Savannah morning news. [volume] (Savannah) 1868-1887, 1886-03-20
EDISON STOCK.
It's Violent Fluctuations Between $40
and $4,000.

ana &4,OOO.
A New York special says: The most GU
rious rumors in circles OF financial in
vestment and manipulation relate to
Thomas A. Edison and his electrical light
company. His clear expenditure of nigh
half million for home to take his bride
to, indicates an amount of wealth not
hitherto accorded to the inventor, and out
of that fact, together with fluctuations in
the stock from $40 to $4,000 share, wild
rumors of extraordinary fnanciering
have grown. The unvarnished truth con-
corning Edison's income and the oompa-
ny's money is interesting.
The history OF Edison electric stock
shows that good many in this town, and
perhaps in others, have had occasion to
look upon it as sort Of South Sea bubble.
Among its original stockholders, in 1879,
were such well-known men as j. II. Ban
ker, L. Il. Edison, r. l.. Cutting, Jr., DIR.
Norvln Green and G.. P. Lowery. Mr..
Banker is since dead, his end having been
FASTENED, according to Wall street histO-
ry, by losses in Wabash. DIR. Green still
beams as the president OF the Western
Union Telegraph Company, and the other
original stockholders are not pleasant
parties to interview on the subject of Ed
ison stock. The company started In 1879
with cash capital of $50, 900. This was
assort of preliminary fund, to be devoted
to experimental purposes. AS the trials
progressed, the capital was, from time to
time, increased. 1t is empbatcally de-
MED that during this chrysalis period the
stock was watered a drop, but that cash
was planked down in every instance, ex-
cept wnere Edison was concerned. To him
amounts were issued, from time to time,
for patents in accordance with compacts
made with him.
At last the cash capital of the company
gotup to 1,0S0, 600, of which $780, 900 was
paid to Edison, $4,000 remaining in the
treasury Ofthe company, and the balance
has been issued in stock, the par value of
which is 500.
During the early electric light excite
ment the stock sold at the fabulous price
OF $4,000 share. This was followed by a
violent reaction, and many who bought
at those figures afterward saw it drop to
S4Oa share. tbs claimed that the "bal-
loon" price of So, 800 was not warranted
by the facts, and subsequently it was de-
monstrated what the early enthusiasts
neglected to discover, that the develop
ment of the business would require more
time than they thought. Electric compa-
MES became as free as fresh air on a
March morning. The Edison folks got
their patents, and the stock gradually
drifted away below par. During the last
three years a new set of stockholders
have taken hold. They have struggled
with the litigation, and have succeeded in
raising the price Of the stock from $40 to
$500 a share. 1t is now monopoly. Its
plan is to develop electrical lighting COM
panies throughout the country. 1t en-
| courages local men to establish cOmpa-
MES, and take stock in them in consider
alton of license to use its patents. In
this way the Edison company has formed
between thirty and forty companies, in
GLIDING large one in the lower part OF
New York city. 1t holds Of these local
concerns about $l,000,900 of dividends
paying stock, and has recently invested
heavily in New York central bonds as a
reserve fund. The stock is only dealt in
on the Consolidated Stock ard Petroleum
Exchange. The cOmpanyis continuous
ly prosecuting suits for infringement on
its patents, and as mentioned above con-
stitutes virtual monopoly; but whether
this will continue, or some rival enter
prise will beat the Edison interest in this
rich field, is question so frightening to
capitalists, in view of the tremendous
| fluctuations in Edison stock, that they
hesitate to buy at 200, though the worth
may become 1000 within a year. The
chances are too blind even for the Stock
Exchange, and all propositions to list the
stock have bpan rpipCtpd