MILLIMETERS

1 1 ■ 1 1 1 II 1 1 1 ■ 1 1 1 1 II , 1 1 1 1 1 ■ 1 1 1 , 1 1 1 1 1 1 1 » ,■ 1 1 1 1 ■ 1 1 1 1 1 1 li 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

ujmaoM, cavt>o ru \ap&>tA

A SELECTIVE MICROFILM EDITION

PART IV (1899-1910)

Thomas E. Jeffrey Lisa Gitelman Gregory Jankunis David W. Hutchings Leslie Fields

Theresa M. Collins Gregory Field Aldo E. Salerno Karen A. Detig Lorie Stock

Robert Rosenberg Director and Editor

Sponsors

Rutgers, The State University Of New Jersey National Park Service, Edison National Historic Site New Jersey Historical Commission Smithsonian Institution

University Publications of America Bethesda, MD 1999

Edison signature used with permission of McGraw-Edison Company

Thomas A. Edison Papers at

Rutgers, The State University endorsed by

National Historical Publications and Records Commission 18 June 1981

All rights reserved. No part of this publication including any portion of the guide and index or of the microfilm may be reproduced, stored hi a retrieval system, or transmitted hi any form by any means— graphic, electronic, mechanical, or chemical, hicludhigphotocopyhig, recordhigor taphig, or information storage and retrieval systems— without written permission of Rutgers, The State University, New Brunswick, New Jersey.

The original documents hi this edition are from the archives at the Edison National Historic Site at West Orange, New Jersey.

ISBN 0-89093-703-6

THOMAS A. EDISON PAPERS

Robert A. Rosenberg Director and Editor

Thomas E. Jeffrey Associate Director and Coeditor

Paul B. Israel

Managing Editor, Book Edition Helen Endick

Assistant Director for Administration

Associate Editors Theresa M. Collins Lisa Gitelman Keith A. Nier

Research Associates

Gregory Jankunis Lorie Stock

Assistant Editors Louis Carlat AJdo E. Salerno

Secretary Grace Kurkowski

Student Assistants

Amy Cohen Bethany Jankunis Laura Konrad Vishai Nayak

Jessica Rosenberg Stacey Saelg Wojtek Szymkowiak Matthew Wosniak

BOARD OF SPONSORS

Rutgers, The State University of New National Park Service Jersey John Maounis

Francis L. Lawrence Maryanne Gerbauckas

Joseph J. Seneca Roger Durham

Richard F. Foley George Tselos

David M. Oshinsky Smithsonian Institution

New Jersey Historical Commission Bernard Finn

Howard L. Green Arthur P. Molelia

EDITORIAL ADVISORY BOARD

James Brittain, Georgia Institute of Technology R. Frank Colson, University of Southampton Louis Galambos, Johns Hopkins University Susan Hockey, University of Alberta Thomas Parke Hughes, University of Pennsylvania Peter Robinson, Oxford University

Philip Scranton, Georgia Institute of Technology/Hagley Museum and Library Merritt Roe Smith, Massachusetts Institute of Technology

FINANCIAL CONTRIBUTORS

PRIVATE FOUNDATIONS The Alfred P. Sloan Foundation Charles Edison Fund The Hyde and Watson Foundation National Trust for the Humanities Geraldine R. Dodge Foundation

PUBLIC FOUNDATIONS National Science Foundation National Endowment for the Humanities

National Historical Publications and Records Commission

PRIVATE CORPORATIONS AND INDIVIDUALS

Alabama Power Company

Anonymous

AT&T

Atlantic Electric

Association of Edison Illuminating Companies

Battelle Memorial Institute The Boston Edison Foundation Cabot Corporation Foundation, Inc. Carolina Power & Light Company Consolidated Edison Company of New York, Inc.

Consumers Power Company Cooper Industries Corning Incorporated Duke Power Company Entergy Corporation (Middle South Electric System)

Exxon Corporation

Florida Power & Light Company

General Electric Foundation

Gould Inc. Foundation

Gulf States Utilities Company

David and Nina Heitz

Hess Foundation, Inc.

Idaho Power Company

IMO Industries

Internationa] Brotherhood of Electrical Workers

Mr. and Mrs. Stanley H. Katz Matsushita Electric Industrial Co., Ltd. Midwest Resources, Inc.

Minnesota Power New Jersey Bell New York State Electric & Gas Corporation

North American Philips Corporation Philadelphia Electric Company Philips Lighting B.V.

Public Service Electric and Gas Company

RCA Corporation

Robert Bosch GmbH

Rochester Gas and Electric Corporation

San Diego Gas anti Electric

Savannah Electric and Power Company

Schering-Plough Foundation

Texas Utilities Company

Thomas & Betts Corporation

Thomson Grand Public

Transamerica Delaval Inc.

Westinghouse Foundation Wisconsin Public Service Corporation

217

A Note on the Sources

The pages which have been filmed are the best copies available. Every technical effort possible has been made to ensure legibility.

PUBLICATION AND MICROFILM COPYING RESTRICTIONS

Reel duplication of the whole or of any part of this film is prohibited In lieu of transcripts, however, enlarged photocopies of selected items contained on these reels

may be made in order to facilitate research.

National Phonograph Company Records Correspondence, Domestic (1909)

This folder contains correspondence and other documents relating to the commercial exploitation of phonographs in the United States. Most of the items are letters to and from Frank L. Dyer, president of NPCo. Other correspondents include Carl H. Wilson, general manager; Leonard C. McChesney, manager of the Advertising Department, F. K. Dolbeer, manager of sales; and Eldridge R. Johnson, president of the Victor Talking Machine Co. Included are letters pertaining to the manufacture, distribution, and sale of phonographs and cylinder records, as well as correspondence about litigation, patents, and other legal matters. Among the documents for 1909 are items concerning the activities of the Advertising Department, the introduction of Amberola records, and the development of a concealed-horn phonograph and an eight-minute record. Also included are letters relating to the decision and settlement in the New York Phonograph Co. case, to competition and cooperation between NPCo and Victor Talking Machine Co., and to corporate reaction to the Copyright Act of 1 909. In addition, there are pamphlets giving jobbers' and dealers' discounts forthe year and an undated Edison memorandum proposing a record exchange system.

Approximately 10 percent of the documents have been selected. Among the items not selected are documents regarding local and state legislation and the business of individual dealers and jobbers.

DEALERS* DISCOUNTS — Continued REPRODUCERS, RECORDERS, Etc. Edison Models C, D and H Reproducers 40%

Edison Universal Shaving Machines - 30%

Repealing Attachments ----- 40%

Edison Primary Batteries, Battery Parts

Chloride Accumulator Storage Batteries 20%

PARTS AND SUPPLIES Phonograph Parts (Repair and Supply)

see Catalogue of Parts . 50%

Miscellaneous Supplies, such as Speak¬ ing Tubes, Hearing Tubes, Multiple Attachments, Flexible Connections,

Chip Brushes, Graphite and Stratena 60%

MISCELLANEOUS

Nei Prices

Recording Horns . $1.50

Printed Matter Racks - — - .30

Small size, (2 doz. in package) per doz. . 80

Large size, (1 doz. in package) per doz. 1 . 50

EDISON

PHONOGRAPHS

RECORDS, PARTS

AND ACCESSORIES

Dealers

Discounts

January 1, 1909

Supersedes all Discount Sheets of previous date.

NATIONAL PHONOGRAPH CO.

ORANGE. N. J, U. S. A.

Dealers’ Discounts

Triumph Horn

DEALERS’ DISCOUNTS— Continued

EDISON CRANES

Gem Crane - -- -- -- - $.18

Standard, Home, Triumph, Balmoral,

Conqueror and Alva Cranes - - - .00

Idelia (Oxidized finish) ----- 1,80

RECORDS AND BLANKS

Edison Ambcrol Records, net each - - $ . 28

Edison Standard Records, net each - - .20

Edison Grand Opera Records, net each .45

Edison Concert Records - - - - - 40%

Edison Blanks (Standard and Concert) 30%

PHONOGRAPH CABINETS

Standard

Triumph or Alva - - Balmoral or Conqueror

COMBINATION ATTACHMENTS

JOBBERS' DISCOUNTS— Continued

REPRODUCERS, RECORDERS, Etc.

Edison Models C, D and II Reproducers 50% 40%

Edison Recorders . - 50% 40%

Edison Universal Shaving Machines - 30% 30%

Edison Primary Batteries, Battery Parts

and Renewals . - 30% 20%

Chloride Accumulator Storage Batteries 20% 20%

EDISON

PHONOGRAPHS

RECORDS, PARTS

AND ACCESSORIES

Jobbers

Discounts

January 1, 1909

Supersedes all Discount Sheets of previous date.

NATIONAL PHONOGRAPH CO.

ORANGE, N. J, U. S. A.

- A Saw Messrs. Johnson and Ceissler in Philadelphia to-dav on the /Allowing points: 3

1. In reference to the Pierman air reproducer. They sug¬

gest that when we are ready to put it out model be submitted to Mr. Pettit, and if it does not infringe they will have no objec¬ tion. ,If it does infringe and there is a probability of the patents being knocked out; they believe it wouli bn better, to have kn understanding between the two companies by which we will be licensed under the Parsons and Short patents. i

\ 2. On the subject of copyright, after considerable l<4iscus-

sp.on they agreed with me that unless the situation raateriiaiy change s the best course would be to compel the composers (ft come to us, rather than that we should go to them. A

1 3. They are entirely willing to co-operate with us bn the

subject of talent and will agree that so long as we remain\in tlf cylinder business and they remain in the dis& business they will make no contracts with talent to exclude us, except ini the Rel Seal list. This applies to talent now contracted for well as for the future. They agreed with my suggestion, -th^t whenever possible talent should sign exclusive' contracts with' w, for the cylinder line and with them for the disc line, thereby exc .uding the Columbia. The arrangement is .simply an understand¬ ing between ourselves, which can be changedat the option of either par y upon reasonable notice to the other. "W. H. Miller, for the National Co. and C. G. Childs for the Victor Co. are to work out the details.

| 4. Mr. Johnson i3 very anxious to have modifications made in the Patent laws by which increased protection can be afforded to inventors and many of the injustices now common will be impos¬ sible. He believed that the life of a patent ought to be extended for as many years as it is involved in litigation, but this seems to bi impractical. I think a better suggestion would be to amend! the statutes so as to provide that preliminary injunctions shalJl be granted in all cases where the patentee is a bona fide manuiacturer and the defendant comes into the field afterwards and where infringement is reasonably certain, the validity of the patent being left for final hearing and the/ complainant being required to file a bond. possibly O’Connell might be able to work Ip a propaganda on these lines. I promised Mr. Johnson to write Ihim more in uetail.

5. It is generally understood between us that so far as possible cordial relations should be cultivated between the two companies and that where our interests are in common we should co-operate as closely as possible. A meeting between us every two orj three weeks would no doubt bring about very desirable results in the end.

C\

F. I.. D.

TO TII1H NUMI.Klt j, r L 1> V IS XI

• 216 MEMORANDUM

4>

Mr. Aylsvrorth: ’ l/7/o9.

Mr. TSdinon upoke to me the other day on the subject of using lattp blaok in our record composition, and hr seems to feel that the presence of this ingredient results in the wear of the sapphire. Is there any reason why lamp black should not be entirely omitted?

EbD/lW „vF. L. D.

The interest you manifested last week in the farm paper advertising being done by the Victor Company, BabBon Bros, and ourselves, prompted the preparation of the data herewith concerning the various forms of our publication:, advertising. It is submitted with the hope that you will find its details interesting and informing.

According to our annual custom, we arranged in the lata summer the usual schedule of general weeklies and monthly magazines, covering approximately $125,000, the same amount as spent in the same class of publications during the year ending August, 1908. The publications in this schedule are sho\7n on sheets A. At this time it was thought that we would spend about“$100 ,000 additional in newspapers in the United States and Canada.

As you will recall, it was decided in October not to have a newspaper oampaign this year, hut instead to spend the additional $100,000 in farm papers, country v/eeklies, soma additional magazinas, etc., besides spending about the same amount in Canada as in the previous year. To this end the following schedules were prepared:

Additional Magazines & National Weeklies §10.857.16 Barm Papers 38,265.61 Foreign language Papers 3,414,07 Country Weeklies, Jacob* s hist and ’

:3 Sunday Magazine Sections 22,072.09 Canada (approximated) 12.000,00

, §86,608.93

The remaining $13,400 may be expended in getting special positions in magazines or speoial advertising, or it may not be spent at all should business not warrant it.

Sheets _A. and B-- The amount spent in these publications is, in our opinion, about th8 same as being expended by the Victor Company in the same class of mediums, and is probably $60,000 more than the Columbia Company will spend if it continues to advertise as it has been doing for some months past. The latter company's expenditures for the past three months have been quite heavy, being nearly aB large as those of the Victor Company and ourselves, but it is not likely that

)

-t-

Mr. Edison -2-

Jan. 7, 1909.

SgSBHBiSr

f am papers fn BuTornfftm?" The8llat°haa\36 °f th® t9Bt

We have Planned L See *? °«^s.

impending ?r om §lQloOOa?on$60<iOOOr in^Arm ^ ^“^“Pany our expenditure of $38,000? In «rL,i^ ?+PaP8.^ 88 ^inet

to prevent duplication'1' Babaona do not use,

>»» «

for one’ a ea son a FI ea s t^t o^t rv ~^SLS~~ Xt Beemad. das ir able, Papers printed ^

to c o'Stry 1118 “attar referring

■because, of Itheir' wide o ir Oulat iorTln mn’ n ara U8inS 'them

communities. . The religious pJpers^riS ja^f and rural

Associated Sunday Magazines £n Shfets A? ;ln the

of tha'papers Tn^^thf1? ourtSunday9oomtinationHati0^S Of each groups show that the- total cir^la?ion ^ ??8* The8e ' these combinations is 5,600,000. th® pap9rs *n '

in clties of the papers

of the If. Y. Yf^g8|"fnth8 s^day Ifagazine, Section's

a combined circulation of l 453 vVf Y* Tribune,- we get Tribune, Examiner and Record-Herald3 we BL?slng Chi°ago - circulation of ' 1,244 941) fat a combined .

Sunday Magazines covers a nof?nrfd«J fortheABSOciat®d •

..other three combinations coveJ^a period7^ ?nd th?t;°f the Pap.r. « ^SSSP^^&SIg S.S3&,

Mr. Edison -3-

Jan. 7, 1909.

ste months. We may find it profitable to continue to advertise in the combinations that we have planned to use for six months only. This will ha determined later.

It, +T,fh?at E-Sives th9 "a3193 and circulations of the papers l'iBh 1119:7 rePr0sent about all of the religious denominations of the South.

. .. Frooff allowing the character of the copy that we are usinv

&s LItr!°U8 PaP9rS Wil1 b9 8ent with this matfer or l f ew g

the fSlo“r^oun?l:f0r9S°ine’ W9 W arranged to spend

& MONTHLY MAGAZINES

NATIONAL EARN PAPERS FOREIGN LANGUAGE PAPERS COUNTRY WEEKLIES JACOB'S LIST

SUNDAY MAGAZINES (Not including Asso. Sunday)

135,347.23 3B, 265.61 3,414.07 10,758.44 2,730.50 8.583.15 $199,099.00

0Um2!?ry the circulations of the publications in which our advertisements will appear is as follows:

fS0Se5EICLIES & M°NTIIIY aAGAgINES' . • 16,132,231

FOREIGN LANGUAGE PAPERS

COUNTRY WEEKLIES p’vpr’Spr

JACOB'S LIST

SUNDAY MAGAZINES ( Not including Asso. Sundays) 4 573 231

"59',SC6j226

with a lis?1^ ?^°^andUm ^°l?09rnlnB the Canadian advertising days. PaP9rB 1591115 U0ed wil1 159 89nt 70U in a flw

any^of.,the foregoing matter is not clear or vou advise SaT furth9r infor“ation on any particular point, please

Iu. C. MoChesney.

Copy to Hr. Dyer

[ENCLOSURE]

ORISI1TAL LIST OP MONTHLY MAGAZINES AND NATIONAL AmKLUSS

The publications named on' attached sheet comprise those Which we planned to use in the schedule made up _time we decided to spend roughly $125,000 for this character of advertising. The cost giveB the' total amount for each publication and includes the agency commission.

[ENCLOSURE]

PUBLICATIONS	SPACE	CIRCULATION	TOTAL COST INC. COMM.
Collier' b Weekly	4 pn. in ooloro & 5 1/3 pagos	600,000	15,345.00
Sat. Eve. Post	1 dhlo. page in 2 colors 2 flill pages &	.1,000,000
	91/3 pagOB		19,080.00
Aeso. Sun. Mags.	1 B.C. page &	1,100,000
	11 1/4 pages		7,821.00
Youth's Comp,	12 l/4 pageB	585,000	0,602.00
American	1 B.C. & 13. pages	250,000	4,340.00
Cosmopolitan	14 page s	425,000	5,644.80
Everybody's	14 pageB	500,000	7,000.00
MoCluro ' a	1 B.C. lc 13 pages	464,000	7,038.00
Munsey's	1 B.O, & 13 pages	BipjOOO	8,000.00
Rev. of Reviews	14 pages	200,000	3,150.00
Ladies' Rome Jml.	8 l/4 pages	1,200,000	9,070.00
Woman's TTome Comp .	1 Cover p. & 7 1/4 pagos	600,000	5,930.10
Ladies World	8 l/4 pages	497,000	2,801-. 20
Outlook	6 pages	120,000	757.35
Argosy )		444,000
All-Story ) R.R. Mens )		250,000	3,316.00
Rod Book .	8 pagos	350.000	1,636.25
Suooess	6 magazine pages	300,000	2,688.00
Broadway.	8 pagos	200,000	613.45
Metropolitan	6 pages	, 175,000	1,200.00
Paoifio Monthly	6 puges	110,000	656.37
Sunset	6 pages	100,000 1	660.00
World's Work	8 pages	1082000	720.00
World To-r>ay	6 puges	100,000	631.09
National.	8. pages	224,000	1,009.80
Ainslee' s	8 pages	250,000	1,000.00
Pearson's	8 pafioa 6 1/4 pages	225,000	1,135.99
Human Life		1,060.90
Home Magazine	8 magazine pages	225,000	983.74
Butteriok Trio	1 page	1,600,000	2,050.00
Puck	84 1.(9 times)	86,000	410.80
Judge	84 L. (9 times)	85.000	353.43
	12, 9 88, OCXT '	$124,490 .07

[ENCLOSURE]

OT ?!0lra{T'Y MAGAZINES Aim

national .wbekeies:.' .

Added after a decision was reached not to have u'nowspapor campaign.

PUBLICATION	Ifo. of Ins.	CIHCULATIOM . ;	TOTAL CO S3
WEEKLIES	“ 5 tines
literary Digest	5'timus		1108.80
Leslie’s Weekly	5 times		707.13
Scientific American	5 tines		. 519.75
MONTHLIES
Century	6 pages		1125.00
Harper's	4 pages		891.00
Scribner.' s	4 pages		900.00
Overland	4 pages	70,000	201.96
Good Housekeeping	4 pages	210,231	891.00
Outing	4 pages		641*52
Popular ) Smith's )	4 « 4 »	300,000 150,000	' 1160.00
McCall's.	■ l/page		,940,50
Blue Book	S pages.	150,000	• 280.50
Q.UAHTERLY
Quatcrly Style Book	1 page		■ 990.00 —
		3, 16^, '231	$10, '857 .15 f

[ENCLOSURE]

"BASH PAPERS

We have planned to run a 400 line advertisement.

( 9 1/2* deep X 3 columns wide) in eaoh of the papers on attached sheet, once a month for six months, omitting June, July and August. This advertising is beginning in the* latter part of December in about half of the list. We were too late to get copy in the remainder of 1 the December issues. Those will be begun in January.

The cost of this advertising is figured out on a lino basis. The cost of eaoh publication can be had by adding 10^ to the line rate and multiplying by 2400 lines (400 lines six times).

[ENCLOSURE]

PUBLICATION

/ American Agriculturist / Orange Judd Parmer J New England Nome stead

V Rural New Yorker Nat'l Stockman Sc y annex

V Parm Sc Ranch / Ohio Parmer

/ Michigan Parmer .

< Breeders Gazette S Hoards Dairyman /Wallaces Parmer Iowa Homestead Parmers Hail & Breeze </ Wisconsin Agriculturist Indiana parmer Oklahoma Parmer Colman's Rural World 20th Century Parmer Pield & Parra

SEMI-MONTHLIES

/ Farm & Home Southern ALgrioulturist / Home & Parm / Southern Ruralist Parm & Eire side / Parmer

s Parm Stock & Home / Oklahoma Parm Journal Dakota Parmer Ranch ,

/Town & country Jml. MONTHLIES

/ Greens Fruit Grower ✓ Parm Journal Southern Planter Southern Pruit Grower / Successful Farming Nat. Parmer & stock Grower

CITY CIRCULATION NET RATE

. i - - - JJER LINE

Springfield, Mass.

New York City* N.Y. Pittsburg, Pa# Dallas, Tex. Cleveland, Ohio Detroit, Mich. ' Chicago ,■ Ill .

Pt . Atkin son, Wis . Des Moines, lac.

Des Moines, la' Topeka, fcans. ' Racine, Wis. Indianapolis,- ind. Guthrie, ■ Okla.

St. roula,' Mo . ' Omaha, Neb. • Denver, Colo.

100,000) 94,000) 50,000) 100,000 75,000 75,000 100,000.) 80,000) 74,755 40,000 502000 100,000 . 66,067 60,000 30,000 41,514 50,000 75,000 30,000

.7875

.35

-.216

-.371875

.54

•.153

.2025

-.35

.2183

.1925

'.126

>0595

.102

-.2125

.0595

Springfield, Mass. Nashville, Tenn. Louisville,- Ky. Atlanta, Ga. Springfield, Ohio •St. Paul, Minn. • Minneapolis, Minn. Okla City, Okla. Aberdeen, S. D. Seattle, Wash.

San Francisco, Cal.

432,238

50,733

100,000

453,376

115,208

104,000

32,000

52,000

22,896

40,000

1.4875

.17

-.405

.34

1.53

.36

.324

'.1275

-.216

.0945

.17

Rochester, N. Y. 129,583 Philadelphia-, Pa. 573,083 Richmond, Va. 20,000 Chattanooga, Tcnn. 36 j 418 Des Moines, la. 313,804

St. Louis, Mo. 104.666

Commission

2400 line s (400 x6)

-.311875

2.833

.076b

-.1275

1.275

.32

14.49455 1.449455 15.944005 $38, 265.61

[ENCLOSURE]

FOREIGN LANGUAGE PAPERS

Wh was decided not to have a newspaper campaign.

forhf ivePmo^« toJ*se 20? }ln2? 7" deep two 00lumnB wide' once Sa month for five months. The coBt 1b figured out on a lino basis. To <?et the

byS1000 adni°^ to the lina rata and multiply5

Dy 1000. This advertising will bo given in Jtanuary.

PUBLICATION	CIRCULATION	NET
GERMAN
Western Und Daheim, Chicago, Ill.	72,000	.255
Abendsohikle,St . Louis, Mo.	55,320	.17
Deutsche Am. Farmer, Lincoln, Neb.	140,000	.2975
Lincoln Froio Freese, Lincoln, Neb.	140,000	.2975
Staats Zeitung,N.Y.City	78,000	.2125
Morgen Jrnl.,N.Y.City	82,100	.171
Deutsohe Hausfrau, Milwaukee	132,000	.3825
Haus & Bauornfreund, *	103,000	.2125
Germania, Mil\mukee	107,000	.2125
NORWEGIAN
Skandinavian, Chicago , Ili.	50,000	.072
Kvinden Og Hj emmet , Cedar Rapids, la.	82,000	.2125
Tidende ,Minnoapo li s ,Minn .	32,256	.075
Danske Pioneer, Omaha, Nobr.	38,500	.045
SWEDISH
Svenska Tribunen Nyheter, Chioago, Ill.	57,500	.1275
Svenska Amerikanaka Posten Minneapolis, Minn.	51,512	.135
BOHEMIAN
Amerikan, Chicago	47,700	.0675
Osveta Ame r ika , Omaha , it;	25,000 '988—	.0286

[ENCLOSURE]

HEBREW Jewish Courier, Chicago	Circulation 1,303,988 10,000	.0225
Jewish Forward, H .Y. City	79,000	.0571
ITALIAN
L' Italia, Chicago, Ill,	32.035	.05
1,425,023	3.1037 -.31037 3.41407
	1000 lines	equal $3414.07

[ENCLOSURE]

' E

oowi'ox TOSHiiEB jam swmior magazine sections op surowor uww/amu;.

Added after it tno decided not to have u newspaper campaign. '7n«tll‘>,?.ountr'V «n«*lins v;,! have already run a 400 line advertisement * * */■* docpjtay 3 coliitma v/ide) in each and will have a ,*200 line auvortirccijwmt (7W do«j> by *1 Qulur2nu vide) unco a non^h until Huy inoluraiva#

In the Jacobs list we vrlll nin 340 linos once u nontii until hay.

unt.UIn'avh<! f!wnrtajf Heotionn, we will run 310 linen once tx month

PAPVK

coinrero uugrLira

CIRCULATION

Saturday Globe Orit

Chriotlun herald

Blade

Enquirer

Hewn Scimitar

Commercial Appeal

Homo Herald

Appeal to Reu non

Commoner

Journal

Stur

Repuhllc Harm Px’ogrosn Globe Democrat Conntitution

Utley., ’'.Y., Willinneuort,- l5a. How York, u.Y. Toledo, Ohio Cincinnati, Ohio Memphis, Tonn. Memphis, Tonn. Chicago, Ill. Oerard, Trims. Lincoln, Hob. Kannna City, Ho. Kansan City, Ho. St. Loui a

Atlanta, On.

JACOBS LIST

41 Southern Religious Papers

smnTAY MAOAS

103,1(5:5 3:51,(3(57 300,000 204,000 100,000 100,000 00,07(5 125,000 300,000 140, 000 209, 031 204,800 -*-100,000 :50o,ooo +100,711

+ +117,000

2, 7 28,~32ff

. 15130 .17 .170.0 .0070

06.900 0 "

Commission 6906

1400 lines— $10,78(5.44

378,074 1.723(5

Connl union 1724

wt&hw

1400 lines— 02730.00

HUES

Illunt rated Sunday Hagaaino a 7:53,500

Hearot'e Am. Sunday Hugnnlnns 2,092,731

United Sunday Kagaalnea 1,747,000

T;'5T3,2':5T

■*■ Thin circulation io twice a week— came oopv +** " " 3 times a week « «

1.(5068 1140 L. $2049.89

2.19378 18(50 L. 15040.84 2.32 13(50 L. 3498.72

' 08883,1b

[ENCLOSURE]

SomSKraS S ££,?“ mma mw,ri<

oamauceimw

	UlTTTiJD SUNDAY WAGAZUrrs
World Record Prone Plain Dealer Tribune Star Courier Journal Tribune Pree Preen Tree Preen Poet	Mow York, jj.y. Philadelphia, p«. Pittsburg Pa. Cleveland, Ohio Chicago, Ill. Indianapolis, ind. Buffalo, u.Y. Kansas city Minneapolis, Hlnn. Milwaukee, Vi». Detroit, ;;ioh. Denver, Col.	550,000 1 <50, 000 100,000 95,000 300,000 90,000 90,000 73,000 100,000 45,000 . 57,000 , M'POO __ 1,747,000
	insAigg kohday macamihes
Aanrioun American Exorilnui* jixa-iiner 32::nniner	J’ow Yor5:, !i.Y. Boston huee Chicago, in . Los Angeles cal. fian Prenclrco, gal.'	<310,793 303,152 724,941 -neffila —

Lender

Times

Con. Tribune

paanyun

fJonfcinol

Mewe-Tribune

Courler-Jml.

Tribune

Pionoor-Pross

Rojiublican

Dera-Chronlolo

Do spat oh

Mews

Cleveland,

Buffalo

Cincinnati

Pittsburg,'

Mew Orleans

Milwaukee,

Detroit,

Louisville

Providence,

Ot. Paul

Denver,

Roche utor

Woi-cdotor,

Colunbus,

Omaha

Ohio

M.Y.

Ohio

Pa.

Till.

Win.

Mich.

Ky.

R.I.

Minn.

Ool.

M.Y.

Maas.

Ohio

lieh.

Record-Herald Republic Pont Px'enn Tribune Po nt Otar Journal HOWl)-Doci.

ASBOC’lATKD OUlfDAY UrMAZlmt.n

Chicago, Ill.

Ot, Louis ITo.

Pittsburg, Pa.

Philadelphia. Pu.

Rev; York, w v

Ronton Washington Minneapolis,

Rocljy hto.

M.Y.

ifclSSi

D.O.

Minn.

<‘>0,000

47,500

<50,000

05,500

30,400

47.500 71,000 50,000

21.500 37,000 30,000 40,000

20.500 41,000. 50.000

500' ”

S3 no, ooo

150,000.

57,000 130,000 '05,000 220,000 40., 000

Combined total.. ,.5!

,<501,4:51

[ENCLOSURE]

CIRCULATION BY CITIES OE THE PAP3®S INCLUDED IN SUNDAY MAGAZINE COMBINATIONS.

Boston

Buffalo

Chicago

Cincinnati

Cleveland

Columbus

Detroit

Denver

Indianapolis

Kansas City

Los Angeles

Louisville

Milwaukee

Minneapolis

New Orleans

Now York City

Omaha

Philadelphia Pittsburg Providonoe Rochester San Eraftoi boo¬ st. Louis

S}. Paul ■

Washington,

T/orcostor

Mass.

Ill.

Ohio

Hioh.

Colo.

Ind.

Mb.

Cal.

Ky.

m a.

Minn.

La.

N.Y.

Neb.

Pa.

?. Cal.

Mo.

Minn. D.c. : Mass.

823,158

137.500 1244,941

60,000

164,000

41,000

120,000

170,000

90,000

73,000

71,615

80,000

92.500 172,000

38,400

1453,793

58,000

290,000

252.500 21,600 40,800

173,424

-IBOjPQO

39,000

40,000

28.500

THE TOUR

\;Sf-

[ENCLOSURE]

“£5 papers included in Tin* Jacobs list of southern religious

PAPERS AND CIRCULATION OP 3ACII.

ALABAI.tA	Birmingham,	Alabama -iGhristianeAdvocato	11,100
ARKANSAS	Little Rock.	Weatorn Mothodiot Baptiat Advanco Arkansas Baptiot The Searchlight	12,937 6,- SCO 0,000 7,000
GEORGIA	Atlanta	Christian Indox Weal cyan Chris. Advocate Golden Age	.11,100 11,227 12,000
KENTUCKY	Pulton Louiovillo	Baptist Flag Pentecostal Herald Central Methodist	16,000 23,700 7,000
LOUISIANA	Now Orloana Alexandria	Southweii torn Preobyterian H.O. Chriatian Advocate Baptiot Chronicle	0,376 6,aoa 4,500
MARYLAND	Baltimore	Balt. Southern Method ait	7,250
MISSISSIPPI	Jack son	The Baptist Record	6,329
NO ..CAROLINA	Greensboro Raleigh Wilfjon Raleigh	• 1T.C. Chriatian Advoodte Raleigh Chriatian Advocate Weekly Messenger Biblical Recorder	0,227. 9,000 2,000 17,000
OHIO	Dayton	Lutheran Evangelist Herald of Gospel Liberty	0,000 5,750
SO. CAROLINA	Columbia Duo XI oat Groonvilla Greenwood Spartanburg	Lutheran Chruch Violtor A.R. Preabyterlan Baptiot Courier Chriatian Appeal Southern Chriatian Advooato	4,550 2,315 9,025 3,000 11,125
TENNESSEE	Mart in Nashville Mcraphl e Nashville Tullahoma	Primitive Baptiot Baptist & Reflector (fospel Advocate Jowl ah Spectator Midland Methodist Cumberland Preo .Banner	10,750 0,300 14,000 11,600 0,750 11,000
TEXAS	Dallas Peniel AUBtln	Texas Baptiat Standard Chriatian Courier Pentecostal Advooato Pirn Foundation	38,000 6,250 5,600 14,000
VIRGINIA	Roanoke Richmond	Baptist Timoa Rellgioua Herald	I 2,500 l! 8,000
NEST VIRGINIA	Burbouraville Parkersburg	Western Va. Moth. Advoo&te Baptiat Banner	/ 0,000 / 4,000

MEMORANDUM

J359__

1/15/09 .

I hand, you herewith, letter from the Thompson &

Norris Co. with a note from Mr. 'Edison endorsed thereon. I wish you would take up with me the difference in prices involved in this matter.

NLD/lWW

E. L. D,

[ENCLOSURE]

To insure prompt attention Address All Communications to the Company.

The Thompson & Norris Company,

CORRUGATED PAPER AMP PAPER SPECIALTIES.

BROOKLYN, Jan. 14th 1909.

Dear Mr. Edison: -

. gmC T

-r t(r _ _

ohflotnff +\ 1 have tofay received'“ifrom^kr. Deeming (your new pur- we havf ffr"thp a r?q?est for » revision of prices on the packing material to a +W° year8 been furni shing the Phonograph Company, and

yK° a 8raaTler extent, to some other branches in which you are interested Mr. Leeming states that he has received more favorable quotations from

r^r?etit0rs<and 2hat as the old contract has been oomoleted he ex¬ pected lower prices from our Company.

* 1 rf?ret compelled to advise him, to keep up the

rIductionBin°thpa^r^ and promptness of delivery we could not make any I dn n ? i 68 already quoted. When the quotations were figured

Lf? believe there was a customer out of eleven thousand on our books, that received more favorable rates than the Phonograph Company, and there is tbs °"e8}ngle thing entering into the manufacture of our goodB that is the fraction of a cent lower now than it was then, and semi are higher.

+ , You may ,not be aware of the fact that there is a combina-

tion of manufacturers who were organized for the purpose of getting better s£s,^A’*-fnd tha\£eca^Se TV w?uld not Join them are making the most absurd figures; the object being evidently to force us to reconsider our refusal to become one of their members. I can see no other reason.

Our Company has expended more money in fixing up special ^tn^eAy+and a< deParbment for the Phonograph work than has Bofar been returned to us in profits from the business.

...I feal sure ft one thing - that is, that we have not a ®d“Sle °°1 ”5* e-tdtor wh° fan give you . the service that we can. I have per- sonally had charge of this special business for you and have been as loyal ta y°u in every thing connected with it as I have been in other things * which you are in a position to know more about - so without further 6 2b y?U’ I1wi8h;y°u would in your own good way tell Mr.

1 2s °n2y dolns hls duty aa he understands it, to renew

the contracts which have been completed.

[ENCLOSURE]

Thomas A. Edison

Jan.' 14th 1909. - 2 -

Our Company has answered Mr. L. to the effect that we can now do no better than we have done in the past.

I hate "like the Dickens" to being this little matter before you, but I could see no help for it.

_262_

MEMORANDUM

Mr. Harry p. Miller:

l/l8/09.

Tjrxau^

r

I hand you herewith letter from Mr. Aylsworth asking for an additional advance on the amount to he paid him for hi3 patents when the Amberol record waB successful, also a note from Mr. 'Edison explaining his present understanding of the arrangement. I think you had better keep these for future refer¬ ence, in case the question ever comes up again. Mr. Edison has endorsed on Mr. Aylsworth's letter a note to pay him an additional $5, 000; 00 on account of the patents, and I wish you would make arrangements with Mr. Edison to have this done. The money will he paid hy the\ New Jersey Patent Co. E. I>. P. Enc-

[ATTACHMENT]

J. W. AYUSWORTH,

Technical Chemical Expert.

A*y

iy/

v /

rsw ^

(JaA ^VS. W*.aV-e- ££-c (Le<^-e. *»

?"***> ^ .^-WiJL,

tZ*t>c<yz^Zr ? ^Lx-cs-t

[ATTACHMENT]

{ - ! _ __i _

_ ILfc, < 0

.kfl- _ IQ £><?«>. j ._

lu>o>S .ft-t^tov-aLlo

ec-C/Lr ■>=• llu>-4^*pL^ _ r«=ri7«^w^. _ I(m~ ^AA-lgwCg.. Q~^J

(jrtfc^ J CD^u(S2rr?.LL

_ ( iuLB-^fe^ %e> c*-o~fcb &1g &4&,£J2%LJLl

'p/^LC-n , - CL&JJ-Z.'Ch.a.

Jan. 18th, 1909,

I attach a schedule^showing the advertising done hy the Edison, Victor and Columbia Companies in the December weeklies and the January monthlies.

The amount given in the Edison column does not correspond with the list sent you a month ago, for the attached list gives the gross rates, while the previous one was effected by the Agency arrangement, • .

This list shows practically all the advertising done by the three companies in thiss class of medium. It does not, of course, include the advertising done (by the Victor Company in newspapers nor that done by the Victor-1-.- Company and oua« selves in Farm papers and Company weeklies.

Yours very truly,

McCA L.G. McChesney.

[ENCLOSURE]

DECEMBER WEEKLIES . Aa.cjQj.5un.Muga. _20th ChriB.Harald . . «).th

Collier * a .... 2nd

Judge. ...

Leslie’s . -junai. isua u.

-Life , . - .

Literary Digoofc 12th 224 Lines

BDI3CW VICTOR

-l/d" J\ 500,00

400 L. 400.00 lGth-Rack Cov.1000.00

3 color P.24-10.00

224.00

127.00

39.27.

. .lQth-Wafj.Pago 134.40

2Gth 1/2 Pa.ro 24th 1/4 Page

. Outlook Puck

■ Scientific Am. 19th 140 Linea 10U.00 Sat. Kvo .Post ,

{ Youth's Comp .

JAHTTARYiiOliTirr.IRS aii-Stdry )

Arfcosy ) Argosy Combination •

-R.R.Kwi'-o ) . . - ' . . .

1 -Ain -loo's) - . .

Popular )Smith CVeh) Pugo --{Smith's- )Trio.-,(.Pob) .... .......

— Delineator) - - - - - - -

. Designer--) - But t erick-Trio . -

; —2fev7 Idea -)- - - - .

f; —Blue -Bouki- Rpa-BoPk-Comhln.-vV.tm

:- Rod Book - )• - - - . - .

American Page .

- Bohemian -—Century —

. Pugu

_ Page 552.30

_ _ Pugo

_ "'..Pugg . ",

PugO 540.00

- _ puee _;._z

2 Pages 80G.40

P ago 302.77 2. Pages 500.00

Page 10G.00 __i.2j?agt! 8I37S .00

(2)Pugos 805.40 2 Pugea 8Ot5.'40”

. . . . . Hag.P.158.00 ;

. . •_ _ _ (2)Pfigos 128.00- _ _

1000.00 . . (2)pagesl000.00 2" Pages 1000.00

_ Page 22!>. 00 _ _

Pack CovOOOO .00

: i/2iPi«£P .9.50^ m. :

(2)Pagos 828.00

2 Pages 450.00

"2Wgei~nr2iOKr~

CpBmopolitan Country Life — -

Currant r,it. -

: Everybody's Page

- .Good- Housekeeping . - - . - - - - - ----

Hampton* b . — - . - . . . ------ . . - .

Harper's - -

--Ladle b* Home— Jl«- . — - - i -

-. Ladles’ World . . . — . - — • -

. McCall's - — . — l/il-V-HRH - U5Q..00—

KcClure's - Pugo 414.00-

- - Metropolitan : - - - — ~ — - — - - _ _ _ _

— Mun-sey* 3 - - : - Sack - Co v. 2000.00 - tg).PagonlQ00 .00 2 Pago a 1000.00

- Hftt ional — ----- . - - - - - - 1 - —__Pago_._17q.00 _ - _ _ _ ■ -V

- - Outing — — - — — - - - - — , — - - - — : - _ I _ _ _ , 1 ' _ •

- - Overland . — - - - - - - : — - j_ _ _

Pacific - - - - - JP-«gfl_._llp..Bp _ . _ ;. ...

) - Pearson'-s - — - . - Pago - 172.12 1- - : — : : - 1 _ : _ —

S- Rev. of Reviews - - Page 225.00 - 2ndCoy. 225,00 _

! , Scribner's - - Page - 225.00 — . ( 2) PUges ,450.00

i<i Style - Book -Ho . -

■--Success— -

— r'Shnsfi-t— -

jV —Tech .-World- . —

N -Theatre- Hag.,- -

'Uncle Remus'; - Van Orden's -Woman* as -rrome -<

> 4'4G.OO

l/4 Page lflO.fioG

Harupagc 112.00 _ . ; ~

- World's Work -

World -To-Day .

" ylsyOT.TTT' 3 r~- t

Referring to factory schedule for machine! a0^cf1?-ed for ln “y mem0» dated Jan. 12th, please ii schedule, as follows;

, PHONOGRAPHS ; Carry 500 in Btook ready for shipment,

and 500 more in testing department ready to he delivered to stock room when required* Carry finished parts in stock Buffi^ oient to assemble 1,000 machines, hut go slowly on such parts as may He changed when the combination machine 1b adopted. Base assembling on shipments made during previous week.

STANDARD PHONOGRAPHS MODEL "Cs Carry 500 in stock ready +o «?nivment’ a?d 500 i? *eBtinS department, ready to he delivered T°?m when r«9ui»»d. Carry finished parts in stook sufficient to assemble 2,000 machines. Base assembling of machines on shipments made during the previous week.

STANDARD PHONOGRAPHS J MODEL "D“; Carry 1,000 in Btook ready for shipment, and 1,000 in testing department, ready to be delivered to stock room when required. Carry finished parts in stock sufficient for 5,000 maohines. Base assembling of machines on shipments made during the previous week.

HOME PHONOGRAPH, MODEL "B"; Carry 150 in stook ready for shipment, and 100 in testing department, ready to be delivered to stook room when required. Carry finished parts in stock sufficient to assemble 1,000 machines. Base assembling of machines on shipments made during previous week.

HOME PHONOGRAPHS, MODEL »C°: Carry 25 in stock ready for

shipment, and 25 in testing department, ready to be delivered to stook room when required. Carry finished parts in Btock sufficient to assemble 250 machines. Base assembling of machines on previous weeks shipments.

HOME PHONOGRAPHS, MODEL "D"; Carry 1,000 in stock ready for -shipment, and 1,000 in testing department, ready to be del¬ ivered to stock room when required. Carry finished partB in stook sufficient to assemble 5,000 machines. Base assembling of maohines on previous weeks shipments.

TRIUMPH PHONOGRAPHS, MODEL "B": Carry 25 in stook. Base

assembling and finished parts on previous week's shipments.

TRIUMPH PHONOGRAPHS, MODEL °C»; Carry 10 in stook ready for shipment, and 10 in testing department, ready to be delivered to stock when required. Carry finished parts in Btook sufficient to assemble 100 maohineB, Base assembling on previous week's shipments.

NATIONAL PHONOGRAPH COMPANY

(2)

TRIUMPH PHONOGRAPHS, MODEL "D* : Carry 100 In etoak ready for

ehtpment, and 1.00 in testing department, ready to te delivered to stock when required. Carry finished parts in stock sufficient to sink to assemble 1,000 maohineB, Hass assembling on previous week's shipments,

STANDARD ATTACHMENTS : • Discontinue assembling altogether until present stock of finished attachments is reduced to 5,000, Then base assembling on weekly shipments. Carry finished parts in stock sufficient to assemble 10,000 machines,

HOME ATTACHMENTS: Discontinue assembling altogether until present stook of finished attachments is reduced to 5.000, Base assembling on weekly shipments. Carry finished parts in stook sufficient to assemble 10,000 machines.

TRIUMPH ATTACHMENTS: Discontinue assembling altogether until present stock is reduced to 500, Base assembling on weekly shipments. Garry finished parts in stock sufficient to assemble 2,500 machines.

REPRODUCERS, MODEL "C": After providing for all machines complete except reproducers, we have a stock of ifaftkd 10,472.

This is sufficient for present requirements, therefore, the quantity to be gotten out weekly should be based on shipments, so that the quantity in stook oan be kept up to about 10,000.

REPRODUCERS, MODEL “H" j After providing for all machines

and attachments oomplete except reproducers, we have a stock of 9979. This is sufficient for present requirements, therefore, the quantity tp be gotten out weekly should be based on shipments so that the quantity in stook oan he kept up to abont 10,000.

In arranging to carry and accumulate the different quantities of machines and attachments above specified for stook, the quantities already in stock should be taken Into consideration, and if there are more in stook than the number called for, no more should be assembled until stook is reduced to quantities specified, or if there isa less quantity in stook than oalled for, only a sufficient, additional number should be assembled to bring the total quantity up to the number specified. As quantities called for, to be kept in stock, Are reduced by weekly .ship¬ ments, additional ones should come through to keep the stook up to the specif led number.

1/29/09. C.H. Wilson.

Copies to Messrs , Dyer: Hird: Zaremba:

I beg to report to you in regard to my trip to Camden, N. J . and Philadelphia, Penna. on January 28th' and 29th, 1909, as per your instructions.

The Victor Talking Machine Company, Camden, N. J., are now working 54 hours a week ( 7:00 A. M. to 12 noon, and 12!30 P. M. to 5:15 P. M. ) Mondays to Thursdays - 9-3/4 hours per day. Fridays 10 hours, and Saturdays 5 hours. They are employing 781 people.

At the office of the Company I was told that I came at a very had time to lock over their plant, as this was one of the dullest months in the year, and a large number of their em¬ ployees were taking a much needed rest (for a few weeks or a month) as they were working very hard, day and night., during the month of December, as they were hardly able to fill their orders for holiday machines and records. At the present time they are unable to fill their orders for Victor Victrolas (the $200. 00. machine) on account of their Cabinet Department being so much behind with their

They said that their business was now very quiet in regard to their other makes of machines, as their dealers are pretty well stocked with the $10.00, $17.50, $25.00, $30.00 and

$40.00 machines, as, during the last year, they have not been putting out machines and records on the installment plan as they were doing previous years, hut were devoting more of their time to the higher priced Victor goods, and making cash sales to the people who had the money to spend to entertain their friends at home during the evenings.

She Victor Company is now catering to the educated people of the country, who are fond of music, and are willing to pay for the best, and there is no other Talking Machine Company, or Phonograph Company, who have the class of records to put out that will stand the test the same as the Victor Company have and are putting out.

They were explaining to me the difference between the recording done by the Victor Company and the recording done by the Edison Company. They said that the pdison Company was selling a number of phonographs and records in the small towns and country places, as they were making records of the popular selections and catering to that trade, but when the hard times struck the country, a year ago, the Edison Company had nothing in the way of records to offer other than their popular selections, and the business must have fell off considerably in the large cities when a number of people were out of work and others working but half time.

They said the hard tinies had no effect on their sales during the last- year; they did not sell as many of their popular priced machines as they did the year before but their sales of Victor Victrolas and Victor Auxetophones (their higher priced machines and records) they were unable to fill their orders for them, and they are behind on their orders now. It will take them 2. ‘

a considerable length of time to fill the orders they now have on their hooks for Victor Victrolas.

They said that during the past few years their business had increased to a marvelous extent, as they were doing more than 65^ of the business now done in the cities in the country, as the wealthy people, who are educated, have acquired a taste for high class musical and operatic selections, and are now purchas¬ ing Victor machines and records* They have records by renowned musicians, and the greatest operatic stars, which no other Talking- Machine Company, or Phonograph Company, are putting on the market*

They said to go into the marvelous growth of the Victor Talking machine Company, and the business Which they have built up during the last eight years, from a very small beginning to the largest and best Talking Machine Company ir. the world, would show that their plant in Camden, IT. J"*, is the most complete plant i n the world, and with the machinery and special machines which they have in their buildings for tuning out their machines and records, is valued at nearly $6,000,000.00, and the story of the Victor Talking Machine Company's success in putting a luxury on the market is marvelous, and the poeple who purchased stock eight or- ten: years ago are well satisfied with their investment. The business is increasing each year with them, and as they have no competition to speak of, the prospect looks bright. I inquired of them what effect the cylinder business would have on their trade if the Phono¬ graph Companys would put on the market the same class of records that they are now putting- out. They said they did not think the Phonograph Companys would pay the talent the amount of money that they would ask, and as most all the famous artists are now under 3

contract with, the Victor Company, they do not see whom they could get to make records for them that would compete with the famous operatic stars who are now under contract with their Company, such as carUBO, Calve, Tamagno, and others. I was also informed that they paid Caruso '$45, 000.00 last year for commissions on his records that they sold, and during the year 1909, the Victor Co. are going to make a big cut in their magazine arid newspaper adver¬ tising. The money taken from the Advertisement Department is going for extra high class .talent, as there has been such a demand during the last year for their high class records that they think it will pay them to get the best that money can purchase.

They said they have spent considerable money during the last few years advertising their machines and records, and the Victor goods are now well known in all parts of the world, so they do not fear competition from any others who are now in the business.

I was then introduced to the guidfwho was to show me through the manufacturing departments of their plant. Ho visitors, they said, were allowed in their Recording Department, as that was one of the secrets of the business. We went from the office to the buildings across the street, which were numbered 1, 2 and 3, and the guid said that they were employing now nearly 1,000 people in and about the plant. He said that there were a number of their em¬ ployees now taking a vacation on account of business being very quiet, as this was their dullest time of the year in the business, and that about February 15th things would begin to improve with them We entered the Mixing Room on the first floor, where they have four steam rollers which the material. for the records go through. The guide informed me that the material was mixed

4.

in their building on the other street, and brought over from there to go through the steam rollers, where the material was rolled out flat, and from there to a stamping machine, where it was stamped and baked, then broken into squares of the required size and taken up to the press room on the second floor. There were four steam rollerB,bu.t only one was in operation, and one stamping machine.

On the second floor, vtfiere their press room is locat¬ ed and where the records are made, polished and put into envelopes, they are also packed in boxes containing twenty-five records.

While in the record or press room I counted a hundred and twenty- two presses that were in operation. They were making single records at the time of my visit to the room. I wanted to see them making the double disc records, as that was what I came over from Phiiade- phia especially to see made, but they were working on an order for single disc records.

The Third floor is where they do their grinding.

The fourth floor is where they do all of their nickel plating and poliching.

In the machine Department things looked very quiet. There were a number of stamping machines not in operation, and a number of other machines, such as drills, screw machines and planers, not running.

They have a special department where they make and test the motors of their Auxetophones. The motors which they use in their Auxetophones, they said, were manufactured by the Y/estinghouse Company. In the motor Department each employee has

a special part of the work to do, and if there is anything wrong with the motor, they' know v/ho is at fault.

5.

The guide that went with me through all the Departments of the plant was well informed, and acquainted In all the Departments of the Factory, hut he would not say what their output was at the present time , In regard to the number of records they were turning out daily, he was unable to say if it was five or fifty. records , as the number turned out daily depended upon the orders received for them. Sometimes things were quiet, as at the present time, and again they were rushed with orders to be gotten out in a hurry.

In regard to the number of machines they were turning out daily: I could get no satisfactory answer as to the output at the present time.

When we entered the first room in the building I began to count the number of employees who were working in the different rooms which we entered, and after going through all the departments in buildings 1, 2 and 3 I found that my counter had registered 732 employees.

At 52.15 P. M. I was at the building, corner of Front A linden Sts., where their shipping department is located, and where the motors are put into the cabinets; also their general repair department. I counted 49 employees leaving that department, mak¬ ing a total of 781, and I do not think I missed any in the several departments that I went through. I. did not get the number of em¬ ployees working in the Cabinet Department.

i^eoJcat - yr\-0~v^. (

_ 1 ' W'' l9of

% A^nt «ra^ it-i^ 4C=f-tu —

u ~ J^-nuU, - cu ^'—rri 333

1 ^ ~a~± 1— -r-r *-*■

Dear Mr. Edison;- lU-*-**—-4^ *£ ua>=w *- _ y

r teivm

1. Ftbb.MA

l hWMfcLPYEB^

The follovdng is a copy of a letter received from J. H, Spitlsr, Edison Dealer, at Bradford, Ohio:

"Bradford, O.iTan. 31st, 1909.

Edison Phonograph Co.,

Dear Sirs;-

Permit me with all the vehemence that in me lies, to enter my protest against omitting the Announcement on Edison Records, One of the grand features in Edison Records over all other makes has been that you could always kno what you were listen¬ ing to - How the busy Dealer will have to waste much precious time: answering the questions, "What is that?" "What Tune was that?" What is the name of that Record" and hundreds of other similar questions; Again many persons have formed the habit \ of "taking down" the names of Records as they he a them and somfe

\ time they expect to, and do huy Records they thus heard played.

V I protest for, many of my customers also:

\ ^ The label on die lid of the Box is just die thing needed,

/ many of my customers appr eciate that ib w departure. You might / omit "Edison Record, " and no one know the difference as Edison ( Records are so superior that people would know they were listen- / ing to Edison Records.

[ No plain "liar" need' tell my customers that Amberol Records

} are not a Great Big Success - I shall not order any more "Old I Style Phonographs unless by direct request of tie. Customer - I

V expect to equip many machines with new attachments-Have done so

\ to the' first Standard I sold and h aye many promises for the \ future. "

Your s vs ry. truly ,

B. C, IlcChesney.

Frank L. 3yer, Esq.,

Pres., National Phonograph Co Orange, N. J.

My dear Mr. Dyer:-

I am continuing the efforts which I have taken on my own initiative to effect, If possible, a settlement of the pending litiga¬ tion between the New York anti other phonograph companies and the Edison interests. If an offer of $.175,000 and an agreement by the Edison in¬ terests to waive any payment from that sum on account of stock held by them would be entertained, I might succeed in connection with the pro¬ position, which I have in mind, of obtaining' a stun net exceeding $25,000, in order that Mr. Andem should realize on the settlement. The expenses of the litigation, which, under his contract, must be borne by him, have been so enormous that there seems to be but little, if any, margin for him.

Of course I understand the position taken, hut it is my endeavor to work out, if possible, a preposition which I can submit, to both sides with some hope of success. Although not much encouraged, I shall continue the effort until it is evident that the effort is useless or until it is successful.

p.s. 31^

Very truly yours.

386

MEMORANDUM

(buzz'd - 7?Ca

Mr. Dyer Smith:

2,42/09.

ill’. Edison la speaking to mo about trie new appli¬ cations on shellac record compoai tions. m.-tuo it clear that he wants to cover two separate things. As j. understood, him, one is the composition in which shellac is dissolved in a solid solvent such an naphthalene or stearic acid, the proportions being such that tor solid solvent will cryotuliac and practically separate .iron the so line no that the rocord surface is pare uh'llac.

The other is a true mixture oi* shellac dissolved in a solid solvent under heat, the proportion oi the shcliao being very much higher, than in the first case. Such material is moulded and chilled like any record composition.

I hand you herewith the first application, which wants to be corrected, and I promised Kr. 'Edison to let him have both tomorrow afternoon.

KD/iW p. D.

PJk&tv 'faatJl'

V

A

Ax ' ^

y-K ' /

■ with my suggestion of yesterday to you relieving statement cf the negotiations bring about a settlement of the jiendlng

3’rank L. Dyer, Esq. ,

Pres. National Phonograph Co.,

Orange, N. J.

My dear Mr. Dyer:-

Xn aooordanc

over the telephone, I write the undertaken by me in an effort to phonograph litigation.

I have seen Mr, Tomlinson tc-day and again discussed the matter with him and with Mr. Tompkins. The natter can be adjusted I believe for $175,000 in addition to £25,000, making a total cf $200,000 to be used as heretofore stated, excepting, however, the suits brought and prosecuted in the State Courts of New York by Ur. Hyman, I have can¬ vassed the situation so thoroughly and from so many points of view, that I believe no better settlement to be possible, and, in my opinion, the settlement is one which, for many reasons, should be made by both sides.

Of course, as T have heretofore stated, in expressing any opinion with regard to the advisability of settlement, X feel sure that you will take into consideration the fact that I conducted the complainants 1 side of the litigatu.cn for so many years. You and Mr. Buckingham knew thoroughly all the points of the defendants' side.

One reason why it is not possible to settle the litigation upon more favorable terms to your Company is that the figures would be so low, in view of all the circumstances, that it would be to the interest of Mr. Andem and the New York Company especially, to take their chances cf a greater success rather than to accept a settlement less favorable than that above stated. For this reason nothing less will be considered. It is sain, and I belisve correctly, that it will be next to impossible hereafter to obtain the consideration Of so favorable a preposition of settlement. In view of the very large amount heretofore talked of as the probable outcome of the litigation, the present figures are conservative*

What I have in mind is the payment of $150,000 to the New York Company and $25,000 to the other companies represented by Mr. Andem, and, in addition, the payment of $25,000 to Mr. Andem as indicated, making a total of $200,000. Mr. Tomlinson criticises the payment of any uart cf the $175,000 to the other companies and believes that it all should be paid to the New York Company. This, however, would not in . all probability meet your views, and I believe that $25,000 paid to the other companies would be such a consideration as would enable Mr. Andem, under his con- tracts, to give valid releases and to cause the suits to b.e discontinued.

- -4. 4. wi;P\ regard to Mr. Hyman, he, as you know, has very large ideas ana it is not believea that it is possible to obtain from him an agreement to accept any reasonable sum as a compensation for his services upon a settlement. It is proposed, however, to ascertain from him whether if a settlement can be effected, he would be willing to accent $20,000 or $25,000 in full satisfaction and to consent to the entry of orders dis¬ continuing the New York State Court suits. Mr. Tomlinson is to make this inquiry through Mr. Andem to-day or to-morrow and is to let me knew

F. h.

Feb. 15/09.

the result. In the event of Mr. Hyman's willingness to accept said sum, then that amount would have tc he provided in addition tc the amounts above specified; hut in the event of Mr. Hyman's unwillingness to accept such a sum, then, if a settlement is to he made, it would have tc made in such manner as to leave Mr. Hyman's compensation to he determined hy fifty per cent, cf the amount which he might succeed in recovering in the State Court suits against the dealers. Should Mr. Hyman fail in the Court of Appeals, that would he an end of his claim; should he succeed in the Court of Appeals, there are other reasons why he could not recover any¬ thing.

Of course, a release hy the New York Phonograph Company would free the National and other Edison Companies from ar.v possibility of interference with future business. The National Company being free to do business within the State of New York, every dealer would he free to carry on business in the future and Mr. Hyman's claim would necessarily he limited to past damages or profits. — c. z. £~a ~C&c^

A settlement upon the foregoing plan presents many obvious ad¬ vantages as follows ;-

First. The amount recoverable in the federal court upon the accounting in the New York stj.it, and the costs of the suit and of the ac¬ counting would be satisfied.— So^o

tiL*. SC^icc ' O /

Second. The future business cf the Edison Companies will be

free.

Third. The great legal expenses heretofore incurred ’will be ended, except so far as it may be necessary to appose Mr. Hyman.

Fourth. Any future expense in changing the methods of manu¬ facture to avoid patented inventions will be unnecessary.

Fifth. The' possibility of the Circuit Court of Appeals holding that tha contract rights cower phonographs and supplies irrespective of patents, would be avoided.

Sixth. Judge Hazel's preeent favorable decision will stand.

Seventh. Bonds exceeding $160,000 in the federal court will be

cancelled.

Eighth, No further bond could be secured in any suit pending in the state courts because the right to do future business would be estab¬ lished.

Ninth, Your time and the time of others will not be diverted from business considerations to this pending litigation.

Tenth. The large expenses incurred for printing, traveling and *hx like items of disbursement will be avoided.

Other advantages of settlement exist, but a consideration of the foregoing will, I think, convince you that as ajbusiness proposition,

3\ I. D. -3-

it is cheaper to settle upon the basis stated than to expend the same 3um in litigation and then, perhaps, be obligated to pay in addition a sum considerably larger.

Kindly understand that in the same way that t have put before you the advantages and advisability of settlement, I have urged the matter upon Mr. Andera, the New York Company, Mr. Tomlinson and others. I have tried to bring about a meeting of minds. I think that the minds should meet upon the plan above outlined. As suggested, I will see you to-morrow afternoon if you will let me know by telephone at what time.

Believe me,

Very truly yours,

Feb. 20, 1909.

1 2r, Thomas A. "Edison,

Fort Myers, Florida.

Dear Mr. "Edison:

On Tuesday I will write you in detail regarding • "business: for the week ending to-day; it has "been entirely satis¬ factory.

My negotiations with Mr, Hicks regarding the Hew York case are still continuing, hut I do not see any prospect of a settlement that will take care of Mr. Hyman or the suits of the other local companies. Mr, Hymen has a contract, with Andem under which he is to raoefve a portion of any proceeds obtained in suits’ brought against jobbers and dealers in Hew York. . Should the main case be settled and a release obtained from Andem and tho Heve York Company, it would prevent Hyman from enjoining jobbers "or dealers, but he could still sue them for past damages and thereby greatly annoy and harrass them. lie, Hicks seems to feel that Hyman's contract can be ’ set aside on the ground of "champerty" , since he as a lawyer agrees to bring the suits, pay for them and be paid out of the proceeds. .

If that could be done, Hyman would be disposed of, "

Regarding the suits brought by the other local companies, the Hew England case could bo settled by a release from Andem, because we control that company; and Andem owns the Ohio company and oould settle that oase. "Andem could also give ub. a .release under his -oontraot With the other companies, but • ■:

.2. 2/20/09. Thomas A. "Edison.

NATIONAL PHONOGRAPH COMPANY

■ entirely free the situation, "because the other companies could undoubtedly still go ahead and annoy us. Their position i3 much weaker than the New York company, because they slept on their rights for a good many years, and besides, I think it very doubtful if it would be possible at this late date for the other companies to prove their contracts. I should regard it as extremely improba¬ ble that anyone could be found like tfahnestook who would .be willing to go into a long litigation, especially in view of the fact that the present situation is distinctly favorhble to us. The whole situation seems to be that an arrangement can be made which in all human probability would relieve us of further annoyance, but there is not the certainty in the matter that would warrant me in .telling you positively that every danger was removed. However, 1 will keep in touch with Hr, Buckingham and Judge "Wallace and be guided very. largely by their views, although nothing final will be done until I telegraph. you, if necessary, and "get your consent.

I tend .you he rev/ it h copy of the opinion of the Court of Appeals in Philadelphia reversing the. decision of Judge Buffington and sustaining the validity of your, reissue patent Ho. 12,393, copy of which I also enclose. Judge Arohbald, who writes the opinion, has taken a very sensible end broad-minded view of the patont.

Yours very truly,

"Eno-

Pob. 23, 1909.

Hr. Thomas A. Edison,

Sort Ityors, I'la.

iy dear Hr, Edison? •’

1 had a long talk yesterday with Hr. Buckingham in reference to the Hew York case. The thing we have most to fear is that the U. S. Court of Appeals may switch oyer and decide that ’ the rights of the Hew York Phonograph Co. are based on contracts and not orippatonts, and therefore apply to all phonographs and records. Judge Wallace, however, has expressed himself very f irci- hly that the Court will not do this, and I fool convinced that he is right. This being so, Hr. Buckingham and I feel that it would be unwise to make any further concession to the Hew York people and that no settlement should bo made unless everything was cleaned up. To make a settlement as they now propose, that would not take owe of Hyman nor the other looal companies, would leave

us open to further attaoks, which would be annoying, although I do not think that they would amount to anything, Mir. Buckingham Is therefore to tell Hr. Hicks that the offer of $175,000 stands, unless, of course, the Circuit Court of Appeals decides the case before they accept, and that i^ must mean the cleaning up of every¬ thing, not only of the Hew York Company, but of the other’ looal companies as well.

Yours very truly,

pib/ivav

a oi' two

‘T L 0x Uila soiling p:

[7

•n S- ^ ^ , . . ,

■nis i^r r coord, rirres-

• attribution ia national phono^^8W» °olas that the oonpoooris artiot who ,h, *“ ”,i"e *"“* ««■ value ls the

i. „ z ,i :t if - — - - u pUa, *>«— 1 1" n<.i ... :r.T ***** o“®“y t;“" •»•*«>

°»«®> * t™ „„,t, “ "*'”*"■* «“«• ««Od W „ j;iar. £, 1909. 0

■Jr. Thomas A. PdiBon,

Port hyera, I-’la.

Hy: dear Hr. Pc! i son:

P.oturning to the office this morning, I find that very little has happened during my absence , although things are still very wuiet .

Much to ray surprise and chagrin, in the very last days of Congress the copyright bill v/as passed. I liave just loolcod over the Congressional Uocord and find that there wan vniy little debate and not wen tho forraalit.y of an Aye-nnd-ITo vote. The law goes into effect on July 1st next, but it does not apply to copyrights taken out before that date; so that we have time enough t o take care of the situation. In other words, even if a song in copyrighted on July 1st, it probably would not become popular for some months after that, so that it will be probably sometime in tho Pall before we are oompelled to Beriously meet the si

3/8/09. T. A, ‘Edison,

One very unjust provision appears in the ' Act— That royalties are payable on records manufactured, and not on those whioh cure sold, so that the manufacturers will hive to too careful not to materially go ahead of their actual orders.

In writing ilr. Currier, Chairman of the House Committee, on 5'n tor nary 23rd last, when lie submitted the bill to me for cornu nt,

I said:

j ' "I object very strongly ;o the idea of charging a royalty on I all records manufactured. Tills seems to me to toe unfair, since the composers engirt not to expo ct manufacturer’s to pay royalties on records which are not sold, nor, I cuuoose, on records sold in foreign countries. At the present time we make up our stock of re cor s several months in advance of their going on sale and we are frequently loft v. ith large amounts on hand if the sales do not come up to our expectations. Vo certainly ought not to pay royalties on thousands of records which moy never leave our bins and which way

written you, it seems only fair that some provision should too node for tailing care of records Which arc returned to us from jobbers or. dealers and which they arc not able to sell. These returned records arc broice:: up and' ho, material r incited. 2 figure that this will amount to about 10£ of our entire output,. I think that the royalty ought to too pe,id on, for instance, 90* of the records sold and the remaining 10;, should toe adjusted within one yiv, ac¬ cording to the number of records which arc returned, "

iir. Currier uid not reply to this letter until after tlu; bill toad actually passed, mid, as I have said, its passage v/as s. complete ..surprise to mo and apparently for everyone else except those who appear to have been on the inside. When Tie did write he said that the bill was a matter of compromise between two extreme factors, one side advocating unlimited and exclusive rights and the other side opposing the grant of any rights. Ee says that he personally thinks icy objection should have prevailed tout that he accepted the bill as the best compromise possible, and that any injustice can toe remedied toy amendment. I doubt, however, if anything can toe done at the extra session of Congress, so that we may not expect any .modification until next Winter.

MVlIOMVr bHOMOCHVbH COWbVMA

3. 3/S/09.

T. A. Edison.

In the meantime I trill gee Hr. Joinaon of the Victor Company and arrange to have the two companies stand together in opposing the payment of any royalties except in case of absolute necessity.

r do not think we will have any difficulty in getting all the

songs we wont at very reasonable prices, and of course tbs -;'aeid of music already in existence is tremendously largo.

I will also propose to 3Tr. Johnson that thn two companies jarrango , after the lav goes into affect, to make a test case, because I still think the lav is unconstitutional.

in this connection, I would like to have your opinion on .he following question: Last Summer I saw Victor Herbert, with the idea of Jus allowing us to use his name on a musical critic, ho to select proper musical pieces and to pass on their technique and quality. At that time it was suggested that for ouch records as were thus selected and approved by him he should receive o royalty of one cent each, with a guarantee of $2500; 00 for the first year. In otter ..-orris , if we sold 1,000,000 records made under Ms direction we would pay him 010^000.00 per year. Those negotiations wore broken off by !ir. Herbert because he was afraid

that to enter into any arrangements with us would embarrass him in connection with the copyright question, but now that the copyright lav; has been passed hs has brought up the matter again and has asked me ii we would care to make the same arrangement. You we-o in fa.vo3 of the arrangement at the time I spoke to him, but I would like to know if you are still in favor of it? Prom an advertising standpoint I think it would be a good thing, so that if you approve I will go ahead and have the matter fixed up along these lines.

Aylsworth'a scheme for extracting records by vacuo has turned out to be vary oucce g s^,oWld b£ are now equipped and

4.

3/8/09,

T. A. Edison,

are running. By this arrangement we are able to got along with about 30 moulds less per machine than before. The records come out in about three seconds. The difficulties at first encountered v, ei' e duo to the fact that the suction was put on too soon, when the material was quite soft, so that the walls were likely to collapse too muoh. A number of the big records have been moulded, and I jexpoot to tear them this afternoon and will report later. tie.

I Weber is- mating progress with the big machine and 1 hope there will Abo something definite to show you when you return.

I hope that you are having a good restful time and arc feeling in fins steps .

•%

r i^'t

' - — — — lion day night ,

Mar. 8, 190'?.

i Hr. Thomas A. Edison,

• I'ort Myers, kia.

|Tly dear Mr. Edison:

! 1 cannot lot the day go by without writing you

about the big record, which I heard this afternoon. It was fine, hut not so loud as I hoped; in fact, it was not any louder, apparent¬ ly, than the ordinary record, hut I understand that Miller made no effort to increase the loudness. The quality was beautiful and all the details seemed to bo perfect. I heard many instruments that never 'would have been reproduced on the ordinary record. The record strikes me as being somewhat fragile, but aim’d, tough com¬ position would solve every difficulty.

Aikon seems to feel that with a reoord of this size, the taper¬ ing mandrel is out of the question, not only because there would necessarily bo much loss by incorrect reaming, but principally because of its length. In order to have thick enough material at the thin end, the thick end 'would ha 're to be too thick. Probably an expansible mandrel of some type will have to be used so that the wall will bo of the same thickness throughout.

I verily believe that this record is the greatest improvement that has ever been made in the talking machine business will be brought about.

4

March 9, 1909.

;Mr. TOldridge H. Johnson, President, i Victor Talking Joachims Co.,

Camden . ". ,T.

My dear Mr. . Johnson:

I suppose you have boon advised that the copyrignt bill b : cacao a law, and X ir.ngino you v/ere us surprised as I v.ns at the indecent haste with which it was rushed through Congress in the last hours of the session. There was no debate whatever in the S. suto, as .'..spears from the Congressional Record, and in the house the debate was purely perfunctory and mas flagrantly misleading, the statement being frequently made that the bill was acceptable to both sides. In neither House was th re the formality of an Aye -and -ho vote. There is no use, however, for us to repine, but wc must accept the bill as nn actual reality, fortunately, the law does not go into effect until July 1st next and does not apply to copyrights registered px-ior to that date, 30 that it will probably be sometime in tile fall before v/e are aotually confronted by the situation.

It seems to me that me should have another talk about this natter and reach some definite conclusion, and we might decide that it would be desirable to enlist with us the co-operation of Mr. faston. I feel sure, if our two companies ctand by each other, we can substantially . .^e^^te^si^W^n^^barraaament, but if that

3/9/09,

E. R. Johnson,

ia not done we will simply be placed at the mercy of the publishers and will be required to pay the full toll.

Lot me know when I can sec you either in Hew York or Phila¬ delphia. Friday of this week will be a very convenient day, but I can meet you at almost any time on short notioe.

Yours very truly,

fld/iot

President.

Port Myers, Fla . , ,3/l0/09.

F. L. Dyer.

If Buckingham has seen all the contracts Between Andem and Hyman and their confirmation hy New York Company, and thinks Hyman cannot injure ub hut must look to Andem, and also if Andem-will settle with outside .companies in such manner that company accepts amount in full settlement same, receive good delivery them, I would Be .willing to settle on terms mentioned.

r READ THE NOTICE AND AGREEMEN'

y '

If ON BACK. J

Mr. Frank L. Dyer, President,

National Phonograph Co.,

Orange, N. J.

My dear Mr. Dyerj-

Your letter of March 9th, concerning copyright situation, received.

I am very anxious to have a talk with you over this matter, but cannot meet you this week. I think I can arrange it next week.

I have not yet received a copy of the bill as passed, and I understand there were some amendments made at the last moment. While 1 do not know anything about the legal side of the case myself and have not as yet received an opinion from 'our legal department, I am inclined to believe that the bill is likely to be attacked on some constitutional basis, as most of the attempts of Congress to regulate rates seem to have fallen by such methods lately. I believe, however, that now is the time to make a practical arrangement with the publishers, before such a movement begins.

The question of inviting Ur. Fas ton to cooperate with us will, I think, bear considerable discussion.

I will communicate with you early next week and arrange an appointment.

X would like to have Mr. Ceissler present if you do not object.

Yours very trulj

H'tAflaonOHH JAHOITAM

30

fees

York lout, )

: independent or any recovery which mi;.

ac to the amount of this recovery, 1! .e to agree. hr. Buckingham las ulv.a;: iplo would not recover anythim; norm t! limits that if they re cave red any subs

c to pay the '.'.hater • s me dollar. This ; he secured against lawyers have never felt that the Hew : nominal damages, • iti&l amount it would

■hly he a large sum, although he line never given any indication i at that sum \7ouia he. judge Y/allaco, on the other hand, is_ fearful of the results of an accounting. And it must also oe aberod that when the accounting ir, once settled it does not ;v-e case, because, the Court having held that the contract runs

until l‘j.19, there might he an additiond recovery tor that entire period, the accounting depending upon the particular measure of dorciv-eQ adopt d hy the Court. l.'y personal view is that tho law on the subject of damages is so involved and so much hardship is imposed oil successful litigants that the Hew York Company would not recover anything, but there is still the danger present, and you know that in this suit our calculations have frequently been grievously upset. Remembering , therefore, that in the matter of the accounting alone, which -would almost surely be gone ahead with, we might very readily spend $100,000 for lawyers 1 fees and oostB, it would undoubtedly be worth a good deal to remove the danger of an ultimate recovery against us and a repetition of the same proceedings from time to time in connection with damages which may hereafter accrue. All

2. 3/11/09. T. A. Edison.

YMASMOO HSAAOOHOHH JAMOITAW as

this is on the supposition that from now on everything is absolutely favorable, but there are still further dangers. Judge Hazel hold that v/e v/ere in contempt of the previous injunction by infringing the patent on shrinking the records out of the moulds; if the Court of Appeals should hold, as we would hope, that this particular patent was not infringed because Judge Platt had limited it to an expanding process, and should further hold that the praotice of the process by us at Orange oould not infringe any rights limited to the State of New York, it would practically settle any possibility of recovery under that particular patent and would remove the danger of an injunction. The chances, however, are that tlie Co“rt would affirm Judge Hazel's decision, because that, being the easiest course, is the one that Appellate Courts generally follow. In that case the difficulty would then arise whether by changing the process to provide for a forcible collapsing by vacuum the patent had been avoided. That question would come up on a renev/ed motion for contempt. I believe that the patent could not be interpreted to sover more than a shrinkage by change in temperature, but nevertheless, it might be held that we were forcibly performing the same operation by atmospheric pressure that has heretofore been performed by a reduction in temperature and v/ere therefore using an equivalent process; and if the Court should take that view it is not unlikely that we would be subjected to a much heavier fine than §2500. Furthermore, in such a case, we would still have the patent confronting us and would then have to try the move of giving up our dealers' agreements in New York State, and this would be certainly embarrassing. If the Federal Courts in New York should hold that we were violating the rights of the New York Company under this patent and that our vacuum process did not avojjLd it, the other local companies; representing Ohio, Illinois,

Michigan, Wisconsin, Minnesota, Kansas and Kentucky, Y/ould undoubt¬ edly then press those suits forward and ask for preliminary injunc¬ tions, and if they could prove title, those injunctions might be granted, so that we would then be confronted with the necessity of giving up our agreements in those States, and even then, perhaps, we might get snagged. On this point, my personal view is that the other local companies could not prove title and that their rights are so much weaker than those of the New York Company (since there was no confirmation agreement and no attempt to maintain their rights) that preliminary injunctions would not be granted; but still this doubt and danger is present. The third course that might be taken by the Federal Court of AppealB in New York would be to go further than Judge Hazel and hold that the rights of the New York Company are not limited to patents, but are contract rightB, giving them the exclusive lloense to sell phonographs and records in the State of New York, and if the Court should so^hold, it is unnecessary to say that v/e would be confronted by a calamity.

No one seems to feel that there is any likelihood of such a thing happening, but nevertheless it is not out of the range of possibil¬ ity. While such a decision would undoubtedly be fatal in the State of New York, it would be equally fatal to the suocess of the other looal suits, because, if based on contract, those suits would be probably barred by the statute of limitations, and to be successful they would probably have to be prosecuted as straight patent suits.

So far as concerns the suits whioh have been brought against our jobbers and dealers in New York State Courts, and amounting to several hundred in number, you v/ill recall that the test case against

3/ll/09.

T. A. Edison.

.NATIONAL PHONOGRAPH COMPANY

Davega was decided againBt us by Judge Keogh, who held that our dealers in selling phonographs and records in ITew York State had violated the rights of the Hew York Company and that the Hew York Company was entitled to an injuntion and an accounting; hut on appeal the Appellate Division reversed this decision and held that the State Courts of Hew York had no jurisdiction on tire questions since the suits were really patent suits. This decision, while disposing of the suits in the State Courts, would not prevent the Hew York Company from bringing similar suits in the Federal Courts, which, under the theory of the Appellate Division, would undoubt¬ edly have jurisdiction; but if such suits were brought, I do not think they could be made effective. An appeal has been taken to the State Court of Appeals at Albany, and that appeal is to be argued this Fall and we have every reason to expect that the deci¬ sion of the Appellate Division will be sustained, but, of course, tliis doubt also is present. If the Federal Court of Appeals should go further than Judge Hazel and decide that the questions involved are based on contracts, and not on patents, it is very probable that tho State Court of Appeals would reverse the Appellate Division and deoide in the same way.

All of these doubts and dangers really exist; some of them are very remote and others aro more or less imminent. We have staved off any serious results from 1901 until the present time, and I have no doubt that if we had been placed in our present position five years ago, when the Federal suit was first argued and a good ma.qy important patents were 3till in existenoe, we would be in a very serious position, which could not be settled for anything like the proposed settlement. After going over all of these points

with LIT. Buckingham v/e both together drafted up the telegram which was sent you. The proposition is to pay $180,000 for a settlement of the Hew York situation, which includes $25,000 on the side to Andem (and I 3uspeet $5,000 on the side to Hicks) and $30,000 for a settlement of the other local suits.

The settlement of the Hew York situation should in my mind involve the following:

1. A dismissal of the Federal suit, a consent that the Federal Court of Appeals shall, if the Court agrees, reverse the decision of Judge Hazel and deny the motion for contempt and that the accounting shall be waived.

2. A release from Andem, under his contract with the Hew York Company, and an assignment of all of his rights thereunder.

3. A release from the .Hew York Company, approved by the Board of Directors and ratified by the stockholders, or at least, by practically all of the stockholders.

4. A transfer to us of suoh stock as the Andem and Fahnestock

interests control and a consent that we shall withdraw the $,000 ’

shares from the Central Trust Company, which, with our own stock, ' would give us praotically all of the stock which has so far been located.

5. I imagine it will also be possible to arrange so that the present directors will resign and our own directors be substi-

3/11/09, WAHMC

T. A. Edison,

OO H1AHOOWOHS JAHOITAW

tuted.

6. The Hew York Company will grant a license to us and to all of our jobbers and dealers now or hereafter appointed under their contracts.

Perhaps Hr, Buckingham may conclude tliat other precautions shall be taken, -but it aeoms to me that if the above things are done there could not be any question as to the safety of our position.

Of course a single disgruntled minority stockholder might attack the settlement, but it would only be necessary to show that the direc¬ tors had acted according to their best judgment and discretion.

So far as all the other local companies are concerned, Andoms contracts give him the right absolutely to settle them, except in the case of Kentucky and Kansas, and in these two latter cases his oontraot provides that any settlement must be ratified by the com¬ panies. Andem can therefore give a release and an assignment . under his- contracts in sill the cases end can agree to have them discontinued. If the Kentucky and Kansas Companies disapprove of Andem* s settlement, they would have to begin those two suits over again, which I doubt very much if they would do, on account of the expense. If the Kansas and Kentucky suits wore again started, they certainly ought not to reach a more favorable condition than the Hew York Federal suit, and if we can get the Federal Court of Appeals to consent to a reversal of Hazel's decision, there would be no precedent for the Federal Courts in Kentucky and Kansas to follow. Besides this, to would have an assignment from Andem of his contract, which would give U3 60/ of any recovery, so that I feel quite sure we would never hear from these two companies; but nevertheless this possible doubt must be recognized." Of course, Kentucky is relatively fmimportant, but Kansas is a good State. So far as the Hew England Company, is concerned, we control the 3tock, and it would»only be necessary to get a release and assignment from Andem and an agreement with the attorneys to dis¬ miss the minority stockholders* suit novr pending in the Hew Jersey Chancery Court.

The only remaining doubt is in connection with Hyman, as stated in my telegram. Hyman has a contract with Andem under which he (Hyman) agrees to prosecute Edison jobbers and Sealers in Hew York and to pay all expenses, receiving 50/ of any reaovery. In the first place, it is very probable that such a oontraot oan be set aside on the ground of Champerty, as it is highly, improper for a lawyer to make such an arrangement. But, if j^aSS^'does go ahead, he must first obtain a reversal of the deciaion’wf'the Appellate Division, and the ohance of doing so is very remote, and would be even less if Judge Hazel * s decision remains undisturbed by the Federal Court of Appeals. If, however, the Hew York State Court of Appeals at Albany reverse the Appellate Division and sustain the decision of Judge Keogh, Hyman could not obtain an injunction against our jobbers and dealers, because they would now be operating under a license from the How York Company, he could only proceed for damages, and I believe if a settlement is made he would be surround¬ ed by so many difficulties that he could not expect to succeed.

So far as Hyman is concerned, I am informed that he is an impossible man to deal with; but I understand from your telegram that you are willing to leave this matter to the best judgment of ITr. Buckingham and Judge Wallace, and if they believe Hyman cannot hurt us, to

5.

3/ll/09,,

fnASMOS H-1AHOOMOHS JAMOITAH

go ahead without "bothering about Mm.

I am going in town thi'a afternoon to sec Mr. Buckingham so " as to start the ball rolling, but lie has already arranged with Kr. Tomlinson to go before the Federal Court of Appeals, in order that there may be no decision handed down on the contempt motion.

If anything new turns up I will let you know.

CHARLES L. BUCKINGHAM,

nictated.

Thomas A. Edison, Esq. , For* Myers, Florida. Jfy doar Mr. Edison: -

New York, War oh 16, 1909,

I am vary sorry to toll y0u that in the New York suit the Federal Court of Appeals handed down a decision at 2:30 this afternoon, sustaining Judge Hazel, hut going to the ex¬ tent that we most feared, of holding that the rights of the New York Company are based on contracts and not on patents.

It is most unfortunate that this decision 3hould have been handed down at this time, because wo have all been working towards a settlement of the case on the lines explained to you; and Mr. Buckingham and Mr. Tomlinson had actually mde arrange¬ ments to go before the Court to-morrow morning and have the decision postponed.

It is unnecessary for mo to say how serious the situation is, but Hr. Buckingham and his associates are now working on a petition for certiorari to the Supreme Court, which will bo pro* seated in a few days. No one can foresee what will be the putcomo of this petition, but the chance# are against its being granted. They tell me that it is probable that the in¬ junction in the Hew York case will be stayed at least until the Supreme Court denies the petition for certiorari; and if the petition is granted, the chances of the injunction being still further stayed are good. The preparation of the petition for certiorari is being gone ahead with on the assumption that the New York geople will now break off negotiations .although there is a bare chance that they may oontinuo thorn.

T.A.B., 2.

Unfortunately, In the oomplex condition of these nego¬ tiations, they have not reached a point where I believe the New York Company would ho hound to go ahead with them.

I intended to telegraph the substance of this letter to you, hut Mr. Buckingham was fearful that in some way the in¬ formation might get out and thus show the New York Company how very serious we consider the situation to he.

Of course at the present writing 1 know very little about the case other than what Nr. Buckingham has told me; hut I will keep you fully advised of affairs here.

We will send you a copy of the decision to-morrow.

Hr. Buckingham is also considering the advisability of presenting a petition to Judge Hazel to have the injunction made definite, the point being that Judge Hazel, who went fully into the details of the case, was satisfied that the rights of the New York Company were based on patents. If the Court of Appeals finds that those rights are based on contract , it simply means, not that they have considered the details of the ease, but that the injunction is broad enough to warrant their interpretation.

Judge Wallaoe is in Albany to-day, but haB been sent for and Mr. Buckingham is to confer with him to-morroY/.

Very truly yours,

^ 7, ffoj

/" On Monday afternoon, March. 9th, Mr. Buckingham asked me to go in town, and he put before me a proposition that had been made by Mr. Hicks to settle the New York Company litigation for the out' side sum of $810,000.00, but which would not include Mr. Hyman's rights nor, possibly, the rights of the Kansas and Kentucky Companies. I telegraphed Mr. Edison from Buckingham's office later that evening, after having talked over the case very fully with him. (Copy of telegram attached). Mr. Edison's reply, dated March 10th, was not received until the morning of Thursday,

larch 11th. Promptly upoi

eceipt I had Walker telephoi

telegram in to Pelzer, with the request that Pelzer should submit it immediately to Buckingham, indicating that the chances of making

ettlement were very good e

trging upon Mr. Buckingham the impor¬

tance of making an arrangement with Tomlinson under which a de¬ cision by the Court of Appeals would be postponed until the nego¬ tiations for settlement we re either completed or abandoned. Mr. Buckingham again sent for me to go in town on Friday, the 12th inst., which X did, and he told me that he had started to go over to the Court Room with Mr. Tomlinson to ask the Court to hold up a decision, but that Tomlinson had asked him to state definitely that a settlement would be reached, which he refused to do, in view of the qualifications which Mr, Edison had imposed on us . I again went over the situation at that time with Hr. Buckingham and told him that he could assure Mr. Tomlinson that a settlement would be reached, because I looked upon the possible doubts as being too remote to be bothered about. I understand from Mr.

morning, but on Monday he and Tomlinson again attempted to get

(2)

together on some statement which would he made to the Court, hut they were unahle to agree as to who should make the statement, each feeling that if the negotiations should fall through, the side which made the request would he prejudiced in the eyes of the Court.

They therefore did nothing with this matter on Monday, hut they arranged to go before the Court on Wednesday morning and make a joint request for delay, hut in order to make the matter certain,

Mr. Clark went over on Tuesday afternoon to see Judge Ward for the purpose of having him (Judge Ward) suggest to Judge Noyes that the case should he held up; he was, however, too late, because the .decision had then been handed down. I make this a matter of record to show that upon receipt of Mr. "Edison's tele¬ gram I immediately urged upon Mr. Buckingham the importance of having a decision by the Circuit Court of Appeals withheld, and I repeated to him, both by telephone and verbally, a number of times, the importance of doing this. It seemed, however, impossi¬ ble for Buckingham and Tomlinson to agree upon the way in which the request should be made, because Tomlinson felt that the nego¬ tiations might f sill through and that the Court would in that case feel as if it had been imposed upon.

March 17, 1909. B. L. D.

[ATTACHMENT]

(Copy of telegram sent Mr. 'Edison March 9, 1909)

Mr. Thomas A. Edison,

Fort Myers, Florida.

New York situation, exclusing Hyman, can he entirely closed up one hundred eighty thousand, which includes extra payment to Andem. Settlement of all other company suits, except possibly Kentucky and Kansas, thirty thousand additional. This removes danger of possible reversal New York decisions and also danger of accounting and possible preliminary injunctions in other companies' suits, if decision on appeal goes. against us. Even if decision on appeal is favorable, accounting would probably proceed. Buckingham thinks result of accounting would be a large figure or nothing.

To set!,le now would substantially stop further expense. Buckingham considers Hyman situation unimportant and believes Hyman must look to Andem for any recovery, also that Kentucky and Kansas practi¬ cally free from risk. Both Buckingham and Wallace recommend settlement of all cases for two hundred ten thousand. Wallace believes accounting more dangerous than Buckingham. Remembering that to continue litigation means much further expense,- possibly one hundred thousand, proposed settlement may really involve jeopardy of not much over one hundred thousand, I think we should settle. This telegram read and approved by Buckingham.

If you approve, would not close or pay anything until everything satisfactory to Buckingham and Wallace. Wire me immediately your views.

F. 1. Dyer.

Ur. Frank L. Dyer,

President, National Phonograph Co., Orange ,N.J,

My dear Ur. Dyers-

Since writing to you last week I have suffered a severe attack of acute indigestion, which practically put me out of business until to-day, and I am still a bit wobbly. I have gotten behind in my regular office work and, if satisfactory to you, would like to put off my visit to New York until next week, about Wednesday;

I will communicate with you further as to the exact date, in order to make sure that it suits your conveniencs.

Uy impression is that v/e must get at this question vigorously and intel¬ ligently us soon as possible. I have an idea that the music publishers will under¬ take to get together and prevent, anyone from publishing copyrighted music and, at the same time, make an effort to amend the present copyright bill. I am not at all sure that the mechanical reproducer clause is not a clover move to overcome the pre¬ judice of Congress against attacking the mechanical playing industries, with the idea that the restricted royalty business can be attacked on constitutional lineB.

Our attorney seoms to think that the clause comes within constitutional lines, but, of course, he realizes that such a question depends largely on circumstances and the personnel of the Court considering the matter. Uy impression is that the limited compulsory license clause, if attacked and fought vigorously, will bo removed from the bill. Therefore, I believe we must approach the publishers in a co-operative spirit. Certainly, we cannot afford to comply with the clause regulating the terms of payment, and we must have consideration on the question of returned records, etc. The bill as it now stands is certainly very unbusinesslike snd would prove very un¬ satisfactory to all concerned. We are studying the situation over here as diligently as our opportunity will permit and I believe, as you have doubtless found, that there are many angles and many possibilities to be considered.

I trust you will understand my semi-legal language. I would be pleased to hear from you as to your opinion along Buch lines as I have written to you about or you may be disposed to disclose to me.

Certainly it is time for the talking machine men to pull together, but we muet, if we upproach the Columbia Co., make very sure that an understanding is reached whereby we will not suffer through lack of complete co-operation. I have had some experiences lately that impress the importance of this matter upon me. .

received.

MAR 181909 FRANK L. DYER,

5

X-fr

March 17, 1909.

Mr. Thomas A. Edison,

Port Myers, Pla.

Dear Mr. Edison:

In reference to the Hew York suit, 1 have notlilgg to add to ny letter of yesterday; hut, now that the first shock has passed over, I cannot help hut feel that the situation is not so hopeless as it looked at first. Perhaps hy this time you have received a copy of the opinion, hut if not you will certainly get it from Mr. Buckingham's office very shortly. It is evident that the Court of Appeals made no attempt to pass upon the intrinsic merits of the case', they simply soy that, having the injunction before them the question is whether or not the injunction was violated. The injunction enjoins us "from directly or indireotly selling or leasing within the State of Hew York, phonographs and supplies therefore, to others than complainant and from using, Within the State of Hew York, phonographs and supplies therefor, and from causing to he sold or causing to he leased or causing to he used, within the State of Hew York, phonographs and supplies therefor, hy others than oomplainant, and from selling for use or licensing for use, within the State of Hew York, phonographs and suppll es therefor, hy otherB than complainant in violation of the provisions of and of the rights of the complainant under certain

2. 3/17/0^,mmoo HqAflDOMOMq jamoitam T* A* ^s0»*

contracts as extended, 'bearing date October 12, 1888, between the North American Phonograph Company and the Metropolitan Phonograph Company and also be tween Thomas A. 'Edison, the Edison Phonograph Company, the Edison Phonograph Works , The North American Phono¬ graph Company and Jesse H. lippincott, and a contract bearing date the 6th day of February, 1889, between the North American Phono¬ graph Co. and Join P. Haines, and a contract bearing date July 1, 1893, between complainant and the North American Phonograph Company."

looking at the injunction as above worded and at nothing else, the Court of Appeals say that it is broad enough to prohibit all sales of phonographs and supplies, whether made under patents or not, and they therefore reach the conclusion that, while Judge Hazel was justified in holding us in contempt, his reasons for doing so v/ ere erroneous and too narrow. Now as a matter of fact, when the injunction was first presented to Judge Hazel by the New York Company it wa3 the same as quoted above, exoopt that it did not include the words "in violation of the provisions of and the rights of the complainant under certain contracts, etc." In other words, Judge Hazel refused to grant an injunction which applied to all phonographs, but directed that it should be modi¬ fied so as to include only such phonographs or supplies as were covered by the contracts, and, as you know, he interpreted those contracts practically as patent licenses. The Court of Appeals, however, say that they cannot pass upon the scope of the injunc¬ tion as it exists and cannot take into account anything that transpired before Judge Hazel at the time of the settlement of the order, and, looking at the injunction apart from everything else, they hold that the words "in violation of, cto." added by

T. A. 15(118011,

3. 3/17/09.

VMASMOO HSAROOMOHR JAMOITAW

Judge Hazel at Mr. Buckingham’s suggestion, are merely words of description and are not words of limitation. The Court of Appeals, however, say that if the injunction is wrong or that a mi at alee has been made, it cannot bo corrected on the contempt pro- oeedings. This, it seems to me, is a direct invitation for us to GO to Judge Hazel and have the injunction modified no as to carry out the ideas he has so often expressed in his decisions. In view of the flagrant injustice which has been done us by the Court of Appeals in misinterpreting the effect of his decisions,

I do not 3ee why in all decency he should not be only too glad to have the matter set right. I will urge this view very strongly on Mr. Buckingham .

He just telephones me that nothing new has transpired to-day, except that he 3ias seen Mr. Tomlinson and his partner, Mr. Tompkins, and that they are both still anxious to have the negotiations ['.one ahead with. I am to meet Hr. Buckingham tomorrow morning, and if necessary will write you from his office. At that time I will take up with him the question of the advisability of getting word to- all of our jobbers in Hew York State so that they may be able to get in orders for phonographs for delivery before the 2 6 tli inst., at which time the Court of Appeals hartd3 dw/n its mandate. As I have before ivritten you, we have already taken the precaution to ship them .al} records possible, so that some of the May list have already been shipped.

If a petition to Judge Ilasel is filed for a modification of the injunction, it should, in uy opinion, be presented by Judge Hatch, who is a neighbor of Judge Hazel1 s and to whom the latter would at least show respectful consideration. Judge Hatch is at present in Oklahoma, but is expected back on Saturday. Mr.

° ^ ^^/MAIMOa HSAflOOMOHS JAMOlTAW T. A. EdiSOn.

Melville Church is also very fertile in suggestions regarding Federal practice, but he is to-day in Hew Orleans. I have tele- graphed him and have just received word that he will be here on Monday morning.

Yours very truly,

March 19,

1909.

Hr. Thoms A. Edison,

Eort Hirers, Fla.

Dear Mr. Edison:

In reference to the Hew York case, I spent all day yesterday In town consulting with Hr. Buckingham and Judge Wallace. I saw them separately, so as to get their individual views Uninfluenced by the opinion of each other. They both believe that, while Judge Hazel might concent to a modification of the injunction, it would be practically a hopeless proposition to go to him to have that done, in view of the decision of the Court of Appeals. They also regard an application for re-argument before the Court of Appeals as hopeless, because. they both say that the Court of Appeals is undoubtedly most unfavorably disposed to us, and that we can expect no concessions from them. Judge Wallace expressed himself rather more forcibly than I would care to put in writing. The thing to be done, in their opinion, is to apply to the Supreme Court for a review of the case, but the chances of the Court taking up the case by certiorari arc very unfavorable. Hr. Hicks succeeded last year in getting the Supreme Court to take up the two Victor suits in this way, but it was only because the Supreme Court regarded the questions involved as of great public Interest. It would be our idea to show that in the present oase Wd'°<!Jtife&tlW}i^vte±<S0<J!£VMdqual , if not greater, public interest. If a petition for certiorari is filed with the

2. 3/l9/09. Thomas A. Edison.

Supreme Court, Hr. Buckingham seems to feel that the injunction will he further stayed. The effect of presentinc the petition to the Supreme Court would he to hold up the case pending nego¬ tiations for settlement.

Both Mr. Buckingham and Judge Wallace are strongly of the opinion that we should settle the case, and I Believe this can still he done, although, of course, at a higher figure than they were formerly ready to accept. Hr. Tomlinson saw Hr. Buckingham yesterday and told him that he could effect a settlement for $500,000.00, hut this, of course, is their first figure and no doubt can he reduced. I told him that the amount was entirely out of the question; that we have probably not made that much money in Hew York State in all the time tint we have been doing business there; that we could not pay so much, and that if they insisted on any unreasonable demands we -would simply have to get out of the State. 1 suggested that we had other lines of business to follow and that the phonograph business was poor anyway, so that with these ideas in mind I believe he will be able to luring Tomlinson down to some reasonable figure. Possibly, when the matter oomoB to a head, it might be well for me to see you personally and lay tlio whole proposition before you, but I will not do so unless it is necessary and until the matter is definitely settled one way or the other.

Yours very truly,

COWbVMA

C A I

..March 26th, 1909.

Mr. Frank L. Dyer, President, National Phonograph Co., Orange, N. J.

' H/A* - ,

l»r r

iU' • MAR 27 1909

1 V FRANK L. DY'R.

to Mr oonversati°“ ycur °m°* y08t«-day. I have tried to convey

to Mr. Child as fully as is possible our conclusions on the talent question. Of course, there are likely to be misunderstandings in oral negotiations; in auch cases, I would suggest that Mr. Miller appeal to you immediately, and I have in¬ structed Mr. Child to appeal to me immediately.

In the Be Wolff Hopper matter: I think the Victor Co. cun waive all question of exclusive rights to "Casey at the Bat" in favor of a new arrangement whereby Mr. Hopper may make the record for the National Co., if the said new ar¬ rangement can be made in such a manner that Mr. Hopper will make the record over tor us. We reel that we could handle a few other records by Hopper and, if it so happened that the list we select would suit you, or if an arrangement could be entered into whereby he would sing half a dozen records for us and half a dozen for you, we could probably secure his services exclusively to our joint interests for a reasonable figure.

1 regard the matter of requiring the artists to remake records occasion¬ ally as important. For instance, the .Victor Co. is continuously making improve¬ ments in recording and we expect to for a long time to come. We have no doubt that you also expect to make improvements. Therefore, an arrangement with an artist for exclusive rights to a certain selection is apt to become valueless from the improvement in the art unless the said artist will agree, for a certain consideration, to remake the record at certain intervals; it should be about once a year.

I do not believe that either one of us can lay down positive linos to guide Messrs. Child and Miller in their arrangements. I think, however, that they can reach an understanding between themselves well within the understanding as be¬ tween our respective companies which will work out satisfactorily.

. „ th® question of securing grand opera talent: I explained your idea

to Mr. Child and he agrees with me that there is nothing in your plan of securing a °5 exclusive talent that conflicts with our interests, and Mr. Child express-

ed himself as willing to help Mr. Miller in any way he could to secure a substan¬ tial list exclusively. Mr. Child has been at this sort of thing for a number of years and understands the personalities and relations of a good many people, their connections with other companies, otc.

co.-folio 2 - F.L.D. - 3/26/09.

We feel that it is good policy for us to help you, who are confining yourselves exclusively to cylinder goods, as it takes the services of such artists away from others who are competing with us in the disk line. I have no doubt at all that, if you desire to secure a substantial list of celebrated grand opera singers, you can got them, and, as I have said above, we are willing to help you as much as wo can or as much as you desire our help.

As to the arrangement between Ur. Miller and Mr. Child to prevent com¬ petition for the same artistes We are willing and anxious to enter into some . understanding whereby this will not occur. Of courso, the value of such an understanding rests very largely between Mr. Child and Mr. Miller. It will be of little value unless there is honest, hearty co-operation between these two gentle¬ men, or whoever has the matter of securing artists for your Company in hand. I 1 know Mr. Child will act fairly and liberally so long as he feels that he is getting the same kind of treatment. I believe that Mr. Child and Mr. Miller can arrange this matter satisfactorily.

Yours very truly,

President.

NATIONAL PHONO GRAF*# CD

Cl £dwlu

9K£S£

\y yur

ir , l^sq. , Pr/silient , National Phonograpl iJ&Mng<

, xy/

’ Re f err irte^t &\my n

T RECEIV—

f APR 3 1909 \L FRANK L. »Y£R,

' Referring^ &&\my meeting w-i-th the jobbers at Columbus on Sunday last, would strate that they held a morning session at which I was not present, hut I was invited to take part in the afternoon session. The principal matter of complaint which they had to take up with the National Phonograph Company was the subject of Babson Bros, advertising, which from their point of view, was very objectionable. They had quite a mass of correspondence they had received from dealers in all sections of the country complain¬ ing about the advertisements in question, and in addition to this, they had a great many copies of the advertisements whi ch had been

issued by Babson Bros. These were all called to my attention, and they wanted to know what our company proposed doing in regard to it.

X assured them that the matter was under advisement, and that in- all probability it would be adjusted very shortly, to their entire satisfaction. I am quite certain you will receive an official letter from the Association regarding the matter.

X took up with them in detail the proposed plan for a Continuous Exchange, and it met with the unanimous approval of those present, particularly after I had called their attention to the fact that we intended changing the wording of one of the paragraphs, which would. make it compulsory for the dealer to send us an order for a quantity of records equal to the number he was returning to the factory, which we would in turn send to the jobber through whom the exchange was to he consummated, just as soon as we could render proper credit for records returned. They were all so we 11 pleased with the proposition that they intended writing at once to the Victor Company, suggesting that they also institute an exchange along the same lines. I, however, insisted that they permit the matter to rest until such time as we could issue our letter to the Trade on the subject, when they might take the matter up if they saw fit.

They have agreed with withhold their letter to the Victor Company until we can complete arrangements covering our exchange.

They are all very desirous of having our Company produce a machine which will compete with the "Victrola" , hut it was the consensus of opinion that they would not he very successful in market ing such a machine, unless they had some high-priced records to go with it; meaning, of course, Grand Opera Records, which must necessarily he made hy high. class talent. It was further suggested that such a machine should have some very conspicuous points of difference from any machines we are now manufacturing; they mention¬ ed specially that it should have a Reproducer entirely different from any we are now using, particularly a larger one, even though it did not produce any better results. This is one of the matters I will draw to Mr. Weber's attention.

I saw several of the "Victrola" machines, and I must ad¬ mit that the lines of the Victrola Cabinet are far superior to any we have so far seen in the models presented to us, and I am enclos¬ ing herewith, a photograph which shows one of these machines quite plainly. These machines are equipped with an excellent hall hearing caster, which permits them to he moved very readily, although they and quite heavy.

The jobbers as a whole appear to he very enthusiastic over the Amberol Record Proposition, and I find that in most cases their advance orders for the Amberol Records are almost equal, if not quite as large as those they are sending us for the Standard type. The question arose as to where we obtained the word "Amberol" and I explained to them that it was a word coined hy Mr. Edison.

They were of the unanimous opinion that it was a very happy thought, and that out advertising was bringing same to the attention of the . public in a way which would certainly produce results.

The question of a Clearing House for surplus records was very fully discussed, and they all appeared to think that the prop¬ osition as now being. carried out by Mr. Ornsteinof the Victor Co., would prove of great benefit to all jobbers, but I explained to them that we had no intention whatever of attempting to inaugurate a scheme of this sort, as we felt that the jobbers themselves should handle the proposition; it was then practically decided that they would endeavor to establish a Clearing House for surplus stocks, which would either be handled by their present Secretary, Mr. P.' B. Whit sit , or by some one of their members, the jobbers to be charged their pro rata share for the maintenance. of such a department. Mr.

W. E. Henry at once handed Mr. Vhitsit a check for $100. so as to start the proposition. The method of handling this matter is to be decided upon at some future date.

Before the Meeting adjourned, I invited them all to take dinner with me at the Southern Hotel that evening,- ’which they did, and we had a very pleasant session lasting until about nine o'clock, when some of them were compelled to leave in order to catch their trains. Some of them left the city that night. I remained in Columbus until Monday evening, as did some of the jobbers. This afforded me an opportunity of discussing business conditions with them generally. I left for Detroit Monday night, arriving there Tuesday morning.

C-eo. E, Mickel of the Hebraska Cycle Co., Omaha, Neb., was present, and in conversation with him I found that he is now selling about three Edison machines to one Victor. This, of course taking into consideration his entire business; but, in Omaha his * retail sales on the two lines, is about even.

Max Strassburg of Grinnell Bros. , informed me that he had seen a recent advertisement of the Peoples Outfitting Co., Detroit who were selling an Edison Sev/ing Machine. I have requested Mr. ’ Strassburg to endeavor to locate one of these advertisements for¬ warding same to me at this office, so that it may be drawn to your attention.

®be P, B. Whitsit Co., Columbus, advise that they are pay¬ ing the Victor Company about one-half the amount they are paying us for their monthly purchases, and that about 80& of the Victor Co's, goods are disposed of at retail.

The Whit sit Company have very few Edison machines on hand, and they will be compelled to place immediate shipping orders for same in the near future. This is also true of Grinnell ,ros. , Detroit , and I believe I am safe in saying that the entire jobbing •crade have at present very few Edison machines in stock. If, there¬ fore, businass does revive, we ought to receive some nice orders for machines, in the near future.

, _ . . ®ri”?e?-1 Bros. « Detroit, have one of the finest buildings

in Detroit, which is devoted entirely to pianos and musical merchan¬ dise. Their basement is goven over to their talking machine depart¬ ment, and it appears that our line is receiving excellent represen¬ tation-equal in every respect to that given the other lines.

The American Phonograph Co., Detroit, will remove from their present location on May 1st to a store directly opposite Grinnell Bros, This is due to the fact that their landlord demanded an increase in rent from $2750. to $6500. , and they have secured their new location for $3800. per year on a three year lease. They have about 100 Edison machines now in stock; consequently, we cannot expect any immediate shipping orders from them for machines.

I next visited the Eclipse Musical Co., Cleveland, where business is only fair. Mr. Towel of that company advised me that o! pl5?0d an order for approximately 75 Edison phonographs,

as he had practically run out of machines.

I visited several of the large dealers in Cleveland, none of whom appeared to be doing any great amount of business.

vh n it W T. neXo stop- was at Pittsburg. I found that the Standard Talking Machine Company were still endeavoring to lessen their

°f merchandise on hand, which they had secured through pur¬ chasing the stock of the several jobbers which they recently took °°?oer? appear to be progressive, and are making an earnest effort to obtain the dealers' business throughout their territory by travelling four salesmen, in addition to v/hich Mr.

Roush himself makes short trips each month*

While in Pittsburg I had an interview with Mr. Eischer. Manager of 'Che Talking Machine Department of the C. C. Mellor Co. also their Mr. Soren who is their financial man. The subject of their becoming Edison jobbers was again brought up, but you will

assurance that 7“ Sfr& the Stfndfrd talking Machine Company our

^ £ the Present at least, we would leave them undis-

&££ srs?

practically all CoKflfS , “ ,v

fls^Er'in^v" ?»^°5)r^,?osbw ssfi.1;’

Soe4»?“tSSf.“5l^aEt°Eff3t3n%l£*^2°?";T®*n^

ESIi3r“~^

best nonJ^ti 'business conditions do not appear to he of thfe

*.^2iiWMsisas ag-srs-^-sjt..

Yours very truly

NEW YORK, «. Y . .AB.C».....8*...19Q9». .

National Phonograph Co.,

Orange, N. J.

Gentlemen:-

X beg to confirm my agreement with your president, Mr. Prank I. Iyer, to accept $30,000, to be paid by ycur Company in three notes for $10,000 each, payable respectively three, six and nincmonths from date of settlement hereinafter referred to, in full satisfaction of my claim for professional services in the enforcement of the claims and demands of the New York and other Phonograph Companies represented by James L, Andem. In addition, I will upon such settlement give to your Company a release acknowledging satisfaction of my claim for said compensation, and I will also release the New York Phonograph Company and Mr. Andem from all claims therefor upon receiving, if requested, releases/from Mr. Andem, the New York Company and Mr. Pahnestock to me. I have informed Messrs. Tomlinson, Tompkins & Tomlinson, solicitors for the New York Phonograph Company and Mr. Andem, that I have agreed with yeu so to do, leaving it entirely optional with the New York Phonograph Company and Mr. Andem to pay me any additional sum, so that settlement can be made and the releases obtained from me upon the basis stated, whether the New York Phonagrqph Company or Mr. Andem pay or dc not pay to mi_any additional

Very truly yours,

sum.

Y MAH MOO HHAflOOMOH-S JAMOrfAM

PAn-t. —

ih jamoitAm

"n

Sunday, April 4,1909

Ur. Thomas A. 'Edison,

Fort i'yers, Ela.

Dear Mr. Edison:

Since the handing down of Judge iToyes1 opinion X have he on working almost constantly on tho Mew York case from all points of view. It has been a time of intense .anxiety because it is the greatest responsibility that I havo ever been called upon to take. X have, however, finally and definitely made up r.iy mind that under all the circumstances a settlement of the case is the only safe course to take. The fact of the matter ca not he disguised that Judge Noyes’ decision was a .knockout. hlov/ under the belt. Judge Wallace told no very plainly that the Court at the outset had determined to heat us, and Judge Hatch says that the controlling cause of all the unfavorable decisions, including the last, has been the apparent equities in favor of the defendants. The mariner in which the situation was handled immediately prior to and during the formation of the National Phonograph Co. under the advice of Judge Hayes was almost oriminally insane, and no matter what arguments were put forth by us we could never overcome the effect of this handicap. A number of these considerations which ooour to me were the following:

1. When the affairs of the North American Phonograph Co. were wound up by the Receiver, all the local contracts were pur-

2. 4/4/09. . . . T. A. 'Edison.

' ' Y HAS MOO HSAHOOklOHS JAMOITAM

chased by Ott. These were not assets, but were liabilities of a most dang rous character. The Bill of Sale to Ott provides:

'bind the said party of the second part (Ott) hereby agrees to per¬ form the several stipulations, covenants and agreements made by the Horth American Phonograph Co. in and by the said contracts."

V/e were able to avoid the saddling of these covenants on you only because the Hew York Co. did not clearly prove the exact relations of Ott, but Judge Jenks of the Hew York Appellate Division told Judge Hatch that if this fact had been established the Appellate Division would never have rendered the decision it did. Upon a retrial of the Davega suit or the trial of any other case against a. jobber or dealer in Hew York the true situation would undoubt- edly come out, especially If they succeeded in obtaining an open Commission to take your' testimony.

2. When the federal suit was first brought, instead of meeting the issue squarely, a demurrer was filed, the effect of which was to admit the truth of the allegations of the bill but to deny the legal right of the Hew York Co. to redress . Following the failure in this direction, a pica was filed alleging that the actual complainant was the Columbia Phonograph Co., but the proof obtained in support of the plea fell so flat that no testimony in reply was ever taken arid the pica was promptly denied. Thereupon another plea was filed, asserting that Andem'a contract was champertous, but this also failed dismally. All of these actions were so apparently frivolous as to seriously prejudioe us, because they were clearly made for purposes of delay.

3. We v/ere also prejudiced by the advice given you by Judge Hayes, and also to I£r. Gilmore, to avoid the service of process, and, as you remember, Mr. Gilmore was actually brought up for oontempt of court and fined. The exact relations between you

1

and the National Co. were also seriously questioned.

4. Immediately after the National Co/ was formed a number of suits were brought against the Columbia Co. in Hew Norland the Hew York Phonograph Co. was .joined with the national Co. as a oo- complainant, upon the theory that the New York Co. was a licens for that territory. All of these and other things gave to the case an apparent taint, which no amount of argument could ever overcome, and all the .fudges who ever heard the case have seized upon this aspect of it. We were very fortunate indeed in having Judge Hazel adopt our contention, that the Hew York Company’s rj.gn.ts were limited to patents, and I have no doubt they were; but Judge Hazel reached the conclusion that the rights of the Hew York Co. had boon invaded, and the way in which he handled the expanding procoaa patent shows upon what thin ice wo were skating. Vfiion gj:s case got into the hands of Judge Noyes he was undoubt¬ edly influenced by the apparent equities in the defendant's favor. Ouuge Noyes is just such a nan an Judge Nandi n, who originally tried the Standard Oil case. He 13 an appointee of President Roosevelt and has many of Roosevelt's ideas. Ho apparently tries to get at what ho regards as the inherent right of a case a3 distinguished from a mare legal right, and his action in this suit shows how dangerous these ideas are when put into effect by a man of power and authority.

Those were the considerations that were put to me by all the lawyers, including Mr. Buckingham, Judge V/allace and Judge Hatch, as being the cause of the present situation. The question

then was, could anything be done to stem the tide and divert it into the ohannel followed by Judge Hazel and if so, what would be the probable chances of success. The following courses were

^ HSAROOnOHA JAMOITAH ^ • A. EuiSOn.

op n to us:

Eirat: To apply for a rehearing, and this application was

actually made and is now pending. The chance of its being granted would be very remote, and if granted the chance of the Court reversing itself would be against us. As a matter of faot, when the application for a rehearing was filed with Judge Ifoyes by Mr. Church, the former suggested that perhaps the Court had made a mistake in morely affirming Judge Hazel, whereas perhaps they should have modified his decree by striking out all reference to patents and affirming him in that form. If tiiat should bo done, the situation would be actually worse than now, because at the present time all that Judge Ifoyes says on the subject of the contracts is nothing more than an oapreseian of the opinion of the Court, whereas, to mike tho change ha suggested would bo to actu¬ ally embody that opinion in a judgment.

Second: Apply to the Supreme Court for' a. writ of certiorari.

This seemed to be only a last resort, because the chances of its being granted were more than ten to one against us, and the cost of printing alone would be upwards of §5,000,00. Judge Wallace advised me that he saw no hope in this course, because tho Supreme Court only took up questions by certiorari that involved grave constitutional points or were of great public interest; and he told me that he had been informed by one of the Justioe3 of tho Supreme Court that unless a case came within this definition they would not take it up even if convinced that a gross miscar¬ riage od justice was sought to be corrected.

Third: We might go ahead as before, eliminating such patents

as Judge Hazel fined us for using, -which would mean leaving out the styluses until next Dotoherrand putting out reoords made by

5. 4/4/09,.. . .. ... ... , , . T. A. Edison.

YttAIMOO V(%»fKTOVIOW«l JftHiOlrXVl

the vacuum extraction process. We would then be brought up for Contempt the second time, and, oven if the Court followed Judge Hazel, it might hold that the vacuum extraction process did not avoid the patent. Everybody, however, seemed to feel that there would be slight hope of the Court taking a narrow view of the case, since the Court would be much more likely to follow the opinion of the Circuit Court of Appeals; therefore, there seemed to be but little hope in this direction.

fourth: V/e might tell the Hew York Phonograph Co. to go

ahead and do the business and if it was found that they did not do it to then serve notice on them that the contracts were cancelled. Such a' course would mean that their first stop would be to hnrrass the jobbers and dealers to either get them out of the business or aloe exact x’oyalties from than. ltather than pay anything more I think the jobbers and dealers would inevitably go over to the Victor camp or trike on the Columbia and Indestructible goods.

I did not see anything hopeful in this course, because it would moan a cognation of business in Hew York for at least a year, even if anything favorable should ultimately come of it.

In other words, I went over every contingency that was presented and tried to figure out a way by which the situation might be improved, but. it seemed more and more hopeless. More than this, with the opinion that Judge Hayes has handed down, the other looal suits would no doubt become aotive, with the danger of preliminary injunctions being granted in the rest of the affected territory.

Tomlinson’s offer was in the form of two letters of Mar oh 27th, one to Buckingham and the other to the national Phonograph Co., copies of which are enclosed, and this offer expired on

6. 4/4/09. T. A. 'Edition .

YMA1MOO HSAflOOMOHS JAMOITAH

April 2nd. It v/as necessary to either accept the offer or take the chance of something happening to make it smaller, hut with the strong probability that if nothing favorable occurred or a further setback took place, or if they had an inkling in any way of the extent of the business, the money demanded would be greater. I saw no other course than to accept Tomlinson's offer, under your authority, which v/as done in a letter signed by Judge Hatch as of Counsel dated April 2nd, copy of which I enclose. Before accept¬ ing the offer I had Judge Hatch and Hr. Buckingham each write me a letter recommending a se ■ tlement, and I enclose both of those letters. You will note that Hr. Buckingham's letter was written the day he advised me of Tomlinson's offer, and he says: "I should accept the proposed settlement if the business were nine and it were say money that, were to be paid for it.” Having ac¬ cepted Tomlinson's offer, .31 then determined that we must have some sort of a contract that would keep them from changing their mind but which would not necessarily bind us, and on Saturday afternoon these contracts were executed, and copies are enclosed. The longer contract provides for the settlement of everything except the Hyman suits for §405,000, providing the papers are acceptable to Judge Hatch. Shis provision will enable us to back out if we' wish to but at the same time will prevent them from doing so, because whatever papers they present to us must at least bear the evidence of good faith. I think substantially all the points are covered by the oontract , but the fifth paragraph provides that they will execute$Hany and all other papers that may be reasonalily necessary to carry out the purposes of this settlement.” The shorter contract provides for the settlement of the Hyman suits for the consideration of $20,000, consents to the discontinuance of these suits being given us by the Hew York Co, This you will

^ • i/i/09 ^ma<,MOo hrahoouohr JAHOITAH T. A. "Edison. v

note is a slight variation from Tomlinson's original plan as accepted by Judge Hatch. Tomlinson originallt proponed that we sh/mld pay them $425,000 and except the Hyman suits absolutely, leaving us to take care of those suits and to try to dispose of them because of Hyman’s champortous agreement, which is quoted in full in the contract. If we failed to prove the olitunpertouu nature of this contract, Hyman would go a'ead with the Davsga suit now pending before the Court of Appeals at Albany. I am told that the Davcga appeal was irregularly taken and can be dis¬ posed of as a natter of course. Thin would make it necessary for Hyman to go ahead with one of the other suits, and the ques¬ tion would then be presented whether the Trial Court would follow the Appellate Division, holding t .ha t tho suits involved a federal question, or would follow the TJ. S. Circuit Court of Appeals , in which Judge iloyes practically decides t’:at the questions after all are contract questions. It seems to be generally believed that the State Trial Court would follow the Appellate Division, and on appeal again to the Appellate Division it would be reasonable to expect that they would still adhere to their former opinion, so that a final review of the questions would be probably deferred until a second appeal to the Court of Appeals at Albany had been taken, which would take three or four This course, however, was

not absolutely and completely certain, and therefore we thought it might be better to have the Hew York St!. the State Court

suits. Under the Hew York law this can be done even though sin attorney has a contract providing for a contingent fee, and in the absence of fraud the attorney is limited in his recovery to his proportion of the settlement. It 3eemed to me that a settle¬ ment at $20,000 could not possibly be questioned as fraudulent, because, as the State Court cases now stand, they are admittedly

® * 4/ 4/09 . ' V A 15,04 „ 0n

dead, in view of the deoision of the Appellate Division, and a settlement could not reasonably take into consideration the possible contingency that the Court of Appeals might eventually reverse the decision of the Appellate Division. Tomlinson was willing to make this concession, hut hr insisted that if the New York Co. should attempt to settle the cases by consenting to their discontinuance v/c should give the New York Co. an agreement to indemnify them against any claim that Hyman might have for professional services. I saw no serious objection to this, because vie will simply be indemnifying ourselves, since, when the settlement i3 completed, wc will have control of the New York Co.; but the matter will bo laid before .Tudge Hatch when he returns on Tuosuay, so that wo maybe sure to have his approval. It is interesting in this connection to note that Tomlinson, for all his ahrev/cuiess, failed to see that the carrying out of the contraot :Cos the ^ettlem\j«t;-?d,efrfcS«r-:Sta±e suits should be made contingent upon t.-ie carrying out of the contract for the rest of the litiga¬ tion, and an interesting question v/ould be presented if we accepted the $20,000 contract and did not accept the $405,000 con¬ tract. I do not think, however, that any substantial and perma.- nent advantage could be gained by that course, with the probabil- . ity that in the end we would find ourselves in a worse position than now.

Finally, the contracts executed yesterday include a letter from ,‘.Tr. Andem to me, in which he agrees to consent to the set¬ tlement and to release any interest he might have in the State suits.

The settlement when made will, I believe, be a substantially oomplete and effective settlement of all of these litigations; certainly we will never hear from Andem again. The interests of

the other local companies are settled, under Andem' s contracts with them giving him authority to do so, and the original con¬ tracts will "bo attached to the settlement. Enough will he paid Andem to enable him to oomply with the conditions of his contracts, except, as I have already advised you, in the case of Kentucky and Kansas, where the contracts provide that the cases must not he settled without the consent of the local company. Andem tcllo me that these local companies are all defunct and that great difficulty was experienced in getting together enough of the original members to author! sx his contracts, so that he will onl3>- have to deal with s, few men, and he expects to settle with the:, on some sort of a compromise. X think he told me th: truth, hut if not, wo would certainly have ;ui apparently good defense to any further actions, no that if further suits wore ever brought by the other local companies the effectiveness of unat defense would have to he first determined before the suits even started. This would take a number of years, and when the suits did start they would be confronted by the question of laches; by the difficulty of proving title, by their failure to protest against the invasion of their territory; by the lack of a. confirmation agreement and by numerous other considerations that distinguish all the other suits from the Hoyt York and ilew England suits. X feel absolutely convinced tint no one will bo found who would be willing to spend the money to carry on such suits in the face of the difficulties which will bo presented. Of course, there were other local companies that are not included in the settlement, but with them Andem had no contracts. These companies included Pennsylvania, Colorado, Utah, Wyoming, California, Montana, South Dakota, Georgia, Florida, louisina and other States, hut they have all

"been dead for :aany years, and If the defense of laches ever ap¬ plied it would apply to them. Consequently, I regard the set¬ tlement as being conclusive, with the single exception of the Hyman suits, and as to these X think our position ia so strong that if Hyman can over recover anything it will "be limited to §10,000.

I have tried to tell you just what ray ideas have boon and v,-hy I had reached my present views. If we do not make a set¬ tle ant we have the certainty before us of on accounting, the cost of which, as I have explained, might bo $100,000, and the recovery in which might bo a large amount. The cost of an ac¬ counting can therefore be deducted as a certain expense, and to fight out the other litigations might involve as much eost. To get rid of these litigations removed a black cloud that has hung over the business for years and makes it possible to reorganise the business under one corporate name with you as the real, and acknowledged head. hr. Wes tee tells me that in this way probably §100,000 yearly can be saved, nnd the adverticing advantage would be great .

7/e have arranged with the bank to pay off the §120,000 loan at the rate of §15,000 par month, 30 that talcing into account the §150,000 already accumulated the matter v/ill bo closed up in twenty months. In this connection I should say that I have Hr. Hicks' written promise to give us a release of any claims that he might have for 430,000, payable In three non-interest bearing . notes for $10,000. each for three, six and nine months.

Unless I hear from you to the contrary I v/ill therefore go i

ahead with all the papers as above outlined and will close up the matter probably by nestt Thursday evening, and certainly by Kriday. I hope you will not objeot to my doing so, because, having spent

11 4/ 4/09 . T.A. Edison.

Y HAS MOO HSAROOHOHS JAMOITAH

more than two solid weolcs in thinking ov-.-r the situation, I am convinced that, distasteful as the settlement 1b, it is the "beat thine to do.

fours Tory truly,

y

i

MEMORANDUM

P^Ke-CA . — -

Mr. W. H, Miller: 5/12/09.

It was agreed to-day at a conference tie tween Mr. Tjlclison and the Hxecutive Committee and also Mr. Aylsworth and Hr. Aiken, that we should go ahead right away with the hornless machine for taking the Standard and Ambcrol records; and at the same time push forward as rapidly as possible the machine for taking the standard size record and also the record of large diameter. Regarding the large record, therefore, arrange to proceed with the making of a preliminary list of 25 masters, submitting to me at as early a date as possible such an arrangement as your people may decide will make an attractive list. By this I mean, the number of orchestral, band, instrumental and vocal piecos that you would have in a list of 25 p^jj|%ons. These selections are to be ell high-class , and if possible should contain some of the best-known pieces of the masters, such as Bsethcven, Bach, Handel, Wagner and others.

In the meantime we are going right ahead building spinning machines for making the large records as soon as the masters are turned over to us .

Bet me urge upon you the importance of going right ahead with this work without delay.

BBD/lW I>. b. D.

/l kti. <ij njcr^

1

Hew York City .

June 15 th,. 1900V'

' R

jUi, i •; ]!)osj FRANK l. i)YcR, J

Mr. Thomas A. Edison,

Edison Laboratory ,

Orange, N. J.

My dear Mr. Edisons-

The National Association of Talking Machine Jobbers will hold their second annual convention at Atlantic City, July Sth, 7th and 8th. The closing event of the convention will be a banquet on the evening of July 8th, to be held at one of the leading hotels.

Most of the Edison jobbers are members of the Associa¬ tion and the greater port! on will be present at the convention.

The As so cia ti o n

sent at the above banquet ... _

tance will be appreciated by all.

x tends to you an invitation to be pre- their gueBt of honor and your ac cep-

last year we made the same request, but unfortunately y°“£n engagements during that time made it impossible for you to

„ . "i11 not be necessary for you to address the jobbers,

if you desire to be a silent participant, but we want you with us far what could make a gathering of phonograph men more complete than the presence of the "Father of the industry"?

From ray recent conversation with you in the factory I know you have great faith in the future of the phonograph busi¬ ness and this is the kind of people we want at Atlantic City.

. . . ?°?Vt y°u kin<ny ^ve th-is ye**1, “08 1 careful consider¬

ation and let .me have your acceptance if at all possible.

An early reply will be greatly appreciated.

Kindly address me at

97 Chambers St. ,

Hew York City.

Chairman/ Commit toe o£\ Arrangements*

June If!, 1909.

Mr, J. Newcomb Blackman, ^

97 Chambers st.,

New York City ,

My dear Mr. Blackman:

Since writing you to-day accepting your kind Invitation to attend the Banquet of the National Association of Talking Machine Jobbers, I have seen Mr. TSdioon with reforenoo to your invitation to him and have persuaded him to make an exception to hie usual rule and accept, and I am glad to tell you that ho will also be present at the Banquet, You understand, of coupes, that he absolutely refuses to make a public address, bo that 1 will count on your respecting hia wishes in this matter,

Yours .'very truly,

HH/I m

Johnson that your work in the copyright natter will end on July 1st. Before that date I think it is due Mr. Johnson that you should prepare a detailed report addressed to him and to me telling exactly what you have done, what publishers you have visited, what arrangements have been made with them, how they view the copyright situation generally and what concessions, if any, they are willing to make.

[ENCLOSURE]

NATIONAL PHONOGRAPH COMPANY

June 2S, 1C09,

Ur, U. R. Johnson, President,

Victor Talking Machine Co.,

Coxndon, jt,*j.

i.ty dear 2ir. Johnson;

Yours of the 2 3rd inst. has been received, and an you leave the matter to me I will arrange to discontinue Vr. Goodwin on 'July 1st.

I think, however , that there should os an understanding between us on one point. JJr, Coociwin lias. 3een practically all of the music publishers, and almost without exception they have agreed to our ,ise °i’ anything they any copyright after July 1st, Some of them have consented to modifications from the striot letter of the law, such, for example, of allowing a rebate of 10^ to cover returned records, and collect royalties only on records sold, regardless of the number manufactured. It is evident to me that we must show the publishers that the market for their publications is mnii and that in a certain sense we are independent of them. Of course, there will inevitably be mary copyright "that v/e will have to use, but I think that we should use as few of them as possible. Wien the publishers realise that there is not so micih money in this proposition as they think, v/e may be able to smoko fairer and more satisfactory terms with them, This result can be reached, however, only by the two companies standing together

[ENCLOSURE]

a. 6/as/09fftmoNAL PHONOOR APH OOMPANY R ♦ tTOhtt £1 011 •

and agreeing among ourselves as to what copyright publications we intend to U3e, leaving it for Mr, miler and Mr, Childs to decide what publications they want and both companies putting them out at substantially the same time. By using the same copyright selections wo obviously will employ a fewer number than, if p/e worked independently and you toot some and_we others. l,et mo inovf whether you think ouch an arrangement as I propose would meet with your approval.

Yours very truly, ,

SKD/rWff

President..

0'

Gomptungr

My dear Mr. Dyer:-

Your letter of June 25th, concerning •Goodwin and the copyright situation, received:

I was not under the impression that any great amount of co-operation was further necessary between the Companies on the copyright question. If there had been anything like a war developed of course co-operation would have been necessary; so far as I can see, however, the Companies seem to be disposed to act most eminently fair, and the thought I had in mind in approaching them was, after finding a selection that we desired published approach the publisher with a contract in which the man¬ ufacturing clauses are waived and in which the settle¬ ments for the publication are to be made quarterly based on sales at such terms that rebates, returns, etc., would be taken care of automatically. We have come to no de¬ cision on this point as yet, but it is my opinion that, with the exception of a few of the more successful pub¬ lishing houses, we will be able to make terms which are very satisfactory to us regardless of the terms imposed by the law.

It is very evident that there is a decided ad¬ vantage to the publisher in the matter of selling cheap music to have the selections listed in the talking machine catalogues. It is also evident that the talking machine people can list but comparatively few unless they choose to lose money by increasing their recording expenses, ouV of all proportion to their sales. Therefore it will nat-

S’. L. D.

6/28/09.

urally follow after this point is fully demonstrated that the publishers will seek to have their matter published by some talking machine company or all. When that time ar¬ rives we will certainly be able to make satisfactory ar¬ rangements .

The thing that 1 feared most was that the publish¬ ers would form some sort of a combination whereby they could hold us up acting in concert. As they do not seem disposed to do this I think we had better be very careful what sort of combinations we make. I do not believe we are in a posi¬ tion to wave the red flag; we certainly are in a position to adjust our businesses to the best possible point of satisfac¬ tion under the existing conditions. I do not believe it would impair the strength of our position at all to concede at first to every demand within the law that the publishers may make. The business cannot be regulated by the law and it will not be regulated by the law. We must know exactly what we want to do before we decide to act; therefore, it is my opinion, as we are not fully informed as to what the nat¬ ural outcome of the change of conditions will be, that we had "better start in on the standpoint as prescribed by the law, with the exception of the modification of the manufac¬ turing and settlement clauses.

The great danger we had to face was a combination withholding the rights from us. I do not regard such a combination would have been practical or lasting, but tem¬ porarily it might have worked great damage and caused us untold anxiety and confusion. Of course any movement on our part whereby we in combination should undertake to force some radical bargain down the throats of the publishers would certainly have the effect of throwing them together and might even now create a condition whereby we could not secure the rights.

As I have explained above, I do not think further co-operation is necessary; I think we can secure the modifi¬ cations which are necessary and satisfactory to both of us by working on independent lines, although there would prob¬ ably be great benefit in keeping in touch with each other.

Vie have done nothing as yet and would be pleased to hear from you on the above subject before we approach the pub¬ lishers independently.

Certainly if we do decide to co-operate with each other and approach the publishers directly we must approach them in a friendly spirit and not attempt to hammer down their royalties or anything of that sort at first. If we require lower royalties, as of course we will, the publish¬ ers are more likely to be successful in hammering them down themselves a little later than we would be in hammering them now. This is one of the times when it pays to wait; one of the occasions; I think, when you win by waiting.

Yours verytruly,

__ _ _ _ _ __________ President.

June 29, 1909.

Mr. Byer:

Calkins & Holden and I have spent considerable time in discussing advertising plans for the season of 1909-10. We have, by no means, gone over all of the details necessary to the different kinds of advertising, for these cannot be completed much before September. By details, I mean the selection of papers, position, illustrations, copy and similar features.

We have decided to recommend the expenditures given below and will want/ your approval of them before you go abroad.

I appreciate that for the first three or four months of the time covered by these expenditures, it will not be easy to meet the bills of approximately $25,000 per month. I believe, however, that this advertising is the most important feature of our business and that we ought to do the advertising here referred to even though we had to finance it in some special way.

We have deoided to recommend the following expenditures:

Monthly Magazines and Weekly Publications $125,000

Newspapers - - - - - -- -- — _____ i4o)oOO

National Earm Papers 10,000

Canada Advertising - - -- — - _ 12, 000

Bulletin Boards ------------- - - 13,000

~"#298J,00C

This total will be $300,000 when the Incidental expenses of illustrations, electros, etc., have been made.

In magazine advertising, we want to make two full pages the unit of space, using this space in regular size magazines and an equivalent amount in weeklies like Saturday Evening Post, Collier 1 s ,and also in monthly magazines of larger size. £he attached list shows how we would like to use the best publications in this class. This list provides for an expenditure of approximately $120,000. $5,000 will be spent in a limited way

among from six to ten other publications.

We want to make two pages the unit in the coming season for the reason that it seems necessary to have that space to tell our story, and the continued use of two-page copy puts the manufacturer in the biggest advertising class. We have prepared this list with the idea of impressing the country with the bigness of our proposition and for the purpose of itB effect upon the trade. We are planning a newspaper campaign, to supplement the magazine advertising ,in upwards of 300 cities of 10,000 and more population.

We have planned to make a 10,000 line contract with the

newspapers and make a schedule covering a period of eifht months, beginning with the first Monday in October and ending with the last part of May, 1910'. Our present plan is to run three advertisements a week. The first three weeks of each month we will run two 3" advertisements and one 12" advertisement. During the last week of each month, v/e will increase the size of the large advertisement from 12 11 to 30 11 , using the increased space for a better stoiy about new Records.

advertisements will be used to show a single sentence referring to one or another of the artists or combinations making Records for us.

4.1. advertisement will be devoted to Phonograph copy and

the 30 advertisement will be a combined Phonograph and Record advertisement. We hope to get special position for all of these advertisements so that even the 3" space will be read by a large proportion of the newspaper- reading public.

We will limit our farm paper advertising to from three to five publications having national circulation of the same kind as the Saturday Evening Post.- V/e will use these for general publicity just as we do the Post. We have decided that the best use of a large list of farm papers calls for the use of copy that will interfere with the Babson advertising. Consequently, we have decided to practically leave the farm paper field to the Babsons, together with the mail order publications they have been using.

It seems wise to continue to advertise in Canada and we cannot accomplish much for a less sum than $12,000, which was the amount spent in the season just closing.

The $13,000 spent for railroad bulletins is already contracted for and cannot be changed.

The foregoing takes no account whatever of the advertising expenditure being made through the Babsons which will cost us from $15,000 to $25,000 next year according to the volume of their

Before you sail for Europe, I hdpe to be hble to Bhow you proofs of the kinds of newspaper advertisements we intend using.

I will be glad to di3( any time you may name.

j the details of this memorandum at

L. C. McChesn ey.

t

JUL.AWU9 FRANK L. DYcR.

July 1, 1909.

Mr. p, 1. Dyer:

I return herewith Mr. Johnson's letter in which he states he does not think any oo-operation is necessary. Speaking now for our own Company, perhaps independent aotion will he better, for as we make three or four to one of Beoords, we will always have the advantage as to terms. The publishers will soon learn that ours is the desirable catalogue, and they will be making us the favorable proposition.

As I remember your letter to Mr. Johnson, you wanted him to co-operate for a time at least, in making a very limited use of new copyrighted matter. Mr, Johnson seems to be afraid of this, but he is shrewd enough in the last two lines of his letter to advise you to wait, and let him do sb he thinkB best. If he won’t enter into an agreement to let the labratorieB inform eaoh other of what they intend to do, and follow out your scheme to only use suoh new matter as appears to be very likely to be desirable, then you will gain nothing and will probably not feel disposed to impair the progressive oharaoter of your catalogue.

. . . ^ * have had with Mr. Johns on, I think it would

be hard to hold him baok with the mutual arrangement you suggested.

He claims in his letter to be afraid, but X suspect the reason is he does not want to be bound by any oompaot that will hamper his ambition to appear progressive. It waB not your proposition to "force any rad¬ ical bargain down the throats of the publisher s'1 when you decided to start in with new stuff, but rather not to use too much of it in the ?? TLf£y-M0Sth?i» SWs you might make olear to Mr. Johnson again, and • if he will "wait" in this way, it is all you have asked.

[FROM DELOS HOLDEN]

At your request, I havo examined the cabinet or "hornless machine" which was in the Committee Room. At present there is no horn in this machine, but I understand that it is proposed to use a sectional horn, the sections being united by the horizontal partition which supports the phonograph, the bell portion of the large section being secured to the front wall of the cabinet in registry with the opening therein, the small sootion to be hinged to the partition so »3 to be movable in a vertical plane.

As regards the design of the cabinet, its lines are very similar to those covered by certain of tho design patents of tho Victor Company. While there is some difference in the bottom lines, the lines of the sides and top are practically identical. I refer particularly to tho use of the large front corner posts having ornamental carving & the uoe of a cover which is practically exactly the shape of the Victor cover, although it lacks some of the ornamentation thereof/ I do not think that the doing away with this ornamentation is sufficient to avoid the design patents, because the shape of the oabinot and cover is a matter of design, and see no reason why the design patent should not cover these novel shapeB as well as the mere orna¬ mentation which would not roqiire so high an order of invention,

X -think it will be necessary to do away with the en¬ larged oarved corner posts, and change the shape of the cover.

The whole appearance of tho cabinet would be altered, and would

as to make

produce a new design, if the corners were cut off an ootagonal arrangement shown in this sketch. Have you ever considered the desirability of such a shape? You will observe that such a cabinet occupies very much less space in a room when it is set diagonally into tho corner of a room, and which is a position quite coim|only occupied by instruments of this character as well as musio cabinets. It would certainly seem to be a good;: talking point in selling the machine, so that in addition to avoiding the design patents, it would aid our sales¬ men and those of our dealers, and of course we need all the talking points that we can get, as the Victrola machine is a difficult proposition to compete with commercially.

As regards Miller reissue patent Ho. 12,963, the structure infringes about two-thirds of the claims of this patent, and I think it will be necessary to radically modify the internal; features of the cabinet. I am aware that the mot courts do not look with favor upon the idea of a patentee re¬ issuing his patent so as to broaden the Bane to oover devioes which have been put out in the interval between the granting of the patent and the granting of the reissue, but I do not see how such a defence could be raise*, in the present case because,

we did not put out any' ‘cabinetimachlnel:havihgvan;,encrosedfi

horn in this Interval, and while some of the broadened olaimB probably cover our slot machines, the said claims are merely invalidated by these machines beoauso they were put out long before either; the reissue or the original patent, and were in public raise more than two years prior to the original filing

date. But this slot machine has little hearing on the ques¬ tion of invention in enclosing the horn within the cabinet.

To shov/ this idea we shall have to rely upon dolls and other devices containing phonographs, and upon British Patent ITo, 16,897 of 1900.

I think that the safest plan is to make a cabinet having only one compartment, mounting everything in that, this being old, as for instance, see patent ITo. 470,477 which shows a phonograph having operating' mechanism, ouch ac a motor and a stationary tapering sound amplifier, all within one compart¬ ment. I submit a sketch showing ay idea of a structure upon which v/e could make the strongest defence to a suit on the Miller patent. This structure does not avoid all of the claims but it avoids almost all of them, and I think that v/e Bhould stani a very good chance of winning a suit on the Hiller patent based on such a structure as this on the grounds that there would be no invention in curving the horn c of Criswell, so as to bring it around, underneath the motor, such change having no acoustic effect, but being merely done to make a smaller cabi¬ net and utilize space that would otherwise be wasted. In this structure the bed-plate of the phonograph rests upon and is secured by scr ews to four brackets, and there is only one com¬ partment, although false work may he laid upon the brackets to cover or oonoeal the horn, and prevent tho dropping of small objects into the bottom of the compartment. This false work should be readily removable, so that we would have no difficulty 3.

In convincing the court that that there is only a single com¬ partment , and that this false work does not constitute a par¬ tition within the moaning of the patent. She horn 3hotild he fixed and should not he sectional, and should have no movable part. She stylus should he movable out of engagement with the record by a device for lifting the floating weight. This would not be greatly different from that of the structure of the Criswell patent which lifts the stylus lever (See Figure 1) by a rod o£.

You should also consider the desirability of using | inst ead - Of . - a -fixed Si©?®, a horn oscillating on an axis concen¬ tric with the bell of the horn, as suggested by Hr, Lewis .

Such a structure would avoid some of the claims of the Hiller patent that would be infringed by a fixed horn construction, but, on the other hand, the fixed horn avoids a good many claimB that would be infringed by Mr. Lewis's scheme, so that it 3eema. to be a stand off, and you should adopt whichever form you consider preferable from a commercial standpoint.

My principal reason for believing that it is necessary to use a single compartment cabinet is that there are a large number of strong claims on a two compartment arrangement, name¬ ly: claims 13, 21, 23, 26, 27, 29, 30, 35, 38, 47, 95 and 105. These claims are all limited to the two compartments being acoustically separate, and it might oven be held that the false work suggested by me would divide the cabinet into two compart¬ ments within the moaning of those claims. If so, we Bhould 4.

have to do away with the false work, hut that would he the only change necessary. We would certainly have a much stronger case in fighting these claims if we had removahle pieces of open work rather than a solid hoard partition as in the pres¬ ent structure. These appear to he strong claims, and I think they should he avoided as much as possible.

There is another set of claims in which there are two compartments which are acoustically separate, one compartment for the reproducer and the other for the large part of the horn. These claims oould easily he avoided hy the use of 'ty communicating compartments. 1 refer to claims 16, 35, 39, 40, 41, 4-. , 56 , 58 , 59 , 60 , 65 , 67 , 72 , 74 , 82 , 94, and 107.

There are several claims which can ho avoided hy not fitting the mouth of the horn to the opening in the oahinet, namely: claims 25 , 29 , 33 and 45. It scorns to me tha't in view of these claims 'the horn should not he so fitted, and while it is true .that one of the doll patents showB a cylindrical tube fitted to afe. opening in the head, this is not a tapered member such as an ordinary amplifier, and furthermore the claims are drawn to comh.inations of which this is merely one element, and' this is generally true of the claims of this patent, and is one of the things which makes it bo dangerous.

.Thfe following claims sould seem to make it imperative to dispense with the swinging sound oonveyer, and use a one- piece horn extending clear to the sound box of the reproducer, narely: 26, 28, 43, 48, 49, 50, 51, 52, 53, 54, 55 and 107.

'■/ 5.

The following olaims mako it neoesDary to Bake the horn in one piece as distinguished fron a sectional horn, namely! 37, 93, 94 and 95.

The following olaims are avoided hy using a station¬ ary reproducer, namely: 75, 76, 77, 78, 79, 80, 81, 83 and 84.

The following claims are avoided hy having the motor and horn in the same compartment, as distinguished from having the motor boxed in, namely: 67, 90, 91, 96, 97, 98 and 99. While it is old to "box in a motor, yet these are combination olaims not dependent for their novelty on the boxing in of the motor, and should therefore be avoided by the simple expedient of leaving the motor open as in the Criswell patent.

The following olaims might bo sued upon but 1 am Satisfied that they are too broad and would be held invalid in view of our public use of slot maohineB, namely: 34, 36, 44, 45, 68, 69, 70, 71, 73, 85, 89 ani 92.

The following claims are limited to the use of a deflector or sound modifier applied to the baok end of the horn, which feature we do not propose to use, namely: 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 14, IB, 17, 18, 19, 20, 22, 46, 57, «!', 62, 63, 64, 66, 100, 101, 102, 103 and 104,

Claim 8 Ib apeoifio to the yoke and horn for uniting the pivotal tone arm to the stationary horn, arxl we do not in¬ fringe it.

OlaimB 31, 32 and 42 are limited to a cabinet open at the bottom. This feature we do not use.

6.

The following olaima I do not see any Hay to avoid, and think wo shall have to stand suit on these and defend on tho ground of non-invention, namely: 24, 86, 87, 88 and 106. These claims read as follows:

"24. A talking machine comprising a casing provided with an opening and having a hinged cover, a partiion adjacent tho cover, talking machine operating moanB sup¬ ported beneath the partition, a talking machine including a sound reproducer, said reproducer being above tho par¬ tition and accessible by moving the cover, and a horn ex¬ tending from the reproducer to the opening in tho cabinet.

86. In a talking machine, tho combination with sound reproducing means, of an amplifier cooperatively connected therewith, aid an inclosure below the talking machine with¬ in which is positioned the major portion of the amplifier.

87. In a talking machine, the combination with sound reproducing means, of a cooperating amplifier connected therewith, and on inclosure supporting tho major portion of the amplifier below the talking machine.

08. In a talking machine, the combination with sound reproducing means, of a cooperating amplifier connected therewith, and an inclosuro supporting the major portion of the amplifier in a fixed position bolow the talking machine .

106. In a talking machine, a casing having an opening, sound amplifying means ctationarily mounted within said casing and inclosed thereby, the largo end of said amplify¬ ing moons terminating at about said opening in the caBing, a sound conveying tube within said casing and having one end connected with the small end of said amplifying means, sound reproducing means at the o ther end of said sound con¬ veying tube, and a record support within said casing.

If you see any nay of avoiding them by a structure in which the horn is carried below the phonograph, as is neo- essary in order to mate a desirable instrument, I should be glad to have your views, but as I have previously stated, I

do not consider that the uoe of a horn of this character in the Criswell patent , would amount to invont ion.

DH/tol,

LEGAL DEPAROMENT:

d-o-y^ a

July 2, 1909.

Note attached copy of letter to Walter H. Miller in reference to the new Copyright Law. I imagine that nothing of this sort will come up before 1 return in September, but if it does, ascertain from Washington whether the composition was copy¬ righted after July l, 1909, and whether the composer is an American citizen or a citizen of a country granting corresponding rigits.

If a copyright is one requiring royalties, refer the matter to •Mr. Goodwin and have Mm negotiate with the publisher to get the right to use the piece, preferably for an upset price, the reason¬ ableness of which Mr. Wilson can determine, and if not, try if possible to have the royalties only apply to records sold, and not to all records manufactured, and also, if possible, only to rdcords sold in the United States, and finally providing that 10$ of the accrued royalties should be retained for one year and an adjustment then made, in view of any returned records. Mr. Goodwin is fully acquainted with this situation and will be able to negotiate the matter, but I would prefer to have notMng done until I return.

ild/iww

E. L. D,

[ENCLOSURE]

Mr. Walter H. Hiller,

Manager Recording Department, ITew Yorlc,

Dear Sir:

July 8, 1909.

The now Copyright law went into effect on July i, 1909, and in the future you want to be guided by the following instruc¬ tions:

Any piece of music marked "Copyrighted 1908" or earlier can De freely uoed. Any piece of music marked "Copyrighted 1909" can Do freely used, provided you are ahsolutoly sure that it was pub¬ lished before July 1, 1909. If you have may doUbt as to whether the copyright was obtained before or after JUly i, 1909, bring the matter first to the legal Department, in ordor that the date of the copyright can be ascertained. If the music is a foreign pub¬ lication and has no copyright notice on it, do not use it until it has been first submitted to the legal Department, because there may be an American edition. If the pieoe of music is of American production and contains no copyright notice, do not use it until the -matter has been brought to the attention of the legal Depart¬ ment, because you may have a spurious copy. if you have any reason to believe that the composer of a copyrighted piece is a foreigner, bring the matter to the attention of the legal Depart¬ ment, in order that the nationality of the co^osor can bo

[ENCLOSURE]

5/2/09.

w. H. Miller .

investigated, -because it is possible he may not be entitled to mechanical rights. In other wordB, hereafter, unless you are absolutely convinced that a piece of music has been copyrighted before July 1, 1909, you want to use extreme care, because the penalties for infringement under the new law are very severe.

VSy general idea on the subject of what you should do is not to hamper or hinder you, but I think you should bear in mind that the payment of royalties will operate as a heavy additional expense which we may not bo able to get back. Make as much use as you can of uncopyrighted pieces or old pieces, and if any composers come to you with songs, give them a trial, as it might pay ub to W a good thing outright and copyright it ourselves. If, how¬ ever, you $ind it necessary to use any copyrighted piecs which may have been copyrighted after July 1, 1909, consult with the legal Department,, in order that proper notice to the copyright proprietor may be served on him and a special contract made if possible. I imagine that no particular piece of music copyrighted after July 1, 1909, will become so popular that you will have to use it before I return in September, but if there is anything that you

have to use, you want to be

very careful not to make any mistake.

Yours very truly.

eld/iw

President.

MINUTES OE MEETING OE SAMS MANAGERS HEED TOLY 12, 1909.

Present: Messrs. Dolbeer, Goodwin, John Pelzer, Burnham,

Hudson and Durand.

Mr. Dolbeer stated that this meeting was oalled for the purpose of conferring upon the matter of haying the salesmen of the National Phonograph Company represent and introduce as far as possible the goods; of i the various Edison Companies manufactured here; that we have eighteen salesmen at the present time and propose increasing the number to thirty; that the estimated oost of ; the thirty men per year will be approximately #90,000 to $96,000; and that while these men will travel prinoiply for the National Company, who will of ooursi Btand the major portion of the expense, a certain proportion of the expense will be apportioned to the other companies according to the amount of work done or time expended in their interest at the end of eaoh six months or year. He stated that Mr. Goodwin had been appointed Manager of Salesmen, exoept those who are now employed in a special oapaoity by the Battery Department, Kinetograph Depart¬ ment or Business Phonograph Department, no salesmen being employed in the Bates Department at present, and that any matters to be taken up with the salesmen should be taken up through Mr. Goodwin. He slad that this idea he thought was suggested by Mr. Dyer and that Mr. Ed in had urged its being adopted. Mr. Goodwin then said that the Sales Managers should outline what is to be done by the salesmen, What you want them to say, what you want them to show, what class of people they are to oali upon, the training they must be given before they start out, etc.

Hr. Hudson brought up the Question of expense, stating that ho proposed putting on a oouple of additional salesmen and did not want the expense to he so great that he could not put. these men on ‘I-trr <*'*"

i 'rt-iA.If o-w/5m> -^/ ZJL~i> , f, i

Hr. Dolbeer xsts stated that this oould only he determined at'tho end of six months or a year and would depend on the servioes rendered, the national Phonograph Company of course standing the major portion.

Mr. Burnha brought up the question of expense, having only a small line to handle, and thought this might antagonize the dealers hndling numbering machines, but it was explained that it was not the purpose to take the orders and fill them direct from the factory, but to have the dealers and Jobbers get the benefit of the work done by the salesmen the same as in the case of the national Company. * It was agreed hy all that this would be a good plan and bound to be of benefit.

Mr. Durand suggested that in issuing instructions to the salesmen it might be well to have a form of receipt at the bottom of the sheet whioh the salesman would sign and return, thus making sure that they would receive notice of any changes:; eto.

Correspondence with the salesmen, reports from them, eto., will be carried on between the sales Manager and the salesmen with extra copies of reports and correspondence to be filed with Mr. Qoodwin for referenoe.

Mr. Durand asked whether his salesmen sbuld foward anyoomplaints or other information they might aquire regarding the amusement phonographs, and it was thought this would be of benefit.

Mr. Dolbeer said he thought it would be of considerable benefit for all the Sales Managers to meet and disouss ways and means for their mutual benefit— if not at regular intervals, then to meet on call, say every two weeks, a month or six weeks.

Mr. Dolbeer was eleoted Chairman of the organization, and for

(<3>

the present at least the meetings will be subjeot to call.

In disoussing points of mutual benefit and help Hr. Durand asked whether it was the idea that a new phonograph, for inBtanoe, just prior to being adopted in its f inishd'state be brought before them for their oritioism, and it waB agreed that this might be done.

Hr. Goodwin pointed out that forms to be gotten out by the SaleB Managers for the use of salesmen should be of the same size as the salesmen aro now using so as to fit the reoeptaole.

It was arranged that a meeting Should be held in the Committee Boom on the third floor to-morrow morning for the purpose of explan irg the way of handling the Kinetoscope and films, eto.

There being no further business the meeting adjourned.

t. W. Talker.

Sept. IX, 1909.

I have read over Mr. Graf's letter about Vi- <j Grand Opera talent- with a great deal of interest and return it herewith.

I must confess that there is no feature of the business upon which I have a less definite opinion than that of Grand opera Records. If we were practically alone in the field the problem would be easy of solution. The competition of the Victor Company, however, makes it exceedingly difficult. They have a great advantage in their recording possibilities, their louder record and their exclusive artists, most of whom at present occupy the highest places in the Grand opera world. Therefore, no matter how well we may plan, we must suffer by comparison.

It seems to me that the -action of the Victor Company in selling Slezak Records at $1.00 each has practically laid down a policy that we must follow. It seems impossible to think of our getting a higher price than $1.00 each for Slezak Records and since Slezak is the best of our possible artists at the present time, I do not sec how we can expect to get a higher price for other singers' Records than those made by Slezak. Consequently, it looks as if we were- practically compelled to make a flat price of $1.00 each- on Grand opera Records, regardless of their cost.

After all, the question is one of not' how much money we can make from this feature of the business, but how little we shall lose. Even at’ the price paid Slezak for his work, we ought to get back the entire cost in from one to two years. In other words, the profits from his Records above the cost of manufacturing 'and selling ought to be enough in • from one to two years to offset: the sums paid Slezak. The same ought to be true of any other singer, even though we paid a considerably higher price.

I do not think that the Victor Company is going to be able to indefinitely- maintain its present prices of from $2.00 to $7.00 per Record. Just aB soon as we or any other company can produce Records nearly equal to theirs in quality and can sell tham at a more popular price, their exclusive contracts are going to be a boomerang. They will be compelled to sell Records at a lower price, even though they lose money on every Record. It is possible that if we named a flat price of $1.00 for all of our Grand Opera Records, it would soon begin to

Mr. Dyer -2- Sept. 11, 1909.

react against the Victor Company and they would sooner or later have cause to regret their efforts to discredit Slezak- and our own efforts to enter the Grand Opera field.

The only complication in a popular price like this is the effect upon singers. We might have some difficulty in getting artists to sing for us if the Victor Company sold their Records at $3.00 and we at $1.00. if the present Victor prices are also obtained by the Gramophone Company in Great Britain and Europe, and both companies are likely to be able to continue to make exclusive contracts with the best artists and to maintain the existing prices, then it would be a mistake on our part to have a flat price of $1.00 each.

Then, again, so long as we have only a cylinder record, must we not admit inferiority and if so, a $1,00 price would be consistent with our position.

In any event, I hardly see how we- can have a graduated scale ranging from $1.00 to $3.00. The Victor price of Slezak Records seems to settle the matter conclusively.

As for the lingers named in Mr. Graf’s letter,

Jorn, Kraus, Knote and- even de Reszke cannot be put in the first class. Torn has made Records for us in Germany and we are selling them here- at 35# each. The same is true of Ernest Kraus.

Knote spade some Grand Opera Records for us but they made no special hit and certainly we could not get more for his Records than asked for Slezak Records. Bonci is probably the best name suggested and probably equal or superior to Slezak from a commercial standpoint. I think he is an Italian tenor and would afford a better cosirparl son with Caruso. Whether it would pay to fight the E'onotypia- contract for him would depend upon the probable cost.

I doubt if we could afford to spend a total of more than from $20,000 to $25,000 to get his services.

I would not think of putting singers like Muratore, Berti and Resky in the Grand opera list at all^I do not know Mile. Verlet, but the cost of her. seems too cheap to be good. The Records of de Reszke would be useful as part of a catalogue, but I- doubt if he would have great advertising value. I am under the impression that he is here regarded as a "has been" and no matter how good his Records might actually be, he would be discredited by possible buyers.

The greatest demand in this country seems to be

Mr. Dyer -3-

Sept. XI, 1909.

for Grand Opera Records in Italian. I do not know whether this is because Italian opera is more popular, or because caruso's Records have been so widely sold as to make it appear as if they -represented the sentiment of that part of the public wanting high-class music. Our own experience has been that Records in Gentian, especially those f rom V/agner * s operas, have not sold as well as those sung in Italian.

not 311 eaBy matter to attempt to influence ' Metropolitan papers for the puppose of exploiting Slezak before the public. Slezak will succeed or fail according to his merits. If he is not a high-class singer, no amount of effort on anyone* s part could gain for him favorable consideration at the hands of 4? press, if he succeeds, on his merits, it yiH not he necessary for us to do anything. There is nothing, however, to prevent us from getting out attractive printed matter and in that way keeping him before the public. We might also use newspaper space to exploit him and his Records just as Mr. Lawson does to exploit his stock operations, we would have to use display space, but we could address .the public in the space in the same words as if the matter appeared in reading columns.' This will be expensive publicity and it might pay.

diMr. Grafs letter points out, however, that we cannot expect to get in a few months what it has taken eight years for the Gramophone and Victor Companies to secure.

L. C. McChesney,

[ENCLOSURE]

• iSjz-n'^L

d^Rji^ybc, ) Cj£^.( L

6 t-t-6^-»

w"««‘7rsr»' ^rf ^t^au. ,m^c. /uwi, L^f^Ay aX&.

M> Asr p>-M-ajUi.« <a->vCOa<Xo ^-trr 0 .^1- 'r\^3-Ch.a™JL,

£t-G-& ( <XiaAaa--c^ tit. vA~&~A A\X*tAjL V-r\Jis £?C<AS^kA^A^ ,

■ \.£±*_ P&x*^ nslC -T<l^ fl-t~c*xJ^'t-iK A0 r M-o CX-cAlww-cI*^

A~-f iiuL. LiSwiA.' 6 f ^vt> d- *- €• 7i.o i^ry^AAZt\A^y^o

■fC^OTj-v^ t«-, • 'W-t- M-A<- f£oe- CrjCl«Jr*\s *LlvuuS-^ |

,-TA-<j 4_fJ- WJ>-r, ■Z-^'A A 6‘ v" tisO-tA^e. 04- * ..

-W^_ C-«aa^ ^-4^0-4- t4_e, ,£^- /-r-tA*_ -fror—

<L<X I^A-a-Aas \1^- h-C, t-J-fl-^v^. -CV- .. I^-^jLlA. oLz^ 0-^~ - ,

~ ->T Lk^xaAA. i/i

_ £. J -<jzLy_^, i*- &JZ. *fcje- L-e-aX" ~te-njrr-

a-<-<-«&> CL-<_ -t£<_-<_i @-«-V-<--<-<_J9- (-(U^sC*is ISk^rr- ■

■O'-'wcL. Gt — ofco-r- ) £t C-irxsLfaui

i

**^g» *rj fi4«-r-j

HOTEL MAjESTIC a 1 . . .

"i",““,l“f," Xwax->l^cji.. •> Mv** A* ^ao-c. tjmv- «

C. JxJKA-t. i-44-M.

^-<_-A-v\^ ^Xa^T-^tX/Laa^aa^. <*X> pfct aaaaJ"'(>-^ felf-o- ^2-M-p,

-*'• x«_^, ■

U— *— ^ ’buULA*.

' ^H! — a— *L V^JL~nj- _

> do-

4-vv^- a-> £&~

4-^- ou, ^ Un, t it

'('-a-o <L-a-^»-«i^>i-i<-cA_-e. jf^v ?L- , lA~4-t^-i*-&i_f.

3 ’ ^^l-te- Kl>t--0 — <-A-o 1 ^A1_je_a_^_

■ ^tx, ^ uc (f-^-r- *SB-

7t>«CL-eo •— ^

- ^b-y^C. . vA-lO

[ENCLOSURE]

7{apies& Co., j££t

(2,5 - k - - WHOLESALE AND RETAIL - » - r 3 ^ )

(Sdlson w nog rap As and ^Records,

*dlncl all Supplies.

>-/Vo. 603 (bast >. ALaitt Street.

Mr. Walter' Miller!

Nov/ York C it; Dear. Sir

Richmond, Va„.

^ECCiv^ 'S&zzmtf d?CK L Or-:/L

Enclosed please find some clippings from the latest Vic¬ tor publication; . They say they have secured the services of the cele¬ brated tenor Slezak, also Ricardo Martin. We thought you were going to spring these fellows with the new hornless machine, but you cannot get ahead of these babies for talent. .

. - — There-is another -matter, we '.would like to . call* to your at¬ tention, wish you would take’ it up 'when selecting records, when a pop¬ ular song comes out like "My Wife* s Gone .To The Country Hooray." that' you could put it out before the song is dead, this record does not go on sale until the 25t,h. of thin month. Why donH you have a special list to put out on these records, send them out so tho public can got them at once. According to your system now you cannot get a popular song out within GO days, this is not justice to a dealer that loads up on them. If we could countermand our order for one-half of our pur¬ chase we