The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1895-04-29
PHB WIZARD EXPLAINS
Photograph Company Fight
Again in C-haneery-0ppos-
ing the Bid.

0@AH AAAS
opposition to a bsd by Mr.. Thomas Ed
ison of s125.0OO for the plant of the com
any, came up again this morning in
Chancery Chambers here before Chan
cellor McGili.
1t having been alleged by stockholders
of the company that Mr.. Edison was
e-ndeayoring by this bid to freeze out the
remainder of the creditors. Mr.. Edison
PLACED himself on the defensive this
morning in the following statement read
by Counsellor Dyre. OF New York:-"I
have read the petitions of Michael w.
Nolan and Charles A. Boston IN this
case. The statements contained in those
petitions, by reason of errors of fact
and the failure to state all the facts.
make it appear that I have not dealt
fairly with the North American Phono-
graph Company, or that 1 have attempt
ed to take al unfair advantage of the
situation to benefit myself and injure
the other creditors of the Not
having been in any way responsible for
the organization of the North American
Photograph Company, but having spent
a great deal of time without
ton. and a considerable amount of my
means received from other inventions to
prevent the failure of the enterprise, I
feel that these charges are unjust, and
that my position before this court should
be set right"
Mr.. Edison then enters at length into
a description Of his dealings with the
North American Photograph Company.
and begins with the invention of an i'm
proved photograph in October, 1885,.
when, to put it on the market, he or
ganized the Edison Photograph Com
pany, which company secured the title
to the patents. In April. 1888, having
perfected a model of the photograph, he
organized the Edison Phonograph Works.
transferring to that company his manu-
featuring rights; He was the owner 81
companies, and vas s presideIn51p
Prior to this. the American GRAPHIC
phone Company of Washington, D.. C..
gave publicity. to the fact that it was
the owner OF patents relating to the
gr~aphophone, or talking machine. In
March. 1888. before this machine was
put on the market. Jesse H, Lippincotr.
G~raphophone Company Tor the sole right
10 sell the machines. When Mr.. LIP
pincott saw Mr.. Edison's patent, he ad-
m1tted its superiority.
Then the Gdlson and G~raphophone peo-
pie became involved in a question of in
Engagement. Finally, an agreement was
ifduC OCIHcCh H pa tlcS dIl0 d lIGdIy
of peace concluded involving an exchange
of manufacturing Licenses under both
sets OF patents and creating q selling or
ganization which should sell both IiHa-
; 90 terms # equality.
1.-THE Edison Photograph Works was
to manufacture a machine of a definit.
sype, which was only to be changed by
inventions which ] might malse while
the G-raphophone was to manufacture a
machine OF a Certain .y
american ~PhonoFraph Comma sd MS
1-DTlQCOtt We're to SeM both nf the ma
chimes through local companies"
By this arrangement Mr.. Edison says
pincott was to receive the stock of the
Edison Monograph Company when pay
alents were Competed. Then Mr.; Lippln-
fSs5 ers com res NG Mra L Amarnsaa
then Dut out graphophones and phono-
graphs. He took from the American
g-raphophones, and pad that company
s250,000 in cash. All these g~raphophones
were turned back upon his hands, and
turned into scrap. The business proved
a flat failure; the G~raphophone Conn
pany took the cash. and divided it among
TEIE WIZARDS CLAIMS.
Mr.. Edison then turns to the North
American Photograph Company's affairs
and says in January, 1891 he held ten per
cent. of the capital stock.
MY claim against the compan for ex-
pe~rimental expense amounted to S79.-
251.6 81. The claims of the Edison Phono-
graph Works for machines furnished.
amounted to $240, $50. 95. 1 insisted that
these claims should be paid and the
stockholders asserted that they should be
A settlement was made between Mr..
Edison and the company by. which the
former received in bonds $4,000; $251 81
In cash, and for the manufacturing ac-
count of the Edison Works, bonds to the
value of s14e, coo. This, Mr.. Edison adds,
meant a loss. to the works of s94, $50. So.
~ nr1@ fG-f.A -l55 flAH III tho h. I-ff
the Photograph Company's affairs in the
hands of the company. Towards the end
of 1893 the company became involved with
the United Edison Photograph Company
and Mr.. Edison became annoyed with the
dispute and refused thereafter to have
anything to do with the management of
the company He resigned the Presi-
dency and the business began to fan off
so clearly was this seen,v he says,
nal to. pay expenses and its assets were
being rapidly consumed. A receiver vas
appointed, but not one of my selection.
upon it in good faith and / have not
sought to manipulate the affairs or assets
No FUNNY BUSINESS.
Mr.. Edison next straightens out the
financial tangle Of his claims on the
three companies. He says that by his
agreement e cement s Nth ao Nj e. Ltp1g1p p ,oopev ne s15g vas xne
remained unpaid, for which Mr.. Lippin-
colts pronlissory notes were given to Mr..
Edison. They were endorsed by the
North American Photograph Company,
and II, $50 shares of stock in the Edison
Photograph Company were deposited
with the agreement that the stock might
Of the notes should not be paid. These
notes were not paid and MT Edison
from bidding, but only wished to have
the sale effected as expeditiously and
cbeaply as possible. The sale was ad-
vertised in Jersey City and nobody ap-
peared and it was bid in by Mr.. Edison.
Counsel for Mr.. Charles A. Boston,
one Of the oppoIaents to the reception Of
Mr.. Edison,s bid of $l25, 900 for the re-
naming assets, read q long answer from
that gentleman that the affairs and rela-
tons of Mr.. Edison with the old Amer
lean Graphophone Company and MIR.
Lippincott should beea carefully investi-
gated. COUNSEL moved that Mr.. Edison's
bid be disregarded ansossShat the receiver
shall answer categornssJ questions rela-
s tSs to the dealings seSaar Edison with
The Chancellor adjourned the hearing
until this afternpon-