Edison, Thomas A. (Thomas Alva), 1847-1931; Inventors -- United States -- Biography
The course of electrical history has been variegated by some very
remarkable litigation; but none was ever more extraordinary than that
referred to here as arising from the transfer of the Automatic Telegraph
Company to Mr. Jay Gould and the Atlantic & Pacific Telegraph Company.
The terms accepted by Colonel Reiff from Mr. Gould, on December 30,
1874, provided that the purchasing telegraph company should increase its
capital to $15,000,000, of which the Automatic interests were to receive
$4,000,000 for their patents, contracts, etc. The stock was then selling
at about 25, and in the later consolidation with the Western Union
"went in" at about 60; so that the real purchase price was not less than
$1,000,000 in cash. There was a private arrangement in writing with Mr.
Gould that he was to receive one-tenth of the "result" to the Automatic
group, and a tenth of the further results secured at home and abroad.
Mr. Gould personally bought up and gave money and bonds for one or two
individual interests on the above basis, including that of Harrington,
who in his representative capacity executed assignments to Mr. Gould.
But payments were then stopped, and the other owners were left without
any compensation, although all that belonged to them in the shape of
property and patents was taken over bodily into Atlantic & Pacific
hands, and never again left them. Attempts at settlement were made in
their behalf, and dragged wearily, due apparently to the fact that
the plans were blocked by General Eckert, who had in some manner taken
offence at a transaction effected without his active participation in
all the details. Edison, who became under the agreement the electrician
of the Atlantic & Pacific Telegraph Company, has testified to the
unfriendly attitude assumed toward him by General Eckert, as president.
In a graphic letter from Menlo Park to Mr. Gould, dated February 2,
1877, Edison makes a most vigorous and impassioned complaint of
his treatment, "which, acting cumulatively, was a long, unbroken
disappointment to me"; and he reminds Mr. Gould of promises made to
him the day the transfer had been effected of Edison's interest in the
quadruplex. The situation was galling to the busy, high-spirited young
inventor, who, moreover, "had to live"; and it led to his resumption of
work for the Western Union Telegraph Company, which was only too glad to
get him back. Meantime, the saddened and perplexed Automatic group was
left unpaid, and it was not until 1906, on a bill filed nearly thirty
years before, that Judge Hazel, in the United States Circuit Court
for the Southern District of New York, found strongly in favor of the
claimants and ordered an accounting. The court held that there had been
a most wrongful appropriation of the patents, including alike those
relating to the automatic, the duplex, and the quadruplex, all being
included in the general arrangement under which Mr. Gould had held put
his tempting bait of $4,000,000.
Public-domain text, read in full here on John Shaqi.
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