He said that my proposal was entirely inadmissible, that he could not permit any independent business to be carried on in his establishment, and stated firmly the impossibility of any arrangement of the kind I suggested, which would be something quite unheard of. I stood firmly on my own position, but was obliged to leave him without any sign of yielding on his part. The negotiation was, however, renewed, exactly how I cannot now recall, but it ended in my carrying my point. We finally concluded a bargain, in which I held onto the business, but, of course, had to insure to him pretty much all the profits. This I did not mind, my object was to obtain a position, which it will be seen I fully accomplished, but did not know what to do with it. I was conscious that I could never have made this arrangement but for the extreme stagnation of the times; but was not aware of an additional reason which impelled Mr. Phillips to agree to my terms, when he found he could not do any better. What this reason was will appear pretty soon. The arrangement was to go into effect as soon as I got an order. This was my next job. I learned that Mr. Peters, a manufacturer of high-grade knit fabrics in Newark, all which, by the way, were sold by him to importers in New York, was carrying on also a manufacture of light oilcloths in Newark in temporary quarters, and was building a large structure for this purpose in East Newark, the building now and for many years past occupied by the Edison lamp manufactory, and was in the market for an engine. I called on Mr. Peters, and got from him the privilege of submitting an estimate for this engine. For this purpose I went to his then present works, and measured the amount of power he was using, and found that one of my 8×16 engines would give him that power with the additional amount he wished to provide for. On calling with my estimate early one morning, I found Mr. Peters ready to bow me out. He told me that he had been informed that the high-speed engines had proved a failure, and the manufacture of them had been abandoned three or four years ago. I said to him, “Mr. Peters, I would like to make you a proposition.” He replied that he would hear it.