Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-04-20
THE BUSINESS WORLD.
How the Phonograph Company Is to
Be Reorganized With
EDISON AS AN ACTIVE OFFICE
Kenoshas Lumber and Manufacturing Dis.
trict Wiped Out.
FIRES, FAILURES AND RAILWAY NEWS


NEW YORK, April 19.-There are q num-
Der of persons in Pittsburg who will be
pleased to hear that there is q prospect Of
sunshine ahead for the phonograph business.
Since the severe illness and subsequent
failure of Jesse H. Lippincott, who was a
resident of Pittsburg for many years, the
affairs of the North American Phonogrsph
Company have been very much complicated,
and for time it looked as though large
amount of money would be sunk in this en-
terprise. While things are still far from
rosy, there is now said to be hope of an
amicable and satisfactory adjustment of the
chief difficulties of the company
The North American Photograph Com
pany Is q corporation of the State of New
jersey. It was organized in 1888 by Jesse
H. Lippincott and some other capitalists
Mr.. Lippincott was firmly convinced that
the phonogrsph would in time become q
very desirable commercial article, and,
after careful examination and many
| satisfactory tests, he purchased the
patent rights for North America
from Thomas A. Edison, its inventor, who
had just completed his improvements on
the machine. At the same time A. Graham
Bell, of telephone fame, patented and put
on the market the graphophone, which in
| many respects was similar to the phono-
graph, but simpler in its mechanism.
There was prospect of endless
litigation, as Edison claimed that his phono-
graph patents had been much lnfringed
| upon by Bell, while it was admitted that
Bells invention had many new and valuable
adiuncts After months Of negotiating, Mr..
Llppincott secured an option on the graphic
phone, and later became the sole lessee
under Bell in this country.
The company, which was then formed by
Mr. Lippincott, had capital Of Sc, 000, 900,
based upon the ownership Of the phonograph
tories were % soon built I 70 turn out both a these
machines, which were rented to the public
at $40 year.
State Companies and Millions.
The North American Company dio not do
business with the public directly, but like
other similar concerns it sold the rights in
the various States to local companies for
large sums, taking payment partly in cash
and partly in stock of the local companies.
1t is said that these state companies were
SIS. 5.0O0, 600, that of New York City alone hav-
ing capital of s., 600 900, the Boston COM
pany's being placed at $1,000, 900, that of
Phlladelphta at 81 Oo0. o09 the Western Penn |
Chicago at 81. 500 900.
For time all looked well and business
was good, the machines being ordered in far |
turned out. The graphophones were
made by the American Graphophone Com. |
pany in their factory at Bridgeport, Conn.,, |
the general direction Of Mr. Edison The |
North American Company paid dividends at
the rate OF 6 per cent for several years out |
OF its cash earnings from local companies,
but there came sackening of business and |
dividends ceased.
The cause of this was partly the fact that
the public did not take to the machines as
was expected, and partly because of the
sudden and severe.ilfness of Mr.. Lippincort
who. as President Of the phonograpn COM
pany. retained in his own hands the control
knowledge of much of the business of the
enterprise. After his illness he became in
volved in business difficulties having in
vested his own fortune of over half mill
ion, as well as large sums put in by his
friends. Heavy payments became due to
Edison for the patents and to the graphic
ents and the machines made by them
Worn out by a long and plucky struggle
and tied down to his bed by something like
q paralytic stroke, Mr.. Lippincott finally
had to make an assignment, and his in
terests in the Rochester Tumbler COMPANY.
of Rochester, Pa, the largest concern OF
ness in the Connellsville region and other
profitable investments were turned over to
creditors. AS his illness continued and
sshi Sc LAP Absolutely prevents his taking any part
company and for months have |
endeavored to put it on a safe and paying
basis
Edison's Latest Machines Nearly Perfect
One of the reasons which led to success |
In measure was the faith Edison had in his
and the extremely valuable i'm. |
provements he has perfected in the mechani- |
Ill Onara tiOn n the rms china hae xuho hou |
seen the latest machine supplied with all the |
new additions say 1t is about as near per- !
feet as can be. 1t will clearly record whis-
per spoken at distance and the manage |
nent of the parts making the record has |
been greatly simplif1ed.
At the annual meeting of the company in |
the result has been the issuance of q call |
Ior special meeting Of the stockholders on |
'he 18th inst, at the Jersey City on1ces. This
meeting will consider q report of the Board !
If Directors on the adjustment Of claims
against the company and to take action |
either by funding them, issuing notes or |
,a ss It is reported that MI. Edison
in payment of his claims and to |
enter the Board of Directors and perhaps
become a leading officer of the company. I
1t Is also said that some understanding will |
De reached with the graphophone company
n regard to its claims, but as yet little has
eaked as to what will be done i'll this re-
'pect. The graphopnone company is at pres
INT turning out and selling machines on it.
'wn account, claiming that the lease to Lip |
,incott is void but it is likely it will consent
% pooling OF interests. The slot machines ,
containing monographs have made a great
ieal of money and are to be largely in
'reased in number, as will also be the man
lfacture of dolls and other toys con-
aiming miniature monographs. The bust.
less of the various local companies
wen under present conditions is said to be
uff1cienr to pay all actual expenses outside
Il charges on the securities. The net earn.
ngs of the North American Company at
present are about SIS, 900 year.
THE PENNSY IN WAR PAINT.