St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-03-15
Some of the Inside Facts Concerning the
Accumulation of Wealth by BleC-
trician Edison.
From Poor Nan He Has Suddenly Grad
uated to the Ranks of the Great
Capitalists.
An Apparently Sane Chicasoan Sent
TO the Asylum Charged With
Being Demented.
an With Money Advertising for
Husband.
How Edison Grew Rich.


NEW YORK, March 14.-The most GU
rlous rumors in circles of financial invest
ment and manipulation relate to Thomas
a. Edison and his electric light company.
His clear expenditure of nigh half a mill
ion for home to take his bride to indicates
an amount of wealth not hitherto accorded
to the inventor, and out of that fact. to-
gether with fluctuations in the stock from
$40 to 81, 500 a share, wild rumOrs of eX-
traordinary inanciering have occurred.
The unvarnished truth concerning Edson's
income and the company's money is inter-
esting. The history of Edison electric
stock shows that good many in this town,
and perhaps in others. have had occasion to
look upon it sort of South sea bubble.
Among its original stockholders in 1879
were such well-knOwn at j. III. Banker.
I. a. Edison, X. l.. Cutting. Jr., DIR. Nor
win Green and G.. p. LOwery. Mr.. Banker
is since dead, his end having been fastened,
according to Wall street history, by losses
in Wabash. DIR. Green still beams as the
president of the Western Union Telegraph
company, and the other original stockhold-
ers are
NOT PLEASANT PARTIES
TO interview on the subject of Edison stock.
The company started in 1879 with a cash
capital of S5O,O0O. This was sort of pre-
liminary fund, to be devoted to expert
mental purposes. As the trials progressed
the capital was from time TO time increased.
1t is emphatically denied that during this
chrysalis period the stock was watered a
drop. but that the cash was planked down
in every instance, except where Mr.. Edison
was concerned. To him amounts were is
sued from time to time for patents in ac-
oN xr~ffh n
At last the cash capital of the company got
up TO 81, ,0SO, 900, of which S4OO, 600 was
paid to Edison, SS5. 0OO remaining in the
treasury of the company, and the balance
has been issued in stock, the par value of
which is 500. During the early electric
light excitement the stock sold at the fabu-
lous price of 81. 500 share. This was fol-
lowed by violent reaction, and many who
bought at those figures afterward saw it
drop to $40 share. 1t is claimed that the
price of 81, 500 was
NOT WARRANTED
by the facts, and subsequently 1t was dem
onstrated-what the early enthusiasts neg
lected to discover-that the development of
the business would require more time than
they thought. Electric companies became
as free as fresh air of a March morning.
The Edison folks got involved in law suits
in order to protect their patents, and the
stock gradually drifted below par. During
the last three years new set of stOckhold-
ers have taken hold. They have struggled
with the litigation and have succeeded in
raising the price of the stock from $40 TO
$500 per share. 1t is now a monopoly. Its
plan is to develop electric lighting compa-
nies throughout the country. 1t eneour-
ages local Inen to establish companies, and
I 81 80 l.
license to use its patents. In this way the
Edison company has formed between thirty
and forty companies, including a large one
in the lower part of New York city. IL
holds of these local concerns about 81, 600,
900 of
DIvIDEND-PAYING STOCKS,
and has recently invested heavily i'm New
York Central bonds as a reserve fund. 1t
is claimed that the Edison system is the
only one that can supply incandescent light
on large scale and in a practical way
from central stations. Eugene Crowell is
president, and these are directors: EraStns
| Wyman, Edward a. Adams, Charles
Batcheler, c. II. Coster, A. +. Higgins, L.
\. Edison, F. a. Hastings, +. Ii. johnson.
| Spencer TraSk. +. X. Upton and j. Hood
| Bright, most of them sound and wealthy
| bankers and business men of this city. The
stock is only dealt in on the consolidated
stock and petroleum exchange. The com
pany is continually prosecuting suits for in
fringement on its patents. and, as men,
toned above, constitutes a virtual mOnOp-
/ oily; but whether this will continue or some
rival enterprise will beat the Edison inter
est in this rich field is question SO fright
enlng to capitalists, in view Of the tre-
mendous fluctuations in Edison stock, that
they hesitate to buy at $500. though the
worth may become $4,000 in a year.
Chances are too blind even for the stock eX-
change, and all propositions to list the
stock have been rejected.