ^ takeS SOlne tirae to eet a raessce® through to him and an answer However, in conclusion, let me again congratulate you on the very successful issue, and I know that Mr. Edison appreciates fully the efforts you have made in his, as well as our behalf. I presume that you will arrange all matters in such a way that this contract will be entirely wiped out, the contract itself returned and a full release had from Mr. Ludwig Stollwerck of Cologne, Germany, one of the Great and only Chocolate Manufacturers of the world, also former director of the Sunlight Soap and one hundred and one other connect¬ ions of a similar nature. I remember his telling me of the vast business interests that he represented, but the only two that X recall at the moment are those above mentioned. I am glad that we are all well out of it. ” With kindest regards to your good self and hoping that your health is of the best, although I have learned inderectly that you have been having a bad spell at your Summer home, believe me to be, Yours very truly. I resident . I enclose herewith copy of a letter which I have to-day mailed to Ur. Riehl at Brussels. I think you will find this letter to ha quite self-explanatory. Tor your further information, however, I wish to say that I consider the condition of affairs a3 they stand in France to be very serious indeed, and the trouble is that Mr. Riehl does not seem to realise just how serious the situation is. I enclose herewith copies of letter which Mr. Riehl has written to me and to Mr. Squire, giving reasons why selections cannot be turned' out faster. This of course is all very interesting but looking at it from our standpoint I cannot see that it improves matters so far as the selling end of the business is ..concerned. At the time we began operations in Paris I understood from Mr. Riehl that they could mould new selections for us as fast as they were turned out, but in this they appear to have fallen down woefully. As you will see by reading copy of letter to Mr. Riehl the moulding of 8 new selections out of 160, which have bean turned out since July 15th, is not a very good showing, and while I fully understand that they N. P. Co. Ltd. may have their troubles I do not believe that theBe troubles are so great but what they can be overcome. At any rate what we want to know is whether or not they are going to be able to take care of us for the coming season! if not, I do not feel justified in continuing the heavy expenditure in Paris either in connection with the selling end or record-making operations, and I should not feel that X was guarding your Interests or the interests of the European end of the business if I continued under the present circumstances. I wish, therefore, to clearly state that X am extremely dissatisfied with the condition of affairs, and I wish to make it very clear that I am protesting most vigorously against what appears to me to be a great lack of progress on the part of the Continental moulding plants, and I sincerely hope that you will take such steps as will ensure a better service. <■»«/ do not hesitate to say that while I am not competent to comment on the reasons for these delays I fully believe that the condition of affairs can be Improved if a suf¬ ficient amount of energy is displayed. I shall be writing to yourself and Mr. Walter Miller under separate cover regarding the record-making situation as I see it, as I believe this is a matter that requires considerable more at¬ tention than it has had since Mr. Miller's departure for America. Yours very truly, J.H.W./L.D. P.S. I enclose you herewith copy of letter received from Mr Kaltenecker dated September 28th and also copies of Mr Kaltaneokar's letters to Mr. Riehl of the 28th instant wK were SittS £ Prench and which translation we have prepared for you. On second thoughts I also enclose copy of letter written by N. P. Co. Ltd. Van der Wes to Mr. Squire on the subject of production of the Brussels plant, and enclosed also you will find copies of Squire's reply to Both Van der Wee and Riehl, In connection with this I will say that Mr. Squire is watching the matter of production from the Continental plants, and in fact will give it his personal atten¬ tion during the rushed season here, and for this reason I am sending these communications along so that you will he familiar with what steps are being taken. I would further call your attention to the conflicting informa¬ tion conveyed in the letters of Messrs. Riehl & Van der Wee addressad to Mr Squire. I will make further comments on this in another letter. [ENCLOSURE] 30th September, 1904. B. Riehl, Esq., 55, Qual du Halaga, Brussels. Dear Sir, I beg to advise that I have raoently returned from a trip to Paris, and I find that conditions thero are anything but satisfac¬ tory bo far as the listing of new records by the Sales Department is concerned. I have gone into this matter quite fully with Mr. Kalteneokor, and X find that the French recording plant has turned out upwards of 160 new selections since July, whereas up to the time of my visit they had only been able to list S new selections, and according to advice this for the reason that your plants have been unable to turn out any more moulde. I have no doubt whatever that there are reasons why you cannot turn out moulds faster, but on the other hand I hope you will fully realise the seriousness of the situation. I will say, however, for your information that the oxpenBes of our sale organisation in Franco are very heavy, and we are doing very little business at the present moment, the chief reason being that we are unable to offer the trade any now selec¬ tions or at least so few new selections that they ooaroely count, and [ENCLOSURE] I win say that I cannot allow this condition of affairs to go on and unless wo can have assurances that now selections will ho turned out more rapidly I shall fool it my duty to practically suspend operations in Franca so far as tho sailing and is concerned, or at least arrange to cut dov/n axponoea as I feel sura that unless your end can make a vary marked improvement during tho next few weeks we shall ha unable to capture tho Christmas business. I will, further¬ more, state that during my observations in Paris I learned through numerous dealers and other reliable sources that the firm of Pathe are vory unpopular with tho dealer through Franco, for tho reaoon that thoy aro opening their own retail depots and thus antagonising the small shop-keepers. This information hao boon further confirmed by a letter from Mr. Kaltenooker dated September 28th, in which ho advises me that dealers are more than anxious to be in our line if wo can only give them new goods. Under the oiroumstancos I consider it my duty to report this condition fully to the Home office, and I am addressing a latter to Mr. Gilmore on tho subject to-day giving him a full report on my viBit to PariB and in faot acquainting him with tho entire situation ao I find it. I might further state that I have seen your latter to Mr. Squlro received hero yesterday in which you give the reaoon for dolay in making moulds under the new aystow. I have no doubt you are ex¬ periencing considerable trouble, but thiB information does not in any way help tha selling end of tho business as wo must have results or we cannot hope to very much improve the standing of our soiling organisation in Franco this year. I feel sure you will realise the very serious oondltion of [ENCLOSURE] affairs and that I will hava more encouraging nowa from you in tho vary noar future. Vary truly yours, Uanaging Diractor. J.II.W./L.D. [ENCLOSURE] COPY. 30th. September, 1904. E. Riehl, Esq., 55, Quai du Halage; Brusaala. Bear Sir, 1 have before me your favour of the 28th instant giving general information on the manufacture of records and so forth. You state that you can ship a minimum quantity of records from Brussels of 30,000 per week; Paris, 15,000 per week, and Berlin 15,000 per week. Of course the production of the Paris and Berlin plants do not, generally speaking, concern us as no English selections are made there. As to the Brussels output which you compute as 30,000 per week ; if this quantity is the minimum what is the maximum? It doesn't particularly interest us how few you can turn out, what we want to know is how many you can turn out. I presume, however, that you have used the word "minimum" by mistake instead of "maximum" . As to the list of records that I, gave you in a previous com¬ munication which we wish to include in the No. 11 supplement, and your advice to the effect that the masters have not been received, would say that Mr. Van dor Wee addressed us a letter bearing the same date as yours wherein he acknowledges that these records have been received. It appears, therefore, that you were not in pos- [ENCLOSURE] session of true information on this subject at the time of your writing. I have acknowledged receipt of the list sent in by Mr. Van dar Wee and enclose you herewith carbon copy of my letter to him which is self-explanatory. Now, as regards the formalities which must be gone through in order to get a perfect mould of a selection, we are perfectly familiar with this process and to do not expect to receive moulded records immediately after masters are sent you, for we know that there must be some delay, but what we wish to impress is the im¬ portance of having the work of making the mouldB done as expeditious¬ ly as possible, so that there will be no unnecessary delay in re¬ ceiving records made from such moulds. As I stated in a letter X wrote you a few days ago, the indications are that we are going to do a much larger business this season than ever before, and inas¬ much as we must look to the Brussels plant for a good percentage of our records it behoves you and Mr. Van der Wee to do all you can towards getting an increased output and having the records shipped to us promptly. In regard to the stock of German, selections that you have on hand, we believe you have more room to carry these than Mr. Graf has, therefore we do not think it would be prudent to ship these to Graf unless he wants them. I presume he has knowledge of what your stock is, but if not I think it would be a good idea if you would mail him a list at once so that in case he can use any of the records he will send orders in without delay. With respect to our being supplied with a list of moulds dis¬ carded by all the plants, we Bhould like such a list as soon as [ENCLOSURE] soon as possible, and we presume you have arranged to obtain this information by corresponding with the different plants. Of course Mr. Graf and Mr. Kaltenacker should he notified direct should you disoard moulds of any selections that would affect their catalogue. I note that a number of cases have been shipped from Orange which you presume contain masters of American selections, and we are glad to know that you will keep us thoroughly posted on the delivery of such masters. He are particularly interested in this as we are already being subject to delays in getting records from America, and it will be very gratifying when we get in position so that you can furnish us from the Brussels plant American records listed on the late supplements. The bulk of our business is done on new numbers, and if we can get them promptly it will be of very material assistance to us in oaring for our trade. Very truly yours, Assistant Manager. c.c-s.A.d. SSJr. NATIONAL PHONOGRAPH CD. ORANGE, N. J. EDISON PHONOGRAPHS & REGOR.DS. James H. Hhite, Esq;., Managing Director, national Phonograph Co., Ltd., London, England. Dear Sir: Although lfr. Buehler ha3 heon back something like two weeks, I have keen unable to talk over matters generally with him until within the last day or two, principally due to the fact that he had considerable work of his own to attend to when he got hack and I have been so extreme¬ ly busy that I have had no time to give to him. He brought with him the trial balances and general information as to the condition of affairs in London as made up from the books to August 31st, 1904, or in other words, the first six months of the fis¬ cal year. I have looked over the General Expense statement which he brought with him (of whioh 1 understand you have a copy there) and vs have taken out the following items, or euoh portion of the items as presumably would be ohargable to us. X do not say that the amounts I now indicate are our proportion, but X have taken this, after looking it over with Mr. Buehler, and endeavored to deduct as muoh as po 3 Bible so as to bring down the expen ee to what we consider it would be. There¬ fore these amounts are reduced as follows: Legal Acco unt, £ £98 Ereight & Express, £ 200 Paris Sales Office, £ 1867 Experimental, £ 916 Total, £ 3081, leaving the' net General Expense for the six months £6895, or, on the basis of §4.80 to the pound, §33,096.00, an average of §5,516.00 per month. How this seems to me to be very high indeed, considering the amount of buainess that has been done during the same period, and it seems to me that you Should make it a point to go into all the items most carefully; or, if you have not the time to do so, you should give Squire particular instructions to go into it moBt carefully to see if this General Expense cannot be reduoed very materially. I am not going to dispute with you ary of the items. X realise that a great many of the items are fixed oharges, and of oourse there is nothing that I have to - suggest or aay regarding them;, but the grave question with me is, have we not had too many employees during the slow season? I know that you are going to utilise all of these employees during the Holiday season, but I want to impress upon you the necessity of reducing this fores Just as muoh as you can as soon after Jan. 1st, 1905, as possible. TE, IQ /l4/04 . NATIONAL PHONOGRAPH C > * , J. H. TJhite. •When you stop to think, as you will see frcm the General ledger trill balances, that the gross profits during the six months were £8319, or §39 931.30, and against this you have General Expenses amounting to §33,096.00 you must realize that this is out of all proportion to what it should he; in other words, there is a difference of exactly §6,835.30 net. I am hoping, of course", that the present six months will bring this up materially, hut you have a hard fight ahead of you. I can only add that I wiBhyou would make it your particular busi¬ ness to try and shut off expenses at every end; this not only applies™, sma.ll expense, hut to large expenses as well, and the more snail expenses you can save the better able you will he to take care of the larger In looking over the Accounts Payable I notice that there is charged to you personally £709/2/11 • 1 understand from Mr. Buehler that tfii.S represents monies advanced to you from, time to time, agataBt which you had rendered no statements whatever of expenses up to the time that he left.’ Now you know perfectly well that you should not have practically §3500.00 charged up against you in this way. It is out of all propor- tion and out of all reason. I never had such a thing happen to me in ah. the time that I have been connected with the Edison interests, so get out your books and make up your statements and get the other Bide of the ledger credited with some expenses so that this will even itself up. We will now pass along to the Accounts Receivable. H. APPLEYAKD, LOETHOUSE & CO,- £583/12/9. I .understand from Mr. Buehler that this 1b an account that has been open since last April and that it represents goods furnished to them prior to April. Is there any good reason why this account should not be liquidated? I think Mr. Marks had something: to do with the account-, and if you are unable to get payment in the usual way I wish you would see Mr. Marks and ascertain from him what is the best course to pursue to the end of its being liqui¬ dated. A. LOETHOUSE & CO.- £597/2/11. I understand that this Lofthouse is of the firm above mentioned, of Appleyard, lofthouse & Co.. Is this a good account and will you succeed in collecting it? LEOPOLD MELLLNGER - £233/l3/0. I understand from Mr. Buehler that this is the account which I agreed with Mr* Graf to settle up, he (Graf) paying one-half of the amount, the other one-half to be , charged back to the National Phonograph Co. , Orange, N. J., inasmuoh as this . transaction was something that to olrffelaoe long before the organization of the National Phonograph Co..', ltd. I further understand from Mr. Buehler that just prior to his leaving he arranged the account so that Mellinger was credited with the goods returned tb the Edison Ge fie 11 sohaft, the Edison Gesellschaft. being oharged with same , and as the account now stands on the hooks one-half of. same should be charged forward to Orange and the other half should be billed to Graf; and it seems to me that it is about time that he paid for his end of it.' PHONOGRAPH SUPPLY CO.- £5605/l8/4. This equals upwards of §27,000.00,. Now, although there was an understanding that ire Should get this store open on Oxford Street, I have been expecting that you would have succeeded in getting them to reduce the amount somewhat. The ac¬ count is altogether too high. They, are either giving you a large dOBe of "hot air" or else there is something radically wrong. I wish you SHEET No. 3. 10/l4/04 . NATIONAL PHONOGRAPH CO. J. H. Hhite. would give this your immediate attention and see if you cannot succeed in reducing the account materially. They must be doing some business, and although we used it as an advertising scheme, they surely must have succeeded in getting in some money for sales they have made. If the Management is not proper, than I think it is about time that you arranged to put in another Manager who will look after the interests to a greater extent than seems to have been the oafle in the past. RI CHARD SOUS . - £1466/19/04. It seems to me that this is rather high for this party. Possibly you may have reduced the account material¬ ly. Let me know as to this. J. J. STOCKALL & SOUS LIMITED. - £1824/3/5, or practically $9,000.00. Do you consider that they are entitled to ary such amount of credit. In connection with this Mr. Buehler tells me that in the settlement made by them in September, although the account was practically four months overdue, they deducted a oash discount of 2 l/3J«s which you refused to allow them. Have you succeeded in making them pay up the full amount, or did you permit them to take off this 2 l/2£a? I also understand that they take off, under the item of "allowance for breakage and additional This must not be allowed hereafter. The goods that you ship them are sent over from your storehouse on Olerkenwell Road or shipped direct from Brussels to them, and we cannot permit , nor do we permit, any further allowance of this kind here. It is arbitrary in every sense of the word and they are simply "milking” us, as I am fully satisfied that they do not have any such breakage as of the net amount of reoords that are shipped to them. SYMOHDS LOHDOH STORES. - £1191/3/5# I understand from Mr. Buehler that this was reduced £300 during September, which would make it £89l/3/5. Have you succeeded in getting this account closed up? I further understand that you are again giving them open account. The fact that the capital was practically withdrawn from this concern and the further fact that it- was mad! into a corporation convinces me that they are getting ready to have a final failure, and you want to °ut that you do not get caught in the maelstrom. You have always had more or less trouble with this conoern. They were the source of the supply to Gamage, to say nothing of a great many other dealer* who intended to cut prices, and ’I think it is & out time that you dropped them entirely as factors. How it does not make any difference how much business they do that is, if they are inclined not to do business in a legitimate way and in accordance with the agreement which they signed, _I would prefer that the account be closed and that we discontinue all further business with them. In my commercial experience 1 have often necessary to discontinue business relations with certain individuals or firms as I found it did the general business. good. to do so. ^Shall _ large t 1 any name*; but you know that in the. past I have' had some very icc ounts that I closed absolutely for the reason that the business methods pursued by such individuals or corporations were somewhat nefarious, and the conclusion was reached alter oarefuioonslderation, and in every case, we found that it was very beneficial to the businesa, to say nothing of the anxiety and worriment that was avoided by pur¬ suing such a course . Let me hear from you fully as to this. L. T. TAHBT. - £38/2/9. I presume that our old "friend" Tandy has got into us for this amount. I must say that I am as much to blame for ft as anybody else. However. I would like to know if there is anypossi- bility of your. collecting this. I also notice that Tandy & Vincent owe us £19/ll/9; is this in the same category? J. H. 7/hite. SHEET No. 4^ DATE- 10/14/04. • NATIONAL PHONOGRAPH CO. TO Ur. Buahler tells me that they have been in the habit of taking orr one half-penny per record- claiming that this was the price at which they had heretofore purchased the goods from America -and therefore they -sere entitled to the came consideration from the London office. This is altogether -wrong. In the first place, we accept agreements from all jobbers whereby we undertake to charge out records at one and the same price to all of them. How by what right a an we irivc this half-penny to Brown Bros.? Tie are selling our goods in London in English money, and the fact that Brown Bros, or ary other con¬ cern purchased them originally from America on an American money basis has nothing to do with the case. You must take a firm stand with them and toll them that they will hare to buy the goods at 10 d. the same as anybody else. If they refuse, there is nothing for you to do but close the account;- You cannot "malce fish. of* one concern and flesh of another11 * Supposing that some of your other factors should learn of this, what would be the effect? I will further illustrate this as follows: Assuming that they buy 100 records in Amerioa, they cost them at that time 20 cents each, or $20.00 per 100. If the exchange was $4*88 it would equal fA/z/0', ii the exchange was $4.8? it would. equal £4/2/2; if the exchange was §4.86 it would_ equal £4/2/4; whereas, buying them from you at 0 l/2 d. each they would only pay you £3/19/2. How they are simply taking advantage of you, and the only thing for you to do is to put your foot down and they cannot, get any more records from you (and this applies to orders already on file from them) at less than 10 d. each. ■m will now look at it. from, your standpoint. ICO records delivered to you in London cost the National Ltd.,— Adding only 10/ for your General Expense, which, p.ccording to figures mentioned in the first part of tills letter is a very low estimate, makes — Total, Figuring exchange at $4.80, this equals 017.00 1.70 §18.70 . £3/l?/ll. You are selling the goods to Brown Bros, at 9 l/2 d. each, .or per 100, In addition to this they take off 2 l/zt , y for cash, or per 100 rooords, £0/1/ Less 6 /> for advertising, £0/2/8 l/2 Total per 100, ' '■ £3 A?>/3 £0/3/8 On the above basis this puts the records in to them per 100 at £3/15/6 You are therefore selling the goods to them at a loss s#r .100 of £0/2/6. Of course we cannot stand this, and the only way I can see out of it is aB above outlined, that they pay you the same as any other SHEET No. rj4 DATE, 10 /l4/04. NATIONAL PHONOGRAPH CO. TO J„ E, 7/h.itQ» jobber pays you, at the rate of 10 d. per record. How on the general subject of the allowance for advertising, are you satisfied that you are getting good returns for thiB investment? Our experience here ie proving to the contrary and we are eliminating it just as fast as we oan all the way around. Tho: principal reason is that v.e found our jobbers in putting in advertisement would advertise other types of machines .in the same advertisement, whereas there was a distinct, understanding originally that such advertising was to coyer Edison goods exclusively., We wore hampered so ranch,, however, that v© finally decided to withdraw this S,% consession. You had better look Into- it there, and if you can do so gracefully, withdraw it all around. If you decide to withdraw on any of them you must withdraw on all just as fast as you can, but. diplomatically. I realise, of course, that in some ^ew cases Jobbers may have, contracted ahead.. You must insist upon seeing the contracts, and if you find that they are correct in their statements, then carry it out up to such period, but decline to do anything of . the kind thereafter. I wish you would have. made, up and sen A to me copies of any end all credit memorandums that have been issued since Sept. 1st, and please give instructions to your Accounting Department to forward to our Accounting Department here copies of all credit memorandums that may be issued in future, or, should any allowances’ bo made through the Cash Book where credit memo randums are not necessarily issued, I should like t,o have, sent me a transcript, of all such allowances. Going •'back again to the sdbject of cadh discount, I oro afraid that your people are entirely too easy in' making allowances for cash discount. The 2 l/jjs? cash discount was originally intended to cover invoices paid within ten days from the date of seme- It would seem, however, that this, faot is entirely; overlooked .and in some cases thi s discount has been allowed after an account has run 60 days. How this is .not at all cor¬ rect. "rlity should one jobber be .favored to the detriment of another? If, on the other hand, yotir other jobbers find you are all, o?ri.ng this cash discount on a longer period than ten days .they will 'expect, you to give them the same extension, and the first • thing_ypu know .it will ■become a farce pure aci d . o implc* X ’.do not went ^ to mate tbe- rule .so rigid that it, will be irksome to you, but. at the same time wo must draw the line somewhere. The. very best; that, is allowed here is that invoices of the previous month must be paid on or before the 10th of the follow¬ ing month to enable the jobbers to get' the advantage- of-, the Zfi allowance which y» make. In other cases we allow jobbers to- make pajrmeht s twice a month,, that is, on the -,15th and 30th, ; but the. greatest, time given is in. the ease of large corporations, t,tf whom' we grant the privilege of making payment of the entire month's purohases- with the 2^~d6duction if vsuoh payment is made on or befort- the ;iOth of the’ following-month. „ You should make your rules likewise. -If there is ii. good reason why you cannot do soi. wr&o me on . it and- we will try; to arrange.this so that it wi 11 be to the mutual advantage of all- concerned..;, . You- will' remember that I had quite a long talk with you. as to get¬ ting Mr. Marks to meet "with' you at . least once a month so as to go over, matters generally. AS a Director of the company he should know what is going on. I realize that we must pay him, for this; work,’ but. If eel sure that, he" can give you some good advice, in that where you are unable to’ decide absolutely as to .vhet course you should pursue in con¬ nection with any matt era he oan no doubt assist you materially.. If, SHEEtW 6. DATE, 10/14/04 . NATIONAL PHONOGRAPH CO. To J. H. White. therefore, you haw not heretofore arranged for a meeting of the Directors at least once a month I wish you would make it a point to see nn^Maw£Hvfld then arrange for a meeting to take place at Clerkenvvell RoEd where any and all matters in dispute can he taken up and di ecuseed fuliy. Personally, I have a great deal of respect for Mr. Marks* opin¬ ion, both legally and from a commercial standpoint, and were I in the position that you hold I should not hesitate to call upon him for advice on many oommercial matters. I realise,, of course, that he is a very busy man, hut nevertheless, X am perfectly satisfied that he could arrange his time in such a vray as to be able to give you one half day at least once a month to discuss and settle difficult questions that may arise and must arise in connection with the various interests that you represent riot only in I.ondon, but Berlin, Baris, Brussels and elsewhere as v/ell. In _ conclusion, I do not wish you to bo offended at anything that I have written in this letter. I s m writing you in the same old frank -way and for the good of the general cause. You want to stop and think every once in a while that the immense quantity of goods going over there r?Pief,entf a ereat ?eal of mo”61r< The figures I have before me show that the total consignment accounts of the London, Berlin and Paris selling organizations amount to §433,559.50 I trust, therefore, that you Ti1* $°rider thi3 letter rory carefully, taking up the different matters that I have brought, up sereatim and write me very fully in relation thereto. Yours very truly. kk/iw President. P. S. In connection with the reports that you have been sending me weekly, showing business done in London, I wish you would give instruc¬ tions to Mr . Graf in Berlin and to Mr. Kaltenecker in Paris to make up and send me similar reports. X understand that Mr. Graf has been sending these to you weekly, so simply give him instructions to send me a copy of such report; and I would suggest that you send to Hr. Kaltenecker a blank form made up complete with fictitious figures and ask him to arrange to forward such report, one oopy to you and one to me, weekly; and I would also suggest that these reports include, as I have wlready written you. a statement of the number of machines that they have -In stock. \amat> CX&h -w. IWorru EUROPEAN HEADQUARTERS Protecting Kinetoscopes, Original Films, Battery Fan Edison-Primary Batterie- NATIONAL PHONOGRAPH Go. Ltd. EDISON NVANUFACTURING G°- Ltd. X 25 Clerfeenwell Road, bJL. London, E-G, 25th October, 1904..,. rMw; QFFioiS, V/. E. Gilmore, Esq., j ' I'-'T'D j Orange, New Jersey. Dear Sir, I have recently received copies of the "Newark Evening News" and "New York Sun" giving an account of a suit which you are press¬ ing against Thomas A. Edison, Junr. Chemical Company of New York, and that the United States Postal Authorities have refused to grant this Company further use of the mails. I very much wish you would send me any further particulars of this matter that you may have at hand, as I find a great many people on this side of the water are interested in same. I believe some of these electro chemical or magnetic cure-all fakes or whatever they call them have been sold on this side of the water. We frequently have to answer correspondence relating to this matter and it has occurred to me that it might be a good scheme to advertise the fact generally that Mr. Edison himself has no connection whatever with this concern. Very truly yours, J.H.W./L.D. + Telegrams Bf Cables-. "Randomly, London.” tolooHono No, 5050, HOLBORN, Tbomas A. RJ»E80E*»S EUROPEAN HEADQUARTERS NATIONAL PHONOGRAPH EDISON MANUFACTURING ) 25 Clerkenwell Road, London, Battery Fa Motors, Edison-Primary Batteries. Bates and Edison Automatic Hand Numbering Machines. Factories ; GO- Ltd. Go. Ltd. Orange N. J., U.S.A. Berlin* Paris. Brussels. E.C. PERSONAL. 25th October, 1904. V. E. Gilmore , Esq., \ , ■ jrp V Orange, New Jersey. ' j wy> | Dear Hr. Gilmore, i Your very kind favour of October 14th has just come to hand having particular reference to the matter of open accounts and gen- eral expense. I shall be unable to reply to the letter in detail to-day as I cannot get sufficient information together to enable me to give you a complete answer in time to catch the post. Referring to the matter of open accounts, however, I will take them in the order in which they are given by you and beg to advise as follows:- r« H. Appleyard lofthouse & Co. J as possible. X have conferred with Mr. Marks on this regularly ) and everything possible is being done to get expeditious liquidation. / I hope to be able to write you shortly that the account is entirely ^ closed. A. lofthouse & Co . is a new concern which took over the business of H. Appleyard lofthouse & Co. who we hold responsible for both accounts. Both myself and Mr. Marks are satisfied that the account is entirely safe, but they are very slow payers. In fact a friend of Mr. Marks, a Mr. Thomas Hird, has guaranteed the account. Neopold Hellinger : I beg to advise you that Mr. Graf has remitted us the money in part payment of the Mellinger account, and we will now charge the other part over to Orange and you will re¬ ceive bill during this month. Richardsons, Manchester : This account has now been greatly reduced, and they owe us at the present time only £1060 , and is an account I consider absolutely safe. c J. J . Stockall & Sons. Ltd. - This concern have now settled, their account up-to-date, and only owe us for purchases made during last Month. I have not permitted them to have the 2-£ per cent on their old account. As to the 2 per cent allowance which we have made this concern for breakage I will say that it is the first I have learned of the fact that you do not allow breakage in America, and 1 know that at the time the Foreign Department was trading here with our customers in Great Britain a 2 per cent allowance was made to at least one of our customers, Messrs. Brown Bros, and if you had discontinued this practice in America X certainly would have been glad had you advised me of the fact. Symonds 1 London Stores : This account, as X have previously written you, has been settled in full, and we are now selling them goods on an absolutely cash basis, and will continue so to do. , L. T. Tandy : This is our old friend Tandy as you have sug- gested, and we issued a writ about one week ago in the endeavour to press the collection of this account, and I believe we will succeed in covering it. Regarding the Phono Supply and Messrs. Brown Bros, account X will write you under a separate cover. I am very glad to say that we have not up-to-date lost any money on open accounts at this office, and I sincerely hope we shall not do so. I want you to feel that all the care possible is being exercised as regards to open accounts. With reference to conferring with Mr. Marks you may be sure that this is done regularly once a month and sometimes twice a month. .. In reference to your closing paragraph you may rest assured that your remarks are accepted by me exactly in the spirit in which I feel they are given, and that they are not in any way offensive. As a matter of fact I appreciate very fully your writing me in such a perfectly frank manner, and you may be sure that I will take every quest uon up carefully and give you a complete reply by the Very sincerely yours, , / • CyS Managing Director. J.H.W./fc.D. <r MUS&JUJt.A (Komulttuuj; Qs)u\ittiw&-41jilrtif dJxpwt. "9(9. 0$-eu. /e/MiyJ, ^Zeme^nu KovSK'^r 2Rd- '/WA W. E. Gilmore, Esq. ,, ,.. Orange, N.J.i '■ •'■' i ' ;V;'- , 1 . Dear Sir, / 2/’*?/ P M I have your/s of1 the 19th ult, enclos/ng/copy of your's of Oct. 14th addressed to Mr. White. While I oan quite appreciate all that you say and had perhaps Anticipated that you would some¬ day make such a suggestion, I am afraid that my position has' not teen as comfortable a one to me as X would ha.ve liked, because although being nominally a director and thus resppnsible in a measure I was not concerned in that which affected the commercial, or. business portion of the undertaking although I was perfectly oertain that in such a business conferences with others would have been an advantage. While that was the case I did not want to push my suggestions but I may bay that I have had repeated interviews with Mr. White and also with Mr. Squires and Mr.Lemoinb but it has not been always satisfactory for me to come in upon what might be termed the rough end of the business when probably an earlier conference would have made things easier for us all. My impression is that the business over herd could be much more successful than it is provided methodical and system¬ atic meetings were held for determining upon all vital questions Of policy or commercial matters* . ... . .. , _ _ ■ „ I consider that a board meeting should De held once every month and this would last some hours; at this board meeting there should be presented;- 1st. a statement showing all accounts due to the Company and from the Company and no cheques should be drawn except for current wages expenses other than at the ooard meeting. 2nd. a statement should be prepared showing the business done' and also giving stock in hand and or.der.s pending, 3rd. a list of all orders giving da,te when placed and showing when filled so that qny complaint as to delay and any question of preference could be immediately dealt with. 4th. a salary statement showing the whole expenses of the staff together with a list of employees and their duties should be presented, and this' could then be modified depending upon the orders and output, 5th. a list of proposed new records for future stock and .proposals for engagement of artistes and others. 6th, a list of the records made together with the cost and the whole expenses connected with the recording department. 7th. advertising and W.EJ.Gilmore, Esq. 2/11/04. - 8tlu 3117 important matters or disputes as to accounts between dealers, factors and others P It may happen that the whole of these matters would not arise every month but they are such as in my opinion should be dealt with and be within the scope of the board meeting business. I suggest that the first Thursday in every month should be set apart for this business' the hour of meeting being 2.&0 so as to enable the morning to be given to the commercial and ordinary work arid leave the 'directors free to work as late as might be necessary for. settling everything, this day would also be con¬ venient for getting the report ready for. the mail on the .Saturday for America , I -have ' been connected with other companies and at our board meetings we always dealt with matters somewhat on the lines I Have laid down. You said quite frankly to Mr. 'White that you know I am a busy man, but my experience shows me that busy men manage to find most time for their work as they have to adopt some method. You know of course that I cannot go down there to those meetings and simply think about what has to be dealt with at that time and no; other, as to be of any use I should have to frequently carry in my mind the interests' of the company and be constantly having in View matters that I now have no time to enter intoj I can only do this work by paying more for. other assistance and I suggest therefore that if I am to do this business properly in the way I have outlined I must charge a fee of £20. (twenty pounds) pisr month for this service alone. I do not by any means court this work as I can quite under¬ stand it will not always be pleasant and I shall have to be oqn-? earned in exercising authority and possibly coming into conflict with others occasionally with whom at present X have nothing f*4v the way of administration *.r= . In the matter of the accounts you have mentioned- in your letter, I know nothing whatever about them with the exception of Appleyaxd & Lofthouse, whom you tmMjf. remember were two of the worst cutters in Manchester and whom I got together in partner¬ ship, the understandihg being that we should allow them credit for, a time in order that they might build up a business, at the same time by doihg this took a,way from, all our other factors and dealers the complaint they had' against these people trading. At the end of the year we found that Appleyard was not a very satisfactory man in his methods and we gave each of them the opportunity of buying the other put. Lofthouse took the Dusines and formed a limited company of it merging his old jewellery W.E. Gilmore, Esq. S/l^/04. business with it and we thus got his jewellery as security in this business for the .debts that were owing so tha,t if the business developes as I think it may under Lofthouse' s control we shall be all right, but in. any event I consider that too muqh oredit has been given to this man since the formation of the company and X will look into this at our first meeting. With regard to some of the other accounts it is' the very first X have heard of them and I am simply ama.zed at the credit that has been given and consider that pretty vigorous methods should be adopted towards reducing them, particularly with regard to the Oxford Street "Phonograph Supply Co", the shop is in the wrong position to start with and I am of opinion is "not likely to do us very much good, however I will report to you fully after the board meeting. I may say that as a Director I had been feeling somewhat uneasy over this matter as I knew there would be an occasion sometime or other for a conference on the business with a yiew to making the accounts up to suit the income tax authorities and also the joint Stock Companies Office, and to do this very close attention is necessary on the part of the Directors. Perhaps you will let me know definitely as to my proposals and terms before the date of any first meeting you may wish us to hold. Yours faithfully. ** & Cables : " Randomly, London.' hone tJo. SOSO, HOLBORN, ,, , - &£dt*0 Cable Cocks Used, t moL-ci a 9 A. ISO XT'S EUROPEAN HEADQUARTERS NATIONAL PHONOGRAPH Go. Ltd. EDISON MANUFACTURING 6°. Ltd. “ 25 Clerfcenwell Road, B.JU, London, E.C.^4^ r Ui£yy^j(, ' OJtueJ- _ 3 ^LuU ^ axj ' /C&IA Qy\s»ryCd~ . ^ ^/AAAa£' yfopx&Us' yif A* ^AAXAZsa^ 6t~£'£t>-<As ^ ylXXvi $trr*^. JkyjO -citt-d yyyurAj Jyyi jdifeeJ' ^G4 yUU*S -Aac^ ^dyLoxyf^ • ^(y<+y O-^tLA) J? 'ds^AUAr 0-0 /** cuW1 y $ JxaL*^ a ~fc (frvLjbj! fyx -xfc*6 cia.zA'. O4, Jj^e./*J — -.--- UAedO-f -h- J&huAjuA. -AA-^> ~Zfcs». O^A-AZ^yxX^e /ylAA^'f' ^AeCeOsP *s£*0*Ca*%s*tJL* s^&AAS yLCtLLci- ^CAuA^LJ ^As^Ay^A/ dis\*A^. O^AVy^-et-ieCcaO" /yi*A^. /yi^AYVX*^ ' ^ -^L^jL&4J §A) _ <3$wmat>C l£dw »Q EUROPEAN HEADQUARTERS NATIONAL PHONOGRAPH <d<>. Ltd. EDISON MANUFACTURING <3©. Ltd. 25 Clerfeenwell Road, Automatic Hand London, E.C. jVL/^Ct / jvuc^^ Y' £y -^Xu^ /4M, ^ sc* ~£* - J? /UUsv\ jyt £P&+%^, ^UyyxtiY ^ "T* ^ ^ /yvirjr yAyOCf oJbx, yP-^> *y£' ^LeA^Us/* yttp j^ctts J&o-L^J&cl sy^rt' d ¥~ sr>*Jtsy\ / o*t. jh-4L4s{~ yf sOO sC**-4*p yiL^y /6c^tJ'. jJblt yzf^ V' $ ^tcAAy- a. ^sCi*+ yv«^^A /yty^f4/' AAjJufcly^ [ENCLOSURE] <§>I|e; Pfi©e0gmp& |kippf$ ©©mperia^., 321, OXFORD STREET, W. SALES. EXPENDITURE Machines 6 Accessories A. /i.tf h Records 66. t.y Sundries 2. . (o. la. foi. e. y Machines — 73 Accessories • 3. •H <D oc Records S', a. C, Sundries *• ~ 6'. //. 6 £/oq. o. /. Cash Sales £ 93. /. 3. Credii t „ £ 6 4- /£.//. Stock . ^ tf. - Rent, &c . I — Wages and Salaries 9-/6. - Sundries . /2+. - . - S- / 3 . - ToTAL^/* 9 t ■ lOTAL Cash in hand or at Bankers. Assets Receivable. Brought forward £ /o6> , 7. //. Brought forward £ /p. (, Cash Sales ... 1/.&. /. ^ , Credit Sales ... /<F. // Cash to Account t • *+ • £ /go. / 3 : / /6 . «r. Less Less Expendituri ■- 1 ?*■ - Amount Received <3/ . 4f . - £ //. /. THE PHOI ’H SUPPLY C- [ENCLOSURE] <|>lfe: Pfioeoejpetpfi (Semperia^., 321, OXFORD STREET, W. REPORT FOR WEEK ENDING &i/. /£T_ /&OLL SALES. 6 1 h Machines Accessories Records Sundries 38 ■ z. - Z. to ?t. e,. t //3. //. 8 Machines _ Accessories *.<s cc Records 3. / s . - Sundries 5. -. S/f.6 £ ffq. //• 2.| Cash Sales ^ Credit ,, £ 83. /&• o Total j£//f //.Z. Cash in hand or at Bankers. Brought forward £ 88. //. / Cash Sales. ... JSA/-.J. Cash to Account • ~ • 3 . i/s?. s. y Less t Expenditure £ £jf. /2, *7 EXPENDITURE Stock . A 4* . 3 Rent, &c . — Wages and Salaries S. /G. Sundries . At. f. 9ts/6cLeja • 3 . fo &<sOt/-CA/ , / '*■ - Total Assets Receivable. Brought forward £ ££o. /2 . J" Credit Sales ... 8Q , f&./f T~— Less . Amount Received 3//- . — . o?. 3/0 . i/36. /3. - [ENCLOSURE] <D 1 h Machines Accessories Records Sundries £3/0.0 /■ 0/ *7'/r'7 ■ 3.//. 64J.C Machines £. a. - | Accessories /£. - DC Records </r. z. - Sundries *•7 **7 £ ?&-6./. Cash Sales £ <32.3. // Credit „ £ //0 . £. _2.| Cash in hand or at Bankers. Brought forward £ 202. /<$72_ Cash Sales ... ■ 3. // Cash to Account 40- /S • 3 - 1 - £ 2/S- ///■ 4 Expenditure £ /t)3- Assets Receivable. Brought forward £ 4-3/. // J Credit Sales ... 40 ■ 3.. 2_ £ 4-fr/. £2. Jr. Less Amount Received 4-0 ■ / 3 . £ /0l. //., £ 430- /ff.2 '/SUPPLY 5SE T£r,KGHAPIIlQUK VJLY'^pUXELLES ' t4atioIial i°borio9Pap>? Co I PHONOGRAPHS * WAX DEPARTMENT — .urn -i i 84, flue Scbeutnreld, 84 &$}etavdt&, Ay. fo/6C, Q ~ %u> A** ^&dmdsk- Telegrams; & Cables : '* Randomly, London.” Telephone No. 5050, HOLBORN. (^ama^CX&d\ EOISOEf’S EUROPEAN HEADQUARTERS Phonographs, 0F THE IIS* NATIONAL PHONOGRAPH Batteries. Bates and Edison Automatic Hand Numbering Machines. 25 Clerkenwell Road, London, , T* A - Cable Cades Used: a.i„ A.D.C., commercial, ’?WvX ' Factories : Orange N. J* GO. Ltd. "**• Go. Ltd. X E.C. T. A. Edison Junior Blectro-Chemical Company, we have sent circulars out in this country, in fact we believe every customer on our books has been properly circularised and we have duly charged the eo:pense of this back to Orange. Regarding the matter of sending these circulars out in France , I Efri advised by Mr. Kaltenecker that nothing has ever been printed in the French papers regarding this "fake" Electro-Chemical Company, and that the French public are entirely ignorant of what has taken place, therefore X do not think it would be a good idea to stir them up or to circularise our small connection in France. I take it in making public this fraud order your idea is merely to safe¬ guard Mr. Edison’s name am* business interests, l4ierefora for the present I shall do nothing further about this matter in France, as X think the publishing and sending round of this fraud order would not make a very favourable impression upon the French public at present - \ ily, London." . 5050, HOLBORN. Cl 'Q&g-'-uL - Tfltuv* EUROPEAN HEADQUARTERS Projecting Kinctoscopcs, Original Films, NATIONAL PHONOGRAPH ©o. 25 Clerkenwell Road, Ltd. Ltd. , Gilmore, Esq., Orange, Hew Jersey. Londo.nt__E.C, /Main office's 3rd DaeSifibew)/ 495)4'. 3EC la 191M Berlin. Paris. D8ar Sir, I enclose you herewith report for weekly sales of this office ending November 26th being #22615.78 total. London Sales being #20446.90. I have not yet received figures for the entire business of November, but from what I can see at the present moment I fear they will fall somewhat short of the business for November 1903, which was #144,810.26. However, I shall give you a complete report, as soon as I get the figures from Berlin and Paris. Our record sales during November of this year have been light , and X put it down to the following reasons 1. The weather during the month of November in Great Britain has been exceptionally fine, which is detrimental to phonograph business generally. 2. We are up against the st if fast kind of competition here to/s?ord«- T*e following well-known firms are selling moulded records to the public at l/- each: "The Columbia Phonograph Company, Edison-Bell Consolidated Phonograph Company, Ltd., The ?;®ot1ric 58°or,d Company (Messrs. T. & G. Hough, proprietors). Messrs. Lucock and Packman 'and the PathS Company advertise their record at 1/4 but it is generally sold at l/- . S' 7s £ully expeetfljto have shipped to our trad® from the Brussels plant during November records from the No,, ll British list, copy of which I enclose herewith, and also recordsJfrom our special N. P. Co. Ltd. Christmas supplement, which I enclose herewith. The Brussels plant has fallen down very badly in delivering new records . With the exception of a few records shipped against our orders for the No. 11 British supplement, the Brussels plant turned out no new records during November, and the records which they have shipped on the No. 11 supplement did not go out until November 30th, therefore too late to include in the November business, as we have not yet received invoices for them. We had hoped also that the Brussels plant would be able to deliver us records from the November- December American supplement, moulded masters of which are now at the Brussels plant, but up to date there is no sign of receiving a production from these moulds. While I do not wish you to think from these remarks that X am discouraged about the record business, I feel that in justice to ourselves we should set forth our opinion as -to the reasons for light record sales. So far as the competition hers in Great Britain is concerned, I still do not fear this as X am satisfied our record will prevail in the end at 1/6. The greatest problem which confronts me at present is the one of Brussels being able to make quick delivery of selections which we turn over to them for moulding. Of course v/e must in justice add the sales of Berlin and Prance for the purpose of making a fair comparison against November of last year, and I think when the figures are received from Messrs . Graf and Kaltenecker we will not fall far behind last year's business, but it will probably be 10,000 or 20,000 lower. I hops, however, that we will make up this loss during December, as it has already started in very brisk, and I feel sure that with the new records that Brussels will give us things will boom to a very considerable extent. However, I will write you very fully on this at a later date . I also beg to enclose hers\ National Park Bank of New York, 2. N. P. Co. Ltd. to our credit and a receipt returned. I shall be able to 3end you ^25,000 to ^40 ,000 within the next tv;o weeks . Very truly yours, J.H.W./L.D. NATIONAL PHONOGRAPH CD. ORANGE. N. J. EDISON PHONOGRAPHS & RECORDS. 13, 1904. E. Riehl Esq. r C/o Rational Phonograph Co., Brussels, Belguim. Dear Sir:- Please accept thanks for your letter of Dec. 2nd, enclosing factory reports for week ending Rov. 29th. The average percentage of good records at Brussels is very low? indeed and does not begin to compare with the output at Berlin and Paris. As X understand this, the average percentage of the total records manufactured during that week at Brussels (50527) was only 53$; or do I understand that out of the total number of records inspected there were only 53^ good? This looks very ponr indeed any way that you look at it. I note what you have to say about cost of records there, and it is quite gratifying to know that this has decreased materially for Eovember production. I hope that you can keep it down to this point, or even less. I realize that this is only an approximate estimate. Regarding the location of another factory, this is the first inti¬ mation I have received that London or any body else has contemplated the erection of a new factory at any other point. For your information I would say that I do not care to have another factory installed at the present time; in fact, I want to consider it most carefully before doing so. Mr. V/hite has not communicated with me on this subject. X will take it up, however, later. Please do nothing about the installation NATIONAL PHONOBHAPH CO. ORANGE, N. J. EDISON PHDNUERAPHS & REEDRDS. 13, 1904. of any further plants or in fact making any further increases, until you communicate with me. The jurisdiction as to this is with this company, and not with London, or in fact any other of the selling plants. What I want to do now is to get the present plants that we have going working successfully before we enter new fields. X think you will agree with me that this is the better course. to pursue. I note that your further advice from the Austrian patent attorney is that you have done everything possible to protest the patent, but as I have indicated in another letter, I assume 'that you have seen Mr. Dyer about this, but if not, X will take it up with him when he gets back. Yours very truly. WEO/lVAV President . I duly received your letter of Nov. 16th, regarding the taldng hack of the factory at Berlin, now that the Stollwerok contract has Been cancelled. I have diacussed with Mr. Edison quite fully the method that Bhould he pursued, and the decision reached is that what you purpose doing is entirely satisfactory in every way. I see no good reason why the Edison Gesellschaft should not own the patentB there and that they grant to the National 'Phonograph Go. the sole lioonse to manufacture under suoh patents in Germany. I do not. see where there is going to he any friction as to the administration of this factory. You will remember that Mr. Riehl has charge of all the manufacturing plants at Brussels, Berlin and Paris, and it iB our desire that he Shall oontinue to manage them, and that they shall not oome under the supervision of the selling departments. If the selling departments will attend to their own business they will have plenty to do, and all that is nece SBary is for the selling depart¬ ments to arrenge to place orders with the manufacturing departments for Buoh records aa they may require. So fhr as money is concerned, there is no reason why the Edison Gesollsohaft .oannot advance such monies as may be required to meet all sheet No. 2. date, 12/13/04.nationai- phonograph co. to g. Oroyclon Harks. expenses, in the sane manner as is pursued by the national Phonograph Co. , Ltd., of London. Of course, as matters are now running, all goods for the Edison Gasellsohaft are billed to the Hational, Ltd., at London, who in turn charge same forward to the Edison Gesellschaft. How 1 f the Edison Gesellschaft advance money to this company for the proper opera¬ tion of their plant in Berlin, then of course the amount would haw to be charged back to the National Ltd., London, who in turn would charge it back to us. I do not see but that this can be done without any great moimt of trouble, but it brings tip the question as to whether eventually we should not deal direct with the Edison Gesellschaft in Germany and with the- Trench Company in Paris, the sene as we do with the National Ltd. in London Of course I do not see that ve can arrange this at present, so far as machines are concerned, nor do Z want to leave the seme authority vested in Germany and in Prance as it is in London, as if they are allowed to order promiscuously directly from us the tendency would be to order such a large quantity of goods that the consignment account would be very much heavier than v.e could stand, I have before me a memorandum showing that the consignment account with the National Ltd. at London at 'this date is $554,770.93. Of course this represents the goods that they have on hand plus their Accounts Hecoiv- able (which includes all shipments made by them to Germany and Prance) , goods in transit, etc. etc., but the amount is getting so large that 'we have got to do something radioal to the end of reducing it. I think, therefore, that for the present it will be necessary to let both Prance and Germany order their goods from London, so that the London office can control the amount of goods that Should be shipped to them. This, of course, only applies to phonographs and accessories, and when it comes to the question of records I assume we have got to leave them the right to order such records as they want from our Berlin plant, in the case of SHEET No. 5. DATE, lg/l3/04 RATIONAL PHONOGRAPH CO. To Q. OrOydOM MurkS. -Berlin, and from the Paris plant in the case of Paris. I do not. know whether you hare discussed this matter with Mr. Byer or not, hut in any case, what you haw indicated in your letter is quite satisfactory to us. I wish you would make arrangements to take it up and straighten it out forthwith. Yours wry truly, USEfl/lW Pre sident , I have carefully read over the letters from Riehl to you, also Mr. Scherraerhorn’s reply to same, and would advise you that I have already written Riehl on the subject of Mr. Schermerhorn' s letter under date of Deo. 19, 1904 Tt seems to me that he is ignorant to certain details of the business if he thinks that the moulded masters we have been sending him are to be used to make "mother" moulds of. I have recently seen a Supplement of Christmas carols which have been listed in London, and which had been made from moulded masters we have sent him, and if he has treated these moulded masters sent as "mother" masters, and from them made mould masters, and from them the regular moulds from which the commercial product is produced, they will certainly be a failure as not one of them will track across the record without adjusting the reproducer. I also note what Mr. Riehl says in regard to the strict inspection of masters under the microscope in Paris, as follows: "I hold the opinon that we cannot be too severe, and no chances can be taken in examining masters made under the original or "mother" mould system, and our criticism should be most rigid in the selection this also has a tendency of bringing our records to a higher standard." I wish to say that J differ very much with Mr. Riehl in this respect, and would add that if he keeps this inspection to severe he will throw away masters, which, from a reproducing standpoint, are of the best. It has been my experience that certain kinds of shades can be moulded, and to as good an advantage as an absolutely perfect mould, and I have written him sometime ago in regard to this severe inspection, and advised him that when he is doubtful whether a master is good or not to make a mould and try it,, and get some experience as to what will work -2- and what to reject, as 'it is a whole lot cheaper to discard a copper shell of a mould than to run a chance of throwing away an estpensive master, and I have recently received a letter from him on this same subject stating that he had tried this, and found that masters he had experimented with made a satisfactory mould. It seems to me that it would he a good idea if he keep us posted more in detail as to some of the troubles he is having in the production of the Brussels plant. I note that on his report he has only 44 per cent good, but I find in figuring it out that he is wrong and that it is 55 per cent good. This seems to me to be a very poor showing, and if we knew what his troubles, are we might be able to help him out considerably in the same manner that we sent him information on the moulded master situation. I have heard, however, that he is rarely ever at the Brussels plant and spends most all his time at the Wax plant. It seems to me that if the Wax plant is going satisfactorily,. and quite evidently it is, he should be at the place where the trouble exists to try and remedy it. W. H. Miller. 12/23/04. [ATTACHMENT] Hs V WAX DEPARTMENT •'7?ta^'UJ7x 84, i^ue ScbeabYeld, 84 8HUXELEES HRIJXKLLliS [ATTACHMENT] ADRESSE TfiLgGKAPJIIQUK RAMDOMUY-BBUXELLES Rational Vbot)ogPapif ^ EDISON PHONOGRAPHS V WAX DEPARTMENT — And Records BERLIN. — 84, l^ae Scbeafcveld, 84 — Enregistrements PARIS [ATTACHMENT! **3tiot>al ^’^orio8Sr,apt) *■ WAX DEPARTMENT 84, f?u© Scbeubveicl, 84 BKUXELLES [ATTACHMENT] SS YOUR REPLY YO THIS I NATIONAL PHONOGRAPH CD. ORANGE, N.J. EDISON PHD ND GRAPHS & RECORDS. E. Riehl, Esq. , C/o Rational Phonograph Co., Brussels, Belgium. Dear Sir: Mr. Gilmore has just shown me your letter of Dec. 9th, enclos¬ ing your weekly report, and I have noted particularly that portion of it which has reference to the sending of masters of American supplements. I assumed that Mr. Miller had fully acquainted you with the fact that we are sending you, not original or mother masters, hut masters from v/hich working moulds could he made, and as a matter of fact, Mr. Miller states that it is a very eaqy matter for you to determine v/hether or not such is the fact. Also, I should think it would strike you that we would not send you five or ten originals from which to make mother moulds. The letter has just reached us and we have not had time to take up the matter of supplying you vlith moulds; X am only writing you thi3 letter so as to set you x± gkfc straight on the masters that are now going forward. Yours very truly, J .R . Schermerhorn . JRS/lW Asst .Gen. Mgr, NATIONAL PHONOGRAPH CD. ORANGE, N.J. L°p‘ EDISON PHONOGRAPHS & RECORDS. o/o national Phonograph Co., Brussels, Belgium. Dear Sir: In discussing matters with Mr. White having reference to our business abroad, he has brought up the question of broken promises as to deliveries of records from the Brussels plant, and particularly the shipment of Christmas Carols, about which you have already had some correspondence. He further states that promises made as to shipments for the past two or three months have not been lived up to and that quick selling records, apch as selections from the comic opera "Prince of Filsen", "The School Girl" and the November-December records, had not up to the time that he left been shipped to London so that they could fill orders. Prom the talks that I have had with him, I can only conclude that the management of the Brussels plant is in a very demoralised conditionand that, extremely raidal measures are necessary to get this plant running satisfactorily so as to meet the growing business in the British Isles as well as on the Continent. It, therefore behooves you to take hold of the Brussels plant immediately with a view to intro¬ ducing an effective remedy. It is my wish that you immediately make an investigation of all SHEET Np. 2. DATE, 3 2/33/04. NATIONAL PHONOGRAPH CO. TO , Rieh3 . the orders that have been received from London since September 3st 3ast, that you go through these orders and 3ook up a33 correspondence in con¬ nection with same and then see what instructions were given to the Brusse3s p3ant as to manufacture, what their necessities and future re¬ quirements were, and in fact, any information you can obtain which wi33 put you in a position to exp3ain the di3atory tactics that have been pur¬ sued at that p3ant . I judge that London has instructed Brusse3s as to their requirements in the way of records, and if these instructions have not been fo33owed there must be some good reason for it, and that is exact 3 y what I want to know. I am satisfied that you may find it necessary to make a change in the management there; there is no doubt that there is something radica33y wrong. As I have previous3y written you, I cannot understand why it is that the percentage of accepted or good records is so 3ow at the Brusse3s p3ant, and particti3ar3y during the months of October and November. When you compare the output of good records at the Ber3 in and Paris p3ants as against the Brusse3s output there is a vast difference, which, so far as I can see. can on3y be accounted for by poor management. A3 though I have written you as to this heretofore, I have not as yet received a satisfactory exp3anation as to why the percentage of good records was so 3ow. It is now my desire that you 3ook into it persona33y and that you report to me fu33y as to the reasons therefor, and what you intend doing to remedy it. For your information I wou3d say that the net output of good records here averages about 82%. There is another point upon which I wou3d 3 ike to hear from you as we33, and that is, how often are you visiting the different p3ants? I refer to the p3ant at Ber3in, at Paris and at Brusse3s. It wou3d seem to me that you should out3ine some scheme whereby you visit . these plants periodica33y . My opinion is that you shou3d visit everyone of them at SHEET Np. 3 • DATE, 3 Z/Zl/04 . NATIONAL PHONOGRAPH CO. TO E . Rleh] . least every two months so as to go Into any troubles that they may have and so that you will be acquainted with what is being done there. Of course, in the absence of any information to the contrary, I am assuming that you do not visit these different plants so long as they are operating satisfactorily, but, it would seem to me that you want to visit each and every one of them so that you will know the exact condi¬ tions and suggest any remedies that may occur to you in the way of improve¬ ments, cleanliness, etc. etc. I am speaking particularly now of the Paris and Berlin plants, as I understand that you had not been to the Berlin plant for a long time, your last visit being just at the time Mr. White sailed over here. Of course, so far as the Brussels plant is concerned, if it is your intention to have your headquarters at the wax plant in Brussels then of course you should visit this plant right along. I should be very glad if you would consider this most carefully and let me have a full report as to what method you have heretofore pur¬ sued and what method you purpose adopting hereafter. I might add in conclusion that my immediate assistant, Ur. J. R. Schermerhorn, will doubtless leave for Europe in the very near future. He is going abroad to look over the factory plants particularly, but will also look after such other business as X may direct. You will be advised in due course as to when he leaves, and I wish you would so arrange matters that you can give him ynur undivided time when he visits the different plants to go into any and all matters that he may bring up looking to giving me a full report, as to how he finds conditions in the different establishments. . Yours very truly WES ,/lVAV T n T President. . P.o. 1 want particularly to get from you a report as to the reasons for the delay in getting out what we designate as popular selections. I understand that our compeditors have all of these latest selections. SHEET No. 4. DATE, 32/33/04. NATIONAL PHONOGRAI whether it be comic opera, ba33ads, bands 3ong before we are ab3e to produce them. American-made se3ections, but abso3ute3y am advised th#the Edison-Be33 peop3e had by the 3st of November, whereas our first factory unti3 about 3)ecember 8th to 30th. good reason for this, and if there is, I ph co. to s. Rfeh3 , etc. etc., on the market How I do not refer to the to the British se3ections. I Christmas Caro3s on the market shipment did hot 3eave the There roust, of course, be a want to know what it is. National Phonograph Company Records Correspondence, Domestic (1905) This folder contains correspondence and other documents relating to the commercial exploitation of phonographs in the United States. Most of the items are letters to and from William E. Gilmore, president of NPCo. Other correspondents include John R. Schermerhorn, assistant general manager; Carl H. Wilson, manager of sales; Leonard C. McChesney, manager of the Advertising Department; attorney Frank L. Dyer; and San Francisco jobber Peter Bacigalupi. Included are letters pertaining to the manufacture, distribution, and sale of phonographs and cylinder records, as well as correspondence about litigation, patents, copyrights, and other legal matters. Among the documents for 1905 are letters regarding the control of the New England Phonograph Co.; Bacigalupi's participation in the Lewis and Clark Exposition in Portland, Oregon; and schedules for shipping cylinder records. Other items concern the reorganization of the phonograph business on the West Coast; competition with Victor, Columbia, and other companies; and the formation of a Commercial Department to sell and operate dictaphones. Also included is a 6-page report by Dyer concerning pending litigation involving NPCo, the Edison Manufacturing Co., and other Edison concerns. At the end of the folder are reports detailing the ownership and condition of the local phonograph companies organized under the aegis of the North American Phonograph Co. during the years 1888-1890. Approximately 20 percent of the documents have been selected. Among the items not selected are documents regarding ongoing litigation with the New York Phonograph Co. and other parties, the business of individual dealers and jobbers, and the evaluation of patents granted to outside parties. fain/ * F ,/v eiv Jcor/c Uitij, mmol* . . - IEP0RT OF JOBBERS & RETAIL DEALERS AGREEMENTS. DATS A^U. NcwYmko'nicc. ~ J22ZEL Thfough°obbers T Dealers!* " ££ BualncM. New Dealers. Hcv. 26 115 530) 465 995 3311 4306 1 33 Dec.. 3 115- 536 467 1003. 3372 4375 2 35 10) 115 542 481 1023 3438 4461 1 50) I'7 115 547 492 1039' 34.66 4505 3 29 24 115 550 500) 1050 3508 4558' 2 40) iv 31 115 554 505- 1059' 3545 4604' 1 31 j P.S. Ko’tt* ' 26- / ; Dec. 3- Dec:. 10- Dec. 17- Dec. 24- t Dec. 31- ii* 3e! 37. , 18. 15 16; -""h ^ / " ’ musical copyright a was decided "by Judge Colt on January 27/88 in the case of Kennedy et al. v. McTammany, 33 Federal Reporter 584. In that case the defendant manufactured perforated sheets for use In organettes. The Court said:- "I cannot convince myself that these perforat¬ ed strips of paper are copies of sheet music, within the meaning of the copyright law. They are not made to he addressed to the eye as sheet music, hut they form part of a machine. They are not designed to he used for suck purposes as sheet music, nor do they in any sense occupy the same field as Bheet music. They are a~mechanical invention made for the sole purpose of performing tunes mechanically upon a musical instrument." All of these considerations apply with even greater emphasis to phonograph records and there is practically no douht hut that the opinion of Judge Colt would he sustained if the attempt were made to enjoin a phonographic reproduction of a copyrighted musical composition. Of course as Mr. lnsull suggests it might . Gilmore ,Esq. - 2. ■be possible to have the law changed by Act of Congress, but if any effort is made in that direction, we ought of course to oppose it to the utmost. Yours very truly, & 7Z-. - sid/ark. [ENCLOSURE] ■PU- jjjl |.£sP y/t & Chicago, January 13th, 1905. W. B. Gilmore, Esq. Care Edison Manufacturing Company, Orange, N.J. My Dear Gilmore: I am interested-in some inventions for the manufacture of music rolls, and the people interested with me have drawn my attention to the efforts of music publishers to get the law changed so that they can copyright their music and prevent its being manufactured into music rolls, and prevent the use of such music in the making of phonograph records. One way they would have of doing it would be to try and get the law changed so that they could copyright a perforated music roll and copyright a phonograph record. It would seem to me that this would interfere with your business, just as much as it would interfere with my exploiting the patents which I control on music rolls. Have you looked into the matter at any time. I wish you would write me your views on the subjeot. Yours truly □ATE, Mr. W. E. Gilmore, Mr. C. H. Wilson. NATIONAL PHONOGRAPff CO>o J V I ^ • /:■• Orange, N. J. March 15, 1905. -,h:s maim oPFicr. After nearby Jobbers having repeatedly asked to have Record Supplements shipped in advance of new Records ( in order to get their mailing lists ready before arrival of Records), it was decided to get the sentiment of the trade on the subject. On February 23, the following letter was mailed to all Jobbers. "At various times in the past Jobbers have asked to have their supply of Record Supplements shipped to them BY EXPRESS COLLECT a few days in advance of the new Records each month for the purpose of getting their mailing lints ready in advance. We are willing to change our present rule of shipping them with Records if it can be done without detriment to the trade, and desire your replies to the questions on enclosed postal card. Please fill in and return at once." The postal card referred to in this letter read as follows: "It being understood that Jobbers availing theraselveB of this plan will not circulate them in advance of their receipt of new Records :- 1. Do you want your Record Supplements sent by express, COLLECT, a few days in advance df shipments of new Records each month? 2. If not, do you object to its being done for othsr Jobbers?" All but 19 Jobbers have replied at this date as follows: 53 Want Supplements in advance, will pay express charges and agree not to distribute in advance. 17 Do not want them in advance and make no objection to others having them. DATE, NATIONAL PHONOGRAPH CO. 4 Do not want them and express no opinion about others having them. 16 Do not want them and oppose other Jobbers having them. 10 Wrote special letters: all but 1 being opposed to any change. The attached sheets give the names of replying Jobbers and show their preference. In all cases where an opinion was expressed by more than "yes" and "no", the cards and letters are attached. It is evident from the above tabulations and the accompanying cards and letters that any change in our present plan of shipping Supplements with Records will be followed by friction and dissatis¬ faction, notwithstanding that more than half of the replying Jobbers want them in advance, jf these Jobbers are taken at their word, then the only benefit of getting the Supplements will be to get their mailing lists ready in advance. It seems to me that this advantage is more than offset by the trouble that the change will cause us and the friction that it will cause in the trade. If Jobbers have envelopes addressed and stamped in advance it cannot be much of a task to enclose the Supplements: it can be done while the Records, are being unpacked. Getting new Records to retail customers each month is not a matter of such urgency after all and so long as xr one Jobber cannot get Supplements ahead of another, the present plan cannot work NATIONAL PHONOGRAPH CO. TO ~3~ to any one's disadvantage. The tone of some of the replies makes it certain that the Jobbers wanting Supplements in advance will not he content with getting them a day in advance, hut will want them still earlier. No matter how many times we change the plan to meet their views, the time will come when we must make a stand and refuse further changes because of inability to get the Supplements printed earlier. I believe that the real desire for a change in our present plan is to get Supplements to send to Dealers, in order to get ahead of competitors, and Supplements in the hands of Dealers in advance is going to cause trouble with no gain to any one. Aside from the friction in the trade, a change in our present plan will mean considerable extra trouble to the order and shipping departments. I hope that no change will be made. £ Manager Advertising Department. SUBJECT : Discarded moulds Mr. Redfearns Please make up for me a list showing the moulds discarded during the months of December, January, February and March. In making up the list, show the discards under two columnB, one to cover those discarded because of injury received in the Mora ding Department, and the other showing those discarded due to other causes; for instance, bad plating, poor phonographically (by Walter Miller), etc. 4/8/05 i SUBJECT: Oil Painting "The Phonograph". Mr. Westee: Referring to the attached letter, this has reference to the oil painting X purchased some little time ago. The letter should he put away in the safe, as some of these days somebody may come and claim that they have the copyright on it, etc/ [ENCLOSURE] In re pi-'- to your letter of April the 5th, 1S05, s knowledge with thanks the receipt of your check' for §703.00 [Dieting the purchase of the Oil Painting known as "The Phono [>h", hy Professor P. Ilassani of Florence* I also take pleasure in advising you as you requ SUBJECT; Sapphire J. R. S. ; As you are doubtless from time to time against these little manufacturers of sapphires of all kinds, find the general result is that we lose all there is in it, as they atart up under another name, and they have no capital, nor in fact anything that can he siezed. As a result the victories that we do obtain amount to nothing. Row what I want to do is to get after these people in another way, and that is by putting our prices so low that they cannot compete with us, but the only question with me is whether we are able to take care of the business that would come to us should we , do so. The same remarks will apply to other repair parts, such as belts, etc. etc. Before doing anything in this respect I wish you would arrange for Redfearn to get out all the costs, etc., and then we can decide what we intend to do. If you do not understand exactly what 1 am after you had better talk to me about it. 5/42/05. W.E.G'. manufacturers. J dVJ2r('' • aware, we have been bringing suit NATIONAL PHONOGRAPH CD. ORANGE, N. J. Prank L. Dyer, Dear Sir: Esq. , laboratory. Referring to your -letter to me of Peb. 27th, which I attach hereto, together with statement of the condition of our litigations as of that date, I am returning all of these papers herewith with the request that you have it "brought down to date. Quite a few of these cases have doubtless been concluded and finished, but 1 would like to know the "condition of affairs. WEG/iW Yours very truly,, President. Enc-G Orange, IT. J. May 18, 1905. V/. E. Gilmore, Esq., Orange, N. J. Dear Sir: — Replying to your favor of trie 15th inst., I hand you herewith a report on the present condition of pending suits: EDISON PHONO. CO. V. LEEDS & CATLIN CO . Bill filed Oct. 1, 1903 in the United States Circuit Court at New York for infringement of Edison Mold¬ ed Record Patent No. 667,662. No Testimony has Been taken. NATIONAL PHONO. CO. v. LEEDS & CATL1N CO. Bill filed September 23, 1903 in t'hT'united States Circuit Court at New York for infringement of Edison Patent No. 414,761, covering blanks or records. No testi¬ mony has been taken. NATIONAL PHONO. CO. v. LEEDS Sc CATL1K CO . Bill filed Sept. 18, 1903, in the United States Circuit Court at New York for infringement of Edison Pa¬ tent No. 713,205, covering molded records. No testimony^ has been taken. \ NATIONAL PHONO. CO. v. INDESTRUCTIBLE RECORD CO. et als . Suit pending in the U. S. Circuit Court at Chicago for infringement °Edison Patent No. 397,706 on Auxiliary Shell between Mandrel and Record. As the patent forming the basis of this suit has expired, I recommend that the case be discontinued. MEW ENGLAND PHONO. CO. HORTON " " HANSON " 11 CALI. " 11 LEPEVOUR " " SULLIVAN " " LORD " " DAKIN " " HANLEY " " CAMPBELL " " PARSONS " " ABBE No testimony has Been taken. NEW ENGLAND PHONO. CO. Y. DAWSON CO. - „ - «~COT,T]};,JIA"5'0 . " " American grapho.co. " " SEAVEY Taking of testimony postponed. NAT .PHONO. CO. v. AMERICAN ORAPHO.CQ.& COL. PHONO. CO. Bill filed Jan. 27, 1903, in U. S. Circuit, Court at New York for infringement of Edisop Patent No. 454, 941 on Mica-Built-up Diaphragm. Defendant's proofs closed and case ready for complainant's rebuttal. I have Been authorized to drop this case, But as Kauro is not willing to trade off the suits on the Macdonald Recorder patents, it may Be well to keep this suit pending for the present. EDISON PHONO. CO. y. HAWTHORNE & SHEBLE Suit on Patent No. 386,574 for infringement con¬ sisting in removal of phonograph name pla.tes. As the pa¬ tent in suit has now expired, I recommend that the case Be discontinued. NATIONAL PHONO. CO. v. AMERICAN GBAPKOPHONE CO . Suits on Edison Molded Record Patents Nos. 667,662 and 713,209. An appeal has Been taken from Judge Platt's decision to the Circuit Court of Appeals. NATIONAL PHONO. CO. v. LAMBERT CO . On Edison Molded Record Patent No. 713,205. The appeal has just been argued before the Circuit Court of Appeals, and we are awaiting decision. NATIONAL PHONO. CO. v. AMERICAN ORAPKO.OO. On Killer & Aylsworth Molded Record Patents Nos. 583,615 and 683,676. No testimony has been taken. We are to discontinue this suit, which is pending in the District of Connecticut, and bring a new suit in the Dis- || trict of West Virginia. EDISON v. BIOGRAPH COMPANY Bill filed November 7, 1S02 - Edison reissue Patent No. 12,037 - in the United States Circuit. Court at New York. Defendant's testimony is closed, and Mr. Bull is now working on our rebuttal. Bills filed Noy. 6, 1502 in the United States Circuit Court at Philadelphia, Edison reissue patents Nos. 12037 and 12038. Defendants testimony closed and complainant's rebuttal is to be taken. The suit on re¬ issue Patent No. 12,038 should be discontinued, as this patent was again reissued as 12,192. EDISON v. SELIG Bill filed Nov. 7, 1502, in U. S. Circuit Court at Chicago, Edison reissue patent Number 12,037. Prima faele testimony closed. Defendant's testimony closed and complainant's rebuttal is to be taken. RICHARD E. OUTCAULT v. EDISON KEK.CO. & PERCIVAL L. WATERS Suit brought in U. S. Circuit Court at New York for infringement of copyright on "Buster Brown" pictures 3. A motion for pre] iminary injunction was brought on and was denied by Judge Lacombe . A demurrer has been filed. Ho change In status. Suit probably will not be pressed. KDISOH PHOHO.CO & HAT .PHOHO.CO. v, BRED 1 K, SUDKRIHK . et al , Bill filed April 28, 1904 in U.S. Circuit Court at Hew YorJt to restrain the sale of Edison Phonographs and records. A motion for injunction was brought on for heap¬ ing add was granted by Judge Lacombe. Awaits taking of testimony. AMERICA!! GRAPHOPHOHE CO. y. HAT. P110M0. CO . Bill filed in U.S.Citcuit Court at Hew York on Macdonald Patent Ho. 683,958. Mauro is going to dis¬ continue this suit and bring a new suit on the same pa¬ tent in the District of Hew Jersey. AMERICA!! GRAPHO.CO. v, HAT'D. PHOHO.CO. Bill filed March 10, 1904 in U;S. Circuit Court at Hew York on Macdonald patent Ho. 527,755. Mauro is going to discontinue this suit and bring a new suit on the same patent in the District of H ew Jersey. AKMAT MOVIMC. PICTURE CO. v. EDISOH MEG. CO . Bill filed Hoy. 28, 1904. Injunction granted and reversed on appeal with costs. Church is trying to settle the case. HATIOHAD PHOHO . CO . v . AMERI CAH GRAPHO.CO.. et al . Bill filed Oct. 21, 1904 in the U.S. Circuit Court at Hartford for infringement of Edison Patents on Bloating Weight Reproducer. This case is to be discon¬ tinued. HEW YORK CASH. Judge Hazel's recent opinion modifies his for¬ mer opinion by granting an injunction, hut suspends^the same pending an appeal. INTERN AT I OITAL GRAPHO.CO. v. EDISON PHONO . WORKS. et al . Bill filed in Chancery Court of Hew Jersey for an accounting, etc. Defendants' ansv/ers have heen filed. There are no new developments. THOMAS A. EDISON v. EERRHARD SCHNEIDER " " GEO. N ELIES, ET AL " " \m. PA1EY , ET Al " " CA1IPAGNIE GEHERALE , (PATHS), etc. Bills filed Hov. 23, 1S05 in U. S. Circuit Court at New York on Edison film Patent Reissue No. 12,192. Defendants have appeared in each suit hy Herman Herst, Jr. and Kerr, Page & Cooper. Ansv/ers and replications have heen filed and the cases are at issue. We have re¬ tained Carter as expert and are about to proceed with our P.rima facie proofs • AMERICAN KUTOSCOPE & 310GRAPH CO.v. EDISON KEG. CO . Suit filed Nov. 12, 1904 in U;S. Circuit Court, District of New Jersey for infringement of copyrighted film entitled "Personal". Judge Banning has overruled our demurrer and refused a preliminary injunction on the ground of non-infringement. We are about to file our answer to the hill. THOMAS A, EDISON v. VI l'AGRAPH CO. OP AMERICA Bills filed Mar. 13, 1905 in U.S. Circuit Court at New York, on Edison Patents Reissues 12,037 and 12,192. Defendants have appeared hy Kerr, Page & Cooper and answers have been filed. AMKR , GR APHO , CO. v. NOT YORK PHOHO. CO. Bills filed April 1, 1905 in U.S. Circuit Court District of New Jersey on Macdonald Composition pa¬ tents Nos. 606,725 and 626,729. We are preparing answers. NOT JBRSNY PATENT COMPANY v. C01. PHONO. COMPANY , GENERAL Bill filed April 3, 1905 in U.S. Circuit Court District of New Jersey on Aylsworth patent. De¬ fendant's answer due June 5, 1905. Bill filed Apr. 7, 1905 in U.S. Circuit Court, District of New Jersey, on Tainter Composition Patent No. 393,190. Our appearance not due until June 5, 1905. WISCONSIN PHONO. CO. v. EDISON, et al. Bill filed in U. S. Circuit Court at Trenton. Answers not yet due. ST ATT! PHONO. CO. OP ILLINOIS v. EDISON, et al . Sill filed in U. S. Circuit Court at Trenton. Answers not yet due. Yours very truly, National Phonograph Goi , Orange, it 4 Gentlemen: Referring to your letter of eyon date, having reference t9 the matter of new :prdces to, he quoted you op the standard type phono^ graphs that we have heretofore furnished for you, we hereby quote you the following prices, basest on quantity orders the same as heretofore placed by you: Gem, type , $2. 90 each Standard type, 4.00 « Home, " 3.B5 " Triumph " 9,ao n Concert 1Q.9D » Victor •” 10.30 " These prices, ape to be effective as of M&roh 1, 1905. We will make up and send you a -credit memorandum for these different type machines charged since that date, and hereafter the machines will be charged to you at theee prices. It is of course understood that these -prices include the machines as heretofore furnibhed j^6uv boxed, ready for Shipment. NATIONAL PHONOGRAPH CO. The question of the price of phonographs having been hr'ought up and considered and it feeing found necessary that a reduction in price fee made this company feased on the quantity orders that we have placed with you in the past fiscal year, and to fee effective as of March 1, 1905, will you kindly indicate the prices at which you intend to furnish machines to us of the following different types: TSEG/iW preparing copy for the Catalogue of the new Business Phonograph, I would like to refer to a matter in connection with this machine that seems to me worth more than ordinary consideration. In discussing the future of the Business Phonograph on one or two occasions with Mr. Durand, he has suggested that it might he a good plan to begin to ex¬ ploit the Business Phonograph as a business dictation system, treating the subject on a larger and broader basis than a mere sale of single machines. This subject seems to offer many possibilities for the success of the Business Machine. If we were to adopt such a plan, it would make a material difference in writing copy for a Catalogue, jn fact, a Catalogue prepared either way could hardly be used for the other without entirely re-writing. Has Mr. Durand made any similar suggestion to you, and if so, have you given it any consideration? Can you give me any suggestions upon what lines to prepare a Catalogue? When this work is done, I intend getting some assistance from Mr. Durand and also from the Lord Agency. Yery^-sy^, Manager Advertising Dep't. Mr. H. E. Miller to-day brought up the matter of the 5^ rebates due us from the J. Valter Thompson' Co. Mr. Miller denies the statement of Mr. Chapin that our rule up to this year had been not to take advantage of the 5% discounts. Mr. Miller states that the rule has always been to take them and that where we did not, it was due to an oversight or to some fact which made it impossible or difficult to do so. Such, for instance, as your own absence from the city or other causes beyond the control of the Accounting Department. If this is the case, we are entitled to a rebate from the Thompson Co. of 5^ on all advertising done by us in publications which allowed the discount to Thompson. On the surface, it looks as if the Thompson Co. have deceived us and have not treated us as they should. Just as the Lord Agency is now allowing us 5 on nearly all publications that we are using, so the Thompson Agency should have allowed us in a similar maimer. I think that we should demand this rebate, unless they can prove to us by letters from the publications in question that the discount was not allowed to them. This may seem harsh, but people who do not treat us fairly are entitled to no other consideration. Mr. Chapin has repeatedly assured me that we were being allowed discount on all bills, where it SHEET No. DATE, NATIONAL PHONOGRAPH CO. to proper to do so. It is charitable to assume that he believed that he was making a correct statement, but it does not excuse his house, for they knew that such was not the case. If you are disposed to insist upon our rights in this matter, I will have Mr. Miller go over the vouchers for the past three or more years to establish the fact that it was our rule to take the 5^ cash discount, and then make a demand upon the Thompson Co., accordingly. Very truly yours, yvi Manager, Advertising Department. / 786-7B8 MISSION ST. PROJECTING MACHINES FILMS SLOT PIANOS PIANINOS PI AN 'ORCHESTRA miniature Railways MERRY-GO-ROUNDS san francisco June 1, 1906. TO OUR FRIENDS AND PATRONS: We take pleasure in informing coin-controlled you that the National Phonograph Company and the Edison machines Manufacturing Company of Orange, New Jersey, are to have an exhibit at the Lewis & Clark Centennial to be held at Portland, Oregon, June 1 to October 15, 1905- V/e are their representatives for the Pacific Coast and they have kindly consented to allow us to have charge of this exhibit and are to furnish us with a very handsome booth and many specially equipped machines- V/e know that you are not going to miss this great Fair and trust that we will have the pleasure of a call from you. We are to have a fine showing of all that is new and up-to-date in the Phonograph and Record line, also a display of Moving Picture Machines and are making special preparations for the entertainment and comfort of our guests. V/e will be glad to have you make our booth your head¬ quarters, where our clerks will be in attendance to furnish you any information you may desire and take care of your wraps and bundles. Through the courtesy of the Remington Typewriter Company we are to have a complete Remington Typewriter Outfit to be used in conjunction with the new Edison Business Phonograph. You will thus have an excellent opportunity of testing the merits of Mr. Edison's latest triumph in a practical way- Hoping to have the pleasure of seeing you in Portland, we are, Yours very truly, PETER BACIGALUPI • [ATTACHMENT] pan mxb of the Lewis and Clark Centennial Expo¬ sition and Oriental Fair to be held at Portland, Oregon, the Rose City of the Pacific Northwest , from June i to October 15, 1905 Y ACT of the United States Congress, approved by President Roosevelt, April 13, 1904, followed by an invitation issued by the Honorable John Hay, Secretary of State of the United States, there will be held, during 1905, in the City of Port¬ land, Oregon, one of the great commercial ports of America, an important In¬ ternational Exposition, to be known as the Lewis and ClarK Centen¬ nial and Oriental Fair. The Exposition will commemorate the 100th anniversary of the exploration of the Oregon Couutry by an expedition planned by President Jefferson, and commanded by Captains Meriwether Lewis and William Clark. The Oregon Country comprised all of the present States of Oregon, Washington and Idaho and parts of Montana and Wyoming, an area of 300,000 square miles. As the acquisition of this region was one of the most important events in American history,' because of the direct influence it had upon the subsequent territorial ex¬ pansion of the United States, the American people in general and those of the Pacific Coast in particular, backed by the Government, have decided that the Centennial shall be fittingly celebrated. The Exposition will demonstrate the marvelous progress of Western America, and will be the first international exposition, under the patronage of the United States Government, to be held west of the Rocky Mountains. It is estimated that 5,000,000 people live in the section of country, within a radius of 1000 miles of Portland, who are directly interested in making the Exposition the true exponent of its material progress and development. The Exposition will represent an expenditure approximating $7,500,000 when the gates shall have been officially opened on June 1, 1905. It will occupy 403 acres adjoining the principal resident district of Portland, on the gentle slopes and terraces' overlooking Guild’s Lake and the Willamette River. Of the gross area, 180 acres are on the mainland, including natural forest park and land¬ scape gardens, while 60 acres form a peninsula in the lake. Guild’s Lake is a natural fresh water body, 220 acres in extent, separated from the river by a narrow span of land. The grounds are 20 minutes ride by electric car from the center of the city, and have been pronouuced by competent authority as, scenically, the finest exposition site in the world. Five snow peaks in the distant mountaiu ranges are in plain view from all parts of the grounds. Eleven large exhibit palaces form the nucleus of the Exposition. Around these cluster the State, Territorial and Concessions buildings', special pavilions, the Administration group, the Auditorium, and numerous smaller pseudo-exhibit structures. The main exhibit palaces are : (1) Agriculture ; (2) Liberal and Industrial Arts ; (3) Oriental Exhibits; (4) European Exhibits Building; (5) Forestry ; (6) Fine Arts ; (7) Mines and Metallurgy ; (8) United States Government Exhibit Building; (9) Territorial Building; (10) United States -Fisher-ie^Forestry.— and Irrigation Building; (n) Machinery, Electricity and Transportation. The Forestry Building, constructed entirely of huge logs felled in the forests bordering on the Columbia, will be the most striking architectural creation ever seen at an exposition. tSlruru fjalttrru JFnr ExIfibitH Hill (Eniirr 402 Arrrn An Ainrricmt [ATTACHMENT] Bird’s-Eye View of Lewis and Clark Centennial Exposition and Oriental F PORTLAND, OREGON [ATTACHMENT] V". The United States Government bitildiug will occupy the peninsula in the center of Guild's Uake. It will cover three acres, will cost $250,000, and will have two towers, each of which will be 260 feet high. Arrangements have been made with the trans¬ portation companies so that exhibits displayed at St. Louis in 1904 may be shipped to Portland through the opportunity offered by the free return freight rates established on goods sent to' the Louisiana Purchase Exposition. All the main exhibit palaces will be under roof long before the time it is necessary to remove exhibits from St. Louis. The Liberal and Industrial Arts Palace, Foreign Exhibits and other buildings were ready for the storage of exhibits on November 1, 1904, and the • remainder of the buildings will be completed by Feb¬ ruary i, 1905. As Portland is the termini of four transcontinental railways and, as the Willamette River harbor is one, of the boundaries of the Exposition site, enabling ocean steamers to dis¬ charge their cargoes, if necessary, directly upon the grounds, it is manifest that the facilities for expeditiously and economically conveying, installing and maintaining exhibits at the Lewis and Clark Centennial Exposition are unparalleled. The United States Government officially participates in the Centennial with complete ex¬ hibits representative of every division of governmental function and resource. Great Britain, Ger¬ many, Holland, Italy, Japan, China, Turkey, Austria-Hungary and other foreign nations will be represented with comprehensive displays. In recognition of the new era of Oriental trade relations, the exhibits from • Asiatic lands will be significant. The following states in the Union have made appropriations for their participation: New York, Massa- 'sota> North Dakota, Wyoming, Washington, Montana, Idaho, Utah, Cali¬ fornia, Oregon, Missouri, and, provisionally Colorado, Nevada, Arizona, and other states and territories with which negotiations are pending. .. - . national, state, foreign, or otherwise, will be pleased to know that the ninety- day limit for the return of articles of exhibit to the original point of shipment has been ex¬ tended one year, in order to permit state and commercial exhibits at St. Louis to be trans-shipped to Portland for the purpose of taking advantage of the rare opportunity afforded for exploiting new, but rapidly developing trade fields. As a special inducement to partici¬ pating nations it has been the pleasure of the Exposition to make liberal terms covering the exhibit and sale of foreign goods. Quality and not quantity is the aim of the management and with this purpose in view the result is bound to prove successful and advantageous to exhibitor and exhibition alike. The City of Portland, with 140,000 inhabitants, is but 3^ hours distant from the Pacific Ocean, Oil the Willamette River at, practically, its confluence with the famous Columbia. The heaviest draft vessels of all nationalities are seen nearly every day in the year in Portland’s harbor, aud besides the many fleets that regu¬ larly ply to the port, the war vessels of our own and other nations are frequently here, adding a picturesque feature to the city’s water front. A fleet of our most famous battle ships will be anchored 1 in the river at the foot of the Exposition grounds during the summer. Port¬ land holds extensive commercial intercourse with the whole world, the chief export , commodities being lumber, flour and grain. Portland does a wholesale business of $175,000,000 annually and the product of its factories was $50,000,000 last year. Thirty conventions have already arranged to meet in Portland during the Exposition. The ~C.ity_.is amply provided with the finest facilities for handling large . .assemblies. Hotel accommoda¬ tions are equal to all demands, and reasonable rates will be charged. An inn of 500 rooms is being built on the Exposition Grounds for the convenience of visitors. The rapid transit facilities of Portland are the equal of those of any city in the United States, and the 200 miles of electric street railway are splendidly equipped. uUjr (ttiftj Hf«t Jlrnmntcii ®i|r Hwrtrru Itinrlii’a Zffair Nittrltj Hay ffiimit Extruiirii ©late attii Natimtal Jflartiripatum Sraim In Jirrriiu' Exl/Unla jontrolled I am in receipt of yours of the 28th tat. re achines Portland Fair. I have carefully followed your remarks and 1 hope that the increase of business on the Paoifio CoaBt will make you change your mind as to the efficacy of exhibits in Exposit¬ ions. I know that our exhibit is attracting a great deal of attent¬ ion and oertainly will open new business for our dealers on the Coast. They are getting the benefit of all this very materially already. We certainly will not oompote for. prizes. How regarding the slip you sent ub about the attachment, will say that I did not want to bother you with this un¬ til the inoident was olOBed. Owing to the faot that your people were so long in sending their part of the fixings and our not know¬ ing what we were going to get, we oould not make a contract with the builders, but they talked so nicely that my man, Wilson, made a bargain with them to a± pay for the material and allow them 15J9 pro¬ fit. When I saw the bill for §465.00 I nearly had a fit and refused to pay them. They attaohed the booth and 1 telegraphed ray man Oeddes to give a bond and have the attachment released at onoe whioh was done. I understand that there have been seventy-four attachments on the Fair grounds so you see we have plenty of oompany. Leave it to me and 1 will do the best I oan to have the bill reduced. You know I am like yourself, adverse to being held up and will not see you held tip either. I know that you have lotB of worries and law suits, therefore, was waiting to have things settled before writing you. 1 am sorry to hear that Mr. Edison is not ooming out to the Fair, he oertainly would enjoy it. Mature has done every thing to make this Fair the prettiest one possible on this earth. Why don't you and Mrs. G. take a dump there? Bo I understand it right in regard to the Phonographs at the Exposition, that we are to sell them at 10J& more than list price on gilded and plated Phonographs? Don't you think it would be better for you to send us a list with the selling prices, I could send this to Mr. Geddes and there would be mistakes. Yours trulj NATIONAL PHONOGRAPH CO. ORANGE, N.J. EDISON PHONOGRAPHS & RECORDS. the various talking machine companies for the six months beginning with January, 1905, together v/ith the publications and space used by each. Because of varying conditions under which advertising contracts are made, the figures of our own advertisement's are the only ones that can be regarded as accurate. The cost of the Victdr advertising is quite uncertain because in January and February they used cover positions and inserts, the priceq for which are much higher than regular space. Its cost, too, is indefinite. It is probablp, however, that the amounts given in these tables for the Victor advertising fully cover the cost to the Victor Company. The 7th sheet gives approximately the total amounts expended by each of the five companies in the six months. These sheets include only general magazines. It is probably that all of the competing companies have done more or less advertising in other mediums. These sheets have been prepared for your special information and need not be returned. A similar set is being sent to Mr. Edison. Very truly yours, yVi Manager, Advertising Department. ipaoe Coat Space Ain alee' s Argosy Associated Sunday Magazines Booklovers Christian Herald Collier's Cosmopolitan Delineator Everybody' s Barm & Eire side Earn & Home Eour Track Hews Good Housekeeping Gunter* s Harper's Monthly Hearst Sunday Magazines Ladies* Home Journal Ladies' World Leslie's Monthly Life McClure' s Men & Women Metropolitan national Sportsmen Outing Overland Monthly Pearson' s Popular Magazine Red Book Review of Reviews Saturday Evening Post Scribner' s Smart Set Strand Success Sun set Twentieth Century Horae Woman ' s Home Cmnanion World's Work World To-day Yo uth ' s C ompan i on , 140 1. 1/4 p.1000.00 140 1. Insert 748.44 page 140 1. page 374.40 page 140 1. page page 475.00 page page l/4 p. 450.00 1/4 p. page 225.00 page 225.00 Cover 2000,00 140 1. EDISOH COLUMBIA Cost Space Cost. Page 1.16. 87 e :• 224.79 374.00 245.00 215.60 '79.46 l/2 pag 85.00 346.50 256.41 249.48 69.30 374.40 33.11 110.88 475.00 126.22 page 249.48 374.40 112.20 198.00 350.00 261.80 315.00 60.77 388.08 4866.00 825.75 [ENCLOSURE] EEBRUARY, 1905. . VICTOR EDISON COLUMBIA Space Cost Spaoe Cost Space Cost . Ainslee ' s Argosy AssO. Sunday Magazines Page 211.61 Page 280.00 Booklovers Christian Herald , Collier’s Cosmopolitan Page 394.24 l/4 page 224,79 Page 116.87 Delineator Cover 3000.00 Everybody 1 s « 600.00 Page 374.00 Page 374.00 Earn & Eireseide 140 1, 245.00 Earn & Home 215.60 Eour Track News Page 79.46 Good Housekeeping Guhter' s Page 170.00 Harper’s Monthly Hear st Sunday Magazines Insert 433.22 140 1. 346.50 Ladies' Home Journal Ladies' World Le slie ’ s Monthly Page 249.48 Page Page 249.48 249.48 Life 140 1. 69.30 McClure ' s Page 374.40 374.40 Men & Women Metropolitan Page 110.88 140 1. 33.11 Page 110,88 Mun sey ' s National Magazine Insert 950.00 Page 500.00 National Sportsmen Outing Overland Monthly Pearson' s Cover 260.00 Page Page 40.00 178.20 Popular Magazine Red Book Page 112.20 Review of Reviews Saturday Evening Post Scribner' s Smart Set - Page 225.00 l/4 page 350.00 Strand Success 16 in. 418.88 168 1. 314.21 Page 200.00-' Sun set Twentieth Century Home page 49.19 Woman ' b Home Companion World's Work 140 1. 315 .00 World To-day Page 60.77 South's Companion 140 Lj. 388.08 7397.71 4269.29 1551.23 ZONOPHONE advertising in the month - - - $374.20 OjKOPHONE M ti n none [ENCLOSURE] MARCH, 1905. victor anisoir Columbia Space Cost Space Cost Space Cost, Ainsj.ee ■ s Argo sy Asso. Sunday Magazines Booklovers Christian Herald Page 116.87 1/2 page .. S66.OO Page 116.87 Collier’ s Cosmopolitan 1/4 page 346.50 Delineator Everybody's farm & Hire side Harm & Home Cover 600 .00 140 1. 245.00 215.60 79.46 Hour Track Hews Goodhousekeeping Gunter’s Harper' s Monthly Hearst Sunday Magazines Rage 1 Ladies' Home Journal Ladies' World Leslie's Monthly Life McClure • s Men & Women Metropolitan Mun sey ' s Rational Magazine Rational Snortsmen Outing Page Page Page 249.48 |374.40 ,475.00 140 1. 140 1. Page 140 1. Page Page Page 256.41 j 69.30 374.40 33.11 158.40 475.00 12.6.23 1 Overland Monthly Pearson's Page -40.00 Popular Magazine Red Book Review of Reviews Page 112.20 1 . Saturday Evening Post Scribner' s l/4/page . Page 350.00 225.00 Rage 1/4 page 330 ioo Smart Set Strand Page 225.00 Page Success Sun set .16 in. t 418.88 1 Col. 314.21 200.00 Twentieth Century Home ./4 page Page 49.19 Woman's Home Companion 3 World's Work World To-day Youth's Companion 386.00 Page 140 1. 60.77 388.08 Page 118.80 . 5420.63 3957.86 TALKOPKolffi adTei:tislnE in„the rnth; -none [ENCLOSURE] APRIL, 1905. VICTOR EDISON COLUMBIA Space Cost Space Cost Space Cost Ain alee' s Argo sy AssO. Sunday Magazines Booklovers Page 211.61 Christian Herald Collier' s lA. page. . 346.50 Cosmopolitan Delineator Page 394.24 Everybody' s Cover 600.00 page 420.75 Pam & Eire side 140 1. 245.00 Parm & Home Good Housekeeping Gunter' s Page 170.00 140 1. 195.38 Harper's Monthly Ladies' Home Journal Ladies' World Leslies* Monthly Cover 560.00 Page 249.48 Life foClure' s Page 374.40 140 1. 69.30 Metropolitan Page 158.40 Munsey' s National Magazine Page 475.00 Page 475.00 National Sportsmen Outing Overland Monthly Pearson' s Cover 260.00 Page Page 40.00 178.20 Popular Magazine Red Book Reviev/ of Reviev/s Page 112.20 Page 112.20 Saturday Evening Post Scribner' s Smart Set Page 225.00 l/4 page 450,00 •' 225.00 Strand Success 16 in. 418.88 1 Col. 314.21 " 200.00 'Sunset Tv/entieth Century Home l/4 page Page 49.19 Woman's Home Companion 386.00 140 1. 315.00 World's Work World To-day 118.80 Page 60.77 " 118.80 Youth's Companion 140 1. 388.08 4352.33 3909.06 656.00 ZONOPHONE advertising in the month - none TALKOPHONE " fl « £732.52 [ENCLOSURE] MAY, 1906. VICTOR 351)1 SOH COLUMBIA. Space Cost Space Cost Space Co st . Ain sice ' s Argo sir As so . Sunday Magazines Booklovors Page 116.87 Chri st i an He raid Collier' s l/4 p. 346.50 Cosmopolitan Delineator Everybody'S Cover 600.00 page 420.75 Pam & Hire side 140 1. 245.00 Para k Hone 195.38 Pom- Track Hews page 79.46 Good Housekeeping Gunter's Hamer's "'orithly Ladles' Home Journal Ladies' world 140 1. . 256i41 Leslie's Monthly Life Page 249.48 140 1. 69.30 Lippinoott ' s page 55.00 McClure ’ s Page | 574.40 page 374.40 Metropolitan Mun sey ' s Page 475.00 page 108.40 Rational Magazine national Sportsmen Outing Overland Monthly Page 126.23 Pearson ' s Popular Magazine Red Book page 112.20 Review of Reviews l/4 p. 198.00 Saturday Evening Post 450.00 l/2 p. 450.00 Scribner ' s Page 225.00 Smart Set Strand Page 225.00 Page 200.00 Success Sun set Twentieth Century Home 16 in. 418.88 1 col. 314.21 "Homan's Home Companion "Vo rid' s Work ’World To-day page 60.77 Youth’s Companion 140 1. 388.08 3134.63 3850.09 200.00 ZONOPHOMS advertising in the month - - - none. TALKOPRONE » '• « - -$1074.08 January Potruai"; >:arch April Yw June [ENCLOSURE] TOTALS VICTOR $11,330.12 7,397,71 3.420.63 4,352.33 3.134.63 3,243.89 32,879.21 EDI SON $4866.00 4269.29 3957.86 3909.06 3850.09 4014.62 24,866.92 COLUMBIA $ 825.75 1551.23 435.67 656.00 200.00 451.61 $ 4~120T26 ZONOPHONE TAIK0PH011E 5 694.22 $ 985.12 374.20 796.56 732.52 1074.08 $1068.42 $3,588.28 V)?6' NATIONAL PHONOGRAPH CD. ORANGE, N.J. EDISON PHONOGRAPHS & RECORDS. 31 Union Square, New York. July .14, 1905. Mr. J. P. Randolph, Orange, IT. J. Dear Sir:- Beginning July 1, 1905, a Department, known as the Commercial Department, wae organized for the purpose of instituting an aggressive campaign for the sale of the Edison Business Phonograph, under the general style of the Edison Commercial 'System. It will he sold direct hy the Rational Phonograph Co., through the Commercial Department, to which all correspondence should he address¬ ed, and which will furnish all information as to prices, etc. It. will not he sold through the trade. The Commercial Department will he in charge of Nelson C. Durand, as Manager, with C. D. Hihhard, as General Superintendent. Qffices have been leased at 31 Union Square, ;(3rd floor. Bank of Metrop¬ olis Building) New York, which will he so equipped as to thoroughly demonstrate the system. Yours very truly, JRS/&ED 1905. Mr. Petar Baoigolupi, San Prancisco, Calif. Dear Sir:- The matter of the situation and conditions on the Pacific Coast has been having my most serious thought for a great many months past, but in order to know exactly how matters were going, I had a full report made as to. what you were dping in the so-called territory, which wo have allowed you to handle, so far as we are concerned, but without preventing other jobbers from selling to dealers or to users therein. The States that have heretofore been handled by you, as I understand it, are as follows: Washington, Oregon, California, Arizona, Nevada and .Idaho, and you also, or did up to last Pall, have Montana, Wyoming, Colorado, west of the Rockies, and Now Mexico. Now we have never made any objections to the manner in whioh you have handled this territory, but to my way of thinking you have never pushed our lines to the extent that I consider necessary. Of course, your answer will be that I limited you as to credit, but the fact remains that your oredit was never limited, and at times you have owed us upwards of $50,000. I have been looking up your business for the ficccl year ending March 1, 1905, and find that it amounted to about $96.000., or say $8,000 per month. Now this will never do, as from information that we have gained from different sources, we find that our competitors are Bacigalupi doing an enormous Business in that territory. I am advised on reliable authority that Sherman Clay, who are the Victor distributors for the Pacific Coast, have been dMng a business right along with them of from $20,000 to $30,000 per month, and, considering the fact that our goods are selling elsewhere as well, and in a great many cases better, I oannot understand why we should continue the arrangement in all of thi3 territory under present conditions. Kie reason that we have decided to pay the freight is so that we can increase our business west of the Mississippi River. Our records indicate that you have installed dealers in the States mentioned as follows: Washington 30; Oregon 30; California 165; Nevada 4; Idaho 3 Arizona 8, making a total of 240. This may vary a trifle either way, but no matter. Now you know yourself that this is 3imply absurd. Now to get down to facts. What wo propose to do is to instal at least one good jobber in the largest cities, such as Seattle, population 81000; Spokane, population 37.000; Tacoma, population 38.000; Portland, population 90.000, and Los Angeles, population 102.000. As you know, wo have been approached repeatedly by people, end large people to in the largest cities, to take up the jobbing line, but in all cases we have protected you in every way, but we havj got to a point that we must do something, and we cahhot continue tir.allow the • present conditions to exist. OjdT> en*iagj$& ..are simply laughing at us, and when it comes to a point that they make a laughing stock of me I wake up most deoidedly and do something. I want to begin right here, but before I say a word I want to know what you have tegsay for yourself. Instead of doing a business of $95,000 per annum, we should be doing a business of not less than $200,000, but nearer. $300,000 per annum. Bacigalupi t ' 1 3' Now you have got to look at this thing from a strictly Business standpoint, and you must give us an opportunity to have our Edison goods thoroughly represented in the territory Before mentioned, so think it over carefully, and let me hear from you at year earliest convenience. Another thing, you have Been giving too much attention to the penny 3lot Business. Of course, I realize it is a money making Busi¬ ness, But at the Biame time you cannot operate this to the disadvantage of our Business, and to my mind this is exactly what has Been taking place for a numBer of years past. Yours very truly, President. TOG/feED [ENCLOSURE] V Cha utajjxt u a School of iShorthand and v.il) WILLIAM D. BRIDOL. Director Chautauqua, J\[. Y., July 22, 1905, Mr, Edison: It seems as if I had a ohanoe to talk with you, and don't have to speak any louder than when I am present with you. I have just been looking into your Business Phonograph. It is a wonderful invention; I have a great mind to order one for myself. It would save me a great deal of time, and is invalua¬ ble to all business men. Remember me to Mina and the ohildren, and believe me Very truly yours, John H. Vinoent, WHOLESALE. EXPORT. RETAIL coin-controlled I am in receipt of your letter of the 20th inst. MACHINES and. I feel very much grieved to think that you are of the opinion that X have not pushed the Edison article to the extent that you consider necessary. I am sure, Ur. Gilmore, that no man under the same circumstances could have done more than I have. You have Just discovered that the freight rateB have been a handicap for our doing business in Montana and Idaho, and you can add to this the very expensive ooBt of sending a travel¬ ing man through these parts. My very limited profit on your goods has at all times prevented my traveling this country as it should be done. Our competitors give larger discounts than you do so as to cover these expenses, you know this as well as X do. It will be hard lines on me if you were to withdraw Montana and Idaho from me now that you have established the paying of freight, which would give me a chance to do some business, which opportunity we W.E.G.— 2 never had before. I read between the lines that you have been visited by Mr. Graves of Portland. Here is a man, Mr. G., who I have nursed and Kept in business and now he is like the dog that has been nursed and fed and relieved of a thorn in his foot that turns around and bites the party who is his benefaotor, I am sure if you were to make him a Jobber in Portland it would not increase your business, but would increase his discounts for retail business and will do us the injury of taking away a good customer. I do not think you want a Jobber there Just now. I have placed in business and nursed along, a good com¬ petitor to Graves, his name is Hyatt, and this gentleman handles only Edison goods. This makes Graves walk a chalk mark and he does not like it. Your making Graves a Jobber would put Hyatt out of busi¬ ness and Graves would continue to sell the Talk-o-phone and other machines much to the detriment of the Edison article. As far as Seattle is concerned, I have two very good deal¬ ers there who make each other handle our goods and I make a little profit on these dealers whioh helps to keep me going, for God knows the profit I make on your goods is small enough. How you hit a tender spot when you talk of "putting a Jobber in Los Angeles. I have two good dealers there who do a very fine business. One of them is theEdisonia Talking Machine Go„ , who handles the Edison article exclusively. I think I can handle Los Angeles from here besides what trade could a Los Angeles Jobber do that oannot be done from here? They would have no territory at all and would simply have their discounts increased. Arizona I do not oare for as the freight to that place is very high and traveling expenses in comparison, although if you pay the freight we may be able to do something there. You have taken away Wyoming, Color ado and New Mexico' which I do not object to as I W.E.G.— 3 know you oan handle them better than we can. You certainly ought to leave me Washington, Oregon, California, Nevada and Idaho, with this territory I would be satisfied and with freight facilities we could do a better business. Do 1 understand that you have taken away Utah? Now a few words about Sherman & Clay, you remark that you have positive information that they do from $20,000 to $30,000 worth of business per month. This I have known for sometime but never mentioned it to you as you have never considered them competitors. How that you have taken their competition, into consideration,'. I am glad to know that you feel that they are strong competitors. I have for a long time been doing a better business than Sherman & Clay for they have devoted their time almost entirely to a retail business, ignoring dealers and putting obstacles in the way of dealers. This has been put a stop to in a very nice businesslike manner by the Victor people who sent out a traveling man, at their expense, who visited the Coadt, doing business and turning it over to Sherman & Clay, thus obliging them to establish dealers and increase their ovm business. Now don.'t you think it would be a good plan to send a * traveling man, at your expense, to do up the territory of Arizona which has never been done up? He oould at the same time do up Texas, for your Jobber there, giving us the benefit of the business he gets in Arizona, and while he is out he might also travel through Nevada and Idaho for ,our benefit and Montana, Wyoming, Colorado and New Mexico for the benefit of your other Jobbers. I am sure the mission- any work of this kind would be very beneficial to you in increasing the business, and you can rest assured that any business obtained in this way would be kept up by us. My present profit doss not Justify me in having this territory traveled in this way. My profit is small to say nothing of the bad aooounts I make* W,E,Gf--4 I am proud to say that I am confident from what I hear from traveling people in the business who oome here from the East, that I have got the best establishment devoted to the Talking Machine Business in the Unit ed states* This has cost me a mint of money in fitting it up, putting up shelves, signs and advertising and I am now paying $550.00 per month rent and elevator service. I don't think anybody can make a better showing in the business in the United States. Am I right? You are wrong in having the impression that I have devoted most of my time to the Penny slot business. This business runs itBelf . 1 am never there in the day time and only loaf around at night. My Penny Aroades are in the hands of people whom I trust and are runn¬ ing themselves. You will please remember, Mr. Gilmore, that you told me when I went riding with you iny&ur Automobile to Newark that I would be a B.P. if X did not go into the Penny Arcade business. Please remember that I tried to borrow $3000.00 from you to go into the business. You know that I am a sincere follower of your mode of doing business, and like yourself I am a plunger - I took your ad¬ vice and plunged tcf^i%ck in the Penny Arcade business, in the start I made big money which encouraged me so X opened a place in San Jose, Sacramento and Oakland. All of these made big money for a month or two and then dropped off bo that I have had to close them all. In Sacramento X have to pay #150.00 per month for four monthB more for an empty store, ily large Penny Aroade on Market street is not mak¬ ing money and the smaller one on Kearny St., in the latin quarter, is jnst sustaining itself, so you Bee the Penny Aroade business is on the bum as far as I am concerned. All I had to do was to show the people the road, as a result there are four Penny Aroades In my blook on Market St., which means that none of us are making any money, if there was but one it might, make a good showing. W;E.G.~5 I hope you will leave this matter open until I oome East as we can talk things over rauoh better than we can write, l oan hardly af¬ ford to oome East this year, so if there is any transportation laying around lose in your office 1 oan use it. it seems to me that if I did $95,000 worth of business in the fiscal year ending March 1st that it ought to be a good showing when you consider the fact that I am handicapped in the oountry where large towns are few and far between, railroad transportation exceedingly high and freight even prohibitory. If we understand it right that you are going to pay freight everywhere in the united States it will give me a better chance to make a good showing in the next year and I would hate to have you out off my territory, with the exception, as I have eaid before, of Arizona, which is hard to handle unless a traveling man was sent through this territory at your expense. Freight to Arizona has simply been out of the question, this you will find out for yourselves when you have to pay it. You must remember, Mr. G. , that out here there are not so many towns of size and importance as there are in the East. They are far apart and it takes a lot of money to travel from one to the other. I am doing all the business that oan. possibly be done here and in Los Angeles as far as California is concerned, and these two towns really are California. If you will give me a chance I feel sure that I will make a showing that will please you for the next year. I had a visit from your Ur. A. Y. Chandler, who is with wheather Mr. Mesbit in Chicago, he can tell you that I have got the best es¬ tablishment for the Talking Machine Business, or not. we are con¬ stantly complimented by Eastern people on our fine establishment that is devoted to the Edison Talking Maohihe business, and I am sure if you were to see it you would pat me on the back instead of scold- V/.E.6.--6 ing me, The Victor is not the only competitor we have to contend with although it 1b the most formidable. The Columbia Co. have out all kinds of soheme machines which make- them sell records, but I do not mind them much. Now we have a new competitor in the shape .of the Talk-o-phone, as you will see by the cutting which I enclose you they have gotten up a soheme with the chronicle, which is one of our leading papers, and I understand it has been the result of their disposing of over 2500 machines in the last three weeks. These mach¬ ines go out to the public and increase the sale of records for the Viotor, Columbia and other competitors. 1 had a call sometime ago from a man representing the Great Amerioan Tea Company. He came to me in order to make arrange¬ ments to purchase machines for one hundred stores all along the Coast, and of course I had to decline selling them to him .as they were in¬ tended for premiums, i never tell you these things as x know you are a busy man and know these things as well as X do, but X cannot help reminding you of the many handicaps we have to contend with in handling the Edison product. You see this Tea Co. has made arrange¬ ments with the Talk-o-phone people and now have their machines in all their show windows on the Coast. We could have had this order as the manager preferred the Edison machine. Have you have any idea of making a soheme machine? Of course, I understand your interest in a larger busi¬ ness and I am willing to do all you ask me to push the business. You sometime ago spoke to me about buying out my business and good will. Have you entirely dismissed that from your mind? I have worked hard as you know and I would hate to see the business slip away from me entirely without having some remuneration for my hard and continuous labor. I know that you will at all times do the right thing for me and I have no great fears on that soore. This we can also talk over WEB*— 7 when I come East. Talking about Braves, I would. like to tell you in oonild- enoe that when I was in Portland on one of my trips he took me out in his Automobile ( a ancient sort of a trap he has) and while on this ride he offered to make me a present of $1000.00 and give the Victor Company a oaBh order for $5000.00 worth of goods if they would make him a jobber. 1 think that my connection with Leon made him of the opinion that I could assist him in securing this. I told Leon on my return to San Francisco and he only laughed at it. Graves has incurred the displeasure of Sherman & Olay and they will do anything to prevent him from becoming a victor jobber. He went to Philadel¬ phia and was entertained there royally by the Victor people also in Camden, but has returned to Portland without being a Victor jobber and it is my impression that he could not get to be one. I wish to call your attention to the remarks I made to you about the increased business of Sherman & Clay caused by the Viotor Company's traveling man. You will notice by looking over their list that no extra jobbers have been made on the Coast, there¬ fore, Sherman & Clay get the full benefit of the traveling man s work which oosts them nothing and has increased their business fabulously. The only jobber that they have established^ on the Coast is at spokane. Now in Spokane we have a splendid dealer, Foster & Foster. I will hand you a little statement of the businoBB they have been doing. 1 nursed these people from Everett, Wash. where I put them in business, boosting them and giving them plenty of credit and taking big ohanoes which Iwould have to make good myself. They are doing such a fine business that another house has taken up the handling of our goods. If you were' to make a jobber there now you would kill them both. w. e. a. Hats it ever struck you that the discount the Victor people gives their jobbers leaves them a margin of profit which justifies their doing some judicious advertising besides paying for their freight? Please study their discounts and yours and you will Bee that the Victor jobber oan make money selling wholesale where the Edison jobber makes no profit at all and cannot afford to advertise. Should you send a traveling man on my- suggestion, at your expense, would you have any objection to his working up dealers for me in California besides the other territory mentioned, the Bame as the Victor traveler has done for Sherman & Clay? The following statements will give you an idea of amount of business I have done with the principal places you are thinking of talcing away from me; NATL. GOODS BOUGHT BY GRAVES & CO. , PORTLAND, ORE. (Is a Talk-o-phone Jobber sells Columbia and Victor) 1904 August - $216.63 September - • - 686,12 October - 633.41 November - 974.97 December - 236.54 1905 January - 1134.60s February - 253.58 March - 586.45 April - 269.95 May - - - 802.11 June - 202.53 July - — 264.21 NATL. GOODS BOUGHT BY E. B. HYATT, PORTLAND, ORE. (Deals in Phonographs and nothing elBe) 1904 August - September- October - November — December — 19B5 January — February — March - April - May - June— - July - -$444.10 • 238.73 • 367.07 • 739.69 - 237.24 - 503.95 - 713.69 - 489.84 - 61.69 - 203.75 - 212.39 - 47.28 W. E. G. —9 NATL. GOODS BOUGHT BY FISKE & CO., LOS ANGELES', (Dealers in Sewing Machines & Phonographs) October - - 320.91 January - - - - 1113i81 Maroh81'7 - - 565.50 April - - 184*03 $4473.12 NATL. GOODS BOUGHT BY EDISONIA TALKING MACH. CO., LOS ANGELES. ( Handles nothing but Edison Phonographs ) 1904 August - September- Ootober — November— Deoeraber— 1905 January — February— Maroh - April - May — - - June - July - -§1349.26 - 445.79 - 425.61 - 1610.23 - 2154.23 - 482.12 - 629.83 - 741.43 - 838.35 - 1451.64 - 541.43 - 1154.00 §11833.89 NATL. GOODS BOUGHT BY POSTER & POSTER, SPOKANE, WASH. (These people handle nothing but Phonographs) 1904 August - september- October — November— Deeember— 1905 January — February— Maroh - April - May - June - July - § 197.78 374.03 180.44 1139.17 504.87 846.99 376.78 310.94 633.50 497.78 194.04 330.30 §5585.61 W.E.G _ 10 NATL. GOODS BOUGHT BY EIDERS' PIANO HOUSE, SPOKANE, WASH. ( These people use Phonographs as a side line) 1904 AugUBt - September- Ootober — November— December — 1905 January — February— Maroh - April - May - June - July - -§159.11 - 46.20 - 253.54 • 288.53 - 402.73 - 105.55 - 164.17 ■ 324.91 • 168.16 ■ 110.54 87.48 §2391.54 NATL. GOODS BOUGHT BY D.S. JOHNSTON CO., SEATTLE, WASH. (Handle all kinds) 1904 October— November- December- 1905 January — February- Maroh - April - May - June - July - - §150.00 47.69 360.76 468.36 352.89 525.59 386.35 396.80 863.20 76.47 §3628.11 NATL. GOODS BOUGHT BY L017MAN & HANFORD, SEATTLE, WASH. (They sell all kinds of goods) 1904 August - September October— November- Ddoember- 1905 January— February- March - April - May - June - July - -§751.97 - 163.12 - 243.45 -1106.95 - 953.36 - 153.14 - 583.63 - 294.15 - 838.21 ■ 58.58 - 181.85 • 492.12 -v . §5820.53 W.B.O.-ll $ 6261.10 4259.42 4475.13 11825.89 5585.61 2591.54 5638.11 5820.55 • $44245.53 This is a very important part of my wholesale trade, and it certainly would cripple me if you take it away, to say nothing about the $12,000 a year you have taken away from me for Australia. Please do not forget that I could have been on the ground floor of the Victor boom had I not at all times remained loyal to the Edison. 1 hope you will pardon my taking up so much of your valuable time, but this is a very important matter to us both and I think I have gone over the ground without repeating too much of the matter which you are already acquainted with. I know yoii are a man who will appreciate past services and will do me full justice, i am ready to sell out my business if you .want it , or I will oontinue to give you the full benefit of my services endeavoring to make as good a showing as any one man could on the Pacific Coast. 1 will try to go East, where we oan talk these matters over fully as soon as I can get away. The people whom I beat in the Superior Court are. talking about compromising, and my lawyer tells me that he does not think they will appeal to the Supreme Court. 1 cannot afford to pay more than $850.00 per month for the Market St. store and I am hanging fire awaiting their de¬ cision. My present lease runs out September 50th and I would not to go East leaving this unfinished. Yours very truly P.8. X am pleased to inform you that vre have finally succeeded in compromising for the erection of the booth at the Exposition at • Portland, for the sum of $354.85, including lawyer fees and other expenses. I oertainly trust you will. approve of this. 't] a-v UJL 4 Tfcvg, I V; a 0> | H^4»/,i , ,<? / v‘<4t ^i) evvU.A ' 4 ^ -(/wo -yyw^A.: 1 Vl'vv\v u-o- „ ( ! / • f 'a GJ .( \ 7^ T I'VU) WV1 J " / * :V:<- ■ W^W 4V n /, " 4 n i \N if, ,t .. • / *4 — 1 , ' , !^y/kw , / \ ' , e (y!<t^-'irO' cavo tv^av./y 2U. - K'A .-V'/fl ' ' V -vw/^r^ (Ay •r'^Tt'^t aL 4-42 {lvU 'l-l-U. 4 M^o- A4^>v44 p SHEET No. DATE, NATIONAL PHONOGRAPH CO. To COPY Mr. R. H. Thompson, Prince & Concord Strs. , Brooklyn, N. Y. Dear Mr. Thompson:- Mr. Edison has referred to me your letter to with reference to an attachment for the Phonograph gotten out hy a man hy the name of Gates, of Norwich, Conn. This particular attachment is not at all new. A number of people have gotten up machines suitable for operating from six to a very much greater number of records; the results commercially have never proven satisfactory. A concern in Michigan has a machine of this kind, in which about twenty four records are arranged on a cylindrical frame, which can be turned to any one of the records, and the record itself then plays. They are not having any great success with it. We know the particular attachment that you refer to, but have never gone into this much, as our customers in the slot machine business do not care for it, but prefer to operate the sin¬ gle machine changing the records themselves. In fact, they have always objected to a machine that would operate more than one record. In view of the above, I do not think you would care to have us bring Mr. Gates on here with this apparatus,’ as, of course, if anything was done it would have to be done through another company to exploit the invention, as we do not operate machines of this character, but simply manufacture and sell them to others who do the exploitation. Very truly yours, signed W. E. Gilmore. President. WEG/&ED 660 P Y. Vr. Peter Bacigalupi, 786 Mission Street, San Francisoo, Cal. OsT" Dear Sir:- I am in receipt of your favor of July 27th, which I have read over most carefully. I never understood that there was any handicap in your securing business in Montana and Idaho due to freight rates. I do not know, however, what the freight rates are from San Francisco to dif¬ ferent cities in Montana and Idaho. The truth is that we do not allow freight rates to dealers anywhere, although we do allow it to Jobbers. This is where we endeavor to protect the Jobber, and, as an inducement for him to push the dealers' trade, we naturally expect to take care of him (Jobber) by giving him delivery. I realize that this is going to be very expensive, but, nevertheless, I am considering the "bitter as well as the sweet", and this very matter has been under discussion for over a year. You say that our competitors give larger discounts so as to off¬ set the freight expenses. I presume that you refer to the Victor people. I do not think that the additional discounts that they allow will go very far towards offsetting the freight. In any case, I imagine that they will have to change it now, if they want to do business in the far west. I do not see how the paying of freight into Montana and Idaho to their Jobbers will affect you. If you think that we intend to allow freight to any and all dealers that you may have established in these and other western Btates, you are entirely mistaken, as it is not our intention so to do. So far as Mr. Graves is concerned, he did xsfc call on ub when he was east, and endeavored to make some arrangement to take up the Jobbing end in Portland, Oregon. We refused, however, to consider the propo¬ sition. I do not think it fair that you should criticise him in the way that you have, in view of the amount of business that he has done with you. However, I do not propose to go into any discussion 'With you as to this. I must differ with you absolutely as to the statement that another Jobber in Portland would not be beneficial to our business. So far as Dos Angeles is conwerned, I am not inclined to put a Jobber in Los Angeles at present in view of your statement, but I Btill think that Los Angeles is located so far from you that a good Jobber there would be a benefit rather than a detriment to the Edison business. Now in regard to Sherman & Clay, I was simply astounded when I was advised of the amount of business that they were doing on the Coast, and to think that we were doing such a small business in comparison is what nettled us particularly. If you were acquainted with the fact that they were doing any such amount of business, it Would seem to me that you should feave given our business as a whole some consideration. The further fact that their principal business has been retail rather than wholesale makes it even worse, as I assumed, of oourse, that they had been doing • a large business with dealers, which enabled them to pay the Victor people the amounts of money which I indicated in my letter to you. I was aware of the fact that the Victor people intended to curtail their arrangement and, of course, this is going to increase the business of the Victor Co. This i-'s exactly what X want to do, i.e., as to the business of this Company, but, in order to do so I have got to have a free hand to go in4to the different states and cities enumerated in ny letter of July 20th to get the business. As to the territory of Arizona, this will all oome along in good time. So far as Texas is concerned we have been doing exactly what you indicate v/ithin the past year, and with successful results indeed. 7/e feel that by following the same tactics in the far western cities and states, we will be able to build up a business of not #96,000. per annum, but in the neighborhood of |300.000. per annum. I cannot understand why it is that you continue to harp upon the small profits that you make in trading with dealers. You are one of 136 Jobbers that we have on our books located all over the United States, and these same Jobbers appear to be making money, else they would not continue the line, and they continue to add dealers right along. These Jobbers are in the same category as yourself; have extreme competition in every case, and yet they do a large business with us. . A certain Jobber in New York State, with all the competition. that he has to meet, has done close to if 90 , 000 worth of business the last year. Another. Jobber in New York City has done more than #95,000 last year. Take in Boston, where wo have a number of Jobbers, some of them are doing a business equal to yours. I oould go on enumerating others, but it is unnecessary. The fact that you have been the only Jobber on the Pacific Coast for so many years would seem to indioate that you required some stirring up, and the only way that we. can stir you up is to put some competition in the field with you. '.Ve have always found that it pays to do so. I do not say that you are going to die of dry rot, but the fact remains that you are not doing the business that you should, and it is our intention to get our share of the business in that territory. Ndffa word as to the penny slot business. / At the time I discussed this with you, going down to Newark oh the automobile, I, discussed it for .your benefit. You wanted to take up this line as you considered it a money maker. I told you what other people were doing, and I only advised you for your own good, but this does not enter into the question of the business .that We should do in the selling of phonographs and records. opinion is that the slot parlor business :haB been given the '■ preference to the detriment of the general phonograph' business. I am very much surprised to learn that this is not a .success; I cannot understand it. There are more parlors opening to-day than ever before, and they are all making money. The Marks & 7/agner crowd are now opening parlors abroad, so te they must think pretty well of it. The matter is too important, however, to leave until you come east. In fact, 7/e have about decided that: we will take steps at onoe to push our goods in that section, and it is my intention to send Mr. Wilson out v/ithin the next 30 days, so as to look over the territory very thoroughly and arrange for the installation of Jobbers in such cities as we may designate. Now it is not our intention that you should be ignored entirely in this matter, so that we are willing to make you the proposition to pay ; you two and one-half (2-l/2%) percent, on all the business that we may do direct with Jobbers in the different states on the Paoifio Coast, such arrangement to continue for one year from the date of the placing of the first Jobber's order, and a further consideration that it is not our [intention to place another Jobber in the State of California for the same l period of time. , You say that you have heen "handicapped, in the country where large towns are few and far between, etc. eto." Now this is exactly what we are after. 'Ve find that dealers are beginning to realize that the smaller towns can do a great deal of business for us, and we find further that by sending our salesmen into these smaller towns we have little if any trouble in installing new dealers to the benefit of the trade as a whole. I know perfectly well that the Pacific Coast States cannot differ from othe parts of the United States, and all kinds of people; tradesmen, farmers, workmen, etc. etc., have plenty of money and are willing to spend it for anything that will interest them. So fat as the soheme business is oonoerned, we are turning thlB down every week. Only recently a proposition was made to us by one of the largest insurance companies, but we refused to consider their offer. I realize that the business will go to a competitor, but let them go into it; \vp do not want it. As to buying out your business, I gave this matter up after your last visit here, for the simple reason that you did not seem to aooept it in the spirit in which it was given. I simply dropped it. I do not see why you should seSl out a good business. You have surely been making money, and why you should give up a good business X cannot for one minute understand. Some little time must elapse, of oourse, before Mr. Wilson oan get out, as above indicated, but we have made up our minds that we are going to get a larger portion of the talking maohine business on the Paoifio Coast, and you have ample time to make a full reply to this communication although the fact remains that we cannot he oonsidered ae absolute outsiders any longer. Trusting that you will let me hear from you at your earliest con¬ venience, I am, Yours very truly, President. FIRST WEEKLY REPORT TO THE PRESIDENT August 13, 1906, ■by NATION! ORAL PHONOGRAPH COMPAHY ; Commarolal Department . In thiB first report it is proper to briefly review the work done prior to the organization July l, 1905: Mr. Hibbard sustained for a number of months seventy (70) Edison Business Phonographs and eight (8) shaving machines, in eleven different offices. All of these machines have given good satisfaction, as shown by the fact that seven (7) of the eleven (11) firms have paid for fifty (50) phonographs and six (6) shaving machines, at the full list price, leaving only four (4) concerns to pay for twenty (20) machines. These outstanding accounts will be adjusted by the 20th. inst. on the same basis, no doubt . ’ Since July 1st. this Department has installed seven¬ teen (17) Phonographs and five ('5) shaving machines in twelve offices. Only three (3) concerns ordering four machines re¬ quired the appliances to be put in on trial and the balance were direct orders for immediate payment. It is very satis¬ factory to note that the Prudential Insurance Company and the Hetropolitian Insurance Company, 'botjr large concerns, employing several hundred typewriters, gave us renewal orders for two machines each, to be placed in their Correspondence Department, we expect to push this class of sales very rapidly. You will be interested to note that all of the Photo¬ graphs have been taken and the illustrations completed f<r our new catalogue. We expect to publish this catalogue in about two weeks and will then be in a position to sell out-of-town concerns, who require instructions for operating. The organization of this office will be completed on September 1st. At that time we expect to have with us Mr. Elliott of the Hew York Edison Company, as District Manager of Hew York City, also Miss Mabel Brown, late of the Smith Premier Typewriter Company, who will take charge of our Employment Bur¬ eau. We now have a complete card system installed for all parts of business, so that the work from the start will be pro¬ perly recorded. Everything that can be done for the Business is being rapidly pushed and we are canvassing in the city for prospective customers, putting in trial installations when we interest them Respectfully, Manager. [ON BACK OF PRECEDING PAGE] 3TIRST WEEKLY REPORT TO THE PRESIDENT. August 13,1905 *>y ' COMMERCIAL DEPART I.IE1TT - RATIONAL PHONOGRAPH COMPANY. WHOLESALE, EXPORT, RETAIL SION ST. COIN-CONTROLLED You/ letter* of the 9th Inst, is before me, thiB machines- - and yoursjof the 20th ‘/net . have certainly come as a great bomb-shell in my camp and have had We^ef f ect , as you say, of stirr¬ ing up everybody connected with me. V I am very glad that you "'are going to send Mr. X T/ilson out here. This will be the first time in seven years that anybody from the Company has been here, with the exception of once when Mr. Walter Miller spent a week with us making Chinese Records. You certainly have reposed complete confidence in me, and X hope you do not think for a moment that I have failed in ray duty and obligat¬ ions to you. On the arrival of Mr. Wilson I will be able to go over with him, in a complete manner, the situation of^the country which X must insist is different from what you are accustomed to find in the East . He will find this out for himself and, be able to report to you on his return. If I may be allowed to suggest, I think it would be the best plan for him to come by way of Arizona and Lob Angeles DON'T FAIL TO VISIT THE EDISON EXHIBIT AT THE LEWIS A CLARK FAIR AT PORTLAND. ORE. .E.G.— 8 and. from here he could go North J' after, having thoroughly gone over matters here. As X have stated before I would regret to lose Oregon and Washington, which are very good' territories and better than California, but I must bow to the inevitable and am entirely in your hands. One thing, however, X cannot understand, and that is why you should say you 'dropped the matter of buying me out beoause I did not take it up with you in the spirit in which it was given. ' As. far as I oan remember our conversation on the matter was that you could take the business anytime you wanted but would not do so, al¬ though you might eventually entertain a proposition to buy me out. I replied as I have done on many occasions, that you could have the business anytime you wanted it, knowing full well that I would get justice at your hands. It always has been in my mind that you would want San Francisco for a distributing point, and I have looked forward for a very . handsome salary from you as its Manager and I hope I have not done anything to displease you on this subject. Sherman, clay people have been compelled to sell goods to Furniture Companies and scheming people owing to customers having been secured for them by the Victor Company's traverlers. You have never sent any travelers here to help me and I have alwayB had to help myself. Before the Victor people sent traveling men out here Sherman & Clay were doing a business of from §7000.00 to §9000.00 per month, and I waB doing the same if not better. They did not cater to dealers and I did. They have now been obliged to Bell to all kindB of trades people and I am going to do the same, except that I am handicapped for scheme goods, besides Victor Records at §2.50 and $1.00 each net go into money quicker than ours at 17ft, to say nothing W.E.G.— S of their $100.00 machine which is a great seller. Have just closed with the Grand Rapids Furniture Co., of this City. They are large buyers’ of Victor and Columbia goods, and will try to get others of the same class. Heretofore I have avoid¬ ed selling to this class of trade as I was of the idea that you did not care to have the Edison goods peddled around the same as the Columbia produot. How 1 will branch out and get all Rinds of people to handle our goods which I believe is what you want in order that my sales may be increased. Mr. Wilson wrote me sometime ago that it might be a good plan to go over our list of dealers and strike off those who are not live ones, we are now going through our list and I will send you the names of all those who have not bought from us, say for the past seven months, and these you can eliminate from our list. This will materially reduce my list of dealers, particularly in California where your report shows that we have one hundred and sixty-five live and dead. 1 have at all times tried to keep up the interest in country stores and music houses who handle our goods, giving them at all times the benefit of the doubt as to their being active or not, but as it is your wish we will drop out all those who are not aotive. I hope. Mr. Wilson will be able to stay a little while with us and instruct us in the way business is done in the East, for we very seldom get any instructions. I have had to establish my own ways of doing business, and it is my aim to give satisfaction and I intend to do so at all hazard. I will say nothing more of Mr. Graves, but will talk matters over with Mr. Wilson when he comes, l hope you will not establish him or anybody else as a Jobber for this year anyway,, so that 1 may get the benefit of the Christmas trade which I have worked up. For instance the Portland Fair is not going to behe- W.E.G.--4 fit mo in any direct way, although it has cost me considerable in money -and time. I note that you are comparing my business with that of Jobbers in New York City (population several million against 350,000) a slim ohance I would have to make a showing similar to those people. Am glad. that Mr. Wilson is coming for he will then be able to talk understanding^ when you have your meetings with him in regard to the Pacific Coast business. I will also satisfy him that I am not devoting my entire business energy to the Penny Arcades, whioh I can assure you is a losing proposition. All round I have been losing for the past year at least $500.00 per month and not making money as has been your conclusion, for as I told you before I have the Mission St. store on my hands at a cost of $550.00 per month for rent and elevator service, have a staff of people working exclusively for the Phonograph business at an expense of about $300.00 per week for salaries. My share of freight, insurance, list of lost accounts etc. go to make up thiB loss. Times are just commencing to pick up and X look for an immense Holiday trade. I am now is a position to make a little money with your assistance and handle the Edison Phonographs and Records in good shape. Have established a good trade, have a good staff of assistants and am' ready for business, but you are going to take some of it away from me. This certainly will cripple me, all of which I hope I can show to Mr. Wilson.'s satisfaction. X want to sell out the Penny Aroade business and devote myself entirely to the Phonograph business, so if you come across Messrs. Marks & Wagoner and they want to buy I am willing to Bell. I thank you kindly for thinking of me with a percent- W.E.0.--5 - - - - "" ' aga, should you decide to take gome of my business away. Although this is small it is appreciated b'y ad. I Know I am in your hands and that you will give me a square deal. 1 certainly can handle Los Angeles from here and there is no need of a Jobber there as he would have no territory. It is only a twelve hours ride by railroad from San Francisco and we have two good deale is who are doing all the business that Los Angeles can stand, as you will see by the state¬ ment I sent you. I do not know as I can say anything more, but I will await the arrival of Mr. Wilson so that we can go over matters and I am sure he is a good judge of what ought to be done and certainly will give me the benefit of any doubt that may arise in his mind. Dict.P.B. SECOND WEEKLY REPORT TO THE PRESIDENT August 21,1906 NATIONAL PHONOGRAPH COMPANY .Commercial Department. This week was practically devoted, to attending the National Shorthand Reporters Association held at Chautauqua August 16th. to 16th. The object of attending this Con¬ vention was to place our Business Machine in competition with the Columbia Graphophone among this class of customers who could not dispense with the: machine and who have furnished ad¬ vert laments for them for years. There is no doubt but what we succeeded very well in our purposes. Our Phonographs were run by eleotricity and we had a very good plaoe to show them. The Columbia people did not have a good place and they ran their machines by Spring Motor. Our success may be shown from the following endorse¬ ments which will make good advert isments. ■The undersigned members who have reported part of the proceedings of the 7th. Annual Convention of the National Shorthand Reporters Association, are pleased to state that the Edison Business Phonograph used in transcribing the proceedings has done the work in a most satisfactory manner." SIGNED: Louis E. Schrader H.H.Pechin E.C. Hardesty Paul Wisenall J.E. Puller Prank Weller The following endorsement is from Mr. Irland who reports in the House of Representative and was elected the next Pres¬ ident for the National Association: "I take pleasure in saying that I have been using a talking machine for fifteen (15) years and that 1 dictate all my notes in that way. It is the most satisfactory way in which a reporter can get out his copy and I some time think it is the one thing that makeB life endurable for a busy shorthand re¬ porter. Having stated these facts you oan readily understand that I hope to see the Edison Business Phonograph a great success. ■ SIGNED: Very sincerely, The venerable Benn Pitman, who with his broth err I ssae, was the' author of shorthand in England and America, dictated the following on a cylinder to be handed to Mr. Edison. (Cylinder accompanies this report.) "I am Berm Pitman. I am here at Chautauqua, my first visit. I have just heard your new- Business Machine, and I think it is one of the most wonderful and com¬ plete inventions ever achieved hy human ingenuity. I heartly congratulate you and feel highly honored in having the pleasure of conversing with so supernatural and temporal a man." Mr. Pitman also wrote the following in connection with the effect of the Business Phonograph on stenographers: "While experimenting yesterday with the Mew Business Phonograph I was struck with the remark of your re¬ presentative about your jfearB that the introduction of the improved machine might diminish the call for stenographers. Let the jwork of Improvement go on; it will only make a gre alter number of-lpeople want Phonographs and an lfaer eased nunher jjf your' experts to use typewriters. ^ £4 SIGHED: Bennt-Pitma jiV j| di It is respectfully suggested tha& Mr* .j Edison send Mr. Pitman a signed Photograph, throWh the writjejr, in1 return for the good feeling expressed. IjJ !> •u g IM On returning from the Convention we stopped in Buffalo and installed two Business Phonographs in the office of the Larkin Soap Company, where one hundred and fifty (160) Grapho- phones are in use. This firm is hi$ily pleased with the ma¬ chines which we left with them and the trial should result in the sale of a number of machines. Respeotfully, fljfh'yi . ~ IolGw NATIONAL PHONOGRAPH CD . ORANGE, N.J. atdiooru, EDISON PHONOGRAPHS & RECORDS. 22d> 1905 W. E. Gilmore, Esq. , President, National Phonograph Company, Orange, N.J. Dear Sir; — Referring to your telephonic conversation with Mr. Ireton on August 9th, relative to Ray J. 0. Ritter, Allentown, Pa. , regarding whom Mr. Edison wanted to know why he did not handle our goods, I Deg to quote below special report, made on this party by our salesman-, Mr. C. S. Gardner; ' "Mr. Ritter reports that the Disc goods displayed in his window were mostly second-hand traded in on Edison and that he is offering them at any price he can get. Ihe Bale on Disc good3 in Allentown is very limited. Mr. Ritter has in stock about 1000 Edison records and 10 machines. He is an Edison dealer through and through. Mr, Ritter is very sorry the display of Disc goods was in the window the day Mr. Edison came to town. Mr. Edison could not help seeing it as he left his motor car in the garage next door." mlm/ Yours very truly. Mr. Gilmore Sometime ago 1 suggested to you that we do away with announcements on all records made abroad, using only the words "Edison Record," inasmuch a3 they have the name of each record fully printed on the cover of each box, and the records are retained in this boxes by the customers when used in their homes. The cutting out of this announcement will be of great assistance to them in making some of the operatic selections, where , especially, it is very difficult to cut them so that they will go on the record. I should be very glad to have your decision on this subject at your earliest convenience, and if it is decided to let the announcements remain, it will be necessary for us to secure Additional help at each plant for thiB particular work, and I am afraid this v/ill be very difficult for us to do judging from the experience they have already had abroad in securing up to date announcers. However, it will have to be done if the announcements are retained. Attached herewith is a letter from Mr. Vfhite on the same subject. W. H. Miller. 8/25/05, [ENCLOSURE] •Telegramt <6 Callu : 11 Randomly, Lohdon. Telephone No. SOSO. H 0 U B o R IWOYL Cabin Codes Used : , '8 AND HUNTING’S. Thomas A. EDISON’S Phonographs Projecting «!?“• EDISON Motors. Edison-Primary Numbering Mac EUROPEAN HEADQUARTERS OF the Factories : NATIONAL PHONOGRAPH Go. Ltd. 0"J /MANUFACTURING Go. Ltd. Be;llD 25, CJerkenwel] Road, Br+ussel, London, E.C. 3rd August, 1905. Y/alter Hiller, Esq. , 65 and 69, Fourth Avenue, Nov/ York City. Dear Sir, I enclose you herewith copy of letter that I have to-day written Mr. Schermerhorn on the subject of dropping announcements on records in the future, which kindly note. J.H.W./L.D. [ENCLOSURE] ■ Co., Ltd. 2nd August, 1905. 1. R. Schemerhom, Esq., The National Phonograph Company, Orange, New Jersey, U.S.A. Dear Sir, During Mr. Miller's stay here we have discussed several times the question of doing away with the announcement on the Edison re¬ cords, and I have "been giving this matter considerable thought of late. I think a very good argument in favour of doing away with the announcement is the fact that we are using a box, on the lid of which the title of the selection as well as the names of the com¬ poser and artiste are shewn. As these boxes are very handy and useful in connection with keeping records, preventing dust getting on them and so forth, it is my belief that nearly all users of re¬ cords on this side of the water keep their records in these boxes, and therefore the name of the selection is always at hand. I as¬ sume that you will shortly be adopting this box in America, and therefore I send along these remarks in the hope that they may be of some use in considering the question of dropping announcements. Of course it may not be a wise plan to discontinue the use of the words "Edison Record", but these two words would not occupy much space on the cylinder in comparison with the rather long announce¬ ments on some of them. On this side of the ocean we often hear the remark that the announcements are very tiresome. X presume you have some of the latest Brussels boxes in Orange, [ENCLOSURE] N. Ltd. but at any rate I enclose you herewith the top of one of our boxes which will illuestrate just what I am driving at. In connection with the matter of breakage as between our Euro¬ pean and American boxes, I have had Mr. Bray unpack and carefully examine 2000 records, 1000 from Brussels and 1000 from America. I enclose you herewith a statement by which you will see that out of 1000 records from Brussels we found 4 broken and 2 faulty, and out of the 1000 American there were found 11 broken and 7 faulty. This bears out what we have previously written you in connection with breakage of records in American boxes. We always find the breakage on American shipments to be much heavier. These remarks are. of course, 3ent along to you for what they are worth. With kind regards I am, Yours most sincerely, Managing Director. j.h.w./l.d. NATIONAL PHONOGRAPH CD. Q/£dVb<m~ ORANGE, N. J. EDISON PHONDERAPHS &HEEDRDS. C. H. Wilson, Esq.. , Manager of Sales, Dear Sir: I enclose herewith copy of letter to Bacigalupi, which is in answer to his letter to me of August 18th. I presume that if you • want to see his letter of August ISth he will show you his copy when you get to San Francisco. You want to he firm with Bacigalupi, and you want to point out to him where he has "been lame and has not followed up the business properly. He may say to you that he does not feel that he has been properly treated, that we never came out there to see him and all that sort of thing, but he came on here once a year and was given every opportunity to learn what v/e were doing, and I do not see why he could not gather this knowledge here and use it to good advantage on the Pacific Coast. I was informed the other day that a large consignment of Victor goods was shipped from Philadelphia via Panama addressed to him. I want you to try and find out if he intends to take up the Victor line. If. he denies it, which he must not do, as if we find that he is, of course, we shall take strenuous measures then to close our business out with him. .1 am not opposed to his taking on the Victor goods, but I am opposed most decidedly to his using our money to pay other accounts. You will see from the letter how much he owbb us, and I do not propose SHEEJ.No. 2. DATE, 9/6.5/05. NATIONAL PHONOGRAPH CO. TO C. H. WilSOn. to allow the account to go any higher. I do not care whether it takes three weeks, four weeks, six weeks or two months to get goods to him, the account has got as high as X propose to allow it and he has got to make other arrangements to get money to reduce it materially. Yours Yery truly, ~ s' . v ^ JLt * / D [ENCLOSURE] Sept. 15, 1905 Mr. Peter Bacigalupi, 786 Miosi on San St. , Francisco, Cal. Dear Sir: „ letter of August 18th came duly to hand, hut insomuch as , r . ./ilson was then making arrangements to go west I have not replied to it, as 1 consider that my previous communications on this subjeot were about all that could be said. I have talked very fully with Mr. Wislon, and he will doubtless be with you ere you receive this letter. I want you to talko to him very freely as he intends to talk to you very freely on tne general situation, tell you what our position is and how we feel about the matter. I must say that I have not been satisfied for the past year with what you have been doing. I have been expeoting that you would materially reduce your accounts with us. The statements that went forward Sept. 1st showed that you owed as followB:- National Phonograph Co. $36,128.63 Edison Mfg. Co. 1*446.99 Against this we have received remittanoeB so far this month as follows: National Phonograph Co. 3,586.65 Edison Mfg. Co. 200.00 whioh reduces your acoount to $.37,575.62 3.886,65 $33,788.97 Against this, shipments of the National Phonograph Co so far this month (no shipments of the Edison Mfg. Co) amount to — io which again brings the account up to a total of- $33, 807 ! 07 I do not know how far you expect us to carry you, but I want to say to you right here that we do not propose to allow this aocount to go beyond what it is at present. It is all very wefl for you to talk about the long time that goods are on the road to you, hut that we cannot be held accountable for. Now the busy season is goming on and you want us to grant you further credits, which we cannot at all stand. We know that there is going to be a tremendous business in our line for the balance of the year, and early in the New Year as well, and I must absolutely protest against this acoount being increased more than it is. We have given you every opportunity to reduce the account materially, and my previous correspondence with you has been on the lines of a reduction. We have now reached a point where we cannot and will not continue to carry this account^ at the large amounts we have been carrying it in the past, and you will have to make arrangements to reduce this materially, as we oannot tofore*- Way t0 00ntinuinS to 8hip you S°°ds in the manner we have here- . . Afaiil4 ref®/Tin?, 110 the matter of °ur buying you out, we had no more idoa of doing this thanv/e had of buying out any other concern. We feel [ENCLOSURE] , -2- perfeotly satisfied that we can get all the Jobbers we want along the coast, and if anybody else wantB to go in the business there, all well and good, and you could sell out to them at far better advantage than you could to us. We are not in the business of selling maohines retail, wholesale or otherwise; we simply want to furnish to Jobbers and dealers, and we do not believo in any suoh adage as that of the Columbia Co. of handling agencies ourselves. As I have stated, I do not believe that "you can keept the bread and eat it to." So far as the Sherman-Clay people are concerned, I know nothing, of course, as to the business they did before they took up the sale of goods through furniture companies and "scheme goods" people, but X do know that we have been increasing our business, not only through these channels, but in other ohannel3 as well, not only in the east here but likewise all over the west. Mr. Wilson is armed with full data as to the business conditions, is familiar with the methods pursued by the eastern jobbers and dealers, and also the western jobbers and dealers as well, and he can enlighten you very greatly as to what they have been doing. Now bo far as you are concerned, we have never interfered one way or the other as to what course you should pursue in the sale of our goods. It never interested us ae to whether you sold them through music houses, furniture people or anybody else. What we want to get is an equal amount of the business on the coast, which, from the statistics which we have, we find has been going to our competitors to a very much larger extent than it has to us, and yet, when you consider quality and price, our goods are equally as good, and in a great many oases better them similar goodB now on the market put out by others. As I have already written you, we have decided to install Jobbers in all of the cities other than California, and this decision we have reached after moBt careful consideration. We see no good reason why we should withdraw it at this time, as we feel that we have not been properly represented in Washington, Oregon, Eto. , and we must, for the preservation of our interests, take up with others what you have been unable to do in the past. When you stop to think that for a long time past you have been getting your goods delivered in San Francisco, or practically so as the 50 cent charge amounted to nothing, I do not Bee wherein you have been handicapped in any way whatever. Now that we have decided to pay all the freight charges to Jobbers in the far west, you must under¬ stand, .pf course, that this is going to rdduoe our profits very materially but nevertheless, in order to get in we have got to do it or EdiBon Phonographs and Records wifi, be supplanted by others. As I have above stated, Ifr. Wilson is thoroughly familiar with the situation and 'will be able to discuss this matter most fully. YourB very truly, President. Hotel Del Monte, Del Monte, California &-7> ./ 6rV~V'fJ) '__ / sff erx> p~y c^)^~y-i~-r -X [FROM CARL H. WILSON] WHOLESALE, EX^OR f, RETAI llllaiimjiiim ■ pigi ■l‘ IJ-P ii 0ik Mfe = 786-708 MISSION 840 MARKET STREET 80S KEARNY STREET 60S K ST. SACRAMENTO projecting ?'r. E. Gilmore,. \ l\jI W* films MACH,NES Pre3, Rational Phonograph Co., ^ yOyr*^ p’IaHrLestra Dear alr|“ ^ m,n,«tURE railways On my arrival at San Francisco, lo-3ft|4 jAt A merry-go-rounds sept. 20th, I received your letter of the 15th, with conv of coin-controlled -*-e't'ter written Mr. ’■>aci<?alupi enclosed. machines iv to 1-T Thursday Fridy and to-day I have devoted entiro- • . aci^alupi , and have, 1 think, rrone over all matters of im- P°? -R" e,re ati^, t0 hl3 bU8ln98a and the method of operating same, as ■>' “**»■“"* ***««» «*» •«.« SSS “S? S “* JWffiSSlSt'SBS, M1*8 receivahle, running expenses, etc.; all of which I will- for- informatlon !;°~nlorr?w °f Monday, together with letter containing as much information and explanation as con he a iven hy correspondence. „ j, , , So far as the establishing of oth"r (fesLaa i, net?tfood’ rh3f °hjIsctlon3 and Protests to our doin.<r so are simply a're- ?no?o/^^^;n lnttw8 hefore 1 l9ft? consequently there is I think I have finally oonvinll?^ ? of busings to^whioh'1 1'rashin^+'Onf. least^rin order to secure the amount of business to which we are entitled, and^rot.ect our interests. such stenn +„ * fjUGh as he regrets our beinf? compelled to take fled in doinJTso^ ’ R nB33 standpoint, we are fully Justi- raTiFni.riin H? appreciates our p-ivinp; him the state of California for another year at least, and trusts that his business will be !7.E*G, - 3 3uch during that time a3 will warrant our giving him the same concession for a longer period. Ho also appreciates the 3 l /s# ws agree to g ive him on Jobbers' business, as he realises it is an act of kindness on your' part, and not one which we were compelled or under obligation to make. Hegarding freight diaries which he has horetofore been compelled to pay, and to which he refers in one of his letters to you, this, he states, was due to his not knowing that we only allowed other ?/estem Jobbers §1.50 per hundred, and that they had to stand the balance. He claims that ho was of the opinion that we had always allowed full transportation charges to all otner Jobbers, and that the fifty cents per hundred pounds that he had been compelled to pay reduced his profits Just that much, as compared with other Jobbers. I explained this matter Id him fully, and he now regrets having raised the question to you in any way, shape or manner, as he is of the opinion that you took exception to his remarks on the subject, and says had he kgowr^that other Jobbera in tie (Test were paying equally as much, if hot ttfb^aaa, in the way of freight, than he was, ho would have never mentioned the fact to you. In conclusion I can only add that aside from being able to ar¬ range with Mm some way, whereby he can reduce his present ‘account and still continue to push our interests, I have settled g243rther points, in a manner, which I think it satisfactory to him, and will .bd to you when I have fully explained them. •' The account question will have to be settled and .determined be¬ tween you and he after you receive statements and reports, which, as be¬ fore stated, I will mail you later. I had hoped to leave here on Monday night and arrive in Port¬ land Wednesday morning; but owing to the length of time I have had to spend with Mr. Bacigalupi, it looks as though I would not be able to look over the ground, and call- on other talking machine concerns, etc. and get away before Tuesday night. I will keep you prated by wire as to JuBt what my movements are. Yours very truly, WHOLESALE., EXPORT, RETAIL 840 MARKET STREET 806 KEARNY STREET 605 K ST.. SACRAMENTO PROJECTING MACHINES FILMS SLOT PIANOS PIANINOS PIAN-ORCHESTRA MINIATURE RAILWAYS merry-go-rounds My dear Mr. Gilmore:- COIN-CONTROLLED 7B6-788 MISSION ST. SAN FRANCISCO Sept. 28th, 1905. W. E. Gilmore, Esq., o/o National Phonograph Co., Orange, New Jersey. Ur. Wilson has come and Mr. Wilson has gone. I presume he arrived in Portland this morning and will go at the work he has been sent out to do. While Mr. Wilson was here, which was nearly a week, I used -every endeavor in ray power to make thingB pleasant for him and his good lady. On his return to New York I am sure he can re¬ port to you very thoroughly in regard to my business as he has gone through everything with me ar.d ray people here. My books and establish¬ ment were open to him and he examined into the minutest details every¬ thing connected with the "trust" you have reposed in me for the past seven years. All of his questions have been answered and the figures have been placed before him and I feel sure his report to you will be satisfactory. You will find that I have considered your consignment a sacred trust and have treated it as such, kept Special books for it and at all times catered to giving you the benefit of any douht which might arise and always remitting to you any money that oame in for goods sold belonging to you. This fact seemed to make a very special impression on Mr. Wilson, as I think he expected something quite different. He has called on my trade and bankers here and, while I do not know the details of his conversation with them, X am inclined to think they all gave me a good send-off. While l regret, as you can readily understand, the loss of Oregon and Washington - the former the best state of all my territory- I must bow to the inevitable, fully knowing your posit¬ ion in a corporation and at the same time appreciating your unlimit¬ ed confidence in my honesty. He tells me that in order to become a Jobber he will exact a cash purohase of $10,000 worth of goods. I oan see, of coiirse, how a bunch of money comes in to your Company and is not to be despis¬ ed. But x am inclined to think that had you continued in the old way you would have come out better in the end. Shis, of course, is my opinion - nothing more. I appreciate it that you are going to allow me 2-1/2$ on salea made to these new Jobbers as a sort of balm to sooth my losses. I am inclined to believe, however, that if you will think it over you will decide to allow me more than this, part¬ icularly now that our oommon enemy, the Graphophone Co., has just put out a oiroular where they allow their Jobbers 10$ on sales of over $2,000 per month. If they can afford to do this, oan you not do the same? The taking away of Oregon and Washington means the taking away of two-thirds of my business, for I have at all times considered Oregon especially better than California, Am I to understand that my territory now as a Jobber is reduced to California and Arizona and that I can deliver to either? A great fall-down after having controlled almost the entire Pacific Coast to be reduced to two measly states. ' Don 't you think for a moment, though, Mr. Gilmore, that I am not thankful to you for allow¬ ing me another year for these two states, for I certainly am. Mr. Wilson will tell you that my Penny Arcade business haB gone to the Devil, as have other outside lines whioh I have had and which are the cause of my taking the lease on the Mission Street store at $450.00 per month, with three years and a half more to run. I am now reduced to the Edison Phonographs and the wurlitzer goods. These latter are generally consigned to me and the wurlitzer people carry the papers, for nearly all the sales of their Pianos- and Orchestrions are on time, so you see x don’t handle muoh cash on other goods. . I have three lofts to let in my building, which ought to bring me $300.00 per month, and have been unable to rent them for a year and a half, and no prospects of renting them shortly either. This has put quite a damper on my plans for having a representative build¬ ing for the Edison article. Mr. Wilson insists that I ought to have a retail store on Market St. This you know means increased expenses, more salaries, etc., etc. He thinks if 1 were in a position to do so and would handle the Victor and the Edison goods exclusively on a retail basis X could make some money. You know, Mr. Gilmore, that from the beginn¬ ing X have been loyal to you, have turned down offer after offer to handle the Victor goods - which if I had accepted would have made me larger profits. I know you appreciate my loyalty and you can rest assured I will not handle these goods until I am in a position to re¬ fund you for the handsome credits you have allowed me. Mr. Wilson was informed that I had a large consignment of Victor goods on the road to San Francisco. This 1 think 1 have convinced him is a false¬ hood, started by some of the few people who do not like me on the Coast. This 1 oan assure you I would not do. My business with you has been and will always be openhanded. I have never told you any falsehoods and never will. The day I cannot do my business without lying to you I will quit. I was going to suggest that as„you frequently come in con¬ tact with large capitalists it might occur some day that you would meet somebody who had some money to invest. If X could secure a loan SU.-S of about $25,000 say for efo I would like to take it and seoure the party by giving him a blanket mortgage on everything I possess. The statements whioh X have given Mr. Wilson will show you that I have more than three times this amount, so that the party furnishing me with the funds would be amply secured. With this money I could pay you enough to reduce my balance to a deoent amount, pay cash for other goods and take advantage of the 2$ discount, whioh would more than pay the amount of interest I would have to pay each month, and I oould then do a large retail business on the installment plan. The position I will be left in to-day if Jobbers are put in the North will not be a very good one, I can assure you. Mr. Wilson tells me you are going to send a travelling man- out here to spend at least six months at your expense. Now you cannot send this man too soon. He is badly wanted and I hope will be a good one for our mutual benefit. He oould first work the state of California and then on his way home do Arizona. His experiences would also be information for you on the hard time I have had in being a missionary for the EdiBon product on the Coast. Now that the pudding has been boiled and is ready for eating these other duffers come in and get the benefit of it. I am glad to know that after you have had your talk with Mr. Wilson and have seen his figures you. will see the reason why my account has been so large. I think he is thoroughly satisfied that it is a Coast habit that nobody pays their account in less than 60 or 90 days, and I have had to give this credit the same as other people do only it was with your money and not mine, it was very hard to convince Mr. Wilson of this fact, but I think he now knows it. I am sure he will have a nice talk with Mr. Dolbeer and show him some¬ thing quite different from what you people are accustomed to in the East. He has found that the people with the largest rating in Dun and Bradstreet are the slowest pay. We had to lunch with us one day Mr. Beck of the Eastern Talking Machine Company of Boston, who by the way X think is a very smart and able gentleman, and this matter was discussed and they both agreed that things were different here from what they are in your part of the world on the subject of credits. X presume in the event of Mr. Wilson failing to seoure the required orders to make a Jobber in any of these states I will be left in my old position, in that case I would ask you to kindly have your travelling man visit him before coming to California, as it would be a great help. You know as long as there is life there 1b hope and I am hoping he will not seoure all the new Jobbers he expects to. Rather a forlorn hope. Mr. Wilson has written for your permission to return the largest part o% all of our Concert Records as the most of these used to be sold in the North, where we have sold a great many Conoert mach¬ ines. if you instruct me to return these shall I break them up as suggested in one of your letters, or do you think you can use them intact. By returning the Concert Reoords my stook of Edison goods will be a very clean one indeed. I have also asked him to kindly have you secure for me a credit for the Films now held by the Edison Mfg. Company in order that I may wipe out this account altogether and con¬ tinue to pay for machines as fast as I .get them. W. E. a. —4 I have decided, to sell out my entire Penny Aroade Outfit. You may help me to do so as I Know that Marks thinks the world of you and a hint from you might do the trade. In that case I think X would have the nerve to open a retail Btore where ray Penny Arcade is at $850.00 per month, hut I feel confident it would be a winner. So please don 't forget to try and boost this sale should the proper op¬ portunity ever come. Marks & Wagner have for a long time wanted to open an Aroade in San Francisco. They run their Arcades on plenty of capital and could make money where x oould not. While Mr. Wilson was here I took upon myself to introduce him to people who were not handling the Edison goods and the invaria¬ ble reply to the question "Why do you handle the Victor goods in preference to the Edison?" was "Because the Victor goods are well advertised." He can tell you this himself. I did not know before we made these trips together that the Victor Company was allowing their Jobbers money to advertise with, nor did X know that they were in the habit of putting goods out on consignment - that is Sherman MAIN 5464 786-788 MISSION ST. PROJECTING FILMS SLOT PIANOS PIANINOS PIAN -ORCHESTRA MINIATURE RAILWAYS MERRY-GO-ROUNDS 840 MARKET STREET 805 KEARNY STREET‘S p~”j y g ~ > 606 K ST., SACRAWEN^t^ Cf SAN FRANCISCO, Oot. 30th, 1905. coi ^controlled I returned, from my trip to Portland yester- machines day and can assure you that 1 was met with a very pleasant reception by nearly all of ray dealers whom I have lost through your new arrangements. Thb blow is a very hard one on me as it takes away about §600.00 per month profit, but 1 presume you are the best judge of what should be done under the circumstances and I will abide by your judgment. Hope you will do the best you can for me in ■ the territory I have left. For my part I will use every energy to in¬ crease my present number of dealers and also my retail business, on which latter X now have to rely a great deal more than before. My one regret now is that I have taken a five years least on the Mission street store at §450.00 per' month, with an additional expense of about §100.00 per month for elevator ser¬ vice, making a total of §550.00, which is too much for my present re¬ duced business. There seems to be no prospect of my renting the three lofts which are now empty as you Mr. V/ilson saw. X am informed by my dealers in the North, and which can be vouched for by Mr. Wilson, that they have been benefit¬ ed by the Portland Pair. My object in having you make this Exhibit was in order to benefit myself as much as possible and now that I have lost this benefit I would like to know if it would be add- right for you to compensate Tor the expense I have been put to in running the Exhibit. For instance I have paid my manager there §440.00an^ about §50.00 for traveling expenses. I have made three trips there which oost me about §150.00 each trip. If you think it is right, in view of the change that has taken place, and that others will get the benefit instead of me, and you will refund this amount, I am willing to throw in my personal of charge, if you decide to allow me this credit would L i M^L^Inr^ aPPiy to the Edison Manufacturing Company 's account as i am very anxious to have this account disappear entirely. throne* hi a VmoHr,«oolne't Ur* '7Jl8on in Portland after he had gotten 3ln 3SS, purposely not wishing to interfere with any ?? 6ht have* 1 met hlm after hls work was done and we talked this matter over and of course it is now up to you. X5?“ « «» i KhVSiS ln n.nmri+t, uee best energy to collect my out standing ™°™ts, and remit to you every possible amount in order to reduce my inSL would like have it. I will do this without ”g+ th9 trade for us both as fast as possible. Mr. Wilson will fnd1 n? h?w “noh credit is given on the Coast by other people and, of course, i must do the same if I want to do the business. MeHR-pfi unoto. . J" I,ant to So °n record^my satisfaction in your naming nlSVr™ ™+£«!0B*er as^ Jobbers in Spokane, i have nursed these £r°® nothing to what they are and I would have been as sorrv as Ebbing ** that section! I had Tvery^ice irTthe Sst.* ±n Whi°h th®y thanlc me very kindly for my assistance remains as with the D- s* Johnston Co., Seattle, remains as heretofore, and I am sure I will get some of thkr business. territory nil vn, can be of service to .you at any time in that ter_itory all you have to do is command me. Yours very tru] NATIONAL PHONOGRAPH CO. loNDON 'i ORANGE, N.J. P/sRe'rSi;in. JUx xuu>a.£diAciv> EDISEIN PHONOGRAPHS & RECORDS. ■ oct. 24,1905. Mr. W. B. Gilmore, President, Orange, N. J. Dear Sir: „ . If a printing plant of our own would save $5000 a year, would you spend $30,000 to $35,000 to put up a building and install a plant? If the subject interests you at all, I will make a careful investigation so as to determine the present cost of our printing and what an adequate plant would cost, and discuss the subject v/ith you further. Very truly yours, NATIONAL PHONOGRAPH CO. Advertising Department (VI . P. - NATIONAL PHONOGRAPH CD. LoNDON ORANGE.N.J, PAbRe'rSi; EDISON PHONOGRAPHS &RECDRD5. 31 Union Square:, New York. 304 Wabash Avenue, Chicago. Mr. Gilmore— —Mr. Weber, Orange, N.J. Dear Sir; — As I have already talked over with you, I believe it very important that we design and manufacture a combination talk¬ ing and picture machine. There are several concerns throughout the country now making this type, and I find Slot Machine Parlors gener¬ ally are putting them in. It is my opinion that sooner or later they will have preference over the regular Slot talking machine, which we are now turning out,. MT. Kohn , of the Automatic Vaudeville Company, advised me yesterday that he had three machines of this kind, in their 14th St. store, each of a different manufacture, and that he would be pleased to have Mr. Weber look them over at hio convenience. Copy sent Mr. Weber, WHOLESALE. EXPORT. RETAIL 840 MARKET STREET 806 KEARNY STREET 605 K ST., SACRAMENTO 786-788 MISSION ST. PROJECTING MACHINES FILMS SLOT PIANOS PIANINOS PI AN -ORCHESTRA miniature railways MERRY-GO-ROUNDS COIN -CONTROLLED Mr. w. e. Gilmore, i National Phonograph Co., Orange, New Jersey Dear sir:- Yours of the 30th ult. received! I note what you say about your establishment of Jobbers on the Coast and, of course, will cut out any further correspondence on this subject, only, I would like to suggest that as your Mr. Wilson has informed you of the tremen¬ dous business that is being done here we naturally presume you that he has also informed you of the fine advertising that is being done by the Victor Co. on the coast. I thank you kindly for your suggestions on my Mission St. store. Here I am up against it. My signature has always been good and X will have to make it good on this lease. You can bet that if anybody comes along with any kind of an offer they will be my tenants. I am not surprised at your generous action in the matter of the Portland Pair. 1 know you too well, and thank you kindly for your action whioh is certainly a relief to me. I enelose you herewith and bill for miscellaneous expenses, $122.19, also my bill for allowance, as per your letter, $940.00. Now I certainly did not express myself fully in my letter, I did not pretend to tell you what accounts you should charge/* your expenses to, but what X meant was that if you will allow me credit for this bill, whioh you have so generously done, and have the credit placed to my account agalnBt the amount I am owing the Edison Manufacturing Co. Don t you for a moment think that I would tell you what you ought to do in charging expenses. Only my ambition is to re¬ duce the Edison Mfg. company^ aooount to where i can get: 2$ when I pay cash for Projecting Machines, and in this way save money on freight which I have to pay totally, as that Company does not pay freight, not •WvE.G. — 3 -being so generous as the National Co. .. . „ 1 have taken due note of your general opinion as to the benefits that will be derived by my hustling for California t^ade. I am dying for you to send yourtraveling man to investigate Calif, and you oan bet that I will do all I oan to inorease my business in the territory that is now left me. i have to do it or X cannot eat, and those depending on me, whioh by the way are numerous, Trill be in the same boat. Yours very truly. Diot.P.B, is YOUR REPLY YO THIS COMMU^^ON NATIONAL PHONOGRAPH CD. lo, ORANGE, N. J. EDISON PHD ND GRAPHS & RECORDS. Mr. W. E. Gilmore, President, Orange, H. J. As a preliminary to a discussion concerning the use of . additional mediums, like Leslie's, Puck and Judge, I want to submit a few facts which will give you a better understanding of the. situation when you can find time to talk over the matter of advertising for 1906. In the year ending December ,1905 , we spent $55,000 in what we call magazine advertising. This amount was expended in mediums shown on the enclosed sheet. The crosses on this sheet indicate the months in which our advertisement appeared in the various mediums, gives the total numbers of insertions in the year and shows whether the publications were weekly, semi-weekly or monthly. You will see by this sheet that even this expenditure does magazine, Red Book, and Success are the only publications that we have used almost every month throughout the entire year. In Collier's and Saturday Evening Post, we have only had one insertion each month ' any additional mediums unless we are now using or spend more money. V/e have already decided not to use some of the mediums shown on the enclosed sheet, such as Life and Woman's Home Companion. Others will undoubtedly be dropped as find that they do not seem profitable for < Puck, and Judge and other medii drop some of the publications \ •iously considered Leslie larger number of mediums i about the increased value of i NATIONAL PH1T0 GRAPH CO., Advertising Department. yn t* Han age i ! Oaau-Gju ... CL^q^h^j (X<ido,/X\ M/tfr f ... 8CA. . Clr . Qo-CU^X _ . Cz«Ms**ji . — &)*-TAts$pe4yc . d^A/VH ■ ■ . . - [ENCLOSURE] '■ /{-PttiL JUtiE, JVlS \ H-VG. SBPT. OCT- MC7V J£C. ’ _* - * _ „ i ...X. x. X- - X...| X._ ! ! 1 Vi— ; i /f f ! . .. ._.... ! X. . ' I ! y | i_ i rr . j..X. 1 X 1.x... _.../ 1. A . A4 . — -X_i _ _x V | X- . y- ! -K : ^ ~ ~0~“ ,K . L y> .. . . -!•*- l_:_ _Y_L__ : d L..&J jLj . A L.A- Lxj. ......_ | [j<__ __x . . ! .£-. | _ u X . 1 .7-! JLJ _ JLj _Jl£jL^oLfv. _..j ■ /fez/- . Ap . Q<Jjdr- | . /Iaa_ji~ dUis) ...... .1 _ . ..... . . x.; . .X 1 .X- . x_. ,/l4 >h/.'i! /Jviaj x. _ A^&v .... . yhnAcC). YYuvli . - foTryW^oMoi^ . Xki-ZbM _ 4~*u ^Lx-^a.l. _ :._:A|_xd.;X-.| x- • cx-~r~xL ~~yn~~Xl~>Ci •■.yj jC A.i..:x4-:*-. ! ,c>L.: . !;.xj _ ]..J>4. *1! . M A j x. A -X... — - IX.. LX |;..._i._ X.. . . t . I X JM- X ! . fx_ X ._X4_j^.i..pa. 1-XJ.id: -iu.:.f .-JU...X: . /./:_['. X : x >-. : X ; A, . rU. A ! X. < 7. --! . ■■? . sa _ ! ...>LJ..j2_J . ^vAciwl^, , Th^/^fy '. ] . Tn^dUy.. *4 .%-zj^4Lf -A — assistant o.NtflAL 'manager. COMMERCIAL DEPARTMENT NATIONAL PHONOGRAPH CO. , ORANGE, N.J. — - - - > Manufacturing and Installing Appliances for the {MonSi a&fiwru EDISON CDMMEHEIAL SYSTEM mark. Conducted with the BUSINESS PHENUEHAPH Dear Sir:- You will bo Interested to note the attaohed original letter from Bonn Pitman, who states that he was coined the tem -Phonograph- in oonneotidn with a phonetic sign in stenography. llr. Pifcan’s letter oomee aB *1 r°Ply to my letter, asking if he had received the photo* of Ur. Hdieon. fee letter acknowledging the ^oto- graph had not been received by the writer, anil X am pleased to^aote that he has the same in his possession, as you will Yours respectfully, HATIOHAL PE0500RAPH CO. Coameroial Dept. Uhnager, $ ajio L^io-tcC- ^riL%. (f. [ENCLOSURE] [ENCLOSURE] '■ . . c)^- &XJU*, (X. JS <S-<i -fi-U/- /v-fX Us4X*>- 6''W-^La\j«*-4' |Xj&-U^fX> ," J(T <Vw^|U- <X/w\mU&C L/U/v«. &A/0— ir-|» it U) C/VL/lr^fcbS'~t cv 0^4 U/CL/> UHA'Cvl^EC /WJC- Li- U-^r /VM-Xy (h>14^ } i\r«*»Jc Jswt'^W'-V dodCT^ ^ O^AjL. u4jua- U- <6 Uut, {K^'fclvO^ Oc AvoaaA^- iL Wj? <U' *«- ^4 fl L ^VjQAA-it^o^lvA-a-^ f£j l^<tv/> ( 0^4 <!) Ivs#/*-*- (/j~ lU-"fc&Vv^ e2j^<yi.ajok^ ” 'iftv, ^wl’ $ icix "4 — f f^.ty.j-'U ’ u* w^U- =-«U-4 ^Lwy-fL* I'-*4' A-L^u^ji^fcr — uma«L- ow 4^* ’ Jlu-fl-e— Iaj-</\cOi Ojjia«_ wva-^4^cv-<5^tr4 o _ _ _ _ . Jhfc'fUt* ln^i L°^ ^ «*"t <UwU--. L- £Xwv- (jLWtf d^L&vwyi. oojo/4«_ ^vj "6Cu.4rfc®-«A » UA-i. 4 ■ I ClNA.oL-iii^'T^ r tU^A »C V. <. <&L k-VlAfl. Bear Sir payment ■“• «><<sKKr*vr . Wilson; Mgr,, of Sales, ' Qf^ y» National phonograph Co,, J 4^ JX ' j \|J' We enclose you our check for §1936.82 in full of your statement for §7510.69, as follows: — Oct. 30th, freight, § 419.70 , Oct. 31st, cash, 5000,00 /» N ov . 16 th, Merchandise, 4.07 V A Bee. 8th, draft herewith, 1936.82 Vft discount on §7510.59 150.00 _§7510. 69 As vra are sending you this amount something like sixty or ninety days in advance, the amount being due, as you will remember on the order which we gave you, there was one third of the balance above §6,000. to bo paid in sixty days and one third in ninety days, and one third in one hundred and twenty days , with the 2/5 discount deducted' at the end of that time. Our business has been so good and money has come in so freely and the tjAisongoods have sold so well that we do not feel like availir.g our solves of the liberal terms which you gave us in securing the order. We fool that you might as well have the money as to have it in the bank, We appreciate very much your liberality in allowing us this extra time with the usual discount, as we are paying to-day, as before stated, something like 60 days in advance* We might perhaps next Sail when we will probably get in a oar load of machines, ask yon for. an extension of the us\:al time . The balance of the order Which we gave you was billed on Beo. 3d- This amounts to over §1100. It is possible that vre might allow this amount', or §1000. of it, to go to the end of the 120 days, but if remittances are as good in January as they are this month, it will not be necessary. ' We are hapny to say that our business has been so good with the Edison jobbing, and that we now praot.ioally owe you nothing for goods raoeived, and have a great many goods; paid for that have not', been received, and also have a few thousand dollars In the bank. We speak of this as wo feel that you are interested in our welfare. Will say further,- that we have started a great many EdiBon dealers besides the ones already started by Mr. Baoigalupi. Nearly all of them have qrdered and re-ordered beyond our moBt sanguine expectations. We have made quite an advertising, feature in the newspapers of the fao t that you have .been- shipping us in oar loads. It is a good advertising feature itovgija'i the; public an idea of how many Edison goods have been reoeivedj^F3N?B W. GRAVES Yours very truly^EOR GRAVES & 00. [CA. 1905. FROM JOHN E. HELM] %k(J 7-0 . fat- s2 .a. . 9ni*-£4zc^ -f 'JM_f 2-00/ - 3 00/ - . —/0...3.SL... *r\JLuTtfirrtC . Ca. | '/h-fitC ■ ■ I . Hi i*U \ (LdvU ?<? •»- & 0.0 o 9 , .. 7-3~0 O O . // 9o 7— . srw<T . . fit- /72rS- . _'...._ . /0 / ? ...._ . . . _ . . /3 0?f ; ; y<r?nX-- . - - &*&'/■<£>. . . /2-£~0. _ _ _ _ 6 ^ £-<> ■ - : . i! 7'*- . :: & . /£. fsi/,/*,.. f' . _ . . . . yfo***&L J&, <Z0„0 . 3 * & c 0 - 7l,/l. Sy/ _ r : if ; - 1 _ ] . - I-.: - J : - . J_, . J ... 1' - ; 1 \ - _ 44'S'i? i 7? •&■£*/*& <5 F S' a C7^/ r^rsY^s*-' , S - s'SaZ. . . . . 7>^S~o . S . . _ t'-itteS O). /& o //?•£. . . / 3 S~ &. _ . */*>*U- t/ a o . . /Zt&eS >SZf 6- . . . . ./<>*-4-. .S/lu-tsf-.—dScr .._ _ S^et Je.A./tZi* S 7/ /<£~0 a v%r7'/i*£-~ _ ■Ser?™-*— . . 4* o & & & . tfio O *A*c*s£ _ 6 o C3 (£&</&>27*CS CsS*W*~-. £0. .. - . . S’/sTn^-r . . . . . r%+**'/' & - . £ 00 0 <??* &U.JSZ. ^ \$~t£cJi> ' & . . y^T'^jt- -■ - ,'%***?'<£>. 2-000 J/ .&- 7~~?JS~o _ /co-az^.. _ : _ , _ _ s/ z.jr /) 6> ?~£? . 't'-d- /£&&/- S7 o ... <7# ■ Ss-2^ / 6 Z.JTO /Z&0 ......... . >S7?-4tZ~ ...... . . &.. Zr S~0 | . . .. //Ut*4- &. /Z-S-0 !.. . 7l •£■&***■ 7 3 f . - . :- . — j . £> ■ /a o o . . . -•=£*--*-* . ----- . --i 1 . 7? • Tu&e-t a. jrts.£- - ------ -r . iTtO'A^- <?y ZJ~ .