Edison, His Life and Inventions [51]
Institute of Electrical Engineers, who had as a youth an active and intimate connection with that branch of electrical industry. In the course of his article he mentions the curious fact that Doctor Laws at first, in receiving quotations from the Exchanges, was so distrustful of the Morse system that he installed long lines of speaking-tube as a more satisfactory and safe device than a telegraph wire. As to the relations of that time Mr. Pope remarks: "The rivalry between the two concerns resulted in consolidation, Doctor Laws's enterprise being absorbed by the Gold & Stock Telegraph Company, while the Laws stock printer was relegated to the scrap-heap and the museum. Competition in the field did not, however, cease. Messrs. Pope and Edison invented a one-wire printer, and started a system of `gold printers' devoted to the recording of gold quotations and sterling exchange only. It was intended more especially for importers and exchange brokers, and was furnished at a lower price than the indicator service.... The building and equipment of private telegraph lines was also entered upon. This business was also subsequently absorbed by the Gold & Stock Telegraph Company, which was probably at this time at the height of its prosperity. The financial organization of the company was peculiar and worthy of attention. Each subscriber for a machine paid in $100 for the privilege of securing an instrument. For the service he paid $25 weekly. In case he retired or failed, he could transfer his `right,' and employees were constantly on the alert for purchasable rights, which could be disposed of at a profit. It was occasionally worth the profit to convince a man that he did not actually own the machine which had been placed in his office.... The Western Union Telegraph Company secured a majority of its stock, and Gen. Marshall Lefferts was elected president. A private-line department was established, and the business taken over from Pope, Edison, and Ashley was rapidly enlarged."
At this juncture General Lefferts, as President of the Gold & Stock Telegraph Company, requested Edison to go to work on improving the stock ticker, furnishing the money; and the well-known "Universal" ticker, in wide-spread use in its day, was one result. Mr. Edison gives a graphic picture of the startling effect on his fortunes: "I made a great many inventions; one was the special ticker used for many years outside of New York in the large cities. This was made exceedingly simple, as they did not have the experts we had in New York to handle anything complicated. The same ticker was used on the London Stock Exchange. After I had made a great number of inventions and obtained patents, the General seemed anxious that the matter should be closed up. One day I exhibited and worked a successful device whereby if a ticker should get out of unison in a broker's office and commence to print wild figures, it could be brought to unison from the central station, which saved the labor of many men and much trouble to the broker. He called me into his office, and said: `Now, young man, I want to close up the matter of your inventions. How much do you think you should receive?' I had made up my mind that, taking into consideration the time and killing pace I was working at, I should be entitled to $5000, but could get along with $3000. When the psychological moment arrived, I hadn't the nerve to name such a large sum, so I said: `Well, General, suppose you make me an offer.' Then he said: `How would $40,000 strike you?' This caused me to come as near fainting as I ever got. I was afraid he would hear my heart beat. I managed to say that I thought it was fair. `All right, I will have a contract drawn; come around in three days and sign it, and I will give you the money.' I arrived on time, but had been doing some considerable thinking on the subject. The sum seemed to be very large for the amount of work, for at that time I determined the value by the time and trouble, and not by what the invention was worth to others. I thought there was something unreal about it. However,
At this juncture General Lefferts, as President of the Gold & Stock Telegraph Company, requested Edison to go to work on improving the stock ticker, furnishing the money; and the well-known "Universal" ticker, in wide-spread use in its day, was one result. Mr. Edison gives a graphic picture of the startling effect on his fortunes: "I made a great many inventions; one was the special ticker used for many years outside of New York in the large cities. This was made exceedingly simple, as they did not have the experts we had in New York to handle anything complicated. The same ticker was used on the London Stock Exchange. After I had made a great number of inventions and obtained patents, the General seemed anxious that the matter should be closed up. One day I exhibited and worked a successful device whereby if a ticker should get out of unison in a broker's office and commence to print wild figures, it could be brought to unison from the central station, which saved the labor of many men and much trouble to the broker. He called me into his office, and said: `Now, young man, I want to close up the matter of your inventions. How much do you think you should receive?' I had made up my mind that, taking into consideration the time and killing pace I was working at, I should be entitled to $5000, but could get along with $3000. When the psychological moment arrived, I hadn't the nerve to name such a large sum, so I said: `Well, General, suppose you make me an offer.' Then he said: `How would $40,000 strike you?' This caused me to come as near fainting as I ever got. I was afraid he would hear my heart beat. I managed to say that I thought it was fair. `All right, I will have a contract drawn; come around in three days and sign it, and I will give you the money.' I arrived on time, but had been doing some considerable thinking on the subject. The sum seemed to be very large for the amount of work, for at that time I determined the value by the time and trouble, and not by what the invention was worth to others. I thought there was something unreal about it. However,