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. Katz Matsushita Electric Industrial Co., Ltd. Midwest Resources, Inc.
Minnesota Power New Jersey Bell New York State Electric & Gas Corporation
Nortli American Philips Corporation Philadelphia Electric Company Philips Lighting B.V.
Public Service Electric and Gas Company
RCA Corporation
Robert Bosch GmbH
Rochester Gas and Electric Corporation
San Diego Gas and Electric
Suvannoh Electric and Power Company
Schering-Plough Foundation
Texas Utilities Company
Thomas & Betts Corporation
Thomson Grand Public
Transamerica Delaval Inc.
Westinghouse Foundation Wisconsin Public Service Corporation
216
A Note on the Sources
The pages which have been filmed are the best copies available. Every technical effort possible has been made to ensure legibility.
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.
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(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]
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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]
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• 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*
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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,
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[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,
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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]
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[ENCLOSURE]
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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
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[FROM WILLIAM E. GILMORE]
NATIONAL PHONOGRAPH CD.
ORANGE, N.J.
EDISON PHONOGRAPHS & RECORDS. London,
Thomas A. Edison, Esq.,
c/o Edison Portland Cement Co.,
Stewart sville, N. J.
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