Newark evening star and Newark advertiser., 1915-03-16
EDISON TELLS
DEALINGS WITH
DEFUNCT FIRM
Inventor Witness in Bankruptcy
Hearing in Storage Bat
terry Case.

Thomas A. Edison. the inventor,
made his first appearance in a bank
ruptcy court today. He testified here
about his dealings with the defunct
Federal Storage Battery Car Com
pany, of the. Silver Lake section of
Belleville. The inventor told of q
plan OF his to have the merchandise
creditors paid.
The examination of Mr.. Edison was
conducted by Harrison P. Lindabury,
trustee of the bankrupt concern. The
distinguished witness told his story
with characteristic frankness. In re-
lation to dates and several other de-
tails, Mr.. Edison confessed his inabil-
ity to remember. He said he left
these affairs In the hands OF his at
torney
The main object OF the examination
was to prove that the creditors Of the
Federal Storage Battery Car Com
pany were entitled to twenty per cent.
OF their claims in cash by virtue of
an agreement made between Mr. Edi-
son and Frederick ]. Lissman & Co,
of New York city.
Mr.. Edison testified that he was
the inventor of storage battery
used for propelling cars. He denied
that he made a contract to furnish
these batteries exclusively to the
Federal Storage Battery Car Conn
pany
There was just an understanding,
no contract" explained the witness.
so long as they made a sufficient
number of cars to satisfy me agreed
not to sell the batteries to anyone
else"
Lower Prices.
Trustee Lindabury brought out the
fact that later Mr.. Edison sold sets
of these batteries to other concerns
at figures twenty per cent. less than
he charged the Federal Storage Com
pany. Mr.. Edison explained the
full list price" was charged to the
Federal concern because 1t had ex-
elusive right to the car battery. The
prices charged to the Federal con-
Germ varied from 1000 to $4,000 per
set of batteries, added the inventor
did you know the Federal COM
pany was financially embarrassed in
1897 asked Mr., Lindabury.
"Yes, we were after our money"
replied Mr.. Edison. Later I tried to
make an agreement with r. J. Liss-
man & Co., to give them the exciu-
sive rights to sell cars with my
cause wanted Lissman to take care
OF the merchandise creditors OF the
Federal Storage Battery Car COM
pany. The merchandise creditors
were to receive twenty per cent. of
their claim in cash and the balance
In stock of some new company
Asked IL ne knew what kind OF
stock was to be paid to merchandise
creditors. Mr. Edison replied:
"I didn't pay much attention to
that, because / was looking for the
cash. No, we didn't get any Of that
twenty per cent. cash payment yet.
We got nothing but promises"
Papers Are Sought.
Mr.. Lindabury told Referee Edwin
g, Adams that any agreement or
other papers held by Mr.. Edison,
which relate to the affairs concern
ing the Federal company, should be
produced. Henry Lanahan, counsel
for Mr. Edison, objected to this pro.
posal, stating that any agreement
between the inventor and Lissman
had nothing to do with the bankrupt
company Then Trustee Lindabury
agreed to turn the paper over to Mr..
Edison If the agreement was found
to have no bearing on the subject.
Referee Adams directed Mr.. Edison
to produce the agreement and any
other papers which might throw light
on the inquiry. The inventor agreed
to make q search for the documents
and bring them to court at the next
hearing The case will be continued
March 30