Edison, His Life and Inventions [139]
succeeded in getting up machinery and in changing the processes, until it got down so that they cost somewhere around fifty cents. I still sold them for forty cents, and lost more money that year than any other, because the sales were increasing rapidly. The fourth year I got it down to thirty-seven cents, and I made all the money up in one year that I had lost previously. I finally got it down to twenty-two cents, and sold them for forty cents; and they were made by the million. Whereupon the Wall Street people thought it was a very lucrative business, so they concluded they would like to have it, and bought us out.
"One of the incidents which caused a very great cheapening was that, when we started, one of the important processes had to be done by experts. This was the sealing on of the part carrying the filament into the globe, which was rather a delicate operation in those days, and required several months of training before any one could seal in a fair number of parts in a day. When we got to the point where we employed eighty of these experts they formed a union; and knowing it was impossible to manufacture lamps without them, they became very insolent. One instance was that the son of one of these experts was employed in the office, and when he was told to do anything would not do it, or would give an insolent reply. He was discharged, whereupon the union notified us that unless the boy was taken back the whole body would go out. It got so bad that the manager came to me and said he could not stand it any longer; something had got to be done. They were not only more surly; they were diminishing the output, and it became impossible to manage the works. He got me enthused on the subject, so I started in to see if it were not possible to do that operation by machinery. After feeling around for some days I got a clew how to do it. I then put men on it I could trust, and made the preliminary machinery. That seemed to work pretty well. I then made another machine which did the work nicely. I then made a third machine, and would bring in yard men, ordinary laborers, etc., and when I could get these men to put the parts together as well as the trained experts, in an hour, I considered the machine complete. I then went secretly to work and made thirty of the machines. Up in the top loft of the factory we stored those machines, and at night we put up the benches and got everything all ready. Then we discharged the office-boy. Then the union went out. It has been out ever since.
"When we formed the works at Harrison we divided the interests into one hundred shares or parts at $100 par. One of the boys was hard up after a time, and sold two shares to Bob Cutting. Up to that time we had never paid anything; but we got around to the point where the board declared a dividend every Saturday night. We had never declared a dividend when Cutting bought his shares, and after getting his dividends for three weeks in succession, he called up on the telephone and wanted to know what kind of a concern this was that paid a weekly dividend. The works sold for $1,085,000."
Incidentally it may be noted, as illustrative of the problems brought to Edison, that while he had the factory at Harrison an importer in the Chinese trade went to him and wanted a dynamo to be run by hand power. The importer explained that in China human labor was cheaper than steam power. Edison devised a machine to answer the purpose, and put long spokes on it, fitted it up, and shipped it to China. He has not, however, heard of it since.
For making the dynamos Edison secured, as noted in the preceding chapter, the Roach Iron Works on Goerck Street, New York, and this was also equipped. A building was rented on Washington Street, where machinery and tools were put in specially designed for making the underground tube conductors and their various paraphernalia; and the faithful John Kruesi was given charge of that branch of production. To Sigmund Bergmann, who had worked previously with Edison on telephone apparatus and phonographs, and was already making Edison
"One of the incidents which caused a very great cheapening was that, when we started, one of the important processes had to be done by experts. This was the sealing on of the part carrying the filament into the globe, which was rather a delicate operation in those days, and required several months of training before any one could seal in a fair number of parts in a day. When we got to the point where we employed eighty of these experts they formed a union; and knowing it was impossible to manufacture lamps without them, they became very insolent. One instance was that the son of one of these experts was employed in the office, and when he was told to do anything would not do it, or would give an insolent reply. He was discharged, whereupon the union notified us that unless the boy was taken back the whole body would go out. It got so bad that the manager came to me and said he could not stand it any longer; something had got to be done. They were not only more surly; they were diminishing the output, and it became impossible to manage the works. He got me enthused on the subject, so I started in to see if it were not possible to do that operation by machinery. After feeling around for some days I got a clew how to do it. I then put men on it I could trust, and made the preliminary machinery. That seemed to work pretty well. I then made another machine which did the work nicely. I then made a third machine, and would bring in yard men, ordinary laborers, etc., and when I could get these men to put the parts together as well as the trained experts, in an hour, I considered the machine complete. I then went secretly to work and made thirty of the machines. Up in the top loft of the factory we stored those machines, and at night we put up the benches and got everything all ready. Then we discharged the office-boy. Then the union went out. It has been out ever since.
"When we formed the works at Harrison we divided the interests into one hundred shares or parts at $100 par. One of the boys was hard up after a time, and sold two shares to Bob Cutting. Up to that time we had never paid anything; but we got around to the point where the board declared a dividend every Saturday night. We had never declared a dividend when Cutting bought his shares, and after getting his dividends for three weeks in succession, he called up on the telephone and wanted to know what kind of a concern this was that paid a weekly dividend. The works sold for $1,085,000."
Incidentally it may be noted, as illustrative of the problems brought to Edison, that while he had the factory at Harrison an importer in the Chinese trade went to him and wanted a dynamo to be run by hand power. The importer explained that in China human labor was cheaper than steam power. Edison devised a machine to answer the purpose, and put long spokes on it, fitted it up, and shipped it to China. He has not, however, heard of it since.
For making the dynamos Edison secured, as noted in the preceding chapter, the Roach Iron Works on Goerck Street, New York, and this was also equipped. A building was rented on Washington Street, where machinery and tools were put in specially designed for making the underground tube conductors and their various paraphernalia; and the faithful John Kruesi was given charge of that branch of production. To Sigmund Bergmann, who had worked previously with Edison on telephone apparatus and phonographs, and was already making Edison