The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-11-29
REPLY
TO ANDEM'S
SUIT
Rights Claimed by Latter
Said LOSts-EdisOn Lost
$4,000 He Says.

as ---
Thomas a. Edison, the Edisouo Phono-
graph Works. the National ~Phonograph
Company. the New England Phono-
graph Company and the gentlemen as
sociated with the famous inventor in
the manufacture and sale of the won
derful reproducess of vocal and musical
sounds, filed today through Herbert ].
knight their answer to the suit
drought by John W. Slater, Charles A.
Brickett, Henry Bull. jr,. r. G. Haz-
ard, Robert W. Smythe and James L.
Andem for an accounting on the allie
station that Mr.. Edison n his asso-
Idiates have diverted from h New Eng
land Phonograph Company large sums
of money to the detIiment and loss of
the minority stockholders. Andem
one of the complainants, was recently
arrested on a bench warrant issued by
United States CircaliF Court Judge
Cross, on the charge of forgery. He is
secretary to the borough president Of
Manhattan.
The answer lie a %voluminous document
OF l1lDTt l1dii IoV y bCNAit~CA P0SNSs -
makes specific and detailed denial Of all
the charges contained in the bill,
~.rehearses at length the whole history of
the start. growth and present develop
1nent OF the phnnograId1 business, point
ing out with pcrsistt.ng emphasis the
many attempts made by Andem dur
ing the last two Yeas to harass and
worry Mr.. Edison into "A settlement of
his alleged claims.
1t denies, however, rFlat he has any
Valid claim whatsoever and appends as
"a supplement to the answer in the form
of exhibits every contract and agree
Ynent made by Mr.. Edison pertaining to
the phonograph business including the
abriginal contract made with Jesse II.
sLippincott, now dead, who organized
and promoted the North American Pho
nograph Company for the purpose of
acquiring the Edison Phonosraph Com
pany in 1883, the latter corporation he
ing the owner by assignment from Mr..
Edison of all his p~honpgraph patents.
1t appears from the answer and by
the text of the appended contract it.
self the terms of this contract, which
required the North American Company
TO pay Mr.. Edison $685. 900 n certain
royalties, were never fulfilled. and that
by such failure the contract become
null and void At his tune the phono-
graph was sold for the purpose of TAX
ing the place of a stelaog1apher, not as
a ~reproducer of vocal or instrumental
sounds.
AS a business office adjunct the de-
vic failed at that time md, as the
answer says, MIR. Edison's experience
with Mr.. Lippincott resulted in great
financial loss. a~ggregating s4O0,o 900.
Such rights as the New England
Phonograph Company obtained, the
answer shows. were had under the
terms of a lease made by the North
American Company, which at the time
of its start in business promoted many
similar corporations for selling the
monographs in various States and Sec
tions of the country. The defendants
aver that the rights as such iessees
ceased with the insolvency of the
North American Company, and more
certainly in 1895, when the property of
that corporation was sold by John r.
Hardin, of this city, the receiver p
pointed by the Court of ChanceIy.
The answer shows that in 1896, when
Mr.. Edison made Improvements in tho
phonograph which resulted in its al
niost instant acceptance as a repro
Queer of vocal and musical sounds, the
New England Photograph Company
had ceased to do business, n for
several years thereafter made no at
tempt to sell Photographs OF to inter
fere with their sale by licensees of the
Edison company or the National
Photograph Company. In 1900, the de-
Pendants further aver. Andem and the
other compliments entered into an
agreement whereby they secured by
purchase or otherwise certain shares
of the defunct New England Phono-
graph Company in an attempt to re-
svfFe that corporation and to endeavor
to enforce the terms of its old license
with the North American Company,
which gave it selling rights in its ter
rftory.
To make this effective, the answer
says. the ~complainants named called a
meeting and made contracts n col
lateral contracts with Andem empow-
ering him to bring suit against Mr..
Edison and his associates or to settle
with him or them for $4,000. The
merits of the case will be heard in
court this winter.
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