Evening journal., 1892-02-20
EDISON WAS OUTWITTED
The Great Inventor Frozen Out
of His Own Corporations.
A OLEvER goHEME MANIPULATED.

Henry Willard Engineers a Plan Whereby
the Thomson Houston Company swai-
lows Up the Edison General and Leaves
the Creator OF the Interests in tho Lurch.
New YoRK, Feb 90 0-Thomns A. Edison
Is being frozen out Of great interests % his
own creation. 1t is believed that through
his ignorance Of the ways Of Wall street he
was outwitted and some one else got con-
troll Of his stock. He now owns only one
tenth Of the stock Of the Edison General
Electric company, which controls nearly all
Of his patents, and with that small proper
ton OF the whole stock he is practically
powerless.
The Edison General Electric company was
organized three years ago by Henry Willard
10 consolidate the Edison Electric Lighting
and Power companies. A plan has recently
been perfected whereby rival concern,
the Thomson Houston Electric company,
win swallow up the Edison General The
Edison General stock is 10 be increased to
S5,OOOO00 OF this amount the present
holders win receive in exchange for their
shares Si5O00,0O0, while the Thomson
Houston shareholders win receive SIS ,iu0,-
0O0 The balance, $4,000, 900 viii remain in
the treasury, subject to disposition, Of
course, by the majority, which means the
| Thomson-Houston.
Willard worked the Deal.
The deal from all that can be learned,
was carried out without the concurrence of
Mr. Edison. Ee has been opposed to IL, and
will, il is understood, retire from the board
Of directors The combination OF the two
electric companies was effected by Mr. VII
/ lard, who has been president of the Edison
| General since It's formation.
There was conference the other day, tha
facts OF which leaked out yesterday, In
which the participants were Mr.. Edison,
Mr.. Willard and samuel insult, the vice
president and practically the general man
ager Of the Edison General
ut Is an outrage that the Edison General
should have been put into the hands OF the
Thomson-H Houston said Mr.. Insult TO Mr.
Willard
1T would never have happened except
for your mismangement,' said Mr.. Wizard
10 Mr.. insult, in tones several degrees below
zero
Thereby hangs the tale Mr. Insult has
long been the right hand man Of Mr. Edison
In the electrical business. He was Mr.. Ed.
ison's agent in London He showed such
good business qualities that Mr. Edison sum.
moned him 90 America and ntrusted TO him
the management Of some Of his heaviest in
terests.
The Freezing Out Process.
When the Edison General, the great con
I trolling corporation, was organised, Mr. In
sui was put in as vice president to represent
Mr.. Edison and TO, in reality, supervise il
operations. Mr.. Edison is reported to hav,
had his eyes opened by recent events which
Z have turned out so unfavorable to himself
! Now, from all account, be Is disposed e
blame Mr. insult for not looking more close
, ly after his interests.
Mr. Insult is said TO have acquired larg'
4 interest Ia the Edison General and its aiies
corporations. Nevertheless, If the story 4
true, he must "wnlk the plank and givl
way as general manager TO e. A. Coffin
vice president Of the Thomson Houston
a Mr. Willard is 10 be succeeded "a president
!. Of the Edison General by Hamilton Mex
7 Twombly, who is one Of the heaviest stock
holders IN the Thomson Houston.
Mr. Edison was the principal owner in the
companies which made up the Edison Gen
, eral, but the process of increasing thl
y stock put him in very diminutive minority
. He was the chief stockholder in the Edison
e Lighting company, holding over so per cent
Of the stock Of Bergman & Co., electrica
manufacturers in Avenue b over 80 PEI
cent. Of the stock of the Edison machine
works at Schenectady; over 30 per cent o
= the stock of the Edison Lamp company a.
y Harrison, n. j., and he had heavy interes
= IN the Sprague Electric Motor company.
. Edison's Hands Tied.
The Edison Lighting companies have pai,
most attention 10 incandescent and Isolate,
lighting while the Thomson Houston ha
devoted itself principally to lighting O
h. towns, cities and establishments by an
, lights Each, however, was working int
y the others field. The Consolidation OK thl
II two companies is now going on by an ex
= change Of stock
There is a report that Mr.. Edison win OF
ganize an opposition company, but as hi
patents are nearly all controlled by the Ed
son General Electric company If he shoull
y sell out his interest and start new com
pany ii would be necessary 10 conhne IL
!, business 10 such new patents as Mr. Edisol
n or his colleagues might get.